Copper clad steel wire is a conductor material made by bonding copper onto steel wire through a continuous hot-dipping process. It has excellent electrical conductivity similar to copper and high tensile strength similar to steel. Copper clad steel wire is primarily used to manufacture power cables that transmit electricity over long distances through overhead transmission lines and underground power cables. They are also used as grounding conductors owing to their ability to absorb excess electric charge while remaining resistant to corrosion.
The Global Copper Clad Steel Wire Market is estimated to be valued at US$ 1.15 Bn in 2024 and is expected to exhibit a CAGR of 47% over the forecast period 2024 to 2030.
Growing demand for electricity across industrial, commercial and residential sectors owing to rapid urbanization and industrialization is expected to drive the consumption of copper clad steel wire in power cables. The increasing focus on electrification of vehicles and adoption of renewable energy are also supporting the market growth.
Geographically, Asia Pacific accounts for a major share in copper clad steel wire market and is expected to witness fastest growth during the forecast period owing to rising investments in transmission infrastructure upgrade and expansion projects in China and India. North America and Europe are also expected to offer lucrative opportunities for market players driven by initiatives to modernize aging power grids and shifting focus towards clean energy.
Market key trends
Development of ultra-high voltage power grids is one of the key trends in the copper clad steel wire market. Countries worldwide are investing in setting up ultra high voltage transmission networks ranging from 800kV to 1,100 kV with the aim to efficiently transmit large amounts of electricity over long distances. This reduces transmission losses and support scaling up of renewable energy. For instance, China has the world’s largest and most advanced ultra high voltage grid with several projects exceeding 800kV. Transition to renewable energy is driving the demand for copper clad steel wire in solar and wind power applications.
Porter’s Analysis
Threat of new entrants: Major capital investments and high technical and production expertise required to establish a full-fledged manufacturing plant poses significant barriers for new entrants.
Bargaining power of buyers: Large copper clad steel wire manufacturers enjoy advantage as major buyers such as manufacturers of electrical cables and wires have fewer alternatives and are highly dependent on steady supply.
Bargaining power of suppliers: Leading manufacturers strategically source raw materials like steel and copper globally and have long term supply agreements to avoid issues related to supply chain disruptions and price fluctuations.
Threat of new substitutes: Alternatives like aluminum wires do not match thermal and conductivity properties of copper clad steel wires making substitutability a low threat.
Competitive rivalry: Manufacturers focus on developing specialized applications, advanced production technology and strengthening regional footprint to gain competitive edge.
Key Takeaways
Key players operating in the Copper Clad Steel Wire Market are Ballard Power Systems, Toyota Motor Corporation, Hyundai Motor Company, New Flyer Industries, Van Hool, Wrightbus, Solaris Bus & Coach, CaetanoBus, Alexander Dennis Limited (ADL), MAN Energy Solutions.
Geographical regions
Asia Pacific accounts for around 45% of global copper clad steel wire market value driven by strong demand from China, India, Japan and other developing Asian economies. Growing investments in power infrastructure, electronics manufacturing and automotive sectors support regional market growth.
Central and South America region is expected to witness fastest growth during forecast period on back of rapid industrialization, urbanization and government initiatives to boost electrification in countries like Brazil, Mexico, Chile and Argentina.
North America holds around 20% share in global copper clad steel wire market value led by United States. Recovery in manufacturing sector, increasing investments in transportation networks and strong momentum in construction sector post COVID-19 pandemic supports regional demand.
Europe market is dominated by Germany, United Kingdom, France and Italy together accounting for over 30% of total copper clad steel wire consumption in the region. Robust manufacturing base for automotive, electronics and industrial machinery applications drives the European regional market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
