by Copper clad steel wire is produced by bonding a layer of copper on the surface of a steel wire through hot dip galvanizing method. It offers properties of both copper and steel and is widely used in power transmission, electrical circuits, communications cables and transformer windings. Copper clad steel wire has high tensile strength compared to pure copper and acts as a substitute for aluminum conductor steel reinforced cable and copper cable at a lower cost. The global construction sector is witnessing robust growth over the past few years especially in sectors like infrastructure development, commercial real estate and residential buildings driving demand for copper clad steel wire.
The global U.S. COPPER CLAD STEEL WIRE Market is estimated to be valued at US$ 2812.51 in 2023 and is expected to exhibit a CAGR of 2.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the key drivers for the growth of U.S copper clad steel wire market is rapid expansion of construction sector in the country. According to U.S. Census Bureau, total construction spending in U.S. increased by 1% in July 2022 compared to June 2022, indicating continued growth of real estate and infrastructure development activities. This increasing construction activities will substantially boost the demand for copper clad steel wire used in applications such as power transmission cables, transformers and electrical circuits. Second driver for the market is its cost effectiveness compared to pure copper and aluminum conductor steel reinforced cable materials used for similar applications. Copper clad steel wire offers joint benefits of copper and steel at lower price making it material of choice for cost sensitive applications and markets. This affordable price point along with its high tensile strength and conductivity properties will fuel its adoption across various end use industries.
Segment Analysis:
The U.S. copper clad steel wire market is dominated by the automotive sub-segment. Around 30% of the total demand comes from the automotive industry, where copper clad steel wires are used in automobile wiring harnesses. Properties such as high strength, flexibility, fatigue resistance and corrosion resistance make copper clad steel wire a preferred choice for automotive applications over other counterparts. These wires conduct electricity efficiently and can withstand high temperatures inside the engine compartment.
PEST Analysis:
Political: No major trade restrictions or import duties are imposed on copper clad steel wires in the U.S. However, policies supporting the expansion of electric vehicles can boost the market growth.
Economic: Strong GDP growth and rising disposable incomes are increasing consumer spending on industries like automotive and construction, driving wire demand. Ongoing infrastructure projects also contribute to market revenues.
Social: Growth in connected technologies and increasing electrification of vehicles are some key social trends fueling the need for efficient wiring and cables. Rising health awareness also pushes use of corrosion-resistant materials.
Technological: Developments in lightweight vehicle components using multi-material designs can induce higher adoption of copper clad steel wires in automotive industry. Advanced coating technologies further enhance product performance.
Key Takeaways:
The Global U.S. Copper Clad Steel Wire Market Growth is expected to witness moderate over the forecast period.
The automotive sector accounts for the major share and rising electric vehicle production will augment market revenues. The West region, led by California, currently holds the largest market share of over 30% due to massive automotive manufacturing bases.
Key players operating in the U.S. copper clad steel wire market are Copperhead Industries, LLC, American Wire Group, Inc., Nehring Electrical Works Company, Kris-Tech Wire, MWS Wire Industries Inc., AFL, LEONI Wire Inc., Fisk Alloy Inc., and Elecref Industries Inc. Focus on expanding automotive, electric vehicle component manufacturing and developing corrosion-resistant, high strength wires will be the key strategies adopted by leading players to gain market share.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
