by The U.S. Copper Clad Steel Wire Market is estimated to be valued at US$ 2,613.22 Mn in 2022 and is expected to exhibit a CAGR of 2.48% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Copper clad steel wire is a long length of steel wire coated in a thin layer of copper. It provides the strength of steel with the conductivity of copper. Copper clad steel wire is commonly used in electric motors, generators, transformers and other electrical equipment where copper’s anti-corrosion properties are important but conductivity needs to be maximized at lower cost than solid copper.
Market key trends:
One of the major trends gaining traction in the U.S. copper clad steel wire market is the adoption of copper coil winding technology by large manufacturers. Copper coil winding involves the continuous winding of ultra-thin copper coils around steel wire to achieve thicker and more consistent copper cladding compared to conventional cladding methods. This enhances conductivity while reducing copper consumption. Leading manufacturers such as Copperhead Industries and American Wire Group have heavily invested in copper coil winding capabilities over the past few years to scale up production and meet the growing needs of electrical equipment manufacturers. The technology is expected to become more mainstream in the U.S. copper clad steel wire market during the forecast period.
Porter’s Analysis
Threat of new entrants: Low capital requirement and technology needed to enter the market poses low threat. However, established brands, distribution networks and relationships pose high barriers.
Bargaining power of buyers: Large buyers like utilities and OEMs have significant bargaining power due to the fragmented nature of the industry and pricing pressure.
Bargaining power of suppliers: Few global suppliers exist for steel and copper necessities increasing their bargaining power.
Threat of new substitutes: Alternatives like copper or aluminum wires pose medium threat depending on end use and cost. Fiber optics pose low threat currently.
Competitive rivalry: Intense competition exists among established players to protect or gain market share through product innovation, integrated supply chain and customer relationships.
SWOT Analysis
Strengths: Established infrastructure and brand loyalty gives access to a broad customer base. Exclusive long term relationships with large utilities provide recurring revenues.
Weaknesses: Higher costs of operations due to unionized labor and fragmented industry. Vulnerable to price fluctuations in raw materials.
Opportunities: Growth in infrastructure investment and electric vehicle industry expected to drive demand. Acquisitions can help penetrate new markets and segments.
Threats: Shift to renewable energies may reduce demand from utilities in long run. Trade tariffs and geo-political tensions create supply uncertainties.
Key Takeaways
The U.S. Copper Clad Steel Wire Market Growth is expected to witness high at a CAGR of 2.48% over the forecast period, driven by increasing investments in infrastructure development and the electric vehicle industry. The western region currently dominates the market owing to presence of major utilities. The market size is projected to reach US$ 2,613.22 Mn by 2030 from US$ 2,085.19 Mn in 2020.
Key players operating in the U.S. copper clad steel wire market include 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. The players are focused on enhancing production capacities and integration to strengthen supply chains and gain a competitive edge.
Regional analysis: The western region holds the largest share currently. Growing renewable energy infrastructure like solar and wind farms are driving demand growth in states like California and Texas. The mid-western region is expected to witness highest CAGR during the forecast period with increasing nuclear power generation and revamping of transmission grids.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
