Steel Rebar Market by Type (Deformed and Mild), Coating Type (Plain Carbon Steel Rebar, Galvanized Steel Rebar, Epoxy-Coated Steel Rebar), Process Type, Bar Size, End-use (Infrastructure, Housing, and Industrial) and Region - Global Forecast to 2030
Updated on : March 19, 2023
Steel Rebar Market
Steel Rebar Market was valued at USD 224.5 billion in 2022 and is projected to reach USD 317.4 billion by 2030, growing at a cagr 4.4% from 2022 to 2030. Rebar, reinforcing bar, reinforcing steel, and reinforcement steel are all terms for steel reinforcement bar. It is a versatile building material that is widely used in the construction industry to make reinforced concrete. Because concrete is very weak in tension but very strong in compression, rebars are used to improve the tensile strength of the concrete. Steel is only used as a reinforcing bar because its elongation due to high temperatures (thermal expansion coefficient) is nearly equal to that of concrete. There are two types of steel rebar in the market deformed and mild steel rebar. Steel rebar is offered in various bar sizes, including #3, #4, #5, and #8. Epoxy-coated steel rebar, galvanized steel rebar, and plain carbon steel rebar are just a few of the different coating types available for steel rebar. Construction projects for industrial, residential, and infrastructure use steel rebar exclusively.
Attractive Opportunities in the Steel Rebar Market
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Steel Rebar Market Dynamics
Driver: Rapid infrastructure development and urbanization.
Rapid infrastructure development and urbanization, especially in emerging economies such as India and China, are boosting steel rebar demand. The increasing population plays a major role in the increase in demand for steel rebar. The shift of populations from rural to urban areas, especially in Asia Pacific, has enhanced the growth rate of this market. Rapid urbanization provides opportunities for development and economic progress in emerging economies. Public funding for residential construction is a significant factor influencing the growth of the steel rebar industry. Subsidies with financial assistance from the government to low-income households encourage the use of high-strength rebar in construction.
Restraint: Construction industry vulnerability to crisis
Construction companies are vulnerable to crises as the initial investment costs in construction projects are very high, which can result in massive financial losses because of unexpected events. Political instability, recession, and the Pandemic can be great examples of crises that the construction industry faces. The demand for steel rebar depends on the level of construction activities, as the major applications of steel rebar include roads & bridges, commercial & industrial construction, and public construction. The effects of the economic recession decreased consumer spending power, financial crises, and widespread unemployment. New construction projects and infrastructural activities are put on hold in this period, which decreases demand for steel rebar.
Opportunities: New Opportunities as a Result of Technological Advancement
The steel rebar market will expand along with steel rebar innovation and advancement, which will open up lucrative business opportunities for both established and emerging market players. High-end applications of steel rebar are encouraging continuous innovation in the industry. Advanced steel rebar that is epoxy-coated, earthquake-resistant, and corrosion-resistant is also being used more and more in applications. Strict government guidelines and compliance by manufacturers to improve the quality of steel rebar products are creating a need for the development of value-added products, which presents a significant market opportunity for steel rebar manufacturers.
Challenges: The problem of excess capacity
China continues to produce more steel each year, despite global growth rates for steel production tapering since 2008. Consequently, China now produces almost half of the steel consumed worldwide. This overproduction of steel in China leads to a collapse of steel prices. The high rates of overproduction and unstable prices for raw materials make it more difficult for steel producers to generate healthy profit margins. To address the issue of excess capacity, some restructuring of the steel industry has begun, numerous laws have been passed, and many nations have recently posted significant steel import taxes.
Steel Rebar Market Ecosystem
By End Use Sector, the Infrastructure segment accounted for the highest CAGR during the forecast period
Demand for steel rebar is driven by increasing investment in major infrastructure projects across the world, especially in the Asia Pacific region. Infrastructure is a major end-user of steel rebar. This sector includes projects such as roads, highways, bridge construction, sewage systems, airports, and stadiums, among others. Advancements in steel rebar coatings make it durable for various infrastructure construction.
By coatings, the plain carbon steel rebar segment accounted for the highest CAGR during the forecast period
Plain carbon steel rebar is the rebar that is used in several construction projects where the usage of galvanized and epoxy-coated steel rebar is not required. Plain carbon steel rebar is inexpensive in nature and provides good ultimate tensile strength. However, due to the low fraction of carbon, its ductility is low. Apart from this, this bar is good in strength and has superior hardness, which helps in providing excellent performance in the absence of moisture. Hence, due to these properties, this type of segment helps in leading the growth of the steel rebar market in the forecast period.
