ALUMINUM CABLE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Aluminum Cable Market Size and Trends

Global aluminum cable market is estimated to be valued at USD 25.23 Bn in 2024 and is expected to reach USD 35.98 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.2% from 2024 to 2031.

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Global aluminum cable market is expected to witness significant growth over the forecast period, owing to growing demand for electricity across the world due to rapid urbanization and industrialization. Aluminum cables are widely used due to their lightweight and high conductivity properties that reduces transportation costs. Moreover, aluminum cables do not corrode or rust over time like other metal cables and these are also easier and cheaper to install due to light weight. The development of new infrastructure projects especially in emerging nations along with renovation of existing infrastructure i can boost demand for aluminum cables. Supportive government policies and programs regarding power transmission and distribution can drive the market growth.

Rising Demand from Power Sector

The demand for aluminum cables from the power sector has been steadily rising in recent years and this growth in demand is expected to drive the global aluminum cable market upwards in the coming decade. Aluminum conductors have seen wider adoption in power transmission and distribution networks as they offer significant benefits over conventional copper conductors.  Aluminum cables are much lighter compared to copper cables of similar conductivity specifications. This reduces transportation and material handling costs considerably for power utilities. With the length of power lines running into thousands of kilometers, this cost benefit of lighter aluminum cables becomes amplified. Besides being lighter, aluminum also has higher electrical conductivity per unit weight compared to copper. This allows for larger power carrying capacity using aluminum conductors of similar cross-sectional area. As a result, existing power lines can be upgraded or expanded in capacity using aluminum conductors without needing to put additional supporting infrastructure in place.

The expanding railway networks across the globe has greatly contributed to the growth of the global aluminum cable market. As more countries invest in developing their rail infrastructure for both passenger and freight transportation, the demand for aluminum cables has significantly increased.  Aluminum cables experience less electrical resistance as compared to conventional copper cables, making them suitable for high voltage applications. With longer railway tracks being laid that involve transmission of heavy currents over long distances, the low resistance property of aluminum cables becomes highly advantageous. Additionally, aluminum cables are lighter in weight than copper cables, allowing for ease of installation work in rail projects. Their light weight also means lower shipping costs of cables and less material required overall for railway electrification works. A key current trend spurring the aluminum cable market is the numerous multi-billion-dollar high-speed railway projects underway globally. For example, according to the National Development and Reform Commission of China, the country is expected to invest over USD 420 billion until 2025 on its national high-speed rail network which will cover over 38,000 km of track. Similarly, India has embarked on ambitious targets of expanding its railway network by developing new dedicated freight corridors, high-speed bullet trains and elevated metro rail systems in all major cities at a cost of over USD 150 billion as per the Ministry of Railways, Government of India. These massive investments in modernizing rail infrastructure demand sophisticated equipment including large volumes of aluminum cables to empower signal systems, overhead electrification works and other applications.