Copper-Clad Steel Wire Market Size, Share & Trends Analysis Report By Product Type (Copper-Clad Composite Conductors (CCC), Copper-Clad Jacketed Steel Wire, Copper-Clad Wire-High Strength (HS), Copper-Clad Dead Soft Annealed Steel Wire (DSA), Extra-High Strength (EHS), Others), By End-User Industry (Telecommunication, Medical, Power Generation, Electrical and Electronics, Construction and Building, Automotive, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global copper-clad steel wire market was valued at USD 15.09 billion in 2023. It is estimated to reach USD 27.50 billion by 2032, growing at a CAGR of 6.9% during the forecast period (2024–2032). The global copper-clad steel wire market is primarily boosted by the telecommunication industry's rising demand for these wires. These wires help meet the demand for rapid data transformation through telecommunication networks. This CCS wire is also a cost-effective alternative to its counterpart traditional materials, which is anticipated to expedite market expansion. Moreover, there is a rise in the demand for lightweight and conductive materials used in the production of electric vehicles, which is estimated to create market expansion opportunities for copper-clad steel wire.

Copper-clad steel wire is a composite material commonly used in electrical applications. It consists of a central core made of steel, which provides strength and durability, surrounded by a layer of copper. The copper cladding serves as a conductor for electricity, while the steel core offers structural integrity. This combination combines copper's conductivity with steel's strength, resulting in a wire that exhibits both electrical efficiency and mechanical resilience.

Copper-clad steel wire is extensively used in various applications such as telecommunications, power transmission, grounding systems, and electric fencing. Its properties make it suitable for situations where high conductivity and corrosion resistance are required while also needing to withstand mechanical stress and environmental factors. Using steel as the core material reduces costs compared to solid copper wire while maintaining acceptable electrical performance.

Market Dynamics

Global Market Drivers

Increasing Demand for Telecommunications 

The increasing demand for telecommunications is a key driver of the copper-clad steel wire market. With the relentless expansion of telecommunication networks and the insatiable demand for high-speed data transmission, CCS wire is found to be extensively used in coaxial cables. Its role in ensuring efficient signal transmission makes it indispensable in meeting the growing demands of the telecommunications industry. As technologies like 5G evolve, the demand for CCS wire is poised to escalate, driven by the need for reliable, high-performance connectivity solutions.

According to the latest figures from Omdia, there were 455 million new global 5G connections in 2022. Thus, these statistics indicate a 14 percent increase in quarterly growth from 922 million in Q3 2022 to 1.05 billion in Q4 2022. The growth of global 5G connections is projected to maintain its momentum in 2023, with an estimated number of about 2 billion connections. By the end of 2027, this number is expected to reach 5.9 billion. As more telecommunications companies upgrade their infrastructure to support 5G networks, there is a heightened need for compatible equipment like copper-clad steel wire, thereby boosting the global market expansion.

Cost-Effectiveness 

Cost-effectiveness is a pivotal driver in the copper-clad steel (CCS) wire market, influencing purchasing decisions across various industries. Compared to pure copper wire, CCS wire offers a compelling advantage in terms of cost without significantly compromising performance. The utilization of steel as the core material, coated with a thin layer of copper, enables manufacturers to produce a product that meets conductivity requirements at a lower price point.

This cost advantage makes CCS wire an attractive option for applications where copper wire might be prohibitively expensive, such as telecommunications, power distribution, and infrastructure projects. Additionally, CCS wire provides a cost-effective alternative without sacrificing functionality in scenarios where conductivity requirements can be met with a steel core. As industries strive to optimize budgets and seek cost-efficient solutions, the affordability of CCS wire positions it favorably in the market, driving its adoption across diverse sectors and applications.

Global Market Restraint

Competition from Alternative Materials 

Competition from alternative materials significantly restraints the copper-clad steel wire market. Aluminum-clad steel and pure copper wire are prominent alternatives that compete based on cost, conductivity, and application suitability. Aluminum-clad steel wire offers a lower-cost alternative with acceptable conductivity for certain applications, challenging the market share of copper-clad steel wire, particularly in industries sensitive to cost fluctuations.

Despite being more expensive, pure copper wire may be preferred for applications requiring higher conductivity or where environmental and regulatory concerns favor non-steel alternatives. Additionally, advancements in material science may lead to developing novel materials offering improved performance characteristics or cost-effectiveness, further intensifying competition. Thus, such factors restrict the copper-clad steel wire market growth.

Global Market Opportunities

Burgeoning Production of Electric Vehicles 

The burgeoning production of electric vehicles (EVs) drives the copper-clad steel wire market due to the significant demand for lightweight, conductive materials in their construction. Copper-clad steel wire offers a balance of conductivity and strength, making it an ideal choice for various components within EVs, including wiring harnesses and battery systems. As the adoption of EVs continues to rise globally, the demand for copper-clad steel wire surges, propelling growth in the market for this specialized material.

As per the latest edition of the International Energy Agency's annual Global Electric Vehicle Outlook, the global sales of electric vehicles exceeded 11 million in 2022. The forecast for sales growth in 2023 was a 35% rise, resulting in 14 million units. Based on the latest projections from the IEA, the share of the global automotive industry allocated to electric vehicles has experienced a significant surge. It has risen from around 4.0% in 2020 to 14% in 2022 and is predicted to reach 18% in 2024. This is anticipated to create opportunities for global market growth.

Regional Analysis

Asia-Pacific Dominates the Global Market.

