Oxygen-free Copper Market Analysis

Oxygen-free Copper Market Analysis

The Copper Oxygen-free (Cu-OF) segment held the largest market share of around 59% in 2019 and is anticipated to grow at a CAGR of over 5.8%. Copper oxygen-free grade materials are widely used in the electrical and automotive industries owing to good conductivity and excellent formability of the material.
 

The development of several new wire and rod products that are used in automotive and electronic applications coupled with distribution expansion of several industry participants across the globe will drive the Cu-OF grade demand. Additionally, the use of Cu-OF in aerospace applications is expected to offer lucrative opportunities for the oxygen free copper market growth.
 

Wires segment dominated the oxygen free copper market and accounted for 40% demand share in 2019 owing to the rising applications in consumer electronics, electrical sector, along with industrial applications. Wire manufacturers are using oxygen-free copper to minimize number of voids present within the wire that hinders electric signal transmission.
 

Acoustic cables require excellent electric signal transmission characteristics; thereby several acoustic cables are made by using oxygen free copper materials. Furthermore, the material also offers excellent formability without requirement of intermediate process anneals during wire manufacturing process.
 

The electronics & electrical segment will account for over 65% in 2026. The electronics & electrical segment is projected to observe a rapid growth rate owing to a wide range of applications in consumer electronics and high-end vacuum applications in industrial processes. The proliferating consumer electronics sector coupled with the development of new highly efficient electronic devices will drive material usage.
 

Furthermore, growing FDIs in several industries across Asia Pacific and rising power demand will emerge as key growth factors for oxygen free copper market analysis.
 

The automotive segment is projected to grow at the highest CAGR due to growing demand for Electric Vehicles (EVs) and requirements for high conductivity copper in battery & other components of EVs. Several governments across the globe including the U.S., India, and European countries are offering subsidies on sales of electric vehicles coupled with aggressive economic plans to adopt electric transportation options.
 

Asia Pacific region will account close to 70% demand share in 2026. Asia Pacific dominated the global market and will showcase significant growth owing to the higher product demand from countries including China, Japan, South Korea, and India. The presence of large electronic companies in China, Japan, and South Korea coupled with ongoing several electric projects in China are driving the oxygen-free copper market demand.
 

Furthermore, the proliferating automotive industry and rising disposable income in emerging economies are expected to offer new growth opportunities to the industry.