By type, the deformed steel rebar segment accounted for the highest CAGR during the forecast period
Steel rebar is continuously evolving in terms of grades and sizes for use in various applications across different end-use industries. The types of steel rebar considered in this study are mild steel rebar and deformed steel rebar. Deformed steel rebar is expected to witness significant growth supported by high construction output in major countries and government mandates to promote the use of high-strength rebar grades to increase the lifespan of construction structures. The development of high-strength deformed steel rebar grades in countries such as China, the US, and India will drive market growth during the forecast period.
By Process, the electric arc furnace segment accounted for the highest CAGR during the forecast period
Two methods are majorly used in the production of steel rebars, such as basic oxygen steelmaking (BOS), and electric arc furnace (EAF). However, nowadays, the EAF method has become very popular. The EAF method primarily uses scrap steel and melts it down into liquid form with the help of electric current. This method is very much cost-effective as compared to others and also helps to optimize the resources in a convenient way. Hence, due to these features, this method will lead to the growth of the steel rebar market in the forecast period.
By Bar size, #4 segment accounted for the highest CAGR during the forecast period
The steel rebar is available in different diameters and lengths. However, #4 is widely used in residential and light construction activities. The thickness of this bar is higher than that of #3 and is able to impart strength in the structure such as columns, slabs, highways, etc. As a result of this, this type of bar will lead to the growth of the steel rebar market in the forecast period.
Asia Pacific is projected to account for the highest CAGR in the steel rebar market during the forecast period
The Asia Pacific region is the hub of foreign investments and growing industrial sectors largely due to low-cost labor and cheap availability of lands. Due to this, construction activities are increasing, which helps to increase the demand for steel rebar. In addition to this, the demand for steel rebar in this region is also attributed to rapid urbanization and high growth in the infrastructure sector. China was the region's largest market for steel rebar in 2021, followed by Japan, India, and South Korea. These countries are projected to witness a steady increase in consumption between 2022 and 2030.
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Steel Rebar Market Players
Steel rebar comprises major manufacturers such Nippon Steel Corporation. (Japan), ArcelorMittal (Luxembourg), Tata Steel Limited (India), Nucor Corporation (US), and NLMK Group (Russia) were the leading players in the steel rebar market. Expansions, acquisitions, joint ventures, and new product developments are some of the major strategies adopted by these key players to enhance their positions in the steel rebar market.
Steel Rebar Market Report Scope
Value (USD Billion) and Volume (Million Tons)
Type, By Bar Size, By Coating Type, By Process, By End Use Sector, and Region
North America, Europe, South America, Asia Pacific, Middle East & Africa.
The major players are Nippon Steel Corporation (Japan), ArcelorMittal (Luxembourg), NLMK Group (Russia), Steel Authority of India Limited (India), Gerdau SA (Brazil), Steel Dynamics, Inc.(US), Mechel PAO (Russia), Tata Steel Limited (India), Commercial Metals Company (US), Nucor Corporation (US), and others are covered in the steel rebar market.
This research report categorizes the global steel rebar market on the basis of Type, Bar Size, Coating Type, Process, End-Use, and Region.
By Bar Size Type:
- #3 Bar size
- #4 Bar size
- #5 Bar size
- #8 Bar size
By Coating Type:
- Plain Carbon Steel Rebar
- Galvanized Steel Rebar
- Epoxy Coated Steel Rebar
- Basic Oxygen Steelmaking
- Electric Arc Furnace
By End Use Sector:
- North America
- Asia Pacific (APAC)
- South America
- Middle East & Africa
The market has been further analyzed for the key countries in each of these regions.
- In December 2022, ArcelorMittal, announced the acquisition of Riwald Recycling ('Riwald').
- In November 2022, Commercial Metals Company has completed the acquisition of a Galveston area metals recycling facility and related assets from Kodiak Resources, Inc. and Kodiak Properties, LLC (US).
- In September 2022, NLMK Group signed an agreement with NLMK Belgium Holding (NBH) to integrate NLMK Dansteel ('Dansteel') into NBH.
- In September 2022, ArcelorMittal Nippon Steel India Limited, a joint venture of Nippon Steel Corporation and ArcelorMittal, decided to acquire the port, electric power, and other infrastructure assets from the Essar Group.
- In August 2022, Tata Steel Limited signed an MoU with the Government of Punjab for setting up a 0.75 MnTPA long products steel plant with a scrap-based electric arc furnace (EAF.
- In July 2022, Tata Steel Long Products Limited (a subsidiary of the company) completed the acquisition of Neelachal Ispat Nigam Limited.
- In June 2022, Nucor Corporation announced the acquisition of Summit Utility Structures LLC and a related company, Sovereign Steel Manufacturing LLC,
- In June 2022, ArcelorMittal partnered with RWE AG to develop, build, and operate offshore wind farms and hydrogen facilities.
