Motor Magnet Wire Market - Forecast(2024 - 2030)

motor magnet wire market size is forecast to reach USD 18.26 billion by 2029, after growing at a CAGR of 5.38% during the forecast period 2024-2029. The market for motor magnet wire is ripe with opportunities, propelled by a number of factors such as the increasing popularity of electric vehicles (EVs), strict laws governing energy efficiency, and developments in motor technology. The demand for electric motors is increasing due to the shift towards electrification in the automotive and transportation industries. This presents a significant potential for magnet wire manufacturers to enter this industry. The need for electric motors in wind turbines, solar panels, and other renewable energy systems is also being driven by the growth of renewable energy generation and the growing emphasis on sustainable practices.

The report “Motor Magnet Wire Market – Forecast (2024-2029)”, by IndustryARC, covers an in-depth analysis of the following segments of the Motor Magnet Wire market.

By Type: Copper Wire, Aluminum Wire.

By Shape: Round, Rectangle, Square.

By Product Type: Enameled Wire, Covered Conductor Wire, others.

By Insulation Material: Polyamide-Imide, Polyimides, Polyetherimide, Polyurethane, Others.

By End-Use industry: Transportation, Industrial, Energy, Electronics, Others.

By Geography:  North America, South America, Europe, APAC, and Middle East and Africa.

• One major factor driving market expansion is expected to be the increasing adoption of electric vehicles in the automotive sector. Electric car generators and traction motors both use this product. The market for motor magnet wire is anticipated to grow as a result of the strict government rules regulating CO2 emissions, particularly in North America and Europe.

• In developing countries of the Asia Pacific region, including China, India, and Southeast Asia, the demand for energy has surged due to rising consumer disposable income and population growth. High capacity additions for electrification in the Asia Pacific region are indicated by a recent trend. The market for motor magnet wire is predicted to be driven by this increased trend in electricity demand, which would also generate significant demand for power transformers.

• Technological developments in motors are producing compact and more efficient designs, but in order to meet standards, higher-performing magnet wire is frequently needed. This promotes market expansion and innovation. Businesses are automating procedures more and more to cut expenses and increase efficiency. More electric motors are required as a result of this trend, which increases the need for motor magnet wire.

Copper Wire dominated the motor magnet wire market in 2023. This high percentage can be attributed to copper's general superior mechanical, physical, and chemical characteristics over those of aluminum. Copper, for example, conducts electricity more efficiently than aluminum. Motor manufacturers like to use copper magnet wire because it improves the electrical energy efficiency of their motors. Due to copper's excellent conductivity, electric motors can be made smaller and lighter by using thinner wire gauges without compromising performance. In applications like automobile electrification, where decreasing weight and size can increase vehicle economy and range, this is especially crucial.

Round dominated the motor magnet wire market in 2023. The product finds widespread use in domestic applications, including electronics and electric motors found in household appliances. The main reason for the product's higher market share is its widespread availability and low price as compared to flat winding wire. At the prescribed temperature, enameled round wire has an assured service life of 20,000 hours and can withstand temperatures between 105°C and 240°C. Enameled wire coated with thermoplastic is used to create self-supporting coils, which bind coils together without the use of bobbins and enable tighter spaces in a variety of electronics applications. There are several types of round magnet wire to choose from, such as single build, heavy build, quad build, and more.

Enameled Wire dominated the motor magnet wire market in 2023. Coil winding machines and other automated manufacturing methods that are frequently employed in high-volume production settings are compatible with enameled wire. Because of their compatibility, electric motors and transformers may be produced in large quantities, which lowers production costs and boosts market acceptance. Continued advances in production techniques and materials have resulted in the creation of enameled wires with better performance attributes, like increased electrical conductivity, less losses, and higher temperature resistance. By extending its use to more demanding and novel applications, these developments propel the enameled wire market's expansion.

Polyamide-Imide dominated the motor magnet wire market in 2023. Comparing Polyamide-Imide (PAI) insulation to more conventional insulation materials like polyester or polyurethane, PAI insulation has superior thermal stability and can tolerate higher temperatures. Because of this, PAI magnet wire can be used in electric motors and transformers that are subjected to harsh conditions and high temperatures. Superior electrical qualities offered by PAI insulation include low dissipation factor and strong dielectric strength. These characteristics lessen the possibility of electrical breakdown or insulation failure in motor winding coils and assist preserve the integrity of the insulating layer, guaranteeing dependable electrical performance.

Industrial dominated the motor magnet wire market in 2023. There is a growing need for a variety of electric motors to power machinery, conveyor systems, pumps, fans, and other equipment due to the automation of industrial processes. The industrial sector's need for motor magnet wire is increased by the fact that these motors frequently use magnet wire for their electromagnetic coils. Modernization initiatives are being made in many industries to increase production, dependability, and efficiency. In order to accomplish these goals, it is necessary to upgrade outdated machinery and equipment with more energy-efficient electric motors, which increases the demand for motor magnet wire.

