The global magnet wire market size is projected to grow at a CAGR of 5.0% between 2021 and 2026

2022/05/05 01:44 PM By Altra

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% between 2021 and 2026

Source: GlobeNewswire

The increasing market of electric vehicles is expected to enhance the demand for magnet wires in the transportation industry. The demand for magnet wire from the electrical & electronics industry is expected to increase due advancements in this sector.

New York, March 28, 2022 (GLOBE NEWSWIRE) -- announces the release of the report "Magnet Wire Market by Type, Shape, Application, End-Use Industry, Region - Global Forecast to 2026" -
On the other hand, the fluctuating cost of raw materials is a major factor inhibiting the market growth. The raw materials required are mainly copper, and aluminum. The price of magnet wires may vary depending on the type, availability, and quality of raw materials available from the smelters. Sourcing high-quality copper and aluminum as raw materials has become difficult due to decrease in production from mines as the prices have gone too low since the outbreak of the pandemic. This situation is leading to rise in demand for quality raw materials to be sourced, in turn increasing the demand for high-quality magnet wires.
Magnet wires are aluminum or copper wires which are insulated with various enamels and coatings. Depending on the application areas, polyamideimide, polyester, polyester(imide), polyurethane, mica, or fiberglass yarn is used as the insulation material.

These insulation materials provide the magnet wires with properties such as heat and moisture resistance and offer excellent dielectric strength and thermal resistance.
The COVID-19 outbreak drastically affected the magnet wire market, due to which many manufacturers had to put their production on hold.Disruption in the supply chain caused by COVID-19 severely affected the business in key markets globally.

Forced by pandemic-influenced lockdown, the companies had to operate at reduced capacity. Post pandemic, the companies are increasing their production capacities to meet the market demands and are expected to be driven by various government policies on improving infrastructure and industrial sectors.

Aluminum magnet wires are the fastest-growing type of magnet wire market in terms of value.
Aluminum magnet wires are projected to register the highest CAGR in terms of value between 2021 and 2026.Aluminum magnet wires are used in applications for their various properties such as high mechanical strength, abrasion resistance, and high dielectric performance.

Aluminum magnet wires are inexpensive in comparison to copper magnet wires.They are lightweight in nature, which results in weight reduction of the coil.

These wires are preferred in transformer application in the power industry. Aluminum magnet wires are generally used in areas where the size of the equipment is not a constraint, since it would require 5–6 times larger cross-sectional area compared to copper magnet wires.

Round shaped magnet wires is the fastest-growing shape type of magnet wires, in terms of value.
The round shape segment is expected to record high growth during forecasted years.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.
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.

Motor is the fastest-growing application of magnet wire, in terms of value.

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.

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.

Electrical & Electronics is the fastest-growing end-use industry of magnet wire, in terms of value.
The electrical & electronics industry is expected to grow at the highest CAGR during the forecast period.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.
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.

APAC is the fastest-growing magnet wire market.
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.

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.