Steel Rebar Market size is estimated to surpass USD 137 billion by 2027, according to a new research report by Global Market Insights Inc.
Steel reinforced bars act as a strengthening product for reinforced concrete and support structure with necessary tension to withstand internal & external forces. The proliferating construction industry along with strong economic growth across Asia Pacific will drive the demand for steel rebars. Furthermore, the global construction sector will witness strong growth owing to improvement in market sentiments and requirement for infrastructural development in emerging economies.
Usage of low carbon footprint rebars and environmental concerns are reshaping the industry
Rising environmental concerns and stringent emission norms adopted by several European economies have resulted in the requirement for a lower carbon footprint from the construction sector. The buildings & construction sector accounts for around 39% of energy-related CO2 emissions along with 36% global energy usage. The use of several products with minimized environmental impacts and lower energy consumption will be witnessed in new sustainable development projects. Several industry participants, such as TATA Steel and others, are engaged in developing rebar products including GreenPro Ecolabel that enable end-users to use minimum environmental-impacting products for their construction activities.
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The global economic slowdown owing to the COVID-19 pandemic and the temporary halt of several non-essential infrastructures & residential construction projects across Europe and Latin America in 2021 has created more hindrance to the market. In addition, weak demand for products, plunge in oil prices, political instability, and high exposure to commodity prices have disrupted the steel rebar market growth in 2020.
However, several governments across the globe are supporting the housing sector with several policies during the pandemic. For instance, the Indian Government has reduced stamp duty on property registration from 5% to 2%, effective from September 2020 until March 2021 to support the housing sector. Such policies along with the start of several industries after lockdown are expected to have a positive impact on the market growth.
Browse key industry insights spread across 250 pages with 257 market data tables & 7 figures & charts from the report, “Steel Rebar Market Size By Product (Deformed, Mild), By Process (Basic Oxygen Steelmaking, Electric Arc Furnace), By Application (Residential Buildings, Public Infrastructure, Industrial), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Mild steel rebars will witness a moderate growth due to their usage in special purpose applications
Mild steel rebars market captured more than 25% share by volume in 2020 and is projected to expand at 3.4% CAGR through 2027. These products do not have groves or twist in the bar and are round & plain. Demand for mild reinforced bars is rising on account of their usage across applications in contraction and expansion of construction joints of several construction activities. For instance, seismic design on RC buildings uses MS rods. However, the usage of such products in high seismic regions across the globe will further fuel the market revenue.
The basic oxygen steel-making process will dominate the steel rebar market with around USD 79 billion revenue by 2027 propelled by the conventionally used process by several large-scale global manufacturers. This is a conventional practice used by bulk manufacturers that involve the high purity oxygen injection over the hot metal in a blast furnace, containing carbon-rich pig iron and ferrous scrap to obtain steel products. Growing investments in residential infrastructure projects will support segment demand.
The proliferating industrialization across the Asia Pacific region coupled with the establishment of several production facilities in Europe and the U.S. will boost the industrial application. The steel rebars market from industrial application is poised to cross more than USD 7.5 billion by 2027. Moreover, supportive FDI policies for investments in the industrial sector will drive the product demand.
Supportive government policies, rising government spending by GGC countries on public infrastructure, and the development of mega projects in the Middle East region will propel product demand. The Middle East & Africa is likely to showcase around 3.3% CAGR through 2027. Saudi Arabia has proposed several future projects to provide world-class infrastructure facilities to its citizens. These projects will help increase the country’s economy and aid in achieving the objectives of Vision 2030. Additionally, it is planning to invest USD 1.2 billion in infrastructure development projects based in Jeddah.
Some of the key players in the global steel rebar market are Steel Authority of India Limited (SAIL), Gerdau SA, ArcelorMittal, Tata Steel, Nippon Steel & Sumitomo Metal Corporation, and Byer Steel. Product development and mergers & acquisitions are among the key strategies adopted by players to enhance their competitiveness.