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The copper wire market size is forecast to increase by USD 57.48 billion at a CAGR of 6.83% between 2023 and 2028. Copper wires are extensively utilized in the transportation sector, encompassing automobiles, planes, trains, and ships, for components like connectors, radiators, brakes, and bearings. The burgeoning electric vehicle sector amplifies the demand for copper cables. The transportation industry anticipates significant growth due to freight and passenger transport expansion.
Railway electrification projects are on the rise. Copper wires find wide application in renewable energy, including solar panels, hydroelectric motors, and geothermal heat pumps, owing to their superior conductivity and corrosion resistance. They are pivotal in fabricating PV systems, forming connections within thin sheets of semiconductors. The number of solar PV installations is expected to surge by 16% by 2030, further driving demand for copper conductors.
Market Forecast 2024-2028
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The market share growth by the low voltage segment will be significant during the forecast period. Low-voltage copper-wire is designed to handle voltage levels typically below 1,000 volts. Low-voltage copper-wire is commonly used in residential buildings for power distribution, lighting systems, and electrical wiring. It forms the backbone of electrical networks within homes, ensuring the safe and efficient transmission of electricity to various outlets and devices.
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The low voltage segment was the largest and was valued at USD 56.46 billion in 2018. Low-voltage copper-wire is available in various gauges and configurations to accommodate different electrical loads and applications. Its cost-effectiveness makes it a preferred choice for electrical installations in residential, commercial, and small-scale industrial settings. Low-voltage copper-wire also plays a crucial role in electrical safety. It is designed to meet safety standards and regulations, ensuring protection against electrical hazards. Low-voltage systems are generally considered safer than high voltage segment, reducing the risk of electric shock and electrical fires. Copper-wire's high conductivity and low resistance contribute to the efficiency and reliability of low-voltage electrical systems. Therefore, the low-voltage segment in the market is expected to grow during the forecast period.
Based on the end-user, the market has been segmented into electrical and electronics, building and construction, telecommunication, transportation, and others. The electrical and electronics?segment will account for the largest share of this segment.?Copper-wire is widely used in electrical and electronic applications owing to its specific properties, such as thermal and electrical conductivity, ductility, abrasion resistance, high mechanical strength, and biofouling resistance. Several copper-wires, such as high copper alloys and copper beryllium, are used to manufacture wire for electrical and electronic applications. Copper-wire is used to manufacture electromechanical components, conductor wire, magnet wire, cold-forged components, and many other components of electrical and electronic products. Thus, with the growth of the electrical and electronics industry, the demand for copper-wire will increase substantially, which, in turn, will boost the growth of the electrical and electronics segment in the market during the forecast period.
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APAC is estimated to contribute 74% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The market in APAC is significant and dynamic, driven by various factors such as industrialization, urbanization, infrastructure development, and the growing electrical and electronics sector. APAC is a major consumer and producer of copper-wire, and several countries in the region play a crucial role in shaping the market dynamics. China, as the largest consumer and producer of copper wire in APAC, has a dominant influence on the regional market. The rapid industrialization and urbanization in China have led to a substantial increase in the demand for copper-wire in various sectors, including construction, power transmission, automotive, and consumer electronics.
In addition, the country's infrastructure development projects, such as the Belt and Road Initiative, further contribute to the demand for copper-wire in APAC. India is another significant market for copper wire in APAC. The country's growing population, expanding urbanization, and infrastructure development initiatives drive the demand for copper wire in construction projects, electrical wiring, electrical conductor, power transmission, and telecommunication. India's focus on renewable energy, energy loss, and the electrification of rural areas also contribute to the demand for copper-wire in the country. Such factors are expected to drive the regional market growth during the forecast period.
The market is primarily driven by the growing demand for copper wires in the transportation industry, where their electrical properties and thermal conductivity make them indispensable for various applications. An evident trend in this market is the increasing number of renewable energy installations, highlighting the importance of copper-wires in facilitating the transition towards sustainable energy sources.
However, the industry faces challenges such as growing fluctuations in copper prices, which can impact profitability and procurement strategies. With applications ranging from power distribution to telecommunications and oil & gas sectors, copper-wires remain a preferred choice due to their malleability, low voltage segment compatibility, and corrosion resistance. Despite the availability of substitute materials, copper-wires stand out for their electrical conductivity and ability to withstand current surges, making them essential components in various electrical appliances and industrial applications where energy loss must be minimized. Informed by market research and growth analysis, industry players navigate through market dynamics to capitalize on emerging opportunities and address challenges effectively.
Copper wires are extensively used in the transportation industry. All major forms of transportation, such as automobiles, aeroplanes, trains, and ships, use copper alloy wires in components such as connectors, radiators, brakes, and bearings. The development of new-generation electric cars is increasing the demand for copper-wires. The global transportation industry is expected to grow significantly during the forecast period, owing to the growth in freight and passenger transport. The number of railway electrification activities is increasing.
