Copper clad steel wire (CCSW) is a composite material made of a steel core coated with a layer of copper. It combines the electrical conductivity of copper and strength of steel. CCSW finds application in transformer windings, electric motor coils, electric conductors among others due to its excellent characteristics. CCSW has electrical conductivity that is almost comparable to copper, withstanding high temperatures and is cost effective as compared to solid copper wire.
The global CCSW market is estimated to be valued at US$ 2812.51 Mn in 2023 and is expected to exhibit a CAGR of 9.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Increasing demand from the construction industry: Copper clad steel wire is extensively used in grounding and bonding applications in the construction industry. It provides superior corrosion resistance for grounding and bonding systems compared to bare copper or steel wires. Growth in infrastructure development projects across various regions is fueling the demand for grounding and bonding materials like CCSW. This increased demand from the construction sector is a major driver propelling the U.S. CCSW market growth over the forecast period.
Segment Analysis
The U.S. Copper Clad Steel Wire market is dominated by the power transmission segment. Due to the increasing demand for electricity across power, industrial and domestic sectors in the country, the power transmission infrastructure is witnessing massive investments to enhance electrification. Copper clad steel wire is ideal material for power transmission cables as it offers high mechanical strength as well as excellent conductivity. This makes it a preferred choice for manufacturing overhead power cables as well as underground power cables for transmission and distribution networks.
PEST Analysis
Political: The US government recognizes power transmission as critical infrastructure and is undertaking initiatives to modernize the aging grids. It has allocated large funds for boosting rural electrification through projects like Renewable Energy for America Program. This will boost demand for copper clad steel wires.
Economic: Rising industrialization and growing construction industry in the US is driving the demand for electricity. It is prompting utilities to invest heavily in grid upgradation. Additionally, economic growth translates to higher disposable incomes thereby increasing sales of consumer durables and demand for quality housing, both of which require reliable power supply augmenting market growth.
Social: Increasing awareness about environmental protection and focus on renewable energy is prompting utilities to incorporate smart grid technologies. This is favoring demand for efficient transmission lines to minimize transmission losses. Moreover, growing population and urbanization is raising the need for seamless power distribution networks.
Technological: Advancements in material science have led to development of optimized copper clad steel wires with higher tensile strength and conductivity. Meanwhile, innovations in design of overhead lines and cables help facilitate super transmission of power over long distances more economically. This is positively impacting the US copper clad steel wire market.
Key Takeaways
The U.S. Copper Clad Steel Wire Market Size is expected to witness high growth over the forecast period on account of investments in modernization of the aging transmission and distribution infrastructure in the country. Rising electricity consumption backed by industrial growth and increasing population is necessitating expansion as well as upgradation of existing grids.
Regional analysis: The Western region dominates the U.S. copper clad steel wire market led by states like California and Texas. This is due to significant investments by utilities to integrate renewable energy through long-distance bulk power transmission lines. Moreover, increasing mining and oil & gas activities are propelling the demand for reliable power networks. The Mid-Western states are also contributing significantly to the growth owing to widespread grain, steel and automobile manufacturing industries.
Key players operating in the U.S. Copper Clad Steel Wire market are IBM Corporation, Hewlett Packard Enterprise Development LP, Telefonaktiebolaget LM Ericsson, Netcracker Technology Corp, Accenture PLC, Oracle Corporation., TATA Consultancy Services Limited, Amdocs Inc., NEC Corporation, ZTE Corporation, Nokia Corporation, Comarch SA, SAP SE, ServiceNow Inc. and Cisco Systems Inc. Large players like IBM, Ericsson and Oracle are focused on developing intelligent networked solutions for utilities to enable efficient management of vast transmission and distribution grids.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it