1. The global steel wire market size is projected to grow from USD 93.2 billion in 2020 to USD 124.7 billion by 2025, at a CAGR of 6.0%. The steel wire industry is growing due to the rise in demand for steel wires from various applications, globally. The demand for steel wire is expected to decline in 2020 due to COVID-19. However, the end of lockdown and recovery in the end-use industries will stimulate the demand during the forecast period.
2. The global magnet wire market size is projected to grow from USD 32.7 billion in 2021 to USD 41.8 billion by 2026, at a CAGR of 5.0%. The magnet wire market is growing due to the rise in the demand from wind electrical & electronics, industrial, infrastructure, and transportation industries. Growing tax incentives along with government stimulus packages are fuelling the growth of magnet wire market across the world.
AFFECTED INDUSTRIES FOR STEEL WIRE
1. The construction industry is the largest application industry in the steel wire market in terms of volume. Steel wire find wide applications in construction industry in road, river & railway bridges and flyovers, atomic reactor domes, slabs, silos, hangers, aqueducts, high-rise buildings, viaducts, and railway sleeper construction. The increased demand from these applications is expected to drive the steel wire market during the forecasted period.
2. Plastic ropes have higher strength with lower weight as compared to steel wire ropes. Currently, most end-use industries use steel wire ropes due to the lack of awareness about the advantages of using plastic ropes and the high price of plastic fibers. With the rising advancements in plastic materials, plastic ropes are likely to become a better alternative to conventional ropes. Plastic ropes have minimum stretch, due to which, even if the rope breaks, it falls to the ground without snapping back like wire rope, thereby causing no injuries.
3. In mining applications, plastic ropes are expected to get wide acceptance in the future due to their performance excellence. Efforts are being made to transition from steel cables to custom-engineered plastic ropes for undertaking crucial tasks during mining. Plastic ropes are expected to be in higher demand due to their ergonomic characteristic.
4. The automotive end-use industry is the worst-affected industry due to the COVID-19 pandemic. The automotive demand fell by 19% in the first ten months of 2020 as compared with 2019. According to the World Steel Association, the consumption of finished steel is expected to fall by 17% in 2020 in the automotive end-use industry; the consumption is expected to grow in the post-pandemic situation. The finished steel consumption is expected to grow by 13% globally. Europe is the hub for the automotive industry; the growth in the automotive sector is an opportunity for steel wire manufacturers in the region. Also, various governments have offered stimulus packages for the automotive industry in the European region, which is expected to help the automotive manufacturers in the region.
FORECAST FOR STEEL WIRE
1. The carbon steel wire accounted for a larger share in the steel wire market. The carbon steel wire is used in a wide range of applications such as for tires, cords, hoses, galvanized wires and strands, ACSR strands and armouring of conductor cables, fencing, springs, fasteners, clips, staples, mesh, screws, nails, barbed wires, chains, and steel fibres in concrete. The demand for carbon steel wire is expected to see a decline in 2020 due to the pandemic.
2. The region has a largest share in the steel wires market owing to its increasing demand from construction & infrastructure projects, growing automotive production, growing energy transfer infrastructure, and increasing industrial manufacturing. The region has presence of number of tire one manufacturers, electricity consumption is growing in the region which has huge opportunity for steel wire markets in these sectors.
AFFECTED INDUSTRIES FOR MAGNET WIRE
1. Electric Vehicles (EV) are contributing to a safer, cleaner, and more energy-efficient environment. The demand for hybrid and electric vehicles is growing and is expected to see high growth in the coming years. This growth in demand is mainly due to increased affordability, technology improvements, and the need for more electric chargers. The increased demand for electric vehicles is augmenting the demand for magnet wires.
2. All types of electric vehicles require a considerable amount of magnet wire. These wires are used in busbars, electric motors, charging infrastructure, and various other applications. As per a study conducted by Copper Development Association Inc., a pure electric vehicle can consume more than a mile of copper wiring in its stator windings. Hence, the increasing production of electric and hybrid vehicles is ultimately driving the demand for magnet wires.
3. Increase in demand for high efficiency and high-performance motors and coils with space efficiency replacing bigger-sized equipment has a negative impact on the usage of aluminum magnet wires, as they occupy more space over copper magnet wires. The requirement of such motors arouses from the demand for reducing the energy and space consumption and growing application industries such as transportation, electrical, and electronics. This increasing demand for compact-sized applications is decreasing the usage of magnet wires in these applications.
