Green Buildings to Emerge a High-value Opportunity for Players in Copper Industry

The use of copper in electrical wires, plumbing, roofing, and industrial machinery is driving the global copper market. The manufacturing of transportation equipment, domestic appliances, and industrial machinery is augmenting the demand for copper. At the same time, the rising infrastructure developments, especially in developing countries will result in a surge in the demand for copper in the coming years, as per a report published by Transparency Market Research (TMR). According to the report, the global copper market is expected to rise from US$138.05 bn in 2014 to US$171.96 bn by 2023, expanding at a CAGR of 4.9% between 2015 and 2023. A rise in the demand across the globe owing to the diverse applications of copper is expected to be behind the growth of the copper market.

TMR analysts answer key questions that companies operating in the copper market need to ask:

Q. Which application segment is expected to grow at a fast pace?

The construction segment led in the global copper market in 2014 and is also expected to grow at a significantly fast pace in the coming years. The growth in the segment is likely to occur owing to the large quantities of copper required for the construction of buildings and also for components such as valves, fittings, connections, tanks, tubes, and taps. Copper is widely being used in these components owing to a growing need for aesthetically appealing fitments. 

Research Report: http://www.transparencymarketresearch.com/copper-market.html

Q. What are the challenges faced by the copper industry?

Copper is facing fierce competition from other materials such as aluminum, plastic pipes, and titanium. This may affect the demand for this metal. Moreover, the building of copper mines is expensive, thus acting as a restraint for the market.

New deposits of copper are located in challenging regions and at greater depths, which can result in longer project development lead times and higher operating and capital costs. The approval process for mines is tedious and can hamper the supply of copper, thus resulting in an inability to meet the demand from various sectors.

Q. What is the emerging trend in the global copper market?

The concept of green buildings is catching up in many of the developing nations across the globe, which is driving the copper market. A considerable amount of copper is expected to be required for construction, driving their demand. Building applications of copper include wall cladding, sunshades, flashing, downspouts, passive solar walls, and gutters. These applications will create potential opportunities for players in the market as they expand their product portfolio, helping them gain a competitive edge over other players. The U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) plays an important role in evaluating the environmental performance of buildings. LEED is encouraging the market’s transformation towards green and sustainable designs of buildings, which is helping the copper market to grow.

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