San Francisco, CA — (SBWIRE) — 02/24/2023 — THE ELECTRIFICATION OF THE GLOBAL ECONOMY IS EXPECTED TO AUGMENT THE GROWTH OF THE GLOBAL MARKET
The electrification of the global economy refers to the increasing use of electricity as a primary energy source in various industries and sectors, including transportation, manufacturing, and construction. Copper usage is predicted to increase in the coming years, with the ongoing electrification of transportation through the adoption of electric vehicles (EVs) and hybrid vehicles. The International Copper Study Group (ICSG) estimates that there will be around 16.5 million electric vehicles on the road in 2021 and an electric vehicle, on average, contains 83kg of copper. The ICSG estimates that more than 23.5 million tonnes of refined copper will be utilized in 2021. The electrification of the global economy is a key driver for the growth of the global copper wire rod market.
A SHORTFALL IN GLOBAL COPPER SUPPLIES IS LIKELY TO HAMPER THE MARKET GROWTH
With rising electrification rates, global copper supplies have witnessed major shortfalls. At the Africa Mining Summit 2022, Ivanhoe Mines co-founder Robert Friedland stated that more than 700 million metric tonnes of copper would have to be mined in the next 22 years to keep pace with current electrification rates and maintain a healthy 3.5% growth rate for the global economy. He further stated that electric vehicles (EVs) would require 3.7 million tonnes of refined copper per year by 2040 and there is forecasted to be a 9 million tonne shortage by 2030. Shortfalls in global copper supplies are a key challenge for the growth of the global market.
U.S. AND CHINA ARE KEY COUNTRIES IN SHAPING THE GLOBAL MARKET
The U.S. is a major technologically advanced country that has emerged at the forefront of the emerging competitive drone racing industry. Many professional drone racing championships have emerged in the country in recent years. Many global racing events are held in the U.S. due to a conducive tech ecosystem. For instance, the 2022 Drone Racing League World Championship took place in Las Vegas, U.S. China is another major country that is a key player in the global market. For instance, the first two editions of the FAI World Drone Championships were held in China.
BUILDING WIRES AND POWER CABLES ARE TO BE THE BIGGEST APPLICATIONS
Power cables transmit electricity from power plants to homes and businesses. Copper wire rods are the preferred material for power cables because they have low resistance, meaning less energy is lost as the electricity is transmitted over long distances. Electricity access is one of the critical developmental goals, with the International Energy Agency (IEA) estimating that nearly 775 million people will still lack access to electricity in 2022. Copper wire rods are the preferred material for building wires because they have several properties, such as high tensile strength, ductility and corrosion resistance.
AURUBIS AND MITSUBISHI MATERIALS TO TARGET MAJOR GROWTH WITH NEW DEVELOPMENTS
The major players in the global market are augmenting their production capacity in anticipation of rising global demand. In February 2023, Aurubis announced a US$128.3 million investment to boost refined copper output by 50% to 340,000 tonnes per year. In February 2023, Mitsubishi Materials unveiled a new business plan envisaging a US$ 1.9 billion investment to triple copper output by 2030.
GLOBAL COPPER WIRE ROD MARKET REPORT SCOPE
– OD0.3 inches
– OD 0.3 – 0.6 inches
– OD> 0.6 inches
By End User Application
– Power Cables
– Building wires
– Aerospace industry
– Automotive harnesses
– Energy and heat transfer
By Product Type
– Polyvinyl Chloride
– Polyvinyl Chloride
– North America
– South America