Steel rebar, also known as steel reinforcement bar is used in combination with concrete to improve the tensile strength of concrete. They are produced from molten steel and then formed into large rectangular billets. These rebars come in different types and are categorized depending on the material used, the desired properties as well as the application type. Steel rebars are used widely in the construction industry.
In 2020, the global steel rebar market was valued at nearly USD 200 billion. It is expected to register a compound annual growth rate of over 4% from 2021 to 2026. At this rate, the market is projected to reach a valuation of more than USD 250 billion by the end of 2026.
On the basis of product type, the steel rebar market is classified into deformed and mild steel. Deformed steel garnered maximum market shares due to several factors such as a reduction in cost, reduced steel requirements, and the ability to overcome slippage. These factors helped the deformed steel bar segment capture around 75% of the market. Moreover, this segment is expected to maintain its dominance due to the extensive application range.
There are two main types of processes used to manufacture steel bars – Basic Oxygen Steelmaking and Electric Arc Furnace. Among this, the electric arc segment is anticipated to witness a higher growth rate during the forecast period. This high growth rate is a result of the low pollution generated, energy and resource-saving as well as limited wastage. Moreover, the widespread adoption of this process will spur the electric arc furnace process and thus the market.
The non-residential application dominated the steel rebar market and is envisaged to continue this trend during the forecast period. Various government initiatives such as dams, roads, recreational activities, etc. are propelling the growth of this segment. Furthermore, rapid urbanization is expected to boost the infrastructure segment. In the case of the residential segment, government funding and subsidies will drive the segment forward.
1. Increasing demand from the construction industry:
Flourishing infrastructural developments such as the smart city initiative in India are fueling the market growth. Moreover, rising demand from emerging economies and rapid urbanization is anticipated to propel the market forward. The soaring popularity of skyscrapers across the globe is another major contributor that is positively influencing the market.
2. Supportive Government Initiatives:
Government funding for the purchase of residential spaces as well as subsidies provided for low-income families to make housing affordable is driving the steel rebar market growth. For example, the Turkish government has undertaken a project to build over 7.5 million housing units under its urban renewal & development initiative. Also, guidelines such as that issued by the Ministry of Housing and Urban-Rural Development, China to use high-strength deformed steel rebar will promote the market growth.
3. Rising investment in the Middle East:
Many Middle Eastern countries are shifting focus from the oil & gas industry to the construction industry to diversify their economies and reduce dependency. Investments, for instance, by the Saudi Arabian government, under the Saudi Arabia Vision plan 2030 is projected to invest USD 450 billion to build a robust society, will bolster the market growth.
1. Price volatility:
Depleting iron ore reserves create frequent fluctuations in raw material. This results in an overall increase in finished goods prices. As a consequence of the fluctuating prices, there exists volatility in the steel rebar market, which, in turn, may cause a deceleration in market growth rates.
Outbreaks such as the recent COVID-19 pandemic adversely affect the market through disrupted supply chains, halt in manufacturing activities and fluctuation in prices. This creates a temporary impact on the market expansion and reduces the growth.
The Asia – Pacific region is expected to dominate the steel rebar market largely due to the numerous infrastructure developments in emerging countries. Projects, such as India’s smart city plan, China’s new Beijing airport, etc., is projected to push for growth in the region. Furthermore, Indonesia’s huge investment in infrastructure will create numerous opportunities for regional market growth.
The Middle East is estimated to hold a lucrative market. The rising focus on healthcare facilities, school buildings, internal roads, etc. is triggering the demand for these rebars in the United Arab Emirates (U.A.E.). Also, the increasing investments by the Saudi Arabian government will boost the regional market growth.
The European steel rebar market is projected to grow at a rate of over 3% over the forecast period. Various government initiatives are enhancing construction activities, thereby creating a conducive environment for market expansion. Huge investments from the private sector will further propel the market forward.
The key players operating in the market are:
The research report analyses the ecosystem of the steel rebar market and categorizes it to forecast the revenues and analyze the trends in each of the following below-mentioned market segments.
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.