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The oxygen free copper market size is forecast to increase by USD 4.66 billion at a CAGR of 4.5% between 2023 and 2028. The market is experiencing significant growth, driven by the untapped applications of OFC in various industries, particularly in the aviation sector. The increasing demand for lighter and more fuel-efficient aircraft is leading to a surge in the use of oxygen free copper for manufacturing critical components. However, the global automotive industry's slowdown has had a negative impact on the market. Other growth factors include the rising demand for high-speed data transmission and increasing investment in renewable energy projects. Additionally, the superior electrical conductivity and resistance to corrosion of OFC make it an ideal choice for various applications, including telecom, power generation, and electrical wiring.
The market is a significant segment in the electrical industry, driven by its high conductivity and low impurities. OFE copper is extensively used in various electrical applications, including superconductors, semiconductors, high-vacuum systems, renewable energy, solar power, printed circuit boards, electrical appliances, and more. In the realm of electronics, OFE copper is indispensable for manufacturing components such as Cu-OFE grade copper strips, microwave tubes, vacuum capacitors, vacuum interrupters, waveguides, and electronic gadgets like mobile phones, smart devices, and consumer electronics. Furthermore, the automotive sector utilizes OFE copper in electric vehicles and automotive production. In the telecommunications industry, OFE copper is employed in high-frequency applications such as thermal conductivity and high conductivity cables. The solar energy sector also invests heavily in OFE copper for solar energy production. Overall, the market is a vital player in various industries, contributing to the advancement of technology and innovation.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The electronics and electrical segment is estimated to witness significant growth during the forecast period. The oxygen-free copper (OFC) market is experiencing significant growth due to its extensive usage in various electrical and electronics applications. OFC is particularly valuable in the production of superconductors and semiconductors, where its high purity and low impurity levels are essential. In high-vacuum systems, OFC is employed for manufacturing solar power panels and printed circuit boards, which are integral components of electrical appliances and renewable energy solutions. Moreover, the increasing demand for electric vehicles and hybrid electric vehicles has led to a surge in the use of OFC in automotive production. The high conductivity and thermal conductivity of OFC make it an ideal choice for high-frequency applications, including wires, copper strips, and electrical components in mobile phones, smart devices, and consumer electronics.
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The electronics and electrical segment was the largest and was valued at USD 14.55 million in 2018. Additionally, OFC is a crucial element in various electrical applications, such as microwave tubes, vacuum capacitors, vacuum interrupters, waveguides, and other high-tech components used in telecommunications and other industries. The high cost of OFC, however, can be a limiting factor in its widespread adoption. Nevertheless, the ongoing semiconductor shortage and the market recovery in the electronics industry are expected to boost the demand for OFC in the coming years. In summary, the global oxygen-free copper market is witnessing robust growth due to its wide application in various industries, including electronics, automotive, renewable energy, and telecommunications. Its high conductivity, low impurities, and thermal conductivity make it an indispensable material for manufacturing high-performance electrical and electronic components. Despite the high processing costs, the increasing demand for OFC is expected to drive market growth in the foreseeable future.
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APAC is estimated to contribute 74% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market encompasses the production and supply of high-purity copper, primarily used in various electrical applications. OFC is renowned for its high conductivity and low impurities, making it an ideal choice for superconductors, semiconductors, and high-vacuum systems. In the realm of renewable energy, OFC plays a pivotal role in solar power generation, with its usage extending to the manufacturing of printed circuit boards, electrical appliances, and components for electric vehicles and hybrid electric vehicles.
Moreover, OFC is essential in high-frequency applications such as wires, copper strips, microwave tubes, vacuum capacitors, vacuum interrupters, waveguides, and electronic gadgets including mobile phones, smart devices, and consumer electronics. The demand for oxygen-free copper is driven by the increasing investments in solar energy, automotive production, and telecommunications. Despite the high processing costs, market recovery is expected due to the semiconductor shortage in the electronics industry. Copper cathodes, a significant component of OFC, are also in high demand for various industrial and technological applications.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Untapped applications of OFC is notably driving market growth. Oxygen-free copper (OFC) plays a crucial role in various end-user industries, including PCs and laptops, medical electronics, and the automotive sector. Beyond these standard applications, OFC holds significant potential in emerging markets, such as power generation and distribution in the energy sector. OFC's exceptional conductivity makes it indispensable for generating and transmitting electricity in both conventional coal-fired power and renewable energy markets.
