The global copper demand in 2017 surpassed 23 million tons. Increasing construction activities, the emergence of electric vehicles, and the need for renewable energy sources are expected to boost copper industry over the coming years.
Growing construction activities all around the world are expected to increase copper demand as it is one of the important building material. For roofing applications, copper sheet offers good water resistance. Less density than lead and light in weight makes copper ideal material to support building structures. In addition, greater fire resistance, high melting point, and high tensile strength of copper as compared to other materials makes it easier to install on domes and roofs.
Copper has emerged as the most cost-effective roofing material by virtue of its salvage value, ease of maintenance, and durability. While considering the overall roofing cost, copper is more affordable as compared to handmade clay tiles, slate, and lead. This factor, in turn, has increased its importance in the construction industry. Technological advancement followed by growing consumption in the construction industry has made copper a more cost-effective material in recent years and the trend is expected to continue over the coming years.
Apart from durability and corrosion resistant properties, copper has recently popular by virtue of its antimicrobial properties. Growing awareness regarding the prevalence of Healthcare-Associated Infections (HAIs) all around the world is expected to increase copper consumption in the construction industry. Copper surfaces in hospital fixtures help to reduce HAIs. It also found that antimicrobial copper surfaces help to kill more than 80% of bacteria which are responsible for HAIs.
- in copper mine supply over the past few years is expected to decelerate by virtue of structural challenges. Rising production cost for existing mines couples with depletion in resources is expected to increase the copper price over the coming years. In addition, declining exploration activities over the past few years have resulted in limited discoveries. However, increasing copper demand for electric vehicle and renewable energy generation is expected to surpass the average copper price to more than USD 7.0/kg by 2025.
Copper Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2025||USD 30 million|
|Growth Rate||CAGR of 50% during 2021-2028|
|Segment Covered||Application, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Rest of the World|
|Key Players Profiled||Codelco, Freeport-McMoRan, BHP, Glencore, Rio Tinto, Anglo American, Grupo México, KGHM, Antofagasta, and First Quantum Minerals Ltd.|
Key Segments of the Global Copper Market
Application Overview, 2015-2025 (Kilo Tons, USD Billion)
- Building & Construction
- Electrical & Electronics
- Industrial Machinery & Equipment
- Consumer & General Products
Regional Overview, 2015-2025 (Kilo Tons, USD Billion)
- North America
- Rest of the World
Reasons for the study
- The purpose of the study is to give an exhaustive outlook of the global copper industry.
- Rising infrastructure activities in developing economies to offer a lucrative opportunity for copper industry
- The emergence of electric vehicles to increase copper demand
What does the report include?
- The study on the global copper market includes qualitative factors such as drivers, restraints, and opportunities
- Additionally, the market has been evaluated using Porter's five forces and value chain analysis.
- The study covers qualitative and quantitative analysis of the market segment on the basis of application and region. Moreover, the study provides similar information for the key geographies.
- Actual market sizes and forecasts have been provided for above-mentioned segments
- The study includes the profiles of key players in the market with a significant global and/or regional presence
Who should buy this report?
The report will benefit:
- Executives of the copper producers
- Managers within financial institutions looking to publish recent and forecasted statistics pertaining to the copper market.
- Venture capitalist looking into investing capital.
- Government and financial organizations, policymakers, and regulatory authorities
- Researchers, strategy managers, analysts, and academic institutions that are looking at the different dynamics of the market
The world copper industry is highly competitive in nature as top 10 players operating in this industry are accounted for nearly 50% of the market share. Prominent copper producers are Codelco, Freeport-McMoRan, BHP, Glencore, Rio Tinto, Anglo American, Grupo México, KGHM, Antofagasta, and First Quantum Minerals Ltd.
Manufacturers operating in this industry are adopting M&A strategies to strengthen their presence in a competitive environment. Some key partnerships are given below:
- In December 2018, Vale S.A. announced that it had entered into an agreement to buy Ferrous Resources Limited, a Brazilian mining company engaged in exploration.
- In October 2018, Malmyzh Copper-Gold Porphyry Project of IG Copper LLC and Freeport-McMoRan Inc. was acquired by Russian Copper Company ZAO. Malmyzh Copper-Gold Porphyry Project of IG Copper LLC and Freeport-McMoRan Inc. comprise copper and gold reserves.
- In October 2018, BHP doubles stake in promising Ecuador copper project. According to BHP, this additional investment in SolGold strengthens its strategic position in the Cascabel copper exploration project.
- In January 2018, Aurubis, a largest copper producer and recycler in Europe acquired Codelco’s shares in Deutsche Giessdraht. Deutsche Giessdraht, a German manufacturer of copper products, produces more than 200 kilo tons of copper wire rod per year out of high-quality Grade A cathodes. Deutsche Giessdraht produces more than 200 kilo tons of copper wire rod annually. This acquisition is expected to strengthen the Aurubis copper products division in the global market.
- In August 2017, First Quantum Minerals Ltd. announced plans to increase its ownership in Minera Panama S.A. to strengthen its position in the global copper industry.
