Copper Alloy Bar Market - Forecast(2023 - 2028)

Copper Alloy Bar Market Overview

The Copper Alloy Bar Market size is projected to reach US$ 1.3 billion by 2027, after growing at a CAGR of 5.1% during the forecast period (2022-2027). Copper Alloy Bar such as brass and bronze offer excellent electrical conductivity, flexibility, and are highly resistant to corrosion. All of these properties make them ideal for use in a wide range of industries which include automotive, construction, electrical & electronics, marine, oil & gas, power generation, petrochemical, paper & pulp, and other industries. According to the International Organization of Motor Vehicle Manufacturers (OICA), the total global automobile production reached 80.2 billion units in 2021, an increase of 3% as compared to 77.7 billion units in 2020. An increase in automobile production along with the surging demand from the oil & gas industry acts as the major driver for the market. On the other hand, the availability of substitutes may act as a constraint for the market.

COVID-19 Impact

There is no doubt that the COVID-19 lockdown has significantly reduced manufacturing, and production activities as a result of the country-wise shutdown of manufacturing sites, shortage of labor, and the decline of the supply and demand chain all over the world, thus, affecting the market. Studies show that the outbreak of COVID-19 sharply declined the production of automobiles in 2020 due to a lack of operations across multiple countries around the world. According to OICA (International Organization of Motor Vehicle Manufacturers), the production of automobiles decreased by 16% globally in the year 2020 as compared to 2019. However, a slow recovery in the automotive industry has been witnessed across many countries around the world since 2021. Copper Alloy Bar is primarily used in heater cores, tubes, radiators, and tanks of an automobile, owing to its excellent resistance to spark and corrosion. For instance, recent insights from OICA states that the total automobile production in 2021 in Europe, America, Asia, and Africa increased by 25%, 17%, 28%, and 37% respectively in comparison to 2020. In this way, a steady increase in the production of automobiles is expected to increase the demand for Copper Alloy Bar for use in automotive components, owing to their durability and corrosion resistant properties. This indicates a steady recovery of the market in the upcoming years.

Report Coverage

The report: “Copper Alloy Bar Market Report– Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Copper Alloy Bar Industry.

By Product Type: Round Copper Bar, Flat Copper Bar, Rectangular Copper Bar, Others.
By Alloy Type: Brass, Bronze, Copper Nickel, Others.
By Grade: C10200, C10300, C10800, C11400, C11600, C14200, C14420, C12000, C12200.
By End-Use Industry: Automotive, Construction, Electrical & Electronics, Marine, Oil & Gas, Power Generation, Petrochemical, Paper & Pulp, Others.
By Geography: North America (USA, Canada, and Mexico), Europe (the UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and the Rest of Asia-Pacific), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America), the Rest of the World (the Middle East, and Africa).

Key Takeaways

• Bronze type held a significant share in the Copper Alloy Bar Market in 2021. Its wide range of characteristics, corrosion resistance, and heat resistance properties made it stand out in comparison to other types of Copper Alloy Bars in the market.
• Electrical & electronics industry held the largest share in the Copper Alloy Bar Market in 2021, owing to the increasing demand for Copper Alloy Bars from the industry. According to recent insights published on Growth from Knowledge (GRK) in September 2021, the global consumer electronics industry obtained a total sales growth of US$ 42.8 billion during the first quarter of 2021, an increase of 18% in comparison to 2020.
• Asia-Pacific dominated the Copper Alloy Bar Market in 2021, owing to the increasing demand for Copper Alloy Bars from the electrical & electronics sector of the region. According to the Semiconductor Industry Association, China imported around US$ 378 billion in semiconductors, accumulated 35% of the world’s electronic devices, and was responsible for 30% to 70% of the global PC, TV, and mobile phone exports in 2020.

Copper Alloy Bar Market Segment Analysis – By Alloy Type

The bronze segment held a significant share in the Global Copper Alloy Bar market in 2021, owing to its increasing demand due to the characteristics and benefits it offers over other types of Copper Alloy Bars. For instance, bronze is more durable and offers superior tensile strength in comparison to brass and other types of copper alloys. It offers excellent resistance to corrosion even in salt water as opposed to brass and other metal alloys. Moreover, bronze has a higher melting point which allows it to withstand high temperatures as compared to other copper alloys. Furthermore, it offers excellent resistance to wear and friction along with good machinability. Thus, all of these benefits are driving its demand over other types of copper alloy bars, which in turn, is expected to boost the market growth during the forecast period.

Copper Alloy Bar Market Segment Analysis – By End-Use Industry

The electrical & electronics industry held the largest share in the Copper Alloy Bar Market in 2021 and it is expected to grow at a CAGR of 5.2% between 2022 and 2027, owing to the increasing demand for copper alloy bars for use in electrical transmission and distribution projects across the globe. For instance, according to NES Fircroft, the U.S has invested around US$ 3 billion for its electrical transmission and distribution project called the Euro-Asia Connector worth US$ 4.1 billion in 2022. The project aims at building a cross-border electricity grid that will be connected through bi-directional cables in order to provide a steady and sufficient supply of electricity through national transmission operators. Similarly, it further states the commencement of another electrical distribution project called the Euro-Africa Connector worth US$ 4 billion. The project is expected to begin in 2022 and aims at connecting Egypt, Cyprus, and Greece through a 2,000MW electricity interconnector by the end of 2022. This, in turn, is expected to increase the demand for copper alloy bars for use in electrical panel board switches and relays, along with sockets, PCB plug pins, and terminal blocks installed in such electrical transmission and distribution facilities, owing to its high electrical conductivity along with excellent resistance from corrosion, spark, heat, and other properties. This is expected to drive the growth of the market during the forecast period.

