The single core copper wire market has witnessed significant growth over the past few years owing to its wide applications across several industries. Single core copper wire is one of the most common and economical conductors used for power transmission and various electrical wiring purposes. It finds applications in power generation, transmission and distribution systems; building wiring; appliances; motors; switches and sockets; and telecommunication systems among others. The growing infrastructural development activities along with the rising demand for electricity have propelled the demand for single core copper wires across the globe.
Key Takeaways
Key players operating in the single core copper wire market are TJX Companies Inc., Ross Stores Inc., Burlington Stores Inc., Nordstrom Rack (Nordstrom Inc.), Marshalls (TJX Companies Inc.), DSW (Designer Brands Inc.), Macy's Backstage (Macy's Inc.), Century 21 Department Store, Saks OFF 5TH (Hudson's Bay Company), Stein Mart Inc., Sierra Trading Post (The TJX Companies Inc.), Off Broadway Shoe Warehouse, Gordmans (Stage Stores Inc.), Bealls Outlet (Bealls Inc.), Gabriel Brothers Inc.
Key opportunities in the Single Core Copper Wire Market Size rise investments in development of renewable energy sources and smart grid infrastructure. Geographical expansion into developing regions of Asia Pacific and Latin America augurs well for overall market growth over the forecast period.
Major drivers for the single core copper wire market include growing infrastructure development activities and investments in power transmission and distribution networks globally. Additionally, wide range of end use applications across industries such as construction, automotive, consumer electronics among others is anticipated to propel the demand for single core copper wires.
Major restraints for the single core copper wire market include price volatility of raw materials especially copper and availability of cost effective substitutes such as aluminum. Stringent environmental regulations regarding electric and electronic waste recycling may also impact market growth to some extent over the coming years.
Market drivers and restrain:
The major driver for the single core copper wire market is growing infrastructure development activities and investments in power transmission and distribution networks globally. Rapid urbanization and industrialization in emerging economies have increased the demand for electricity manifold thereby propelling the need to strengthen the existing power transmission infrastructure. According to World Bank, global investments in infrastructure are estimated to be over US$ 97 trillion between 2016 to 2040 with a major share being directed towards developing reliable power networks. This rising focus on bolstering power infrastructure bodes well for the single core copper wire market.
The major restraint for the single core copper wire market is price volatility of copper which is the key raw material. As copper accounts for over 65% of total product cost, any fluctuation in copper prices poses challenge for manufacturers in terms of maintaining steady supply and consistent profit margins. According to ICSG, average copper price increased by over 25% between 2020 to 2021 nearing US$ 10,000 per tonne primarily due to supply shortage amid pandemic recovery. Such price volatility increases cost uncertainty restraining market potential especially in price sensitive regions.
Segment Analysis
The single core copper wire market is dominated by the residential segment that accounts for over 50% share. Residential segment demands single core copper wire for internal house wiring applications like power supply to various household appliances, lights, fans etc. This is the largest sub-segment as copper wire finds widespread adoption in residential buildings for safety and reliability in power distribution.
The industrial segment is the second largest sub-segment in the single core copper wire market. Industries engaged in manufacturing, mineral mining, metal processing etc require single core copper wire for setting up their power distribution infrastructure within the plant premises. Power intensive industries consume generous amounts of copper wire for their captive power requirements. Rising industrialization in developing nations is propelling the demand from this segment.
Global Analysis
The Asia Pacific region leads the global single core copper wire market with a share of more than 35%, driven by China, India and other Southeast Asian countries. This region witnesses tremendous construction activity in residential and commercial sectors along with rapid industrialization. All these end use industries consume bulk quantities of copper wire.
North America and Europe are other major markets, though their growth is relatively slower at around 5% CAGR owing to mature markets.
Emerging economies in Latin America and Middle East & Africa are projected to exhibit higher growth in the coming years supported by growing infrastructure spending and urbanization in these regions.
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