Copper clad steel (CCS) wires are the steel wires covered with copper. These wires offer combined conductive properties of copper and the high tensile strength of steel. The core material is low carbon steel and is used as the inner conductor of coaxial cables or as grounding wire. According to the U.S. Energy Information Administration (EIA), in 2018, around 4,178 billion kilowatt-hours (kWh) of electricity was generated at utility-scale electricity generation facilities in the U.S. As per EIA, electric power accounted for 38.1% of the total primary energy consumption in the U.S. in 2017 which may boost the U.S. copper clad steel wire market growth in the near future.
The U.S. copper clad steel wire market is projected to surpass US$ 3,179.86 million by the end of 2028, and is expected to exhibit a CAGR of 2.48% during the forecast period (2021 to 2028).
Copper clad steel (CCS) wire finds its application in electrical, construction, and automotive industries as coaxial cables, low current and signal cables, and for utility grounding applications. The growth of these end-use industries is expected to fuel the U.S. CCS market growth over the forecast period.
Growing construction and automotive industries in the U.S. is expected to boost the CCS wire market growth. According to the data released by the U.S Census Bureau and the U.S Department of Housing and Urban Development in June 2019, the number of newly completed residential buildings was about 900 thousands of unit in May 2014 which increased to 1,200 thousands of unit in May 2019.
High prices of copper affect the growing demand for copper clad wires. Therefore, various alternatives such as zinc coated steel wire are available in the market. The increasing adoption of zinc coated steel wire is expected to restrain the U.S. copper clad steel wire market growth over the forecast period.
Moreover, alternatives such as copper clad aluminum wire that offers several advantages such as low weight, lower scrap value (theft resistance), and cost cutting in wire manufacturing are widely available in the market. This, in turn, is expected to hamper the U.S copper clad steel wire market growth in the near future.
Demand for copper clad steel wire is increasing due to its growing applications in power generation and building and construction industries in the U.S. Ever-increasing population is further expected to result in robust growth of the construction industry which will lead to significant rise in demand for copper clad steel wires in the country.
For instance, according to the U.S. Department of Commerce, on July 1, 2019, the population of the U.S. was 331.9 million. Also, as per the U.S. Department of Housing and Urban Development, in May 2019, the total number of new residential housing completions was 1,213,000, and 1,294,000 building permits were sanctioned. Such increasing construction activities is expected to boost the demand for copper clad steel wires during the forecast period.
|Base Year:||2020||Market Size in 2020:||US$ 2,613.22 Mn|
|Historical Data for:||2017 to 2020||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 20287 CAGR:||2.48%||2028 Value Projection:||US$ 3,179.86 Mn|
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.
|Restraints & Challenges:||
Figure 1. U.S. Copper Clad Steel Wire Market – Opportunity Analysis
The increasing rate of copper theft in the case of copper clad steel wires is a major factor hampering the market growth. To overcome this loss, companies have started providing a protective covering to the wire. This covering can be in the form of PVC (Polyvinyl chloride) jacket, HDPE (High-density polyethylene) jacket, or a metal cage surrounding the copper clad steel wire along its length. Companies manufacturing anti-theft coverings include AFL, Copperhead Industries LLC., and others.
Figure 2. U.S. Copper Clad Steel Wire Market, Revenue Share (%), By Product Type, in 2020
Key Takeaways of the Graph:
U.S. Copper Clad Steel Wire Market - Impact of Coronavirus (COVID-19) Pandemic
The COVID-19 has a significant impact on both supply and demand sides of the copper clad steel wire industry. Since first cases in North America were reported in the United States in January 2020. The COVID-19 pandemic has had an unprecedented impact on the U.S. economy. The pandemic effect on the building and construction industry has also affected the production, supply and demand for copper clad steel wire. Additionally, its financial impact on firms and financial markets has caused supply chain and market disruptions. According to the World Economic Forum (WEF), the U.S. experienced the sharpest decline in manufacturing and overall industrial production as a result of supply chain disruptions and fears of recession in the financial markets during the pandemic.
Major 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.
Copper-clad steel (CCS), commonly known as copper-covered steel or by the trademarked name Copperweld, is a bi-metallic product mostly used in the wire industry. It combines steel's excellent mechanical resistance with copper's conductivity and corrosion resistance. The applications of CCS include motors and magnetic assemblies, specialty resistors and capacitors, and intelligent temperature and pressure measuring instrumentations.
Copper clad steel wire is a potential alternative to solid copper-based wires. The scrap value of copper clad steel wire is lower than solid copper wire, which offers theft resistance. This, in turn, is expected to increase the demand for copper clad steel wire in the U.S. over the forecast period.
Electricity demand is increasing in the U.S. owing to rising population, which is expected to boost the demand for CCS wire over the forecast period. For instance, according to U.S. Energy Information Administration data, total U.S. retail electricity sales to end-use customers was 3,802 billion kWh (3.8 trillion kWh) in 2018 which was about 79 billion kWh more than that in 2017. In the U.S., the sales of electricity to residential customers was 1,464 billion kWh which was 39% share of total sales in 2018, commercial sector accounted for 1,377 billion kWh (36%), industrial sector accounted for 953 billion kWh (25%), and transportation accounted for 8 billion kWh (0.2%).
The growing use of fiber-optic cables in the telecommunications industry is expected to put a limitation on the growth of the U.S. copper clad steel wire market. Optical fiber has advantages over copper wire in long-distance, high-bandwidth applications due to lower attenuation and interference in telecommunication industry. Therefore, the availability of substitutes is expected to restrain the U.S. copper clad steel wire market growth over the forecast period.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective.