Copper clad steel wire are composite conductors having a steel core and external copper layer. These wires are increasingly finding application in electric vehicles as they provide high mechanical strength of steel along with excellent electrical conductivity of copper. Electric vehicles require heavy duty charging infrastructure which involves extensive use of cables and wires. Growing electric vehicle market has fueled the demand for setting up public charging stations across major cities globally. As per International Energy Agency, the number of public charging stations have risen to 1 million in 2021, a 40% increase from 2020. Growing EV infrastructure development is a major opportunity for copper clad steel wire market.
The global Copper Clad Steel Wire Market is estimated to be valued at US$ 0.99 Mn in 2023 and is expected to exhibit a CAGR of 47% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing usage of copper clad steel wires in EV charging stations is a key driver propelling market growth. EVs require high power DC fast charging which involves heavy duty cables. Unlike conventional charging cables, these fast charging cables experience intense heat and mechanical stress during operations. Copper clad steel wires offer superior resistance to repeated flexing, buckling and kinking under extreme temperature variations. Their robust nature makes them suitable for fast charging applications experiencing frequent plug-ins.
Another driver is the supportive government policies and investments encouraging electric vehicle adoption. Many countries have announced ban on conventional vehicles by 2030 creating huge demand for EVs. This in turn is augmenting the need for widespread public charging infrastructure development. As countries aggressively work towards establishment of EV charging networks, demand for high performance wiring materials like copper clad steel wires is anticipated to surge.
Segment Analysis
The global copper clad steel wire market size is dominated by the automotive sub-segment, which accounts for nearly 45% share of the total market. Copper clad steel wire finds extensive application in automotive components such as ignition cables, battery cables, and power transmission lines owing to its high electrical conductivity as well as mechanical strength. The automotive industry has been witnessing robust growth over the past few years and increasing vehicle production is driving the demand for copper clad steel wire in this segment.
PEST Analysis
Political: The rising focus of governments across regions on promoting electric vehicles to curb vehicular emissions is creating a conducive environment for the growth of the copper clad steel wire market. Economic: Stable economic growth in emerging nations of Asia Pacific and Latin America is increasing consumer spending on vehicles, thereby positively impacting the automotive industry and demand for copper clad steel wire. Social: Growing environmental awareness among consumers and stringent emission norms are fueling demand for electric vehicles, which in turn drive the need for high quality copper clad steel wire in automotive applications.Technological: Advancements in electric vehicle technology with regard to extended driving range and faster charging are expected to boost EV adoption over the coming years. This will augment copper clad steel wire consumption.
Key Takeaways
The global copper clad steel wire market is expected to witness high growth over the forecast period. The global Copper Clad Steel Wire Market is estimated to be valued at US$ 0.99 Mn in 2023 and is expected to exhibit a CAGR of 47% over the forecast period 2023 to 2030.
The Asia Pacific region currently dominates the market and is expected to continue its lead owing to the large automotive production base in China and high sales of vehicles in India. The Asia Pacific copper clad steel wire market accounted for over 40% of the global market share in 2023 owing to high economic growth, increasing investments in automotive manufacturing, and presence of key players in the region. China, in particular, is a major supplier as well as consumer of automobiles globally and this is driving regional copper clad steel wire demand.
Key players
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. Toyota Motor Corporation is a prominent player with a wide EV portfolio including popular models like Prius and Camry hybrids.
