Copper Pipes & Tubes Market – Growth Avenues with the Surging Demand in Plumbing & Construction Sector
Across the multi-faced applications of copper, it provides proven added value to modern life, where commercial and industrial requirements are being met on a large scale. The copper industry’s continuous focus on research, development, and validation of newer concepts to deliver a stream of innovations is transforming all associated businesses, including the copper pipes & tubes market. The role of technology to help meet the surging copper demand is also being evaluated.
Constant electric vehicle evolution has led manufacturers to introduce new EV components. Declining battery prices and government incentives for EVs are continuously showering growth opportunities for associated businesses. Copper is essential to EV technology and its supporting infrastructure. As copper pipes are used in electric vehicles, charging stations, and associate infrastructure, owing to its durability, high conductivity, and efficiency, the flourishing EV market is likely to have a positive impact on overall copper demand over the coming years.
Addressing the continual developments in the copper pipes & tubes industry, the TMR study offers detailed information about the current status quo, and the future prospects of the market. The surging demand for HVAC systems banking on the rising construction activities and growing global construction expenditure is anticipated to positively influence the global copper pipes & tubes market growth.
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Preference for Copper over Aluminum in Air Conditioning
Condensing coils have been previously manufactured from aluminum, owing to its benefits to manufacturers in terms of high transfer properties and cost-effectiveness. However, the high maintenance costs associated with aluminum coils shifted manufacturers’ focus towards copper tubes. Repairing aluminum is impossible, resulting in the need for complete coil replacement. Moreover, the high thermal conductivity of copper, which is up to 8 times that of aluminum, further solidified their reliance on this metal.
The copper pipes & tubes market is expected to generate high revenue over the coming years, as the demand for copper pipes & tubes continues to pick up pace in plumbing applications. Cost-effectiveness, durability, recyclability, and reliability of copper pipes over its counterparts, including plastic and lead pipes are making the first choice of end users for material selection in piping infrastructure. According to the TMR study, revenue from the copper pipes & tubes market is expected to be valued at ~ US$ 30.5 Bn, with ~ 4034 kilo tons of sales volume in 2019.
The increasing demand for eco-friendly copper pipes & tubes, along with the demand generated from varied application sectors, has directed manufacturers’ efforts towards product innovation in terms of compact size and customization, thereby enabling them to expand their consumer reach.
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Transforming Trends in the Copper Pipes & Tubes Industry
Lead Pipe Replacement Trend
Continuous depletion of natural water infrastructure and water resources has pushed the quest for a more viable solution. Copper’s reliability, durability, and long-lasting profile has made it useful in water pipe infrastructure. Its corrosion resistance over lead has resulted in significant replacement of copper in place of lead. A number of cities across Canada and the United States have already begun the process of replacing lead pipes with copper ones. The effectiveness of copper in brining clean water resources to communities, worldwide, is evident through the success of copper water infrastructure in Michigan, Milwaukee, and Toronto.
Focus on Energy Efficiency & Cost-effectiveness
Increasing inclination towards sustainability and major emphasis given to energy efficiency are having a major influence on a number of industries. This has shifted focus towards eco-friendly and economical copper tubes that help attain greater energy efficiency, less use of material, and greater durability. Moreover, as the overall system size can be reduced by using small diameter tubes, OEMs are showing major focus on copper variants.
Customized Product Development
Growing applicability in air conditioning and refrigeration systems, plumbing purposes, and other industrial setups has propelled manufacturers to offer product customization that allows them to provide tailored copper pipes & tubes that meet specific consumer requirements. Efficient copper pipes & tubes are being designed to meet the increasing demand for the product.
Although metallic pipes has been an industry preference for years, with copper being the material-of-choice for potable water piping lines, and a typical inclination of the commercial plumbing industry towards copper pipes, the market is likely to have certain shortcomings. Market volatility impacts the prices of copper, resulting in fluctuating material expenses. With only a finite production capacity, global supply struggles to keep up with the surging demand, resulting in price hikes. With such a varying pricing scenario, alternatives are considered, thereby hampering the copper pipes & tubes market growth.
