Future Mega Trends to Increase Copper Demand

New research commissioned by the International Copper Association (ICA) has revealed forecasted trends across several industries will contribute to very significant increases in global copper demand. The research, conducted by Metra Martech, reveals three of the most important growth areas for copper are; electric vehicles, renewable electricity generation and the construction sector.

The development of electric vehicles, which rely on copper, is being enhanced by increasing vehicle performance and reducing battery costs, as well as use regulation by governments around the world. Individual country targets to bring all greenhouse gas emissions to net zero will contribute to the rapid uptake of electric vehicles, alongside the rise of charging points and batteries systems which also depend on copper.

In the energy sector, several future trends positively correlate with increased copper demand, due to the materials exceptional conductive properties. Renewable electricity generation is growing fast, particularly solar and wind farms which use much larger volumes of copper than conventional thermal power generators. The electricity grid, which is forecast to be restructured to accommodate newly available energy storage, will also rely on copper for greater levels of efficiency. 

Metra Martech’s report reveals that the global middle class is set to grow to 5.6 billion in 2030, a 4% increase per annum, creating significant new demand for better equipped housing using more domestic electrical goods and systems. In the developed markets, there is growing use of copper in the construction industry as it looks to develop more intelligent buildings – which rely on copper for IT systems and energy efficiency.    

Peter Gorle, Metra Martech said, “Our research has shown interesting trends within all major industries that will lead to increasing copper demand. Many of the trends we observe are related to pressure to cut greenhouses gases and drive increased efficiency, both areas where copper has a significant role to play.”

Colin Bennett, Global Manager, Market Analysis and Outreach, ICA, noted, “Metra Martech’s research demonstrates the ubiquitous nature of copper within the global economy. Copper’s ability to be recycled repeatedly without any loss of performance makes it an essential material in the future circular economy.”

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