Copper Foil Market Outlook - 2027
The global copper foil market was valued at $12.4 billion in 2019, and is projected to reach $21.8 billion by 2027, growing at a CAGR of 7.2% from 2020 to 2027.
Copper foil is a thin sheet of copper in the thickness range of few microns formed either rolling copper sheet or electrodeposition process. Copper is a good conductor of electricity, and is highly malleable as well as ductile. This allows copper to be formed into extremely thin sheets. It is used in the printed circuit boards (PCBs) for telecommunications equipment such as PCs and mobile phones. In addition, it finds its application as a substrate for coating anode materials in Li-Ion batteries.
The expansion of the electronics industry, consisting of various electronic systems and devices, is the major driver of the global copper foil market. This is attributed to the fact that copper foil is used in PCBs, which forms the fundamental part of modern electronics applications ranging from consumer electronics to military electronics such as in navigation, missiles, and surveillance. A major chunk of military budget around the world is redirected toward purchasing new electronic systems or upgrading the existing ones.
Consumer electronics include TV, washing machine, computer, smartphones, oven, and refrigerator. As smartphones become lighter and feature more advanced functions, the use of rolled copper foil is increasing rapidly. According to a Swedish multinational telecommunications company, Ericsson, a total of around 410 million additional smartphone users are expected in India alone by 2025. Smartphones sales have increased significantly, due to the easy availability of internet services in rural as well as semi-rural areas. In addition, the deployment of 5G internet services is anticipated to increase the adoption of smartphones, as it speed up internet speeds. Ericsson further states that 5G is estimated to register 45% of global mobile data traffic by 2025, most of which is likely to be driven by smartphone users. Integration of advanced technologies such as augmented reality (AR) and Internet of Things (IoT) in consumer electronics is considerably boosting the electronics sales. Such innovations are projected offer potential opportunities for copper foil-based electronic components, thus driving the global copper foil market growth. Furthermore, the adoption of electric vehicles (EVs) is expected to play a significant role in the growth of the copper foil market during the forecast period. EV battery cells are currently lithium-ion-based. They consist of built-up layers of coated aluminum and copper foil, which are layered together with graphite (anode) and lithium metal oxide (cathode). Favorable government policies and financial incentives in the form of grants or tax rebates are driving the EV sales, globally.
However, the availability of aluminum foil as a substitute to copper foil and shortage in high yield copper supply in the future act as major restraints of the global copper foil market growth. Copper price is anticipated to increase significantly in the coming decades. Though it may not be physically scarce, increase in demand and decrease in resource quality are likely to affect copper foil prices. However, the supply scarcity of copper can be improved by promoting copper through government policies. On the contrary, development of new copper foil products is anticipated to offer remunerative opportunities for expansion of the global copper foil market during the forecast period. Developments such as improving the surface properties of copper foil, and achieving smaller thickness and weight of the foil will increase product differentiation. Targray, a major North American supplier of copper, developed exceptionally thin (5μm) battery-grade copper foil for use in consumer electronics and drones. As the battery energy density increases, the amount of copper foil used will increase. However, it will increase the weight of the battery pack, which is undesirable. Hence, producing thinner foils is essential to lighten the pack.
The global copper foil market is segmented into product type, application, and end-user industry. Depending on the product type, the market is fragmented into rolled copper foil and electrodeposited copper foil. Applications of copper foil include circuit boards, batteries, and electromagnetic shielding. The end-user industries of copper foils include electrical & electronics, automotive, industrial equipment, building & construction, and others. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, Asia-Pacific accounts for the largest share of the market, followed by North America and Europe. The major companies profiled in this report include Carl Schlenk AG, Doosan Group, Furukawa Electric Co. Ltd., JXTG Holdings Inc., Mitsui Mining & Smelting Co. Ltd., Rogers Corporation, SKC, Sumitomo Metal Mining Co. Ltd., Targray Technology International Inc., and UACJ Corporation.
Copper foil market, by region
Asia-Pacific accounted for the largest share of the market in 2019 as well as the fastest growing region, owing to the presence of well-established electronics & electric vehicles market.
Asia-Pacific would exhibit highest CAGR of 7.7% during 2019-2027.
Copper foil market, by product type
The rolled copper foil segment accounted for the largest copper foil market share in 2019. This is attributed to the fact that rolled copper foil is being abundantly used in PCBs, batteries, and EMI shielding materials.
