The copper clad steel wire market has witnessed significant growth in recent years owing to the growing demand for electric vehicles. Copper clad steel wire finds widespread application in winding motors and transformers used in electric vehicles. It provides high mechanical strength of steel along with excellent electrical conductivity of copper. Some key advantages of copper clad steel wire include corrosion resistance, high tensile strength, lightweight and cost-effectiveness.
The increasing adoption of electric vehicles globally has fueled the need for improved electric components such as motors and transformers which utilize copper clad steel wire in their manufacturing.
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.
The market is witnessing numerous opportunities in terms of increased investments from governments and private entities towards developing electric vehicle charging infrastructure and expanding electric mobility. Technological advancements such as faster charging solutions and improved battery capacities are augmenting the demand for high-performance electric components.
The rising environmental concerns coupled with stringent emission regulations have accelerated the shift towards clean energy-based transportation. Government subsidies and tax rebates on electric vehicles are encouraging their adoption globally. This in turn is driving the copper clad steel wire market owing to increased need for high-quality wire materials in e-mobility applications.
Current Challenges in Copper Clad Steel Wire Market
The copper clad steel wire market is facing several challenges currently. Firstly, fluctuations in the prices of raw materials pose a major challenge. Copper and steel are the key raw materials used in manufacturing copper clad steel wire. The prices of both copper and steel change dynamically according to market conditions, affecting production costs for manufacturers. Secondly, growing environmental regulations around the world have increased compliance requirements for market players. Manufacturers have to adopt greener production processes and use recyclable materials to reduce pollution. Meeting stringent environmental standards involves additional investments and operating costs. Thirdly, the COVID-19 pandemic significantly reduced demand from major end-use industries in 2020. Industries like construction, automotive, and power faced shutdowns or slowdowns during lockdowns, impacting overall copper clad steel wire consumption.
Strength: Good conductivity and strength. Copper clad steel wire combines high strength of steel core with excellent conductivity of copper coating. This makes it suitable for applications requiring both properties.
Weakness: High manufacturing costs. The process of cladding thin copper layer over steel wire is complex and capital intensive. It increases overall production costs.
Opportunity: Growth in electric vehicles. Increasing use of copper clad steel wire in motors, coils and charging systems of electric vehicles presents an opportunity.
Threats: Substitute products. Materials like aluminum, which has better conductivity than copper but is lighter, pose a threat.
Key players operating in the Copper Clad Steel Wire 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.
In terms of value, Asia Pacific currently dominates the global copper clad steel wire market. China is the world’s largest producer and consumer of copper and accounts for over half of the global copper consumption. It is also a major steel producer. This makes China an attractive market for copper clad steel wire manufacturers. Countries like India and Japan also have a significant presence owing to their developed industrial sectors.
The fastest growing regional market for copper clad steel wire is expected to be Europe over the forecast period. This can be attributed to the rising emphasis on electric vehicles across major European countries like Germany, France, and UK. Manufacturers are investing in expanding EV production capacity here, boosting copper clad steel wire needs. Government support for EV infrastructure development works in the region’s favor.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it