Steel Wire Market Size, Share & COVID-19 Impact Analysis, By Grade (Carbon Steel, Stainless Steel, and Alloy Steel), By End-use Industry (Automotive, Construction, Energy, Agriculture, and Others), and Regional Forecast, 2022-2029

The global steel wire market size was valued at USD 61.66 billion in 2021. The market is projected to grow from USD 65.17 billion in 2022 to USD 96.87 billion by 2029, exhibiting a 5.8% CAGR during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with steel wire experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 1.4% in 2020 as compared to 2019.

Steel wire is used to provide reinforcement and improve structural strength. It possesses several advantageous properties such as resistance to deformation, shock and wear resistance, high bearing capacity, and rust & corrosion resistance. Fusing such wire with different materials has found applications in multiple industries. The growing construction industry and infrastructure investment are expected to boost market growth during the forecast period. Increasing demand for products such as wire ropes and strands is anticipated to create several opportunities for the market as they are used in several construction and mining applications.

COVID-19 IMPACT

Increased Operating Cost and Raw Material Shortage Caused by COVID-19 Hindered Market Growth

In the wake of the COVID-19 pandemic, the steel wire demand from the automotive and building & construction industries has declined substantially. This decline was attributed to the declining end-use industry manufacturing operations and worldwide lockdown restrictions. These industries were severely impacted during the pandemic due to labor & raw material shortages, supply chain disruptions, and strict government regulation. This, in turn, decreased the consumption in these industries even further. Several manufacturers witnessed increased operating costs as medical and worker’s compensation costs increased. The shortage of laborers post-pandemic due to increasing competition in the labor market resulted in high operating costs.

LATEST TRENDS

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Increasing Demand due to Expanding Infrastructure Developments and Technological Advancements is the Key Trend

Many emerging markets are experiencing rapid urbanization due to increased migration to urbanizing cities. Steel wire consumption is increasing as a result of the respective countries’ increased investment in the construction sector. Massive infrastructure development spending, attributed to overall national growth, has prompted the demand. Infrastructure projects, such as bridges, tunnels, sewers, electrical grids, and roads, require these wires for construction.

Incorporating steel wire with different materials or sizes has been used for a long time. Rising technological advancements in the automotive, construction, and mining industries are paving a path for different alloys and creating opportunities for the market. For instance, it is used in suspended bridges to support the load, and the load imparted on the bridge is translated into tension in the steel cables. These suspended steel cables can endure difficult conditions and have high tensile strength, increased load-bearing capacities, and flexibility.

DRIVING FACTORS

Rising Demand from the Automotive Industry is Expected to Propel the Steel Wire Market Growth

Steel wire is largely consumed in the automotive industry, as it is used to reinforce tire bead. It is a vastly used material in the automotive industry to impart performance, durability, and safety for windshields and other components. In the automotive industry, these wires are used as strands of wire twisted together to form a helix structure that is further used in manufacturing lines, hoists, and various cranes.

This wire plays a crucial role in wire rope isolators in military vehicles. Wire rope isolators are produced to withstand heavy vibrations and shocks to resist the extreme environment. Such functionality makes them ideal for military vehicles such as jeeps, tanks, and aircraft exposed to rough terrain or explosions.

The Electric Vehicle (EV) industry is growing at a significant growth rate. These wires are used as wire armor for the production of charging cables. Steel wires are used in on-car harness wires, EV specialty assemblies, infrastructure power cables, and AC and DC charging cables. The growing EV industry is anticipated to bolster consumption during the forecast period.

RESTRAINING FACTORS 

Availability of Substitutes for Steel Wire to Stifle Market Growth

The primary factor impeding market expansion is the availability of substitutes such as plastic and hybrid ropes. Plastic ropes significantly impact steel rope consumption, given the advancements in plastic materials. Plastic ropes are less flexible than wire ropes, which aid in preventing industrial injury as even after operational breaking, they fall back to the ground without snapping back.

Some small-scale businesses are switching to plastic ropes. Plastic ropes offer advantages, including reduced product weight and less manufacturing waste. Factors such as cost-effectiveness and sustainability have also influenced this decision. In the mining industry, plastic rope demand has surged due to its superior performance. Several wire rope manufacturers are providing customized plastic ropes to cater to the demand for a crucial task in the mining industry.

Adopting plastic ropes has improved machine stability and maintenance.  The usage of plastic ropes hampers the market as plastic ropes are being used in mobile cranes, providing improved lifting, cheaper maintenance costs, and lifting efficiency.

SEGMENTATION

By Grade Analysis

Carbon Steel Segment Leads the Market Due to its Rising Adoption in Construction, Automotive, and Energy Sectors

Based on grade, the market is segmented into carbon steel, stainless steel, and alloy steel. The carbon steel segment held the largest share of the market due to exceptional properties such as high wear resistance, hardness, strength, and toughness. Carbon steel is readily used in cutting tools, springs, high-strength wires, and dies. Low-carbon steel is a popular choice for strength wires and wire rods owing to its higher ductility. Carbon steel grade wires exhibit exceptional strength, and thus are employed in automotive and construction applications.

