Copper Busbar Market: Sales & Competitors Analysis

Busbar has become one of the cutting-edge solutions for electricity and power. It finds numerous opportunities from smart city development and power sector reforms, resulting in upgraded and advanced transmission and distribution networks. Globally, the copper busbar market was valued at $8012.88 million in 2021 and is expected to reach $12788.58 million by 2028, with a CAGR of 7.21% between 2022 and 2028.

Due to its high conductivity, elasticity and resilience to high temperature, copper is highly used in busbars worldwide. Although it has high installation charges, it provides higher conductivity and an extended life span than aluminum. Moreover, its usage in industrial and commercial facilities are designed to reduce costs while keeping their size at the maximum permissible level based on safety considerations.

Expansion in Industry Verticals

The studied market is driven by the adoption of smart cities and other similar projects, as they are more convenient to use without the hassle of wires. Rapid urbanization and commercialization of the business landscape are also expected to steer traction as the demand for electricity rises.

Additionally, increased construction activity leads to an increased number of sites, which drives demand for copper busbars in the sector. Residential construction expenditure was nearly 25% in 2021 and is risen by 7% in 2022. Moreover, it is used as a construction material for electricity transportation and wiring. These factors encourage the expansion of the market across various industry verticals. Some of these are listed below:

1. The industrial sector has emerged as the fastest-growing deployment vertical category. As industries shift towards electrification in transportation, mobility and renewable energy, it becomes more critical that power modules used for inversion or conversion become more efficient. To maximize efficiency, busing the power into and out of the power inversion circuit becomes a critical element that must be incorporated into the overall system design. For instance, DC link busbar designs must minimize stray inductance to minimize voltage spikes and allow faster switching speeds to improve efficiency in high-voltage applications.

2. The market for ETP (Electrolytic Tough Pitch copper) is rising as the fastest-growing type, with a CAGR of 7.32% during the forecast period 2022-2028. It accounts for 50% of usage worldwide. ETP has higher purity, used in the most demanding electrical applications, such as power transmission and signals. Besides superior conductivity, it also has high corrosion resistance, tensile strength, elongation and shining appearance.
3. As per estimates, the switchboard is the fastest-growing in the application segment. Switchgear copper busbars deliver the power from the incoming feeders to all the branch overcurrent protection circuits within installation. When a circuit breaker or switch retrofit is required for application, custom-designed switchgear copper busbars may be used to easily install newer breaker frame sizes, switches, solid-state trip units, or other custom overcurrent protection.
4. Globally, electric utilities lead the vertical segment in 2021 and are expected to maintain their stronghold during the forecast period. The electrical copper bar products produced by many companies, as high-current conductive products, can be applied to electrical engineering, such as high-and-low-voltage electrical appliances, switch contacts, complete power distribution cabinets, bus ducts, etc., and are also widely used in metal smelting, electrochemical plating, chemical caustic soda, etc.

Concluding Statement

Geographically, the Asia Pacific copper busbar market is expected to grow at the fastest rate. The regional market is expected to rise with the growing emphasis on energy efficiency and rising energy consumption. This is due to urbanization and industrial growth in the region. Also, due to massive investments in smart cities, green development, high-rise structures, and transit infrastructure, particularly in Southeast Asia, the region holds the largest market for busbar trucking.

On the other hand, although copper busbars are reliable in terms of technology, conductivity, compactness, elasticity, prices in the long term, durability and flexibility, the constant price fluctuations in raw materials can hinder market growth. Following a 26.83% price increase in 2021, analysts predict copper prices will reach a record low in 2022. Nevertheless, the studied market will see the emergence of regional Asian-Pacific vendors offering cost-effective products. As a result, operating players are participating in acquisitions, contributing to the copper busbar market. Key acquisitions are listed below-

1. In June 2022, EV Connect, Inc., an EV charging solution provider, announced that it had been acquired by Schneider Electric, the leader in energy management and automation.
2. In January 2022, Power management company Eaton announced it had completed the acquisition of Royal Power Solutions, a US-based manufacturer of high-precision electrical connectivity components used in electric vehicle, energy management, industrial and mobility markets.

FAQ

Q1) Which is the largest growing region in the market?

North America dominates the copper busbar market.

Q2) How is the bargaining power of buyers in the market?

The bargaining power of buyers is moderate because customers demand customized services.