4. Due to the growth of end-use industries, the demand for magnet wire is increasing in Asia Pacific. The end-use industries of magnet wires, such as transportation, infrastructure, and power sector, are growing at a high pace in the region and are expected to play a major role in driving the demand for magnet wires in the coming years. In countries such as China, Japan, and India, the automotive and electrical & electronics sectors are driving the magnet wire market with major proportion of share and this trend is expected to continue in the future.
5. The policies and regulations that are put forth by the Government of India, aiming to improve the manufacturing sector of the country are expected to leave a positive impact over the magnet wire market, indirectly providing opportunities to the market players to cater to the industry demands, by improving the growth of transportation, electrical, and electronics industries.
CHALLENGES FOR MAGNET WIRE
1. The magnet wires used for winding purposes are made in a very thin strand in order to wind a greater number of winds in the armatures of motors and generators. This subjects the magnet wires to undergo huge tensional and thermal stress, affecting their physical properties in those sections. This causes the magnet wires to crack their insulations. Sometimes this also happens due to poor quality of resin used for varnishing the wires.
2. The insulations may wear off from the wire strand and bulge due to improper application usage. This results in damage of magnet wires, impacting their performance and years of expected service due to short circuiting of wires inside motors and damaging the equipment. This can be prevented by manufacturing high quality magnet wires with wide operating thermal range.
3. Electronics is the leading industry in the consumption of magnet wires. Growth in urbanization around the globe, advancements in technology, and an increase in buying power of the population are the major reasons for the increase in consumption by the electronics segment. Developments in the industrial and transportation segments have a major impact on magnet wire consumption globally. Post-pandemic incentives and industrial development policies of various governments are expected to have a positive impact on the magnet wire market.
4. As COVID-19 related restrictions are subsiding, the electrical & electronics market is starting to see an upturn. The recovering various end-use industries is boosting the demand for magnet wires across the world.
MAGNET WIRE MAIN TYPES & SHAPES
1. Magnet wires manufactured using copper possess various characteristics such as excellent moisture resistance, chemical resistance, high conductivity, and better windability. Copper magnet wire is widely used in traction motors, solenoids, generators, transformers, and high-voltage transformers, among others, in electrical & electronics, automotive, infrastructure, marine, and other industries.
2. The copper metal exhibits less thermal expansion coefficient and considerably lower electrical resistance. For the very same reason, the equipment manufacturers prefer the usage of copper magnet wires in their applications for higher efficiency of generation and usage of electricity.
3. Round magnet wires are widely used for their extensive mechanical strength and their compact size windability, resistance to abrasion (as it has no edges), along with superior flexibility. They find their application in electrical motors, generators, utility distribution transformers, and electrical coils in electronic gadgets.
4. Round magnet wires have very less tendency to get twisted and stranded compared to the rectangle and square magnet wires. This is one of the major reasons for their use as the twisted wires can lead to mechanical failures in various applications. Another reason for the increased use of round-shaped magnet wire is their compaction.
FORECAST FOR MAGNET WIRE
1. The motors segment leads the consumption market of magnet wires. Motors find their applications in various end-use industries such as transportation, industrial, and electronics. The consumption of magnet wire is expected to be driven by the growth in demand for electric vehicles, urbanization, and infrastructural and industrial developments around the globe.
2. Electric motor possesses the ability to convert electrical current into mechanical power. The motor uses magnet wires as winding coils due to their various properties such as insulation resistance, superior dielectric strength, and thermal resistance. These properties make them suitable for manufacturing motors for various applications in the automotive industry such as door motor, ventilation motor, sun-roof motor, wiper motor, solenoids, seat adjustment motor, and other automotive parts. Motors are also used in various industrial purposes where rotational motion is needed.
3. APAC is the largest market for magnet wires. The major international players are exploring opportunities in the region owing to cheap labor, raw materials, and high demand from various end-use industries, such as electrical & electronics, industrial, transportation, infrastructure, and others.
4. However, COVID-19 affected the entire world disastrously, and APAC is one of the most affected regions, globally. The deadly virus has affected various major markets in APAC including China and India. It forced the government to lock down the that resulted in slow down across various sectors, including industrial, and transportation in 2020.
Source:
https://www.marketsandmarkets.com/Market-Reports/steel-wire-market-267777372.html
https://www.marketsandmarkets.com/Market-Reports/magnet-wire-market-61725229.html