Copper Alloy Bar Market Segment Analysis – By Geography

Asia-Pacific held the largest share in the Copper Alloy Bar Market in 2021 up to 31%. The consumption of copper alloy bars is particularly high in this region due to its increasing demand from the electrical and electronic sectors. For instance, recent insights from NES Fircroft state that the State Grid Corporation of China (SGCC) has started a new power transmission and distribution project worth US$ 33.7 billion in 2020 in order to meet the increasing electricity demands in China. The project aims at building 12 electricity transmission lines capable of connecting the coal production and hydropower centers to the densely populated parts of the country. According to a recent study published in the Economic Times (Telecom) in 2021, electronic manufacturing and production were valued at around US$ 100 billion in India. It further states that mobile manufacturing in India surpassed INR 90000 crore (US$ 12 trillion) in 2021 as per the statement made by the Indian IT Minister. Likewise, according to the annual reports published by Samsung during the fourth quarter of 2020, the total revenue of the consumer electronics division was valued at KRW 13.6 trillion (US$ 11.3 billion) with an operating profit of KRW 0.8 trillion (US$ 668 million).

Copper alloy bars play a vital role in the electrical and electronics sector since they are primarily used in electrical panel board switches and relays, along with sockets, PCB plug pins, terminal blocks, and other electronic components, owing to their excellent electrical conductivity, and superior resistance against heat, spark, and corrosion. Hence, an increase in demand for electricity, and electronic devices is expected to increase the use of copper alloy bars, leading to the growth of the market during the forecast period.

Copper Alloy Bar Market Drivers

An increase in automobile production is most likely to increase demand for the product

According to a recent study published by the German Association of Automotive Industry during the fourth quarter of 2020, the new registration of motor vehicles reached up to 16,763 units in Europe, 37,467 units in Asia, 3080 units in South America, 17,421 units in North America, 12,733 units in Western Europe, and 5180 units in other regions worldwide. Likewise, a recent study published by the International Netherlands Group (ING) states that the demand for the production and development of electric vehicles has been increasing since the pandemic. It states that the global sales of new electric vehicles have increased by 50% in 2021, and it is expected to increase by 8% in 2022. It further states that the sales of electric vehicles have increased by 14% in Europe, 9% in China, and 4% in the US.

Hence, an increase in demand and production of vehicles is expected to increase the demand for copper alloy bars for use in heater cores, tubes, radiators, and tanks of an automobile owing to its excellent resistance to heat, spark, and corrosion. This is most likely to drive the growth of the market in the upcoming years.

An increase in demand from the oil and gas industry is most likely to increase demand for the product

Copper alloy bars are commonly used in the valve stems, flex shafts, tanks, pump shafts, pump impellers, rock bit bearings and bushings, wear plates, piping systems, and other components of an oil and gas plant. For instance, the government of the USA announced the continuation of operations of the Alaska LNG Liquefaction Plant project worth US$ 43 billion in 2020. The Alaska LNG represents a three-train liquefaction plant, gas treatment plant, and an 800-mile pipeline. The facility is expected to export around 3.5 billion cubic feet of gas per day from Alaska’s North Slope gas fields and is scheduled to begin its operations in 2025. According to recent insights published by NS Energy in 2021, 512 oil & gas projects are scheduled to start operations from 2021 to 2025 in China. One of the largest projects includes the Yantai Expansion terminal worth US$ 1.1 billion which has an overall capacity of 487 billion cup feet (bcf). Its operations are expected to begin in 2025.

In this way, an increase in the development of oil & gas plants in various countries across the world is expected to increase the demand for copper alloy bars for use in the above-mentioned components of the plant, owing to its excellent durability, along with heat, corrosion, and abrasion resistant properties. This is expected to accelerate the market growth in the upcoming years.

Copper Alloy Bar Market Challenges

Availability of substitutes may cause an obstruction to the market growth

The availability of substitutes such as aluminum alloy bars may restrict the growth of the market. Moreover, the electrical conductivity of aluminum alloy is similar to that of copper alloy. Its resistivity is around 1.6 times higher than copper while its density is less than copper alloy which makes them much lighter in terms of weight as compared to copper alloys. Moreover, aluminum alloys are strong, durable, and offer excellent corrosion and spark resistance. Furthermore, they are non-combustible, non-toxic along with being relatively economical and cheaper in comparison to copper alloys. Thus, such availability of other substitutes may confine the growth of the market.

Copper Alloy Bar Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Copper Alloy Bar Market. Global Copper Alloy Bar top 10 companies are:

1. Aurubis
2. Jiangxi Copper
3. Mitsubishi Materials
4. Golden Dragon
5. Wieland
6. KME Group
7. Jintian Group
8. Mueller
9. Poongsan Corporation
10. Hailiang Group

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