U.S. COPPER CLAD STEEL WIRE MARKET ANALYSIS

Market Size and Trends

The U.S. copper clad steel wire market is estimated to be valued at USD 2,704.2 Mn in 2024 and is expected to reach USD 3,348.4 Mn by 2031, growing at a compound annual growth rate (CAGR) of 3.1% from 2024 to 2031.

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Rising construction activities in the country is supporting the growth of the market. Copper clad steel wires find major applications in equipment wiring which sees increased demand from development in various end-use industries such as buildings, power generation, and transmission. Additionally, focus on infrastructural investments particularly in the railway and renewable energy sectors will also contribute to the revenue gains of the copper clad steel wire market in U.S. Continuous replacement of existing wires and cables owing to weathering is another factor driving more installation of these wires. However, the availability of alternatives, such as aluminum clad steel wire and optical cables, may hinder the market growth to some extent during the forecast time period.

Growing Use in Power Transmission and Distribution Systems

Copper clad steel wire is widely used in the construction of power transmission lines and networks due to its high strength, durability, corrosion resistance, and electrical conductivity properties. With the federal government investing billions of dollars under infrastructure development plans to modernize and augment the aging electricity grid, thousands of miles of new transmission lines need to be installed over the coming decade. This upgrade and extension of transmission and distribution systems will require huge volumes of copper clad steel wires to be used. Furthermore, more utilities are shifting towards underground power transmission lines in urban areas which also utilize substantial amounts of insulated copper clad steel wires for primary and secondary distribution. The increased deployment of renewable energy such as solar and wind power projects is another factor that is expanding electricity networks into new geographical regions. All these macroeconomic trends indicate a sustained rise in demand from the power sector for copper clad steel wire in the U.S. over the next 5-10 years.

Market Concentration and Competitive Landscape

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Penetration in construction and infrastructure projects is a major factor driving the growth of the U.S. copper clad steel wire market. Copper clad steel wire finds wide applications in infrastructure such as electrical grounding, power distribution, telecommunication networks and construction activities. With increasing investments in development of transportation, energy and utility sectors, the demand for copper clad steel wire is expected to rise considerably in the coming years. The U.S. government has recently announced investments toward repair, replacement and upgrade of aging infrastructure across the country. In November 2021, the bipartisan Infrastructure Investment and Jobs Act was signed into law, allocating USD1.2 trillion over five years for modernization of roads, bridges, water systems and broadband internet. A considerable portion of this massive infrastructure package will flow into projects requiring copper clad steel wire. For example, the Act provisions USD 65 billion to upgrade the electrical grid, which will bolster procurement of transmission lines made from copper clad steel wire.

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The rising import prices of copper and increasing labor costs are posing significant challenges for the growth of the U.S. copper clad steel wire market. Copper is the primary raw material used in manufacturing copper clad steel wire. According to the U.S. Geological Survey, the average market price of copper increased from USD6, 700 per tons in 2020 to over USD8, 000 per tons in 2022. This represents a price rise of nearly 20% over the last two years. Higher copper costs ultimately make copper clad steel wire more expensive to produce for domestic manufacturers.  At the same time, labor costs in the U.S. have also witnessed a steady uptick. Data from the U.S. Bureau of Labor Statistics indicates that the average hourly earnings of all employees increased from USD29.73 in 2020 to USD32.27 in 2022, marking an 8.4% rise. Manufacturing copper clad steel wire is a labor-intensive process that requires skilled workforce to carry out critical manufacturing operations such as stripping, cladding and drawing of wires. Higher wages have pushed up manufacturing overheads for companies. The combined impact of rising raw material and labor prices has negatively impacted the margins of domestic producers.

Opportunities: Growing demand from the construction industry

The construction industry in the United States has been experiencing significant growth over the past few years and this upward trajectory is expected to continue in the coming years as well. Various infrastructure development projects, increased spending on public construction works as well as strong housing market signals have pointed towards a prolonged demand boom from this sector.  Copper clad steel wire is extensively used in the construction industry for reinforcement in concrete structures. The non-corrosive and high strength properties of copper clad steel wire make it an ideal material for building bridges, buildings, roads etc. where durability and tensile strength are of prime importance. As per the U.S. Census Bureau, the total construction spending in 2021 stood at over 1.7 trillion dollars, a rise of over 4% compared to the previous year. Several large projects are ongoing or in the pipeline such as the renovations in public transportation systems, high speed railway projects, new power plants and data centers. The Biden administration has further committed huge investments for upgrading infrastructure over the next decade.