For instance, the number of electrified metro rails and bullet trains is expected to increase during the forecast period. The growth in the number of urban transport systems and high-speed rail networks is expected to boost the demand for copper-wires. Therefore, with the growing transportation industry, the demand for copper wires is expected to grow, which, in turn, will drive the growth of the market during the forecast period.
Copper wires are widely used in the renewable energy industry to make electrical components. They are also used to make solar panels, hydroelectric motors, geothermal heat pumps, transformers, and electric cables. The conductivity of copper wires is almost twice that of aluminum wires; therefore, they are the primary choice for high-energy efficiency applications. Copper-wires have become an integral part of fabricating PV systems. These wires are used to create connections within thin films that are designed for semiconductors, single conductor, which have an atomic scale layered structure that exhibits different energy band gaps. The number of solar PV installations is expected to increase by around 16% by 2030.
In addition, the growth in the number of solar PV installations will increase the demand for copper-wires during the forecast period. Copper wires are used to manufacture long-length power cables for wind energy systems. The expansion of renewable energy installations, such as solar PV and wind power, will increase the demand for copper wires during the forecast period. Such factors will drive the growth of the market during the forecast period.
Fluctuating copper prices pose a significant challenge to the growth and stability of the market. Various factors, including supply and demand dynamics, global economic conditions, geopolitical events, and investor sentiment, influence copper prices. These factors can lead to significant price fluctuations, impacting the cost of copper-wire and its demand in different industries. One of the industries affected by fluctuating copper prices is the construction sector. Copper wire is widely used for electrical wiring in buildings, infrastructure projects, and power transmission systems.
Additionally, when copper prices surge, and current surges price, manufacturers face higher raw material costs, affecting their profit margins. In response, manufacturers may explore alternatives or seek cost-saving measures, such as redesigning products to reduce copper usage or switching to alternative materials. These actions can potentially impact the demand for copper-wire in manufacturing applications. Thus, growing fluctuations in copper-prices can become a major challenge for the growth of the market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Elcowire Group AB: The company offers copper-wire, such as copper-wire rods and copper alloy wire rods. They are used in power, telecommunication, and installation cables.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including Alan Wire Co., American Wire Group, Finolex Cables Ltd., Furukawa Electric Co. Ltd., Hindalco Industries Ltd., Hitachi Ltd., International Wire Group Inc., Mitsubishi Materials Corp., Nexans SA, Ningbo Jintian Copper-Group Co. Ltd., Pacific Electric Wire and Cable Co. Ltd., Polycab India Ltd., Prysmian Spa, Sarkuysan, Schneider Electric SE, Southwire Co. LLC, SynFlex Elektro GmbH, and Minnesota Wire and Cable Co.
Technavio market forecast is an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, industrial applications and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market thrives on the metal's unique properties, making it indispensable across various industries. With its high thermal conductivity and melting point, copper wire is preferred for applications where heat transfer strength is crucial, such as air conditioning systems and fluid pressures in the automotive industry.
Notably malleable and ductile, copper-wire offers excellent tensile resistance and durability against environmental changes and corrosion, ensuring reliable performance in electrical productivity and comfort enhancement. Despite rising demand, copper-wire faces challenges from substitute materials like copper clad aluminium wire and copper clad steel wire in some construction and electrical infrastructure projects.
However, its electrical properties, including nominal resistance and conductivity, remain unmatched, driving its use in transformers, power generation, and telecommunications. From oil & gas to aerospace and defense, copper-wire serves critical roles in electrical appliances like electrical grids, substations, and power lines, contributing to sustainable transportation initiatives and renewable energy projects.
As demand grows for electric vehicles and battery systems, copper wire's importance in charging infrastructure and commercial buildings escalates, supported by government incentives and investments in green energy infrastructure. In essence, copper-wire continues to be the backbone of modern telecommunication and industrial equipment, powering the world's connectivity and progress.
The market analysis and report forecasts market growth by revenue at global, regional & country levels and provides a market report analysis of the latest trends and growth opportunities from 2018 to 2028.
Market Scope |
|
Report Coverage |
Details |
Page number |
176 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.83% |
Market Growth 2024-2028 |
USD 57.48 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.32 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 74% |
Key countries |
US, China, India, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alan Wire Co., American Wire Group, Aviva Metals Inc., Elcowire Group AB, Finolex Cables Ltd., Furukawa Electric Co. Ltd., Hindalco Industries Ltd., Hitachi Ltd., International Wire Group Inc., Mitsubishi Materials Corp., Nexans SA, Ningbo Jintian Copper Group Co. Ltd., Pacific Electric Wire and Cable Co. Ltd., Polycab India Ltd., Prysmian Spa, Sarkuysan, Schneider Electrics SE, Southwire Co. LLC, SynFlex Elektro GmbH, and Minnesota Wire and Cable Co. |
Market dynamics |
Parent market growth analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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