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Copper Pipes & Tubes Market: Competitors’ Success Strategies
Innovation with Focus on HVAC & Refrigeration Application
The increasing demand for copper pipes & tubes for their use in HVAC and refrigeration has garnered the attention of manufacturers, owing to which, major innovations are focused at addressing HVAC and refrigeration application requirements. Leading providers of copper pipes & tubes are introducing innovative and highly-efficient solutions with thermal performance that enable optimal resource conservation.
Channel Investments towards Production Facility Expansion
The increasing applicability of copper pipes & tubes has directed manufacturers’ focus towards production line expansion for improving their production capabilities. Investments are concentrated on improving the existing production capacity, and also on the establishment of newer copper pipes & tubes production lines, considering their growing demand across varied applications. New production facilities are being mainly established to produce copper pipes & tubes for refrigeration purposes, as HVAC and refrigeration are likely to create major demand.
Strengthen Distribution to Improve Availability
Enhancing the international commercial network is becoming a vital aspect of the futuristic business models of leading players in the copper pipes & tubes market, in wake of its increasing demand. With strategies such as collaborations and mergers, providers of copper pipes & tubes are able to expand their geographical coverage and boost their reach in lucrative end markets.
Copper Pipes & Tubes Market - Competitive Landscape
Furukawa Electric Co., Ltd. recently established a system to increase the production of an oxygen-free copper strip with improved thermal resistance. The product was developed as a material for power module substrates and adjacent parts in automobiles, and introduced to the market in April 2017. Furukawa Electric would continue to meet the requirement for increased production, while catering to the long-term reliability requirements of customers.
Global Brass and Copper Holdings, Inc. and Wieland-Werke AG announced their definitive merger agreement. This transaction brings together two highly harmonizing companies with a diverse portfolio to serve a wide range of industries and create a unique global leadership in the red metals industry, so as to create customer value in Europe, North America, and Asia.
Aurubis AG recently entered into a long-term supply contract for copper concentrates with Compañía Minera Teck Quebrada Blanca SA, a project operator, as part of the development of a copper mine project - Quebrada Blanca Phase 2. With this agreement, the company will source significant copper concentrate volumes from the mine over a period of around a decade.
With a number of companies dominating the copper pipes & tubes market, the market remains fragmented in nature. As the market is unorganized and capital-intensive, it allows local manufacturers to penetrate the market. Mergers and acquisitions remain the key tactic considered by global market players in order to sustain in the competitive industry, with focus on expanding their distribution networks and catering to a broader consumer base. Several manufacturers have expanded their production capacities, owing to the surging demand for copper pipes & tubes. Another vital point of focus remains the demand generated by the construction sector, capturing the focus of manufacturers who consider strategic alliances to boost their supply of copper pipes & tubes.
Copper Pipes & Tubes Market - Analyst Viewpoint
Analysts of the copper pipes & tubes market have a positive outlook of the market, with a number of opportunities held by developing countries. As the copper industry continues to witness major demand for the metal, especially from the end users copper pipes & tubes, the copper pipes & tubes business offers lucrative investment opportunities. The Asia Pacific copper pipes & tubes market is expected remain a promising geographical avenue for companies looking to cash in on the regional expansion strategy. This growth is attributed to the rising sales of industrial and domestic HVAC & refrigeration systems in Asia Pacific countries. With this demand growth, the need for smart and energy-efficient HVAC & refrigeration systems is likely augment the sales of micro-groove copper pipes, which have gained major popularity across Asia Pacific. New market entrants can focus investments in terms of production and distribution in Asia Pacific. As there is increasing application of copper pipes & tubes in HVAC and refrigeration, new products can be concentrated towards this application.
Copper Pipes & Tubes Market Description
- Copper pipes & tubes are widely used in municipal and industrial applications, as they are lightweight and economical. They can also be easily joined, and are safe and long lasting. Rise in infrastructure development and municipal construction in developing countries such as China and India is likely to propel the demand for copper pipes & tubes during the forecast period.
