The value of the global oxygen-free copper industry is expected to reach US$25.9 billion in 2025
The value of the global oxygen-free copper industry is expected to grow from $19.9 billion in 2020 to $25.9 billion in 2025, with a compound annual growth rate of 5.3% over the forecast period.
In recent years, due to the development of the global electronics, electrical and automotive industries, the oxygen-free copper market has grown substantially. With the development of the electronics market in emerging economies such as China, Brazil, and India, the aerospace, defense, and transportation industries' demand for high-quality materials continues to rise, accelerating market growth.
Wire rod will lead the oxygen-free copper market
It is expected that during the forecast period, both in value and quantity, wire rods will lead the oxygen-free copper market. Oxygen-free copper wires are most commonly used in high-end audio and video systems and custom assembly of personal oxygen-free copper wires. Oxygen-free copper is used for speaker wires, audio and video wires, components and amplifier wires. Oxygen-free copper wire has many advantages, such as higher conductivity and the ability to transmit low-frequency sound than ordinary copper wire.
The automotive segment is expected to be the fastest growing segment in the end-use industry throughout the forecast period. Global sales of electric vehicles have been growing, especially in developed regions such as North America and Europe. The global market for electric vehicles has been driven by growing concerns about environmental pollution. The growth in electric car sales has also been driven by government incentives, subsidies and heavy investment by carmakers. According to the International Energy Agency (IEA), global sales of electric vehicles reached 2.1 million in 2019, surpassing sales in 2018 and bringing the total number of electric vehicles on the road today to 7.2 million.
Bright prospects for the oxygen-free copper market in the Asia-Pacific region
In terms of value and volume, the Asia-Pacific oxygen-free copper market is expected to grow at the highest compound annual growth rate during the forecast period.
The Asia-Pacific region is the main consumer of oxygen-free copper, accounting for the largest share of the oxygen-free copper market. The region is a potential market for growth and demand in industries such as electronics, electrical and automotive. Japan, China, South Korea, Taiwan, India, Singapore and other countries and regions are the main production and sales centers of electronic and electrical products, but also the main end users of oxygen free copper.
The Asia-Pacific region is a lucrative automotive market and is witnessing the transformation of electric vehicles, such as hybrid electric vehicles.
China is the main market for oxygen-free copper in the Asia-Pacific region because of the high output and consumption of electronic and electrical products in China. Japan is a technologically advanced country and an important market for this type of copper. China and India have become major manufacturing and assembly centers for electrical, electronic and automotive products. In addition, the development of the e-commerce industry in the Asia-Pacific region has also accelerated the demand for electronic products. The Asia-Pacific region provides cheap labor and raw materials, which ultimately reduces manufacturing costs for manufacturers. The large populations of China and India and the continuous improvement of living standards have attracted foreign investment into the manufacturing industries in the region. Therefore, the growing demand in the Asia-Pacific region is expected to become the main market driver.