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In terms of product type, Copperclad Wire-High Strength (HS) is expected to contribute 35.3% share of the U.S. copper clad steel wire market in 2024 owing to its superior mechanical properties. Copperclad HS wire possesses tensile strengths far exceeding alternative product types, making it indispensable for numerous applications that demand high load-bearing capacity. Its ultra-strong composition, consisting of a carbon steel core wrapped in oxygen-free copper, allows Copperclad HS to withstand stresses, strains, and pressures that would compromise ordinary wire. As a result, it remains intact even in demanding environments involving heavy tensile or compressive forces. Copperclad HS wire's mechanical robustness stems from optimizations to the core steel alloy formulation. Strategic additions of strengthen-promoting elements like chromium and vanadium, coupled with precise heat treatment procedures, work synergistically to enormously boost the steel's yield point and tensile strength without compromising ductility. Subjected to exhaustive reliability testing simulating real-world usage conditions, copperclad HS has proven its longevity compared to common wire. Its resistance to fatigue cracking and breaking under cyclical or impact loading underpins its fit for arduous industrial uses. The product's heightened strength also translates to significant downgauging potential. Engineers leveraging copperclad HS can select thinner wire gauges to achieve the same performance specifications as thicker alternatives, benefiting applications where space and weight are tight constraints. This enhances design flexibility and drives material cost savings that buoy its market prevalence. Overall, copperclad HS wire's unmatched load-bearing muscle and proven durability in forceful environments have made it the strength champion driving its highest market share position.

Insights by End-Use Industry: Telecommunication Sector Stimulates Demand

In terms of end-use industry, the telecommunication sector generates the greatest demand in the U.S. copper clad steel wire market owing to its uniquely stringent performance needs. The segment is expected to account for 35.6% of the market share in 2024. As the lifeline of the digital world, telecom infrastructure relies on durable copper conductors to transmit voice and data signals over vast transmission lines. However, inherent limitations of stranded copper compel the industry toward reinforced copper clad steel alternatives like copper bonded aluminum for enhanced conductivity and strength in overhead power lines and underground cables.  Copper clad steel wire excels in telecom owing to optimized metallurgical bonding between its corrosion-resistant copper layer and ultra-strong steel core. This synergistic combination endows the wire with electrical conductivity on par with solid copper yet mechanical strength rivaling steel stranding — boosting service capacity and reliability of telecommunications grids. As network traffic escalates with 5G proliferation, 6G on the horizon, and growing IoT connectivity, telecom providers depend on copper clad steel to upgrade backbone architecture and expand coverage area without compromising performance over 30-50+ year design lives. Moreover, many remote and rugged telecom installations occupy difficult terrains like valleys, mountains, and offshore marine environments with soaring ambient temperatures. Only wires like copper clad steel possess the necessary robustness, resilience to fatigue and impacts, as well as conduction stability at high temperatures, to survive these inhospitable locales unscathed for decades. The wire is therefore pivotal for bringing connectivity to all communities reliably. Given telecommunication’s imperative need for sturdy yet conductive cable, it spearheads copper clad steel consumption in the U.S. market.

Market Report Scope

Key Developments

• In 2023, American Wire Group (AWG), a Miami-based manufacturer of wires, cables, equipment and accessories for the electric utility and renewable markets, plans to open a national distribution facility in Katy.
• In 2022, infiniRel received a significant investment in their renewable energy startup from American Wire Group (AWG), the nation's leading supplier of cable and wire products for renewable energy and electrical utilities. A portion of the investment was designated for infiniRel's Wefunder Campaign bringing that raise to USD 126,850 to date.
• In 2020, Copperhead Industries, Inc. has partnered with Graham Engineering Corporation to install a complete new American Kuhne extrusion line intended to meet growing demand for Copperhead’s copper-clad steel (CCS) tracer wire.

*Definition: The U.S. copper clad steel wire market involves the production and sale of copper clad steel wire products primarily used in construction applications within the U.S. Copper clad steel wire is made by bonding a thin layer of copper onto a steel wire core, allowing it to conduct electricity while maintaining the strength of steel.

Market Segmentation

•  Product Type Insights (Revenue, USD Mn & KT, 2019 - 2031)
  • Copperclad Dead Soft Annealed (DSA) Steel Wire
  • Copperclad Jacketed Steel Wire
  • Copperclad Composite Conductors (CCC)
  • Copperclad Wire-High Strength (HS)
  • Others
•  End-use Industry Insights (Revenue, USD Mn & KT, 2019 - 2031)
  • Telecommunication
  • Power Generation
  • Electrical and Electronics
  • Building and Construction
  • Automotive
  • Others (Aerospace, etc.)
• Key Players Insights
  • 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.
  • Elecref Industries Inc.