Construction is the largest steel wire application business by volume. Road, atomic reactor dome, river, and railway bridge construction uses steel wires.
|Market Size in 2020||Market Forecast in 2028||CAGR (in %)||Base Year|
|USD 13.85 Billion||USD 17.54 Billion||3.0%||2020|
U.S. Steel Wire Market
The U.S. steel wire market accounted for USD 13847.24 Million in 2020 and is expected to reach USD 17541.27 Million by 2028, growing at a CAGR of 3.0% from 2021 to 2028.
Steel is an inorganic type of material. The steel wire is made with a cold drawing process in which a steel ingot or a thick rod is drawn through a circular-shaped die of a high-hardness mold that is thinner than the ingot.295 The steel deforms to a smaller diameter under the pressure from the mold. By multiple steps of such cold drawing, the diameter of the wire is gradually reduced to desired level. The major factor that is primarily driving the growth of the market is the rising investments by the government authorities in the development of infrastructure in emerging economies.
COVID-19 Impact Analysis
The Covid-19 pandemic has majorly hampered the overall U.S. steel industry as the demand for steel remained muted for almost the entire 2020. The market witnessed significant deep in growth of end-use industries such as construction, energy, and automotive, among others. The U.S. has a well-established construction industry. Until 2021, the construction industry was contributing around USD 2 trillion to the U.S. economy. The number dropped to USD 1.3 trillion in 2020 on account of the pandemic, riots, social disturbance, and the presidential election. This, in turn, has hampered the growth of all the associated industries. Several ongoing projects were either halted or delayed. During this period, the price of numerous construction materials including steel has gone up. For instance, steel prices saw an upsurge of more than 50% as compared to the prices of early 2020, which is projected to slow down the rate of construction activities in the coming years.
The Automotive and energy sectors witnessed the slowest demand for steel wire as the market was completely shut for more than six months. Production of automotive was halted due to lockdown and shortage of labor among others. The industry has to face a prominent loss in revenue during this period. This impact and recovery is likely to take 2-3 years to restore to the previous growth rate. Since, most of the industries were either partially operational or closed that reduced the consumption of energy. This resulted into lower production of electricity. The lower production discouraged the operators to undertake any development activities that would utilize steel wire.
However, the market has started regaining at an unpreceded rate on account of the introduction of the Covid-19 vaccine, the uplift of lockdown, ease of regulations. The beginning of 2021 witnessed slow growth as expected but then it went up. As per our analysis, the market will take around 2-3 years to come back to normal.
The construction industry is the largest application industry in the steel wire market in terms of volume. Steel wires are heavily used in a range of applications in the construction industry in road, atomic reactor domes, river & railway bridges and flyovers, slabs, hangers, silos, aqueducts, viaducts, high-rise buildings, and railway sleeper construction. In addition to this, the market has started witnessing a significant boost after 2020 in the residential and construction activities in the U.S. Moreover, the U.S. federal government is planning to invest USD 500 billion over 10 years (2017–2028). The demand for steel is likely to go up until 2024 as most of the delayed and halted construction projects are expected to go online until the year. The residential construction segment is projected add fuel to the overall market growth as the number of individual home buyers has gone up since the mortgage has reduced to a record low. This will further encourage the homebuyers.
The demand for steel wire is projected to continue growing in the coming years as the market does not have any other substitute which can reduce its overall application and end use. This can mainly be attributed to the lightweight, high tensile and mechanical strength, ability to work under high pressure and temperature, and anti-corrosion properties. Moreover, steel wires offer these properties at significantly low prices, which further encourages the demand for the product. As per applications, these properties can be enhanced by offering plastic or nylon coating and anti-corrosion can be taken to the next level by galvanizing the wire. In addition to this, the U.S. government has been paying more attention to the safety of passengers and is directing the automotive producer to make better safest possible vehicles, which can be achieved by high grade steel wire. The emergence of EVs has further added fuel to the overall demand.
On the basis of type the market is segmented into Carbon Steel and Alloy Steel. Carbon Steel holds the major share in the market whereas, Alloy Steel segment will surpass the Carbon Steel segment in near future owing to the huge application. Carbon steel is projected to dominate the market on account of a wide range of end-use applications and growing demand from the construction and automotive industries.
By end use, the market is segmented into construction, automotive, energy, agriculture, and others. Wherein, the construction industry is projected to lead the market. It is expected to hold a major share and is likely to continue dominating the market during the forecast. The construction industry has started showing slow growth as expected in the year 2021, the demand and growth has started returning to normal at a very high rate. In addition to this, the residential construction activities have started booming again and most of the projects that were halted have become operational. The industry is expected to witness significant growth in residential and commercial activities. Moreover, the U.S. government has undertaken a large number of infrastructure development projects and is eying to invest USD 500 billion over 10 years (2017–2028) in numerous infrastructure developments. All these factors are projected to drive the demand for steel wire market in the coming years
The U.S. steel wire market is valued at USD 13847.24 million in 2020 and is projected to generate revenue of USD 17541.27 million by 2028 at a CAGR of 3%. The market is likely to remain stable in the coming years on account of strong demand from the construction, automotive, and energy sectors. However, the market has seen a significant increase in steel prices on account of reduced production and increased demand and supply gap. The prices are likely to come back to normal by 2024 as the production restores and tension between the U.S. and China.
Some of key players in U.S. steel wire market are
|Report Attributes||Report Details|
|Report Name||U.S. Steel Wire Market Report|
|Market Size in 2020||USD 13.85 Billion|
|Market Forecast in 2028||USD 17.84 Billion|
|Growth Rate||CAGR of 3%|
|Number of Pages||199|
|Key Companies Covered||American Manufacturing, Barrette Outdoor Living, Bekaert Corporation, Davis Wire Corporation, Draka Elevator Products, Fort Wayne Metals Research Products Corp, Insteel Wire Products Company, Laclede Chain Manufacturing Company, and Loos & Co., among others.|
|Segments Covered||By Form, By Type, By Thickness, By End User, and By Region|
|Regions Covered||North America, Europe, Asia Pacific (APAC), Latin America, Middle East, and Africa (MEA)|
|Historical Year||2017 to 2020|
|Forecast Year||2021 - 2028|
|Customization Scope||Avail customized purchase options to meet your exact research needs. Request For Customization|
The U.S. steel wire market was valued at USD 13847.24 Million in 2020.
The U.S. steel wire market is expected to reach USD 17541.27 Million by 2028, growing at a CAGR of 3.0% between 2021 to 2028.
Some of the key factors driving the U.S. steel wire market growth are increasing demand from the construction industry and lack of prominent substitute, among others.
Some of the major companies operating in the U.S. steel wire market are American Manufacturing, Barrette Outdoor Living, Bekaert Corporation, Davis Wire Corporation, Draka Elevator Products, Fort Wayne Metals Research Products Corp, Insteel Wire Products Company, Laclede Chain Manufacturing Company, and Loos & Co., among others.