The North American steel rebar market size was valued at USD 22.9 billion in 2022 and is projected to reach USD 39.6 billion by 2031, registering a CAGR of 5.8% during the forecast period (2023-2031).
Steel reinforcement bar is also known as rebar, reinforcing bar, reinforcing steel, and reinforcement steel. It is a flexible building material commonly used to manufacture reinforced concrete in construction. Rebar is used to strengthen the tensile strength of concrete since it is very weak in tension but very powerful in compression. Steel rebar is available in a variety of bar diameters; some of the coating options are epoxy-coated steel rebar, and galvanized steel rebar is used in special projects related to industrial, residential, and infrastructure exclusively.
The North American market is expected to grow due to rising investments in construction and infrastructure development endeavors. Implementing various infrastructure development initiatives in North American nations is expected to stimulate economic growth and surge demand for steel rebar in the North American region. The United States represents an important market for steel reinforcement bars, owing to increased spending on constructing residential and non-residential edifices.
The growing population of North America contributes significantly to the rise in demand for steel rebar. Rapid infrastructure development and urbanization, particularly in rising nations such as U.S. and Canada, are driving up demand for steel rebar. The migration of people from rural to urban areas has accelerated the market's growth rate. The availability of public money for residential development considerably impacts the expansion of the steel rebar business. Subsidies with government support to low-income households stimulate the use of high-strength rebar in construction. Rapid urbanization propels commercial and economic development in emerging economies.
Increased investment in large infrastructure projects drives steel rebar demand in North America. Steel rebar is widely used in infrastructure. Rapid infrastructure development, urbanization, and increasing product demand from non-residential sectors such as oil and gas and manufacturing are major drivers impacting the growth of the steel rebar market. Roads, motorways, bridge construction, sewage systems, airports, and stadiums are all examples of undertakings in this industry. Steel rebar coating advancements make it more robust for numerous infrastructure construction applications.
Steel exposed to weather conditions rusts and lowers the strength of reinforced concrete. Rust puts much internal strain on the concrete around steel rebars as it starts to develop, which causes cracks. The outer layer of rebar being washed away by rain can stain the concrete as it's poured over the structure. In addition, saltwater corrosion creates dangerous levels of rust that may render the rebar unusable. Rust affects the load-bearing capability of the steel, reducing its efficacy in carrying structural loads in unison with the concrete. Worryingly, as the steel reverts to iron oxide, its volume grows two or threefold, creating massive internal stresses against the surrounding concrete. This is a restraining factor in the market growth.
Construction firms are sensitive to crises since the initial investment expenditures in construction projects are very high, which can result in large financial losses due to unanticipated events. Political instability, recession, and the Pandemic are all instances of problems that the construction business may confront. Steel rebar demand is determined by the degree of construction activity since the principal applications of steel rebar include roads and bridges, commercial and industrial construction, and public construction. However, the construction industry's vulnerability to crises, a scarcity of skilled workers, and a lack of understanding are projected to limit the market for steel rebar.
As a result of continuing developments and breakthroughs in steel rebar technology, the North American market for steel rebar is expected to rise. Both established businesses and new market participants will benefit financially from this development. Steel rebar applications with high-performance demands are propelling ongoing industry innovation. Advanced steel rebar with characteristics like an epoxy coating, earthquake resistance, and corrosion resistance is also increasingly used in various applications. The demand for value-added goods is fuelled by the adoption of tight government regulations and manufacturers' compliance to improve the quality of steel rebar products. Steel rebar producers may profit greatly from this large market potential.
Smart city development is expected to boost the residential sector's growth. Furthermore, a significant increase in capital for infrastructure construction initiatives such as bridges, hospitals, and public services is predicted to stimulate socioeconomic progress. Furthermore, the oil and gas industry is the most profitable steel rebar market since it demands non-corrosive steel rebar conduits. This is predicted to result in a rise in refining production worldwide, and these refineries would likely augment demand for steel rebar, propelling global market expansion.
The North American steel rebar market is segmented into material, type, grade, and end-user.
By material, it is further segmented into bar (small), bar (large), wire, coil, and others.
The bar (large) dominated the market and is expected to register a CAGR of 6.2% over the forecast period.
By type, it is further segmented into mild steel rebar, deformed steel rebar, carbon steel rebar, stainless steel rebar, galvanized rebar, glass fiber reinforced polymer rebar, epoxy coated rebar, welded wire fabric rebar, expanded metal rebar.
The carbon steel bar dominated the market and is expected to register a CAGR of 8.3% over the forecast period.
It is further segmented by grade into 40, 60, 75, 80, 100, 120, 150, and others.
The 60 dominated the market and is expected to register a CAGR of 9.1% over the forecast period.
By end-user, it is further segmented into construction (residential, commercial, others), infrastructure (roadways, bridges, railways, airports, others), oil and gas, manufacturing, agriculture, etc.
Oil and gas dominated the market and are expected to register a CAGR of 7.4% over the forecast period.
The North American steel rebar market is segmented by country: the U.S. and Canada. The US dominated the market with a CAGR of 5.9% during the forecast period.
Due to the region's thriving infrastructure development projects and powerful construction sector, the steel rebar market in North America has seen tremendous expansion in recent years. The United States and Canada, two of the region's major economies, have significantly invested in the residential, commercial, and industrial building sectors.
Robust construction activities and infrastructure development have led to substantial growth in the steel rebar market in the United States. Factors such as the necessity to modernize aging infrastructure, the rise in residential and commercial construction projects, and adherence to strict building codes contribute to the demand for steel rebar. Ongoing investments in construction and infrastructure will likely sustain the upward momentum of the steel rebar market in the US in the foreseeable future.
Canada's steel rebar market has steadily grown thanks to a flourishing construction sector. The country's infrastructure projects, including highways, bridges, and residential developments, have fueled the rising demand for steel rebar. Furthermore, stringent regulations and building codes prioritizing structural integrity and safety have further stimulated the use of steel rebar in construction endeavors. With favorable construction conditions and continued investment in infrastructure, the Canadian steel rebar market is anticipated to maintain its upward trajectory.
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