Copper Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Key Highlights

• Increasing demand from the construction, electronics, and telecommunication industries is boosting the market’s growth.
• On the other hand, strict rules about mining could make it harder for the market to grow.
• Still, the growing demand for electric vehicles is likely to soon give the global market a chance to grow in a good way.
• During the forecast period, Asia-Pacific is expected to grow the fastest. This is mostly because the electrical and electronics industries in India and ASEAN countries are growing.

Copper Market Trends

Growing Demand for Electrical and Electronics Segment

• Copper is being used for many applications due to its properties. Electronic applications of copper are wires and cables, dynamos, transformers, motors, electromagnets, switches, communication cables, residential electrical circuits, etc.
• Recently, the growth of electric vehicles has increased the demand for copper. Foils, stators, rotors, shaft heads, hollow wires, and motors are used in electrical vehicles consisting of heavy copper.
• According to the JEITA (Japan Electronics and Information Technology Industries Association), the total global production by the electronics and IT industries rose by 11% year over year in 2021 to reach USD 3,415.9 billion. Thus, this factor is expected to increase the demand for copper materials used in the electronics segment.
• In North America, especially in the United States, the electronics industry is expected to grow moderately. According to the Consumer Technology Association (CTA), the US consumer technology sector is expected to grow to USD 505 billion in retail sales revenue by the end of this year, with a 2.8% rise in sales over 2021's growth of 9.6% over 2020. An increase in the demand for new technological products is expected to help expand the market in the future.
• The aforementioned factors are contributing to the increasing demand for copper market during the forecast period.

Asia-Pacific Region to Dominate the Market

• Asia-Pacific is expected to dominate the global market due to China’s highly developed construction and power generation sectors and the continuous investments in the region for advancements in the telecommunications and electronics sectors through the years.
• Copper is the oldest known metal still used in the construction industry. The unique combination of copper's physical properties - conductivity, corrosion resistance, durability, flexibility, and strength - makes it suitable for almost any construction project. Thus, growth in construction activities in Asia-Pacific may boost the copper market in the region.
• According to the National Development and Reform Commission, China, the growing demand for housing is likely to drive residential construction in the country, both in the public and private sectors. The number of new hotel projects in the country increased by about 19% in 2021. The increase in the construction of tall buildings and hotels is driving the market in the region.
• China is the largest consumer of electric vehicles. In 2021, China's electric vehicle sales increased by more than 50% after the modest growth seen in 2020. Thus, increased electric vehicle sales in China are estimated to fuel the Chinese copper market.
• In India, the market for medical devices saw a rise in demand, and the size of the market grew quickly.In September 2021, the Indian government sanctioned a proposal worth INR 5,000 crore (USD 674.36 million) to build a medical devices park in Himachal Pradesh’s industrial township, Nalagarh, in the Solan district. Since copper is a key part of many medical devices, it is expected that the rising demand will help the copper market in India.
• Such factors are boosting the demand for copper in various sectors.

Copper Market Competitor Analysis

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• The market estimate (ME) sheet in Excel format
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