Fort Collins, Colorado, March 07, 2024 (GLOBE NEWSWIRE) -- According to DataHorizzon Research, the copper wire and cable market size was valued at USD 170.9 Billion in 2023 and is expected to reach a market size of USD 300.2 Billion by 2032 at a CAGR of 6.5%.
The popularity of copper as an electricity conductor, corrosion resistance, and superior features of copper add to the market demand. However, market dynamics such as supply-chain disruption, intense competition, and global inflation tend to affect the copper wire and cable industry for the long term.
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Wire and Cable Industry Dynamics:
- Demand For EVs and Investing in Green Energy: As per Reuters, less than one percent of 250 million vehicles in the U.S. were electric in 2022, but there is a huge projection for half of all vehicles to turn electric by 2050 based on climate change initiatives. To meet this objective, copper wires and cables will highly cater to the electrification of vehicles. Besides, the electric vehicle battery market growth is anticipated at USD 370.6 billion in the coming years.
- Price Volatility Creates Supply Challenges: While copper reserves are limited on the earth, policies promoting clean energy are triggering robust demand for EVs, making it challenging for manufacturers to predict and set prices effectively. The U.S. annually produces more than one million metric tons; the majority of which comes from the Morenci copper reserve, Arizona. It is projected that the reserves could be depleted by 2040, which anticipated to slow down the production considerably. Although, the copper prices are currently on the lower side, with depleting reserves, they can witness a huge rise in the foreseeable future.
- Investing in Energy-efficient Products Varies Among Individuals: Investing in clean energy requires due diligence on the consumer’s part. Given the geopolitical situation at a global level, consumerism towards clean energy is yet to achieve its peak and needs adequate mass participation to achieve optimal levels. For instance, although the popularity of EVs is increasing with a reduced burden on fossil fuels, the demand for gasoline vehicles remains high in several countries. Therefore, investing in energy-efficient products remains subjective at consumer levels.
Factors Contributing to the Growth of Copper Wire and Cable Market:
- Telecommunications Industry: Technological progress has fueled digitalization throughout all sectors and paves a roadmap for growth in the copper wire and cable market. The current trend of digitizing telecommunications services has encouraged many market entrants. The market has witnessed robust growth due to the emergence of new players with novel services. Moreover, the smartphone industry is booming owing to the wider adoption of 5G and 6G services worldwide.
- Consumer Electronics: Consumer electronics and appliances have witnessed a moderate surge in demand in the past couple of years owing to their spending capacity and market supply. Consumers have reduced their spending on luxurious appliances and prefer standard devices to fulfill their needs. This has majorly pumped the middle-income groups to prefer standard equipment over premium ones. However, copper wire and cables still dominate consumer electronics as these elements constitute a major portion of consumer appliances.
- Industrial Applications: The production industries incur a huge demand for copper wires for their end-use applications. These industries rely on copper wires for power transmission and automation. Besides, annual consumption is growing; hence, the need for copper as a raw material will remain high in the coming years.
- Automotive: Electric, hybrid, and SMART vehicles are designed on chipsets and integrated circuits (ICs) that run on copper, nickel, magnesium, lead, lithium, and cobalt. Again, copper is a dominant constituent for energy storage in batteries. It also supports electrical charging at charging stations. Therefore, with the huge demand for electric vehicles, the need for charging stations will grow, enabling more demand for copper wire and cables.
Regional Developments:
North America is the forefront of copper wire and cable manufacturing and consumption. Moreover, clean energy initiatives, emphasis on renewable energy, and infrastructure renewal projects have been volunteering for market growth at regional levels in the U.S. and North America. Technological advancements, such as deploying electrical grids for electricity distribution, have augmented the need for copper-based components.
The European market promises untapped growth opportunities based on the transition to clean energy sources and substantial investments in renewable energy infrastructure. Besides, urbanization and digitalization are anticipated to boost the demand for copper wires for building infrastructure. Small and medium-sized players have been influencing the market developments in Europe. For instance, European players have raised funds to design innovative electricity grid technologies and incentivize rapid deployment.
Asia-Pacific region has witnessed high urbanization in the past two decades and is home to industrial innovation. Extensive industrialization contributes to the growth of copper wires in the manufacturing industries. Government support and policies have fueled infrastructure projects such as power plants, telecommunications, and manufacturing establishments. All of these factors constitute positive market growth in Asian countries.
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Future Outlook:
The future outlook for the copper wire and cables market is positive and driven by the abovementioned factors. Extensive digitalization, the emergence of the Internet of Things (IoT), electric vehicles, automation, and others fuel the need for copper components in the following years. As technology continues to evolve and penetrate various sectors, the demand for copper wiring and cables is anticipated to rise. With more countries focusing on green and clean energy, copper wires offer the minimal to least environmental impact. On the other hand, supply chain challenges such as price fluctuations and environmental regulations continue to exist in the market. However, market players need to steer effectively through these challenges and capitalize on emerging opportunities in the global market.
About DataHorizzon Research:
DataHorizzon is a market research and advisory company that assists organizations across the globe in formulating growth strategies for changing business dynamics. Its offerings include consulting services across enterprises and business insights to make actionable decisions. DHR’s comprehensive research methodology for predicting long-term and sustainable trends in the market facilitates complex decisions for organizations.
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