- Small diameter copper pipes also possess superior bactericidal and flow properties. Copper pipes do not release toxic substances into the water, and do not allow gases to diffuse through the tube wall. These properties make copper pipes & tubes competitive with other types of piping materials used, such as stainless steel and PVA (polyvinyl chloride) pipes & tubes. Therefore, copper pipes & tubes are extensively employed in plumbing, heating, heat exchange, and HVAC applications.
What are the Key Growth Drivers for the Copper Pipes & Tubes Market?
- Global urban population is expected to exceed six billion by 2045. This is expected to boost the demand for housing, energy, and infrastructure. It is also anticipated to create an acute need for refrigeration & air conditioning, and solutions for the distribution of clean drinking water and sustainable urban growth.
- In air conditioning and refrigerant systems, copper tubes are used to convey refrigerants between different components such as compressors, condensers, expansion valves, and evaporators, at extreme pressures and temperatures.
What are the Major Challenges for the Copper Pipes & Tubes Market?
- Volatility in the prices of copper metal is a major challenge faced by the global copper pipes & tubes market. Various suppliers of raw materials operate in the copper pipes & tubes market. Rise in the prices of copper from the raw material manufacturers’ end makes the purchase of copper costlier. This adversely affects the manufacturers of copper pipes, as they are not able to pass on the price rise to customers.
- Then production of copper is largely concentrated in Chile and Peru in Latin America. These countries constitute around 40% share of the copper supply, globally. Any disruption in copper supply is likely to hamper the copper pipes & tubes market during the forecast period.
Lucrative Opportunities for the Global Copper Pipes & Tubes Market
- Expansion in the networks of liquid petroleum and natural gas lines in developing countries such as China and India has boosted the demand for piping and piping materials, including copper pipes & tubes. A large numbers of gas pipeline projects are expected to be commissioned in China and India in the near future.
- Rapid industrialization in Asia Pacific is likely to propel the demand for heat exchangers in the region. This is anticipated to create lucrative opportunities for the copper pipes & tubes market. These pipes can be reclaimed and recycled. This makes them further efficient in waste management.
Asia Pacific Prominent in the Copper Pipes & Tubes Market
- Asia Pacific is the leading consumer of copper pipes & tubes in the world. Most of the demand in the region is concentrated in China. High demand for copper pipes & tubes is anticipated to emerge from China and India during the forecast period, due to rapid industrialization and urbanization in these countries.
- Easily availability of raw materials, abundance of labor force, and economic production are the major factors driving the market in the region.
- Growth in the popularity of air conditioners in the tropical countries of Asia Pacific is expected to drive the HVAC & refrigeration segment of the market in the region during the forecast period. Increase in construction activities in developing countries in Asia Pacific, such as China and India, is projected to boost the copper pipes & tubes market in the region during the forecast period.
HVAC & Refrigeration Segment to Account for a Prominent Share
- The HVAC & refrigeration segment is estimated to be a prominent segment of the global copper pipes & tubes market during the forecast period. The segment is projected to expand at a rapid pace during the forecast period, owing to the high demand for HVAC & refrigeration in Asia Pacific. The demand for copper pipes & tubes in the HVAC & refrigeration segment is expected to rise rapidly, due to the rise in the population and need for development of infrastructure.
- Industrial heat-exchange equipment is anticipated to be another attractive segment of the global copper pipes & tubes market. The industrial heat-exchange equipment segment is estimated to expand at a rapid pace during the forecast period, owing to the large number of coal-based power plants in countries such as China and India. These plants are major consumers of heat-exchange equipment.
Key Players Likely to Maintain Dominant Market Share
- Key players operating in the global copper pipes & tubes market are
- Global Brass and Copper Holdings, Inc.
- Mueller Industries, Inc.
- Aurubis AG
- and Furukawa Electric Co. Ltd.
The market is dominated by these large key players. Various other small- to medium-size players operate in the copper pipes & tubes market. The market is quite fragmented, and the presence of a large numbers of players makes the market highly competitive.
