Cu wire & cable market to gain from investments in renewable sector

The global copper wire and cable market is expected to gain from expansion in the building and construction sector, which is presently experiencing one of the finest growth periods in recent years. Growing infrastructure development projects, expanding population, widespread commercialization, and industrialisation are some of the essential elements driving the strong need for copper cables and wires in the construction industry. The world population surpassed 8 billion in 2022 and is anticipated to exceed 9.5 billion by 2050.

This has prompted greater activity in the construction industry, since well-equipped residential areas are required to accommodate the lodging demand. Some regions, such as the United States, Hong Kong, Japan, Singapore, and Canada, are reporting an astounding number of skyscrapers. For example, Mumbai, India, has about 4,000 high-rise structures and 200 skyscrapers.

The majority of them were built in the last decade. Copper wires or cables are essential in the building industry since they offer excellent electrical conductivity as well as high corrosion resistance. They form an oxide-sulfate patina coating over copper surfaces acting as a hard protective layer.

The global copper wire and cable market is projected to benefit from the rising investments in renewable energy which mean that the energy sector is anticipated to become one of the highest consumers of copper cables and wires. The increasing population and rapidly expanding industrialization have caused a tremendous rise in the demand for electricity and power. In the coming years, non-renewable sources of energy may not be able to cope with the constantly increasing requirements which is why governments along with international and regional bodies are emphasizing on investments in renewable sources.

One of the key challenges that the copper wire and cable industry players could experience is in terms of frequently changing prices of raw materials, especially copper. Since it is a commodity for the commercial market, its price is dependent on several factors and may change as the political and economic situations of the regions dealing in the trade keep changing. Navigating through these price fluctuations could impact the overall revenue garnered by the market players.

In India, the Union Budget 2022-23 presents an effective roadmap for Aatmanirbhar Bharat. It is most encouraging to see that the effective capital expenditure of the government is estimated at Rs 10.68 lakh crore in 2022-23 at about 4.1 percent of GDP showing an increase over the last FY.


Such a substantial focus on infrastructure spending augurs well for the wires and cables industry which had been seeing a demand contraction for the past two years.