Growth Opportunities for Aluminum Rods and Conductor Companies Set to Boom as Electricity Grid Quadruples by 2040
Business Wire IndiaThe aluminum (AI) rods and conductors market in India is experiencing steady growth due to upcoming investment plans in utilities by private and public sectors. This is driving the manufacturing of conductors along with progressive Mega Trends such as demographic changes, accelerating urbanization, technology breakthroughs, and shift to renewables boosting utilities' installation. As India grows into an industrial and knowledge-based economy, energy demand will grow to 1,500 million tons of oil equivalent (MTOE) in 2030. With the electricity grid quadrupling in size by 2040, current demand will be doubled.
Frost & Sullivan's “Aluminum (Al) Rods and Conductors Market in India, 2017“, analyzes the supply structures and value chain, ecosystem evolution, trade dynamics, drivers, growth opportunities in the Transmission and Distribution segment, challenges, restraints, and technology trends impacting the market.
To access more information on this analysis, please click here. A macro-micro overview showcasing insights relative to global trends across industries is available for the South Asian (India) and Middle Eastern & North African (MENA) markets.
“To add value in an evolving ecosystem, aluminum rod and conductor companies must leverage integration, partnership, services, and technology leadership, as well as provide high-value, consistent quality and competitive pricing,” said Barath Subramanian, Business Development Manager, Metal & Minerals Practice, Frost & Sullivan.
Long order cycles of transmission and distribution (T&D) projects, volatility of LME prices, and intense competition in wire rod and conductor manufacturers lead to lower premiums and stiff competition. Nevertheless, growth opportunities for value add and cost competitiveness can be secured by:
- Forward integration with conductor manufacturing and backward integration with aluminum rod production to support companies in securing feedstock and creating in-house demand;
- Assessing export markets in Latin America, the Middle East and North America, where purchase prices are high;
- Lowering inventory carrying costs and providing operational efficiencies through just-in-time delivery;
- Providing technical services with product customization and flexible commercial terms; and
- Supplying varied alloy compositions to increase market share
“Manufacturers need to focus on developing strong supply chains that can cater to the bespoke demands with agility, and provide reverse feedback and intelligence on how trends are evolving,” noted Barath. “This will be particularly useful in catering to the Transmission and Distribution segment.”
Analysis of the “Aluminum (Al) Rods and Conductors Market in Africa, 2017” is also available.