APAC dominated the Motor Magnet Wire market in 2023. Due to its status as one of the major manufacturing hubs in the region, China accounted for a significant portion of the magnet wire market. Over the next several years, the migration of end-product manufacturing companies to emerging economies such as China and India, attracted by low labor and manufacturing costs, is anticipated to play a major role in the expansion of the region. This is a result of the region's growing automotive, electric, and electronic industries. Additionally, rising automobile sales are fueling the magnet wire industry as a result of rising per capita incomes in developing nations like China and India. The motor magnetic wire market is being driven by the rising demand for electrical and transportation devices in emerging economies such as China and India.

For propulsion, electric motors—which are less maintenance-intensive and more efficient than internal combustion engines—are used in electric cars. The car industry has a significant demand for magnet wire since these motors use it for their electromagnetic coils. Many countries and automakers are dedicated to cutting back on carbon emissions and their reliance on fossil fuels. Due to the significant expenditures made in the infrastructure and technology of electric vehicles as a result of this commitment, motor magnet wire is becoming more and more in demand as EV manufacturing increases.

For instance, according to IEA, Markets for electric cars are expanding exponentially, with sales expected to reach 10 million by 2022. In 2022, 14% of all new cars sold were electric vehicles, an increase from approximately 9% in 2021. Global sales were led by three markets. China led the way once more, making up over 60% of sales of electric vehicles worldwide. China currently has more electric vehicles on the road than any other country, and the nation has already surpassed its 2025 new energy vehicle sales target. The United States, the third-largest market, saw a 55% growth in electric car sales in 2022, reaching a sales share of 8%. In Europe, the second-largest market, electric car sales climbed by over 15% in 2022. Due to increased demand for electric motors, technological improvements, economies of scale, government incentives, and environmental consciousness, the growing adoption of electric vehicles is a significant driver of the motor magnet wire market.

The need for motor magnet wire is greatly increased by the increasing use of renewable energy sources, since these energy systems rely on electric motors that use magnet wire for effective energy conversion and transmission. More energy-efficient electric motors are frequently needed to support developments in renewable energy technologies, such as increased solar panel performance and wind turbine efficiency. The need for motor magnet wire is increased by the use of specialty magnet wire in these cutting-edge motors to achieve performance standards.

For instance, According to The American Clean Power Association, since federal clean energy incentives were signed into law, approximately $270 billion in capital investment has been announced for utility-scale clean energy projects and manufacturing facilities as of July 31, 2023. This surpasses the total investment made in U.S. clean power projects that were put into service between 2015 and 2022. It is the equivalent of eight years' worth of renewable energy investment in the United States.

For instance, World Energy Investment report from the IEA states. Over $1.7 trillion of the projected $2.8 trillion in global energy investment in 2023 is anticipated to go toward clean technologies, which include solar, electric cars, nuclear power, storage, grids, low-emission fuels, and renewable energy sources.

The market for motor magnet wire is largely dependent on raw materials, such as insulation and copper. Manufacturers producing magnet wire may find that manufacturing costs are greatly impacted by changes in the prices of these components. Raw material price volatility can be caused by a variety of variables, including supply-demand dynamics, geopolitical unrest, and economic considerations. As a result, enterprises may find it difficult to control their pricing and production costs. supply chain for raw materials like copper and insulation. Shortages and price volatility might result from supply chain disruptions brought on by pandemics, natural disasters, trade disputes, or geopolitical tensions. These hiccups can cause problems for companies that depend on a steady and reliable supply of raw materials by affecting production schedules, raising expenses, and affecting the availability of magnet wire.

Technology launches, acquisitions, and R&D activities are key strategies players adopt in the Motor Magnet Wire market. in 2023, The major players in the Motor Magnet Wire market are Hitachi Metals Ltd., Sumitomo Electric Industries, Ltd., Furukawa Electric Co., Ltd., Fujikura Ltd., Sam Dong, LS Cable & System Ltd., Tongling Jingda Special Magnet Wire Co., Ltd., Ningbo Jintian Copper (Group) Co., Ltd., IRCE S.p.A, Von Roll, and others.

 In 2021, LS Cable & System Ltd. declared that it is now the only supplier of enameled magnet wire for the drive motors of the electric Kia EV6 and IONIQ 5 cars. Furthermore, the company is continuing to create high-voltage magnet wires for potential use in General Motors electric vehicles.

 In 2020, The parent company of Essex Magnet Wire, Superior Essex Inc., and Furukawa Electric Co., Ltd. ("Furukawa"), two leaders in the development of magnet wire products and customized solutions, announced the completion of a global joint venture. The combined business will employ the "Essex Furukawa" trademark and be known as Essex Furukawa Magnet Wire LLC.