Reports estimate that the global steel rebar market share will expand substantially over the next few years, driven by the growing demand for residential and commercial construction worldwide. Governments in both developed and developing regions are undertaking initiatives to support the development of reliable and sustainable infrastructure solutions.
In terms of the product landscape, the market is classified into deformed steel rods and mild steel rods. The deformed steel rod products segment is anticipated to garner more than US$103 billion in terms of the annual valuation by 2027. Deformed steel products are experiencing a robust demand in modern construction on account of excellent tensile strength and low slippage between rebar and concrete.
The use of deformed steel rebars for reinforcing steel has been a standard requirement for several decades. The deformed pattern on steel rebars helps the concrete adhere to the reinforcing steel surface more effectively.
Based on the process, the steel rebar industry is bifurcated into electric arc furnace and basic oxygen steelmaking. The basic oxygen steelmaking process segment is likely to capture a dominant share of about 58% in terms of volume by the end of 2027. It is a conventional and widely used technology by small, medium, as well as large scale rebar manufacturers.
Estimates suggest that more than half of the global steel production utilizes basic oxygen steelmaking technology. The process involves the use of pure oxygen to convert a charge of liquid blast iron and scrap into steel. Some of the commercial advantages of the technology include high steel production rates, production of high quality steel with low nitrogen content, reduced labor, as well as lower manufacturing and labor costs.
Steel rebars find application in public infrastructure, residential buildings, and industrial infrastructure. The steel rebar market size from residential buildings applications is likely to grow at a CAGR of around 3.8% through 2027. These trends will be mainly observed in the Asia Pacific region where the demand for new residential infrastructure is high, and the European region where residential construction activities are gathering pace.
Considering the regional outlook, the steel rebar industry share in North America is expected to expand at a CAGR of nearly 3.2% over 2020-2027. The regional market expansion will be fueled by the increasing government investments in the development of new residential, commercial, and public infrastructure.
The COVID-19 pandemic during the initial half of 2020 has been a major roadblock for infrastructure development activities across the world, impacting raw material production, transportation, and logistics. However, with gradual ease of government restriction indicates that the global construction is well set for rebound in the near future, positively impacting global steel rebar industry outlook.