Stainless steel is used in many applications, including construction, industrial equipment, cookware, and surgical instruments due to its exceptional properties, including resistance to corrosion, strength, and durability. Stainless steel grade wire is used in manufacturing spring wires that find application in vehicle coil springs, lawn mower parts, and aircraft gears. Supporting government initiatives to boost the demand for electronic products is anticipated to fuel steel wires demand.

Alloyed steel-grade wires are used for energy-related applications owing to their exceptional properties such as corrosion resistance and machinability. The surge in demand for custom-made materials suitable for specific applications has significantly aided the market growth.

By End-use Industry Analysis

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Construction Industry to Hold Leading Share Owing to Rising Product use in Infrastructure Development

In terms of end-use industry, the market is segmented into automotive, construction, energy, agriculture, and others. The construction segment held a crucial steel wire market share owing to the increasing adoption of carbon steel wires, ropes, and wire rods for additional infrastructure support and for carrying heavy machinery, equipment, and materials used in construction. Growing construction activities supported by rapid industrialization in emerging countries are expected to drive market growth.

Automotive manufacturers are increasingly using steel wires in automotive structures and parts owing to their easy processing and characteristics such as ductility, high tensile strength, and corrosion resistance. The rising disposable income of consumers, increasing technological advancements, and innovations in the automotive industry will positively influence segment growth.

The energy sector has been one of the thriving sectors for the last few decades. These wires are predominantly used in manufacturing transmission lines, steel core wires, overhead power lines, and ground wires for wind power. Continuously growing energy demand and technological advancements to meet this demand is creating demand for various materials to store and transmit energy. Growing demand from the energy sector is one of the factors driving the segment’s market growth.

Technological advancements in farming and related techniques, coupled with adopting new crop cultivation and protection methods for better yields, are expected to drive the market.

REGIONAL INSIGHTS

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The market in Asia Pacific was valued at USD 39.69 billion in 2021. Asia Pacific is estimated to hold the largest market share during the forecast period and is the fastest-growing region owing to the presence of major steel-producing nations such as China, India, and Japan. The rapidly growing automotive industry is fueling the consumption of steel wires for component manufacturing in the region. Furthermore, the demand for the product is rising from construction and machinery applications.

Increasing construction activities, including renovation and restoration of residential and commercial spaces, is one of the prime factors driving the demand in North America. The presence of a large consumer base and substantial demand from end-use sectors resulted in higher consumption.

Europe is a well-established automotive market. Germany, a key manufacturer of automobiles in Europe, has consolidated the steel wire demand. The growth of the market in the region is due to rising industrialization and urbanization activities in developing economies and the growth of the construction and automotive industries. Moreover, increasing environmental awareness has led to the adoption of recyclable materials such as stainless steel.

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Latin America is one of the swiftly advancing regions in terms of urbanization and technological advancement. Mining is one of the important sectors contributing to the region's GDP. The rising number of mining and mineral exploration activities in countries such as Brazil is anticipated to propel market growth during the forecast period. The Middle East & Africa is anticipated to grow significantly during the forecast period. The growing demand for transmission and ground wires owing to the growing energy industry in the Middle East is anticipated to boost the market growth.

KEY INDUSTRY PLAYERS

Key Players are Focusing on Reducing CO2 Emission and Acquire Domestic Producers

Most of the producers in the market have a global presence. Several companies operate under the parent holding company. For instance, Heico Companies’ Metal Processing Group offers steel wire and stranded wire products under National Strand Products LP, Sivaco Inc., National Standard, and Davis Wire Corporation.

Several manufacturers are taking the initiative to reduce CO2 emissions to achieve sustainability goals. For example, Nippon Steel Corporation has invested a significant amount toward sustainability by adopting the Carbon Neutral Vision 2050. Nippon Steel has targeted to reduce 30% or more carbon emissions by 2030 compared with 2013 and to become carbon neutral by the end of 2050.

LIST OF KEY COMPANIES PROFILED:

• ArcelorMittal S.A. (Luxembourg)


• Bridon-Bekaert Ropes Group (Belgium)


• Heico Companies’ Metal Processing Group (U.S.)


• Optimus Steel (U.S.)


• HBIS GROUP (China)


• KOBE STEEL, LTD. (Japan)


• WireCo WorldGroup Inc. (U.S.)


• JFE Steel Corporation (Japan)


• Nippon Steel Corporation (Japan)


• Insteel Industries (U.S.)


• SHAGANG GROUP Inc. (China)


• Byelorussian Steel Works (Belarus)


• GRUPPO PITTINI S.p.A. (Italy)

KEY INDUSTRY DEVELOPMENTS:

• November 2022: Kobe Steel purchased 25% of Millcon Steel’s issued share in Kobelco Millcon Steel Co., Ltd. (KMS), a Thai company that produces wire rods. In the ASEAN region, KMS is the only manufacturer of special steel wire rods.


• March 2020: Insteel Industries, Inc. invested USD 22.5 million to acquire the assets of strand-tech manufacturing, which produces prestressed concrete strands, particularly for concrete construction applications.

REPORT COVERAGE

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The research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, end-use industry, and grades. Also, the report offers insights into market trends and dynamics, highlighting vital industry developments. In addition to the insights mentioned above, the report encompasses various factors driving the growth of the market in recent years.

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