With the increasing global energy demand, there is a pressing need to optimize resource utilization cost-effectively and efficiently. Market participants are addressing this challenge by providing OFC solutions that conserve energy and contribute to environmental sustainability. The fragmented OFC market is expected to witness substantial growth due to the expanding applications of this versatile metal across industries. Thus, such factors are driving the growth of the market during the forecast period.
Growing demand for OFC from aviation industry is the key trend in the market. Oxygen-free copper (OFC) holds significant applications in various sectors, including PCs and laptops, medical electronics, the Energy sector, and the Thermal sector. In the Energy sector, OFC is extensively used in coal-fired power plants due to its excellent electrical conductivity and resistance to oxidation. In the Thermal sector, OFC is employed in heat exchangers and boilers for improved thermal efficiency. Moreover, OFC finds extensive usage in the aviation industry due to its high electrical conductivity and low volatility under vacuum. It is utilized in the manufacturing of magnetrons, and high-powered vacuum tubes, which are integral to radar equipment production.
OFC's applications in the aviation industry extend beyond magnetrons, with its use in bearings and bushings in landing gears and cargo doors, wing and tail actuators, wheel and brake components, hydraulic pump components, pylons, and more. The aviation industry's growth, driven by increasing consumer disposable income and rising demand for air transport, further bolsters the market potential for OFC. Thus, such trends will shape the growth of the market during the forecast period.
Slowdown of global automotive industry is the major challenge that affects the growth of the market. The global production of motor vehicles experienced a significant decline in 2020, with a 16% decrease from the previous year, resulting in approximately 78 million cars being manufactured. This figure corresponded to sales levels seen in 2010. China, as the world's leading automotive manufacturer, produced 25,225,242 units in 2020, a decrease from the 25,720,665 units produced in 2019. The COVID-19 pandemic led to this slowdown in the automotive manufacturing industry, not only in China but also in other regions.
Europe, for example, witnessed a 21% decrease in motor vehicle production in 2020 compared to 2019. The impact of this downturn was felt across various sectors, including PCs, laptops, medical electronics, and the energy sector, particularly in coal-fired power and the thermal sector. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Aviva Metals Inc. - The company offers oxygen free copper that includes copper alloys, which are high electrical and thermal, high ductility, ease of welding, high impact strength, and low volatility under high vacuum.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Moreover, OFC is widely used in telecommunications, particularly in microwave tubes, vacuum capacitors, vacuum interrupters, waveguides, electronic gadgets, mobile phones, smart devices, and consumer electronics. The high cost of copper, however, remains a significant challenge for the market. The market is expected to recover due to the semiconductor shortage and the increasing demand for electronics. The demand for Cu-OFE grade, Cu-OF, copper cathodes, and other OFC products is expected to remain strong in various industries. In conclusion, the market is expected to grow significantly due to its wide applications in various industries, particularly in electrical applications, renewable energy, mining and the automotive sector. The market is expected to face challenges due to the high cost of copper, but the demand for OFC is expected to remain strong due to its high conductivity and low impurities.
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Market Scope |
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Report Coverage |
Details |
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Page number |
149 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.5% |
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Market Growth 2024-2028 |
USD 4.66 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.23 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 74% |
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Key countries |
China, US, Japan, India, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Aurubis AG, Aviva Metals Inc., Citizen Metalloys Ltd., Cupori Oy, Farmers Copper LTD., Furukawa Electric Co. Ltd., Hitachi Metals Neomaterial Ltd., Hussey Copper, JX Nippon Mining and Metals Corp., KGHM Polska Miedz SA, KME Germany GmbH, Metrod Holdings Berhad, Mitsubishi Materials Corp., Sam Dong America, Sequoia Brass and Copper., Shanghai Metal Corp., Tranect Ltd., Watteredge LLC, Wieland Werke AG, and Zhejiang Libo Holding Group Co. Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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