North America Steel Rebar Market Size, Share & Trends Analysis Report By Application (Construction, Infrastructure, Industrial), By Region (U.S., Canada, Mexico), And Segment Forecasts, 2022 - 2030

Report Overview

The North America steel rebar market size was valued at USD 9.21 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 4.8% from 2022 to 2030. The market is anticipated to be driven by the rising investments in construction and infrastructure development projects. Various infrastructure development projects announced in the North American countries, focused on boosting economic growth, are projected to augment the demand for steel rebar in the region. For instance, the government of Canada has committed to invest over USD 180.0 billion for infrastructure development in the country in the coming twelve years through its Investing in Canada Plan. The U.S. is one of the major markets for steel rebar considering the increased spending on the construction of residential & non-residentialspaces.

The Infrastructure and Investment Jobs Act 2021, passed by the U.S. government focus on rebuilding the country by investing in infrastructure projects, such as roads, rails, bridges, ports, communication, and water supply systems. Infrastructure rebuilding programs and growing construction expenditure in the U.S. are expected to augment the product demand in the country over the forecast period. In the U.S., major roads and highways, as well as 45,000 bridges, are required to be repaired, according to the government. Under the Act, USD 110.0 billion is allocated for rebuilding bridges and roads. In addition, the government is planning to invest USD 25.0 billion in airports and USD 17.0 billion in waterways & port infrastructure. These investments are anticipated to boost the product demand in the U.S.

Furthermore, residential and non-residential construction expenditure has increased significantly compared to the past years. According to the U.S. Census Bureau, the spending on single-family residential spaces has increased to USD 477.6 billion in April 2022 from USD 400.5 billion in April 2021, registering a growth of 19.3% y-o-y. Moreover, the construction spending on non-residential spaces has increased to USD 503.2 billion in April 2022 from 456.9 billion in April 2021.However, the rising mortgage rate in the U.S. is expected to restrict construction spending, which, in turn, is anticipated to affect the product demand over the forecast period. For instance, the contracted rate for a 30-year fixed-rate mortgage increased to 5.4% in April 2022 as compared to 3.3% in January 2022.

Application Insights

Based on applications, the construction segment dominated the market in 2021 with a revenue share of more than 50%, and this trend is expected to continue over the forecast period. Growing spending on residential and non-residential construction activities in North America is projected to increase the product demand in the region over the forecast period. For instance, according to Statistics Canada, investment in building construction increased to USD 20.0 billion in February 2022 as compared to USD 16.8 billion in February 2021. The infrastructure segment is anticipated to register the fastestCAGR, in terms of revenue, over the forecast period.

Rising investments in infrastructure development projects including roads, airports, and rails in North America for boosting economic growth and providing job opportunities are anticipated to drive the product demand in the region over the forecast period. For instance, in March 2022, the Mexican government along with the private sector framed a third infrastructure package worth USD 3.5 billion to boost economic growth in the country as well as improve the construction sector. Prior to this, in 2020, the government introduced two infrastructure packages worth USD 26.4 billion, which consisted of 68 development projects including roads, ports, rails, and airports.

Furthermore, the growing flow of funds toward the construction of new manufacturing facilities is projected to positively influence the growth of the market in North America over the forecast period. For instance, in September 2021, Ford Motor Company decided to invest USD 11.4 billion in the construction of two manufacturing facilities in Tennessee and Kentucky, U.S. The facilities are expected to produce electric F-Series trucks as well as batteries for its future electric Ford and Lincoln vehicles. The production at these plants is expected to begin in 2025.

Country Insights

Based on country, the U.S. held the largest revenue share of over 62.0% in 2021 of the overall market. Rising residential construction spending in the country is expected to boost the product demand during the forecast period. For instance, according to the U.S. Census Bureau, the housing permits obtained for single-family construction in Texas increased by 16.5% in February 2022 compared with the permits obtained in February 2021. According to the state authorities, this trend is expected to continue over the coming years as well. In Canada, various construction projects focused on ensuring long-term economic growth, transitioning to a clean economy, and improving social inclusion are being initiated.

Rising investments in such projects including the building of affordable housing units, expansion of public transit networks, and communication networks are anticipated to positively influence the market growth over the forecast period. In addition, a study by the Massachusetts Institute of Technology (MIT) showed that Mexico is required to spend approximately 4% of its GDP on the development of 800,000 residential spaces to meet the growing demand for housing units in the country. Thus, the rising demand for residential buildings in Mexico is anticipated to contribute to the market growth in the country from 2022 to 2030.

Key Companies & Market Share Insights

The overall market is fragmented with the presence of both established and small-scale players. The key players give stiff competition to other small players by adopting strategies, such as mergers & acquisitions, capacity expansions, joint ventures, and product innovations.For instance, in May 2022, Steel Dynamics, Inc. announced the acquisition of Roca, a Mexican scrap processor. Roca has an annual processing capability of 850,000 gross tons of steel. This acquisition is expected to help Steel Dynamics, Inc. to strengthen raw material procurement in North America. Prominent players in the North America steel rebar market include:

• Gerdau S.A.

• CMC Steel

• Steel Dynamics, Inc.

• Schnitzer Steel Industries, Inc.

• Acerinox S.A.

• EVRAZ North America, Inc.

• Pacific Steel Group

• ArcelorMittal

• Nucor

• Ternium

North America Steel Rebar Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the North America steel rebar market report on the basis of application and region:

• Application Outlook (Volume, Kilotons, Revenue, USD Million, 2017 - 2030)

  • Construction

  • Infrastructure

  • Industrial

• Regional Outlook (Volume, Kilotons, Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

      • California

      • Texas

      • Arizona

      • Rest of the U.S.

    • Canada

    • Mexico