Based on region, the global copper-clad steel wire market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

The Asia-Pacific region encompasses several world's largest automotive markets, including China, Japan, and India. The increasing demand for electric vehicles (EVs) in these countries is driving the growth of this market. China is currently leading the electric vehicle (EV) business, surpassing traditional automotive leaders like Germany and Japan, as reported by Harvard Business Review. In 2022, China witnessed a remarkable 82% surge in electric vehicle sales, accounting for almost 60% of global electric vehicle acquisitions. This surpasses the United States, Norway, and other Scandinavian countries, which adopted electric vehicles promptly.

The International Energy Agency has also claimed that China currently possesses nearly 50% of the total electric vehicles in operation worldwide. In 2022, the country represented 35% of global electric vehicle exports. During the fourth quarter of 2023, Chinese automaker BYD surpassed Tesla in electric vehicle sales. As the EV market expands, so does the need for efficient and reliable charging solutions, driving the demand for copper-clad steel wire. This trend is expected to continue as the adoption of EVs accelerates across the Asia-Pacific region.

The North American copper-clad steel wire market is projected to witness expansion, primarily due to the region's high subscriber penetration and substantial consumer spending on telecommunication networks. North America is projected to have 119 million wireless 5G connections by the end of Q4 2022, establishing itself as a leading region in adopting this technology. In the past year, the North American market has reached a 5G penetration rate of approximately 32 percent, adding 52 million 5G connections.

This signifies a substantial increase of 78 percent compared to the fourth quarter of 2021. By 2023, it is projected that North America will account for 215 million 5G connections, mostly driven by the significant amount of 5G smartphone deliveries in the United States. Moreover, the region has well-known telecommunications sector firms such as AT&T, Cisco, Nokia, and Ericsson. With the increasing implementation of 5G infrastructure, there will be a surge in demand for copper-clad steel wire, which is utilized for high-speed data transmission in the region.

Segmental Analysis

The global copper-clad steel wire market is segmented by product type and end-user industry.

Based on product type, the global market is divided into copper-clad composite conductors (CCC), copper-clad jacketed steel wire, copper-clad wire-high strength (HS), copper-clad dead soft annealed steel wire (DSA), extra-high strength (EHS), and others.

Copper-clad composite conductors are electrical conductors composed of a central core material; typically steel encased in a layer of copper. This design combines copper's conductivity with the core material's strength and flexibility. The copper cladding ensures high electrical conductivity while reducing material costs compared to solid copper conductors. These composite conductors are widely used in various applications, including power transmission lines, telecommunications, and electrical wiring. Their enhanced mechanical properties make them resistant to corrosion, thermal expansion, and mechanical stress, making them suitable for outdoor and high-demand environments. Their lightweight nature allows for easier installation and maintenance. Thus, copper-clad composite conductors offer a balance of conductivity, durability, and cost-effectiveness, making them a preferred choice in many electrical engineering applications.

Based on the end-user industry, the global market is divided into telecommunication, medical, power generation, electrical and electronics, construction and building, automotive, and others.

Copper-clad steel wire finds application in the medical field primarily due to its unique properties. Its electrical conductivity, provided by the copper cladding, enables efficient transmission of electrical signals in various medical devices such as electrodes used in electrocardiography (ECG), electromyography (EMG), and neurostimulation. The steel core offers robustness and durability, ensuring the wire can withstand the rigors of medical procedures and device handling.

Moreover, copper-clad steel wire's corrosion resistance makes it suitable for long-term implantation in the human body, such as in pacemakers and neurostimulators, where reliability and biocompatibility are paramount. These wires are also utilized in surgical instruments for their strength and conductivity, contributing to precise and effective procedures. Thus, the unique electrical conductivity, durability, and biocompatibility combination makes copper-clad steel wire indispensable in various medical applications.

Impact of covid-19

The Covid-19 pandemic has significantly affected the total tile market, with demand remaining subdued for 6 months in 2020. End-use industries such as construction, manufacturing, and chemical, among others, have seen substantial expansion in the market. For example, the United States has a well-established building industry. Until 2019, the construction industry contributed over USD 2 trillion to the American economy. Due to the pandemic, the figure fell to USD 1.3 trillion in 2020. As a result, the expansion of all related industries has been impeded. Several ongoing projects have been canceled or postponed.

The usage of fluorosilicic acid for aluminum production in the automotive sector had dropped by more than 20%. The demand for aluminum in this industry is directly related to the entire vehicle output. As a result, the acid market experienced the same influence on demand. This was caused by, among other things, the entire and partial suspension of manufacturing facilities, limited transportation of commodities, a prohibition on import and export activities, and the closure of showrooms.

Key Impacts of COVID-19

• Large oil, gas, and chemical firms are reducing capital and operational expenditures.
• Companies with high debt and insufficient cash flow are more prone to encounter liquidity difficulties, and some may be forced to close their doors permanently.

Market Recovery Timeline and Challenges

The global fluorosilicic acid market research study emphasizes possible recovery scenarios during the forecast period. Fluorosilicic acid is created as a byproduct of the production of phosphate fertilizers and from phosphate rock that includes fluoride and silica and is processed with sulfuric acid. It is a dry salt additive that must be dissolved in a solution before it can be added to water. Rising ground and surface water contamination raise the need for water treatment, which raises the demand for fluorosilicic acid.

Recent Developments

• November 2023- The Australian Renewable Energy Agency (ARENA) announced that it would provide AUD 11 million (USD 7m/EUR 6.6m) in funding to support SunDrive Solar in bringing its solar cell metallization technology to the commercial market. This technology replaces the costly and limited silver with copper.
• April 2023- Times Microwave Systems has introduced the XtendedFlex 178, a coaxial cable designed for continuous flex applications. The cable includes a distinctive blend of components, including a core conductor made of stranded silver-plated copper-clad steel, a dielectric made of FEB material, a copper braid coated with tin, and a rubber jacket.