Key players are entering into alliances with construction industry players to strengthen their market position, as construction is one of the leading end-use industries for copper pipes & tubes. China is the leading producer of copper pipes & tubes in the world.
TMR’s recent publication on the copper pipes & tubes market offers readers an overall market overview with the help of extensive analysis of the global market. The TMR study on the copper pipes & tubes market analyzes the market with respect to the historical and current market scenario, and provides a forecast for the period of 2019-2027. Report readers would be able to make long-term business decisions with the help of the key findings and exclusive copper pipes & tubes market insights included in the report.
TMR’s study also includes an evaluation of the key copper pipes & tubes market dynamics that are likely to shape the future of the market in the coming years, with a detailed understanding of the key industry trends, and developments by leading copper pipes & tubes market players. The TMR report is divided into key sections that allow readers to gain a comprehensive understanding of the individual aspects of the report.
Key Questions Answered in the Report
- Which area of application will create incremental demand for copper pipes & tubes in the coming five years?
- How will the copper pipes & tubes market transform over the next five years with respect to the fast-growing industry trends?
- How much revenue will the copper pipes & tubes market generate in 2019?
- Which geographies hold significant growth potential for the providers of copper pipes & tubes?
- Which factors are likely to hinder the growth of the copper pipes & tubes market in the coming years?
- What are the key strategies adopted by leading copper pipes & tubes market players?
TMR’s study on the copper pipes & tubes market commences with a preface that offers a brief market overview, which includes the definition and scope of the market. This section discusses the key research objectives and highlights that allow readers to gain a concise market understanding. Following this is the executive summary that sheds light on the copper pipes & tubes market aspects. The next chapter in the copper pipes & tubes market report is the market overview, which offers a glance into the copper pipes & tubes market in terms of key market dynamics such as drivers, opportunistic avenues, and restraining factors. This chapter also offers five forces analysis and value chain analysis, further listing the potential manufacturers of copper pipes & tubes.
The next section provides an outlook of the global copper pipes & tubes market analysis and forecast in terms of both, volume and value. Following this outlook is the unique pricing analysis to help readers gain added value. The next section evaluates the key segments in the copper pipes & tubes market. The analysis includes bifurcation on the basis of application and region. With the evaluation of key segments in the copper pipes & tubes market and inclusion of year-on-year growth projection, along with basis point share analysis, further helps clients identify lucrative avenues.
The next section in the TMR study on the copper pipes & tubes market offers an evaluation of the regional landscape of the market. Regional evaluation allows industry players to make key strategic decisions in terms of expansion and investments. The segment-wise and country-level assessment of individual regions helps readers of the copper pipes & tubes market study to estimate potential opportunities pertaining to the market. Backed with year-on-year growth projections, global value, and volume share, this section is a significant part of the report on the copper pipes & tubes market.
The report on the copper pipes & tubes market by TMR offers a unique competitive assessment of the leading market contributors. This sections highlights the nature of the copper pipes & tubes market with the help of the market share held by top-level, mid-level, and entry-level players. The unique dashboard view of the players in the copper pipes & tubes market report allows readers to understand the key strategies implemented by individual players and their performance in the market. Additionally, the competitive structure of prominent players in copper pipes & tubes market are also discussed in the study.
This TMR analysis on the copper pipes & tubes market is based on a detailed assessment of the market with the help of comprehensive research, including both, primary and secondary research. The in-depth assessment of the copper pipes & tubes market in terms of competitive landscape is backed by an individual level assessment of various aspects pertaining to the market. An analysis of the historical and current market for copper pipes & tubes with focus on key market segments and major regions, along with other qualitative inputs, help TMR analysts derive at crucial market predictions and forecast analysis for the copper pipes & tubes market. Readers can access the copper pipes & tubes market report to gain a forecasted market assessment for the period of 2019-2027.
Copper Pipes & Tubes Market Taxonomy
HVAC & Refrigeration
Industrial Heat Exchange Equipment
Middle East & Africa