- In November 2014, copper miner, Antofagasta, announced plans to acquire Canada’s Duluth Metals to strengthen its distribution network to tap the copper market other than Chile.
Copper is extensively used in building & construction, electrical & electronics, industrial machinery, transportation, and consumer & general products. In 2017, building & construction application accounted for more than 35% of overall market share. Resistance to corrosion and ability to conduct heat and electricity makes copper ideal material in the construction industry. Growing consumption in building power transmission units and a flurry of construction projects in developing countries is expected to increase copper consumption over the coming years.
The global electrical & electronics industry value exceeded USD 4 trillion in 2017. Growing application in the electrical power industry such as transformers, plug components, connectors, wire, cable, residential electric circuits, and motor manufacturing is expected to drive its consumption over the forecast period. Furthermore, copper brazing material and copper foils are being increasingly used in vacuum electronic devices such as high-frequency tubes, magnetron, and copper printed circuits.
Copper alloys are extensively consumed in the shipping industry including manganese bronze, gunmetal, aluminum bronze, brass, aluminum, nickel-copper alloys, zinc, and tin. Growing adoption of copper and copper alloys in commercial ships and warships to manufacture bolts, condenser pipes, aluminum bronze propellers, rivets, and copper coated paints is expected to further increase its market concentration.
Apart from transportation and construction, copper is used extensively in the automotive industry such as radiators, gears, braking systems, brake linings, hydraulic equipment, bearings, power distribution, fittings, and gaskets. Moreover, rail-related parts & components including rectifiers, brakes, controls, electrical signal system, and motors completely rely on copper and copper alloys. In 2017, the global rail infrastructure market was more than USD 40 billion. The growing rail infrastructure all around the world is expected to increase copper concentration for railway electrification. Copper also finds wide applications in aerospace industry in cooling system of planes, hydraulic, pneumatics, and wiring systems.
Ongoing infrastructure projects such as l-405 Project (Orange County, California), California High-Speed Rail Project, Los Angeles Metro Rail Projects, Northeast Boundary Tunnel (NEBT) in Washington, Central Subway Project, Texas Central High Speed Railway, and Hyperloop from New York to Washington DC is projected to encourage the North American copper industry. North America accounted for more than 10% of global copper consumption in 2017. Some of the leading copper mines operating in this region are Morenci, Chino, Safford, Bagdad, Bingham Canyon, Sierrita, Ray, Pinto Valley, Robinson, and Continental Pit.
Light vehicle sales in North America exceeded 20 billion units, in 2017. Copper plays an important role in automotive manufacturing. A typical U.S. built automotive vehicle consist of more than 50 pounds of copper. In addition, the emergence of electric vehicles in the U.S. and Canada is expected to increase market concentration over the coming years.
Besides the US, the copper industry plays an important role in the European economy as well. The well-established semi-fabricating sector, and pioneered metallurgical processing technologies to convert copper and scrap material into copper products has increased its usage over the past few years. This trend is expected to continue over the forecast period with an increase in the demand for energy utilities, electronic equipment, and automotive.
The European copper mining industry also offers valuable by-products that can be extensively adopted in applications using advanced materials. For instance, copper mining is responsible for the production of selenium, molybdenum, cobalt, tellurium, rhenium, and rare earth elements. In 2017, the production of semi-fabricated copper and copper alloy products such as wires, rods, tubes, profiles, strip, and sheets accounted for more than 4 billion tons in Europe. The leading copper miners in Europe are based in Sweden, Finland, Poland, Spain, and Portugal.
In 2017, copper consumption across Asia Pacific was more than 16 billion tons. Growing infrastructure development coupled with the rapid development & expansion of the electrical and electronics industry in India, China, Japan, and South Korea is expected to provide new avenues for the copper market over the coming years.
- Intense consumer: Over the past few years, rapid industrialization has led to increased copper consumption in China. Extensive research & development along with the increasing demand for B2B and B2C products is expected to result in the continued existence of this trend over the projected period. In 2017, China copper consumption accounted for nearly 50% of the world copper consumption. Growing production of electric vehicles (EVs) coupled with the rising demand for renewables is expected to spur market growth over the coming years. By application, electrical & electronics industry in China accounted for more than 40% of overall consumption.
- Early-stage consumer: In 2017, the per capita copper consumption in India exceeded 0.3 kg. Increasing population followed by government initiatives such as Pradhan Mantri Awas Yojana is expected to increase copper consumption in India. Moreover, Smart City initiatives covering aspects such as the construction of renewable energy and metro projects is expected to increase copper consumption in the building & construction industry. Hindalco Limited, Vedanta Industries Limited, and Hindustan Copper Limited (HCL) are three major players operating in the Indian copper industry.
Huge investment to strengthen the manufacturing industry in the Middle East & African countries including Saudi Arabia, Turkey, South Africa, and Israel is likely to provide potential opportunities for the copper industry. Increasing expenditure towards the building & construction sector in Turkey as a result of improving economic scenario and increasing disposable income of consumers. These factors are expected to drive the global copper market demand over the forecast period.