By Product Type
Electrodeposited Copper Foil segment is projected as the most lucrative segment.
Electrodeposited copper foil is projected to be grow at the highest CAGR of 8.0% during the forecast period, owing to its growing demand in PCB manufacturing
Copper Foil market, by Application
Printed circuit boards (PCB) accounted for the largest market share in 2019. The growth of this segment is attributed to the fact that PCB is the backbone of electronic components, and is found in almost integrated in every electronics product. However, the batteries segment is the estimated to grow at a CAGR of 9.0%. This is attributed to the fact that the need for electric vehicle is likely to grow in the coming days, which will boost the demand for thinner battery materials in the near future.
Batteries segment is projected as the most lucrative segment.
Copper foil market, by end-user industry
The electrical & electronics segment accounted for the largest copper foil market share in 2019, and is anticipated to grow at the highest CAGR of 8.7%. The segment growth is drive by surge in demand for consumer electronics, primarily smartphones, wearable electronics, and computers.
By End-user Industry
Electrical and Electronics segment is projected as the most lucrative segment.
Key benefits for stakeholders
- Porter’s five forces analysis helps to analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
- It outlines the current copper foil market trends and future estimations from 2019 to 2027 to understand the prevailing opportunities and potential investment pockets.
- The major countries in the region have been mapped according to their individual revenue contribution to the regional market.
- The key drivers, restraints, and opportunities and their detailed impact analysis are explained in the study.
- The profiles of key players and their key strategic developments are enlisted in the report.
Impact Of Covid-19 On The Global Copper Foil Market
- The COVID-19 pandemic has negatively affected the global economy and subsequent shrinking of the GDP in global economies, thereby changing consumer spending patterns globally.
- The pandemic has disrupted the copper mining industry as a result of shortage of workforce. Production has been hit hard as coronavirus cases continue to rise among mine workers in Chile. The country is the world’s largest exporter of the metals, which are essential in almost all electronic products and manufacturing.
- The global sales of electric vehicles are projected to fall, thus interrupting 10 successive years of strong growth. In addition, due to the lockdown and travel restrictions, the crude oil prices dropped significantly. Low oil prices reduced the economic viability of the EV adoption as compared to combustion vehicles.
- Similar to EVs, the consumer electronics demand witnessed a decline, as consumers spending pattern changed drastically.
- Global sales of smartphones declined in the early 2020 as a result of plant closures in China. China is a global leader in smartphone production, and is the first country to be affected by the pandemic. Hence, post the lockdown in China, the supply of smartphones declined.
- However, the demand for PCs and smartphones spiked during the fourth quarter. High demand for PCs was attributed to increase in remote learning and home office.
- Thus, the abovementioned factors are expected to hamper the global copper foil market growth during the forecast period.
Copper Foil Market Report Highlights
By Product Type
By End Use Industry
Key Market Players
Mitsui Mining & Smelting Co. Ltd, Targray Technology International Inc., JXTG Holdings Inc., SKC, Rogers Corporation, Doosan Corporation, Furukawa Electric Co. Ltd., Sumitomo Metal Mining Co. Ltd., UACJ Corporation, Carl Schlenk AG
Demand for copper foils is majorly driven by the development of the electronics industry, which is one of the rapidly growing industries in the world. The electronics industry, majorly consumer electronics, has become a key force for copper foils as it is growing rapidly, underpinned by technological innovations such as Internet of Things (IoT), 5G network, artificial intelligence (AI), and augmented reality (AR). Such technologies are being integrated into devices such as TVs, smartphones, and wearable devices. New product launches in this sector boosts copper foil market growth.
The demand for smartphones is another driver, as cheap data plans and availability of cheaper models have increased smartphone penetration. The growth of the global electric vehicles (EVs) market is another key driver of the copper foil market. Push for e-mobility to increase decarbonization is expected to be at its highest during the forecast period.
Although the EV sales has declined post the COVID-19, stimulus packages to revive the economy will likely to increase the incentives for EVs. This will prove helpful for EV sales, thus growing the demand for Li-ion batteries where copper foils are used as anode materials.
The global copper foil market is segmented on the basis of product type, application, and end-user industry. Presently, the electrical & electronics segment holds the largest market share in the global copper foil market.