Automotive Copper Busbar Market Outlook
The global automotive copper busbar market size was valued at USD 335.7 Million in 2021 and is expected to reach USD 666.5 Million in 2030, expanding at a CAGR of 7.9% during the forecast period.
Busbars are metal bars used to carry current. These busbars are typically made from copper or aluminum. Their main purpose is to conduct a substantial electric current and is housed inside switchgear, panel boards, or busways. It is a type of electrical junction where all incoming and outgoing electrical currents meet. In the event of a fault, the circuit breaker trips, and the faulty section of the busbar easily disconnects from the circuit.
These attributes make busbars ideal for some high-voltage connections in electric vehicles (EVs) and a key component of the electrical architectures of vehicles. Copper is a common conductive metal used in busbars and many electrical utilities around the world. Copper is chosen for its resilience to high temperatures, providing extra security during short-circuit situations.
Copper has several advantages over other materials such as high conductivity, resistance to damage, high performance in clamped joints, low co-efficiency of linear expansion, long lifespan, high recovery value, and high modulus of elasticity.
Automotive Copper Busbar Market Macro-economic Factors
GDP is a critical indicator used to measure the size and performance of an economy. High GDP indicates high per capita income and consumer spending. Copper busbars are an integral part of the electric vehicle system. Countries with high-income levels have an inclination toward electric vehicles, as they are considerably less costly to operate than conventional vehicles.
The shift in preference of the population from conventional vehicles to electric vehicles is expected to have more money for the government to spend on other sectors of the economy, such as housing and services. Spending in these sectors keeps more money within the economy and encourages job development in industries that are not directly related to the production of electric vehicles.
The global average inflation rate, with respect to consumer price percentage, is around 6.82% in 2022. The primary cause of the current rise in inflation is attributed to the supply shocks brought on by the war in Europe. Thus, inflation is expected to impede the flexible busbar market.
Production & Supply
The supply and demand for copper busbars are rising. The bulk of the total production is consumed by industries such as automotive, oil & gas, power, marine, and semiconductor industries. The pandemic exposed supply chain flaws and highlighted difficulties in the global supply chain and the significance of maintaining a stable supply chain to overcome trade barriers. The pandemic caused lockdowns in many countries, which significantly reduced export and import.
Increasing investments from key players for R&D activities and a rising focus on product innovations are expected to boost the demand for automotive copper busbars. Major market players in almost every industry rely on the development of innovative products.
Some of the key companies in the market have previously worked together to launch products to increase their presence and expand their businesses. For example, in May 2019, Zhejiang RHI Electric Co., Ltd. planned to use robots to perform busbar PVC insulation and produce copper busbars.
Automotive Copper Busbar Market Dynamics
Increasing demand for copper busbars in automotive applications
Increasing demand for copper busbars in automotive applications is expected to drive the market during the forecast period, as copper busbars are used extensively in battery modules of EVs for power distribution, as copper has higher conductivity than other conductive materials.
Copper provides such as low electrical and thermal resistance, high mechanical strength in tension, high resistance to fatigue failure, ease of fabrication, low electrical resistance of surface films, and high resistance to corrosion.
Thus, copper busbars are preferred as opposed to aluminum. Automotive copper busbars are used in hybrid and fuel cell vehicles, transformers, and charging stations. Automotive copper busbars are particularly durable and exceptionally good conductors having a high threshold for damage due to high-temperature resistance, which makes copper busbars suitable for automotive applications.
Rising adoption of copper busbars over cables
The rising adoption of copper busbars over cables is expected to drive the market during the forecast period owing to the safety features of copper. Copper busbars are fitted with steel casing, as they have low chances of wear, and are less likely to be damaged by rodents. This makes them a safer choice than cables.
Moreover, increasing awareness regarding the energy efficiency and cost-effectiveness of busbars drives their adoption over conventional cables, as busbars reduce internal material handling and manufacturing costs by reducing assembly time.
Thus, automobile manufacturing companies are inclined toward high usage of copper busbars over conventional cables, which has propelled the preference for busbars in motor control center applications, thus driving the market.
Availability of substitutes such as aluminum or brass
Rising usage of substitutes such as aluminum busbars in automotive is expected to hamper the market during the forecast period as aluminum busbars are widely used in automotive due to their resistivity properties and it is also cheaper than copper.
Aluminum is more electrically efficient than copper because it has a density 70% lower than copper, making it ideal for applications where the size of the busbar is not a factor. The aluminum costs low and is flexible to use. In terms of safety, the resistance of aluminum is higher than that of copper.
