Copper Strips Market size is anticipated to witness healthy growth during 2020 to 2026. Increasing demand for copper strips across the electrical and power equipment sector will drive the market growth over the forecast period. Moreover, increasing investments by various EMEA countries towards the upgradation and establishment of new transmission and distribution infrastructure to meet the surging requirement for electricity are also expected to bolster the demand for copper strips in the years ahead.
Copper strips boast of high conductivity of power and are extremely flexible making them apt for use across most industry spheres.
One of the promising trends that is escalating the global copper strips market demand is the rising investment in smart grid networks. Smart grid systems ensure proper and smooth transmission and distribution of electricity and in this aspect, economies worldwide have been increasingly spending on the development of these grids, thus accentuating the use of copper strips over the years. This in turn, propels the need for advancement in modular switchgears that demand copper strips, thus fueling the industry growth.
One of the main application segments deploying copper strips on a large scale is the electrical appliance industry. Copper is widely used in electrical component production on account of its excellent resistance to heat and superconducting properties. Copper is also inexpensive, ductile, and possesses excellent thermal resistance, making it extremely suitable in the electrical industry. Also, it has a high melting point and is a good conductor of heat, on account of which it is deployed in electrical appliances that tend to generate a lot of heat.
Regionally, Asia Pacific is likely to emerge as a viable growth ground for copper strips market. The main reason for the same can be credited to the expanding electrical and electronics sector in the region. Given the convenience that copper offers in electric component production, it is used widely by manufacturers across nations such as South Korea, India, China, etc., in their manufacturing facilities. The region is also working to make uninterrupted electricity available for all which will further prompt the requirement of copper strips for electrical wiring and the like.
Some of the prominent companies that have formed a pivotal part of the competitive spectrum of copper strips market share include KME (KME Group), Eredi Gnutti Metalli (EGM Group), Aurubis, Egyptian Metal Works, MKM Mansfelder Kupfer und Messing (KME Group), Wieland Werke (Wieland Group), Metal Gems (Mehta Group), Elektrosan Elektro Bakir SANAYII ANONIM SIRKETI, and Copalcor Group.
The companies have been making efforts for scoring a competitive edge over the rivals by undertaking various strategic methods such as acquisitions, collaborations, mergers, new product launch, and company expansion, that would put them at the forefront in the industry. For instance, the KME Group, in 2018, announced acquiring 100 per cent stake in Mansfelder Kupfer und Messing. The acquisition received a federal nod and has been claimed to strengthen the performances of both the companies via the implementation of synergies.
The industry leader, Wieland Werke AG on April 2019 announced entering into a definitive merger agreement with Global Brass Copper Holdings Inc., for expanding their reach on the global level. Weiland has been pronounced acquiring all the outstanding shares of GBC in an all-cash transaction, wherein the GBC shareholders would receive USD 44 per share in cash.
Ongoing COVID-19 pandemic has had major impact on the global economy as well as various business across the globe, given the strict enforcement of lockdown. The power and electricity industries have been claimed to be one of the worst-hit domains. In fact, in India, the spot power demand declined to 40 per cent in March owing to the temporary closure of malls, shops, and offices in wake of the increasing coronavirus cases. Consequently, this has brought about a decrease in the adoption rate of copper strips worldwide, thus producing a dip in the overall copper strips market growth curve.
However, various central and state governments have been relentlessly initiating steps to ensure that the power sector falls back on track in the due course of time, so that the functions can get to normal as soon as the lockdown is uplifted. This step would also trigger the deployment of copper strips in the sector, while bringing the copper strips industry back on track, enabling it to grow at a prodigious pace in the upcoming years.