U.S. PC Wire And Strand Market Size, Share & Trends Analysis Report By Surface Coatings (Uncoated, Epoxy), By Application (Bridges, Buildings), And Segment Forecasts, 2019 - 2025

Industry Insights

The U.S. PC wire and strand market size was valued at USD 228.8 million in 2018 and is estimated to witness a CAGR of 4.6% from 2019 to 2025. The growth is largely supported by the rising construction activities and popularity of prefab or offsite construction in the country.

Prefab construction involves molding of a structure in a controlled environment, followed by the process of curing. The finished product is then transported to the construction site for erection. Prestressed Concrete (PC) wires and strands are used to provide strength to concrete structures as well as to the prefab structures.

Growth of the construction industry is the major driver for the PC wire and strand sector. The total construction spending dipped after the global financial crisis in 2008 and this dip continued till 2011. However, the recovery of construction sector started in 2012, and led to an upsurge in construction spending, which continued till 2018.

Construction spending in U.S. is anticipated to ascend at a significant rate over the forecast period. According to Oxford Economics, the volume of global construction output is predicted to grow by 85% and reach USD 17.5 trillion by 2030 with U.S., China, and India being the major economies boosting the growth. They are expected to account for 57% of the global growth until 2030. Such positive outlook is projected to provide a suitable platform for the prestressed concrete (PC) wire and strand market growth.

The U.S. PC wire and strand industry is significantly influenced by China. China is a major exporter of the product to U.S. While, majority of uncoated PC strand shipments for pre-tension application are supplied by domestic producers, coated PC strand shipments for post-tension application in U.S. are mainly supplied by exporters from China.

Surface Coatings Insights

Galvanized was the largest segment in 2018 with a revenue share of 33.4% in 2018. This segment is anticipated to maintain its dominance over the forecast period. Galvanized PC wire and strand is coated in zinc before stranding, which makes it significantly resistant to corrosion. Proliferation in the development of multiple high-rise buildings and commercial buildings is the key factor for the dominance of this segment in U.S.

In terms of volume, epoxy coated is expected to expand at a CAGR of 3.6% over the forecast period. Epoxy coated PC strand have perfect anti-corrosion performance and high fatigue resistance capability. Epoxy coated PC wire and strand is an ideal choice as a cost-effective and corrosion-resistant reinforcing solution for pretensioned concrete applications that are exposed to deicing salts or marine water conditions such as road deck panels and girders, and piling.

The uncoated segment is likely to observe slow growth as compared to its counter parts. The use of this product is largely concentrated for the inner application in precast structures. To avoid corrosion or rusting, this product is kept at minimum exposure to air.

Application Insights

Buildings led the U.S. PC wire & strand market, and accounted for 41.6% of the revenue share in 2018. Significant investment in residential and commercial buildings was the major factor for its dominance. According to the U.S. Census Bureau, the residential spending was valued at USD 366,660 million in 2008 and registered a CAGR of 7.9% to reach USD 546,173 million in 2018.

In terms of volume, utilization of PC strand and wire in bridges is predicted to ascend at a CAGR of 2.9% over the forecast period. The segment is expected to witness steady growth over the forecast period owing to the increasing prominence of PC wires and strands for the restoration of bridges. According to infrastructure report card from the American society of Civil Engineers (ASCE) in 2017, U.S. had 614,387 bridges and roughly 9.1% of the nation’s bridges were found structurally deficient in 2016.

Regional Insights

In terms of volume, Midwest U.S held the largest market share of 21.5% in 2018. Increasing restoration activities of structurally deficient bridges and number of commercial buildings is expected to drive the market growth over the coming years.

In terms of volume, West U.S is projected to expand at the fastest CAGR of 4.3% over the forecast period. In terms of real GDP growth, West U.S. states such as Nevada, Oregon, and Washington are among the highest growing states. In addition, Nevada, Utah, Colorado, and Washington have the highest population growth rate in the country. As a result, there is significant demand for housing infrastructure in the West region, which in turn is expected to provide lucrative opportunity for market growth.

The Southwest U.S. states like Arizona, Oklahoma, and New Mexico are the major states driving the PC wire and strand industry. High economic growth and favorable demographic trends are the major factors driving real estate development in the region. There is increase in the construction of commercial buildings owing to lower operating cost in the region as compared to other states. Such factors are predicted to positively affect the regional product demand in the forthcoming years.

Tennesse, Geoegia, and Florida are the significant states driving the growth of the construction sector in the Southeast U.S. The construction industry in the region is gradually gaining pace owing to easy access to industrial space and greater land availability. Absence of state income tax, lower property tax, and relatively inexpensive cost of living is anticipated to encourage the growth of residential and commercial buildings. These factors are likely to positively influence product demand over the forecast period.

U.S. PC Wire And Strand Market Share Insights

Insteel; Sumiden Wire Products Corporation; Keystone Consolidated Industries, Inc. (Strand Tech Manufacturing); and Wire Mesh Corporation (WMC) are some of the key regional players. Insteel has emerged to be the leader among the regional players. Direct sales are the popular sales channel among the domestic producers.

Major industry players are implementing the growth-through-acquisition strategy to increase their regional presence. For instance, some key mergers of PC wire and strand industry include the advanced cord manufacturing agreement between Bekaert and Ontario Teachers’ as well as the takeover of American Spring Wire’s wire and strand segment by Insteel Industries in 2015 and 2014 respectively.

Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at country and regional levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the U.S. PC wire & strand market report on the basis of surface coatings, application, and region:

• Surface Coatings Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Uncoated

  • Galvanized

  • Epoxy coated

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Buildings

  • Bridges

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • U.S.

    • West U.S.

    • Midwest U.S.

    • Southwest U.S.

    • Southeast U.S.

    • Northeast U.S.