The global steel rebar market size was valued at USD 260.82 billion in 2021 and is predicted to reach USD 490.50 billion by 2030, increasing at a CAGR of 4.77% from 2022 to 2030.
Steel reinforcing bar, or rebar, is a tensioning device commonly used in the construction industry to reinforce concrete. Compressed concrete is held and strengthened by steel rebar, a versatile construction element. Reinforcement concrete is a complex substance that is made of concrete and some kind of reinforcement technique. Despite its high density, concrete lacks the same level of tensile strength.
However, steel rebar is cast into concrete to hold the tensile load in order to correct this imbalance. Wire mesh or expanded metal is one of five varieties of rebar, the others being welded wire fabric, sheet metal reinforcing bars, and stainless-steel rebar. In order to construct a monolithic building, steel rebar is often cut and shaped into uniform lengths and widths.
Because of its exceptional bending ability, steel rebar is an ideal reinforcement material for concrete structures. High impact resistance, reduced spalling joints, and long-term durability is only some of the advantages of steel rebar.
The demand for products is increasing as a result of rapid infrastructural development and the formation of new industrial units in emerging economies such as India and China. Because of factors such as rising per capita income, expanding populations, and generally better living conditions, the residential sector is forecast to have a prosperous future. As a consequence of this, a number of countries throughout the world, notably India and others, are proposing extensive housing and smart city programs in an effort to support the expansion of the residential sector. New chances for economic growth and development are presenting themselves as a result of rapid urbanization in emerging economies. There is currently a concerted effort being made on a global scale to find answers to the most pressing problems. Some of these include the development of "smart cities," the formulation of policies that will benefit the residential construction industry, and a variety of other endeavors.
Public funding for housing is a major factor in the growth of the residential construction industry. Subsidies and financial assistance are made available to low-income households by the government. These incentives make it easier for people to get low-interest loans to buy or build a new house. Steel rebar's distinctive qualities, such as high tension, ductility, and the ability to supply perfectly formed columns and beams with a precise quantity of concrete cover, can be enhanced using thermo-mechanical technology.
The use of high-strength rebar in building constructions is being promoted by governments around the world. This has led to a reduction in the global market share of mild steel reinforcing bars. According to China's Ministry of Housing and Urban-Rural Development, earthquake-resistant and high-strength deformed steel rebar should be promoted.
The market is now suffering from a lack of knowledgeable persons as well as a shortage of talented employees, all of which have the potential to create challenges for the market in the near future. They will be encouraged to spend their discretionary cash on purchasing these market shares and items if they have knowledge of the market as well as their target audience and are aware of the product portfolios. On the other hand, there is a dearth of reliable information available, and investors are hesitant to put their money into the market because of it.
It is projected that the steel rebar industry will continue to grow, as well as the innovation and progress of steel rebar, which will create attractive business prospects for both established and new market participants. Steel rebar's high-end uses and quick technological breakthroughs are driving constant innovation in the sector. Among the most recent grades, Fe-500, Fe-550, and Fe-500D have all just been made available. There is also expanding use of a modern range of steel rebar in applications that are resistant to corrosion, epoxy coated, and earthquake-resistant. Increased government funding for public transportation, rapid urbanization, and developing infrastructure are some of the reasons that are predicted to promote the market's growth.
The global steel rebar market share is divided into different segments according to the Application and Region.
By Application, the global steel rebar market is segmented into Residential, Commercial, and Infrastructure. From 2022 through 2030, it is anticipated that the volume of the commercial market will expand at a compound annual growth rate (CAGR) of 4.2 percent. The growth in urbanization that has occurred in many parts of the world has resulted in an increase in the number of high-height structures constructed for commercial purposes. This, in turn, has led to an increase in the demand for steel rebar.
One of the primary forces propelling the residential construction industry is the provision of financial support by governments for the building of homes. Housing assistance in the form of subsidies and grants is made available by the government to families with lower incomes. These subsidies make it possible for customers to get loans at more favorable interest rates, which can then be used toward the purchase or building of a new home. For example, the government of Australia will lend first-time homebuyers up to $15,000 USD in order to help them purchase their first property.
In 2021, the infrastructure sector was responsible for 27.1% of the total market share in terms of revenue. According to research put out by the United Nations, the global market has an annual requirement of around 3.3 quadrillion dollars (USD) to support the facilities that make up its infrastructure. Despite this, there is a lack of investment in this sector, which could cause annual revenue to fall short of USD 350 billion. Because emerging economies are expected to capture almost sixty percent of all anticipated infrastructure investments, these nations are likely to continue to serve as significant markets for steel rebar.
By Region, the global steel rebar market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Because of the need for steel rebar in China, it is anticipated that the Asia Pacific will continue to be the region with the highest level of consumption throughout the forecast period. In China, even if the industrial sector has slowed down, the building sector has managed to keep up its upward trend.
It is anticipated that the North American region would demonstrate consistent growth over the course of the anticipated timeline as the primary countries of the region, such as the United States and Canada, focus on the reconstruction of their infrastructure. The United States' infrastructure industry is struggling due to a lack of investment.
The global steel rebar market share is segmented by geography into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
Because of the need for steel rebar in China, it is anticipated that the Asia Pacific will continue to be the region with the highest level of consumption throughout the forecast period. In China, even if the industrial sector has slowed down, the building sector has managed to keep up its upward trend.
As a result of the policy reforms, it is anticipated that China's real estate sector will significantly enhance the demand for steel and items associated with it. For example, newly implemented construction standards and the relaxation of control policies in tier 2 and tier 4 cities are anticipated to provide an additional boost to the demand for steel products in China. This is because these cities are considered to be the second and fourth most populous in the country, respectively.
It is anticipated that the North American region would demonstrate consistent growth over the course of the anticipated timeline as the primary countries of the region, such as the United States and Canada, focus on the reconstruction of their infrastructure. The United States' infrastructure industry is struggling due to a lack of investment.
In the United States, the pandemic caused by COVID-19 had a significant effect on the income and profitability of the principal vendors. For instance, Nucor's sales fell by 10.8 percent between 2019 and 2020, reaching a total of 20 billion USD in the latter year. The pandemic caused by COVID-19 had an effect not just on earnings but also on profit margins.
Middle Eastern skyscrapers and high-end building constructions are becoming increasingly popular, and this trend will be aided by Europe's resurgence in the construction industry. Using data from the World Steel Association, Saudi Arabia's crude steel production in 2019 was estimated at approximately 8,191 thousand tonnes. Iron ore supplies are being depleted, and this could have an influence on the supply chain because of price variations in raw materials and final goods. As a result of the COVID-19 epidemic, finished steel product demand slowed in 2020 and is projected to do so for a short time going forward. Government measures that encourage growth, as well as upcoming megaprojects, will have a positive impact in the foreseeable future.
However, significant momentum has been seen in the market so far in 2021, and this can be attributed to the global economic recovery, which has supported the expanding demand for steel products such as rebar. For example, Steel Dynamics, Inc. reported a net increase in sales of USD 3.5 billion in the first quarter of fiscal year 2021, up from USD 2.6 billion in the first quarter of fiscal year 2020. In a similar vein, the net income climbed from 187 million dollars to 431 million dollars.
Report Metric | Details |
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CAGR | 4.77% |
Forecast Period | 2023-2031 |
Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends |
Segments Covered |
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Geographies Covered |
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