The iron and steel industry, which is the parent industry of steel rebar, witnessed lucrative trade amounting to $428.6 trillion in 2018 with a growth rate of 13% between 2017 and 2018, according to the International Trade Centre (ITC).A significant fraction of this trade is due to growing demand predominantly from the construction industry for steel rebar or reinforced steel bar. The steel rebar market size was evaluated to be $133 billion in 2018, and the demand for steel rebar is poised to grow at a CAGR of 5.4% during the forecast period 2019-2025.
APAC had the maximum steel rebar market share of 66% in 2018. This is due to the growing construction industry in countries such as China and India. Increasing urbanization and economic growth are driving the residential real estate sector in India, and government initiatives such as “Housing For All By 2022” are aiding growth of the sector. This is leading to an increase in construction activities across the country which is significantly supporting the steel rebar market. Additionally, Indonesia, Malaysia, and Japan are observing increased infrastructural development, which is boosting the APAC steel rebar market. Population growth in countries such as China and India is also creating growth prospects for the real estate industry in these countries, which in turn is creating opportunities for the APAC steel rebar market in 2018.
Steel Rebar Market Outlook:
Steel rebar is also known as concrete reinforcement steel bar or reinforcing steel that are used as tension device in reinforced concrete. The product finds applications in infrastructure, manufacture, and oil & gas industries.
The key application of steel rebar is found in infrastructure, and the segment will grow at a substantial CAGR of 6.2% over the forecast period. The sustainable development goals (SDGs) by the United Nations is a creating a rapid need for infrastructure in upcoming years. According to the World Bank, the infrastructure investment gap attributable to roads only is estimated to be $8 trillion. In coming years, there will be augmented road development across the world, and steel rebar is commonplace in road development projects as it is used to reinforce concrete. Increasing infrastructural development will create lucrative prospects for the steel rebar market.
Steel Rebar Market Growth Drivers:
· The Global Construction Industry Driving the Steel Rebar Market –
According to the World Bank, the construction industry contributed a significant share of 25.39% to the global GDP in 2016. The industry, which is another major steel rebar marketplace, will play an important role in fulfilling the SDGs of the UN. Increase in construction activities worldwide will further create opportunities for the steel rebar market over the forecast period.
· The Growth Prospects in the Oil & Gas Industry –
Oil and gas industry presents one of the most lucrative opportunities for the steel rebar market as the industry needs non-corrosive conduits made of steel rebar. There will be an increase in production of oil & gas over the forecast period as the Organization of Petroleum Exporting Countries (OPEC) projects the demand for oil & gas to collectively reach from 145.7 mboe/d in 2015 to 177.8 mboe/d in 2030.This will lead to an increase in the capacity of refineries across the globe, and these refineries will generate a demand for steel rebar for use in conduits. Steel rebar used in the oil and gas, and other manufacturing industries such as pharmaceuticals and fertilizer plants are generally epoxy coated in order to resist corrosion. The epoxy-coated steel rebar market is poised to witness growth in coming years.
Steel Rebar Market Trends –
· In January 2018, North-American steel producer Commercial Metals Company (CMC) acquired a number of steel rebar mills in the U.S. The company also acquired a steel rebar fabrication company called Gerdau S.A. for a sum of $600m. The acquisitions of steel rebar mills and fabrication units will help the organization capitalize on the demand influx in the North America steel rebar market.
Steel Rebar Market Key Players Perspective –
Steel Rebar Market Research Scope:
Steel Rebar Market Report: Industry Coverage
The steel rebar market report identified the current trends, opportunities, and challenges in the industry along with a detailed depiction of strategies by the existing market players.
The report also provides facts, figures, and statistics about different types of steel rebar and their use in various sectors.
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