It decreases the vibration and gets rid of short circuits in vehicles and can avoid accidents. However, copper performs better than aluminum when measured in conductivity but it has less adoption rate in automotive as it has low performance in electrical resistance, reduction in voltage drop, reduction in power loss, and high simplicity which influences the electrical effectiveness of the busbar trunking system.
High volatility in copper prices
Copper was a highly preferred conductor for busbars, due to its high ductility, tensile strength, and thermal expansion properties. These properties made copper suitable for automotive busbars. However, the price of copper is volatile and is affected by consumer demand, among other political and economic factors. Aluminum conductors are becoming common in the busbar industry in recent years, as it provides certain advantages in terms of price and weight than copper.
Moreover, high initial investment requirements and costly production processes of copper create entry barriers and restrict small enterprises from entering the market, which benefits existing market players and helps them to retain their market share and make profits. These factors restrain the growth of the market.
Rapid electrification of cars has occurred in recent years. Copper busbars are used in electric vehicle systems for efficient power distribution. They take up less space and are effective in electric vehicle systems as both hybrid and electric vehicles rely on power inverters, high-capacity batteries, powerful electric motor drives, and efficient power delivery from the charging source to the battery and between the vehicles.
The issues of successfully integrating busbars in tight-spaced E-powertrain or Battery Management Systems (BMS) have become increasingly relevant as power systems become fast and complicated. This is driving the demand for high configuration and production flexibility for both big and small-footprint busbar interconnections.
The busbar improves the delivery of electricity by reducing energy loss and is utilized in accordance with the various configurations and needs of passenger automobiles and commercial vehicles. Increasing electrification of vehicles and the growing demand for electric vehicles are expected to drive the market in the future years. Furthermore, rising income levels and living standards are expected to increase the demand for vehicles, which is expected to drive the copper busbar market.
Scope of Automotive Copper Busbar Market Report
The report on the Global Automotive Copper Busbar Market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Automotive Copper Busbar Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast
By Type (Flat Strips and Solid Bars), Application (Passenger Cars and Commercial Vehicles)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered
AMERICAN POWER CONNECTION SYSTEMS, INC., Storm Power Components, Connor Manufacturing Services, Inc, Oriental Copper Co.,ltd, ILF Ltd, Brar Elettromeccanica SpA, Rogers Corporation, , LLC, Zhejiang RHI Electric Co.,ltd, WENZHOU YIHUA CONNECTOR CO., LTD
Automotive Copper Busbar Market Segment Insights
The Global Automotive Copper Busbar Market is segmented on the basis of type, application, and region.
Type Segment Analysis
In terms of type, Automotive Copper Busbar Market is segmented into flat strips and solid bars. Flat strips are expected to dominate the market in 2021, as they require less place and provide excellent thermal properties.
Application Segment Analysis
On the basis of application, the Automotive Copper Busbar market is segmented into passenger cars and commercial vehicles. The passenger cars segment is expected to hold a substantial share of the market during the forecast due to the rising demand for copper busbars, especially solid bars, in passenger cars.
Based on regions, the Automotive Copper Busbar Market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The market in Asia Pacific is growing at a rapid pace during the forecast due to the rising demand for electric vehicles in the region. Asia Pacific is a manufacturing hub for EVs.
Key Benefits for Industry Participants & Stakeholders
- In-depth Analysis of the global Automotive Copper Busbar Market
- Historical, Current, and Projected Market Size in terms of Value and Volume
- Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
- Industry Drivers, Restraints, and Opportunities Covered in the Study
- Recent Industry Trends and Developments
- Competitive Landscape & Strategies of Key Players
- Neutral Perspective on Global Automotive Copper Busbar Market
- Passenger Cars
- Commercial Vehicles
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
Top players in the market include AMERICAN POWER CONNECTION SYSTEMS, INC., Storm Power Components, Connor Manufacturing Services, Inc, Oriental Copper Co.,ltd, ILF Ltd, Brar Elettromeccanica SpA, Rogers Corporation, LLC, Zhejiang RHI Electric Co.,ltd, and WENZHOU YIHUA CONNECTOR CO., LTD.
These companies are considered key players in the automotive copper busbar market based on their revenue, product offerings, and regional presence.The players are adopting key strategies such as acquisition, collaborations, and geographical expansion where potential opportunities for the Automotive Copper Busbar Market.