- In May 2022, ArcelorMittal partnered with SNIM to develop a pelletization plant and a DRI production plant in Mauritania.
- In April 2022, Tata Steel Limited signed a business cooperation agreement with Thiess to deliver mine technical services in areas such as exploration, resource evaluation, and mine planning.
Frequently Asked Questions (FAQ):
What are the major drivers driving the growth of the Steel Rebar Market?
The major drivers influencing the growth of the steel rebar market are rapid infrastructure development, urbanization, and the growing product demand from the non-residential sector, such as oil and gas and manufacturing
What are the major challenges in the Steel rebar Market?
The major challenge in the steel rebar market is the environmental challenge due to the emission of greenhouse gases during the production of steel and high rates of overproduction by China.
What are the restraining factors in the Steel rebar Market?
The major restraining factor faced by the steel rebar market is the construction industry's vulnerability to crisis and shortage of skilled individuals, and lack of knowledge.
What is the key opportunity in the Steel Rebar Market?
The growing demand for high-grade steel rebar, strict government guidelines, and compliance by manufacturers to improve the quality of steel rebar products presents a significant market opportunity for steel rebar manufacturers.
What are the end-use industries where steel rebar is used?
Steel rebar is majorly used in infrastructure, housing, and industrial constructions. .
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This research involved using extensive secondary sources and databases, such as Factiva and Bloomberg, to identify and collect valuable information for a technical and market-oriented study of the steel rebar market. Primary sources included industry experts from related industries and preferred suppliers, manufacturers, distributors, technologists, standards & certification organizations, and organizations related to all segments of this industry's value chain. In-depth interviews have been conducted with various primary respondents, such as key industry participants, subject matter experts (SMEs), executives of key companies, and industry consultants, to obtain and verify critical qualitative and quantitative information and assess growth prospects.
In the secondary research process, various sources such as annual reports, press releases, and investor presentations of companies, white papers, and publications from recognized websites and databases have been referred to for identifying and collecting information. Secondary research has been used to obtain key information about the industry's supply chain, the total pool of key players, market classification and segmentation according to the industry trends to the bottom-most level, regional markets, and key developments from both market-and technology-oriented perspectives.
The steel rebar market comprises several stakeholders in the supply chain, which include suppliers, processors, and end-product manufacturers. Various primary sources from the supply and demand sides of the markets have been interviewed to obtain qualitative and quantitative information. The primary participants from the demand side include key opinion leaders, executives, and CXOs of companies in the steel rebar market. Primary sources from the supply side include associations and institutions involved in the steel rebar industry, key opinion leaders, and processing players.
Following is the breakdown of primary respondents
Notes: Other designations include product, sales, and marketing managers.
Tiers of the companies are classified based on their annual revenues as of 2021, Tier 1 = >USD 5 Billion, Tier 2 = USD 1 Billion to USD 5 Billion, and Tier 3= <USD 1 Billion.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the size of the global steel rebar market. The research methodology used to estimate the market size includes the following:
- The key players in the industry were identified through extensive secondary research.
- The supply chain of the industry and market size, in terms of value, were determined through primary and secondary research.
- All percentage share split, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research includes the study of reports, reviews, and newsletters of key industry players, along with extensive interviews with key officials, such as directors and marketing executives.
After arriving at the total market size from the estimation process explained above, the overall market was split into several segments and subsegments. To complete the overall market size estimation process and arrive at the exact statistics for all segments and subsegments, data triangulation and market breakdown procedures have been employed, wherever applicable. The data have been triangulated by studying various factors and trends from both the demand and supply sides. In addition, the market size has been validated by using both the top-down and bottom-up approaches.
- To define, describe, and forecast the global steel rebar market in terms of value
- To provide insights regarding the significant factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)
- To analyze and forecast the market based on Type, By Bar Size, By Coating Type, By Process, By End-Use Sector, and Region.
- To forecast the market size, in terms of value, with respect to five main regions: North America, Europe, South America, Asia Pacific, Middle East & Africa.
- To analyze the opportunities in the market for stakeholders and provide details of the competitive landscape
- To strategically profile key players in the market
- To analyze competitive developments in the market, such as new product launches, capacity expansions, and mergers & acquisitions
- To strategically profile the leading players and comprehensively analyze their key developments in the market
Along with the given market data, MarketsandMarkets offers customizations as per the specific needs of the companies. The following customization options are available for the report:
- Product Matrix, which gives a detailed comparison of the product portfolio of each company
- Further breakdown of the Rest of the NA Steel rebar market
- Further breakdown of the Rest of Europe's Steel rebar market
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Steel Rebar Market