Steel Wire Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2030

Global Steel Wire Market is projected to offer a growth opportunity of nearly US$ 100.76 Bn from 2022-2030 and is estimated to reach US$ 179.85 Bn by 2030. The market is expected to register a CAGR of 10.81 % during the forecast period 2022–2030.

The main drivers of this growth are expected to be increased construction activity in China and India, as well as replacement demand in mature markets such as the US and Europe. It is found that the steel wire market is highly fragmented, with the top 5 producers accounting for only 32% of global production. This fragmentation is expected to continue, with new entrants coming from both developed and emerging markets. 

High-carbon wire is used mainly in the construction and automotive sectors and accounts for 56.4% of global steel wire production. Stainless wire is used mostly in the food and beverage industry and makes up second largest share of global production. Welded wire is used mainly in the construction industry.

The supply of steel wire is relatively tight because there are only a few producers globally and the production process is capital intensive. As a result, steel wire prices are relatively high and have been rising in recent years. It is expected that the steel wire market will continue to be highly competitive in the future and that companies will continue to invest in research and development to improve their products and services.

Looking at regional trends, Asia Pacific is expected to be the main growth driver for the steel wire market over the next nine years. 

MARKET DYNAMICS

Prominent factors expected to influence the market growth during the forecast period include:

Drivers

It is estimated that the global steel wire market will grow at a healthy CAGR during the period 2022-2030. The demand for steel wire is driven by various factors, including the growing construction industry, rising infrastructure expenditure, and increasing manufacturing activities. 

• The construction industry is one of the major consumers of steel wire. The demand for steel wire is expected to grow significantly in this sector due to the increasing construction activities globally. The Asia-Pacific region is projected to be the largest market for steel wire due to the rapid urbanization and industrialization in countries such as China and India.
• The automotive industry is another major consumer in the global steel wire market. The demand for steel wire from this sector is expected to grow at a significant rate during the forecast period owing to the increasing production of vehicles globally. Steel wire is used in various applications in the automotive industry, such as tires, suspension systems, and body parts.
• The oil & gas sector is another major consumer of steel wire. The use of steel wire in this sector has increased significantly over the past few years due to its toughness and resistance to corrosion. Steel wire is used in various applications in the oil & gas sector, such as pipelines, well casings, and offshore platforms.

Restraints

There are a few factors that are hampering demand for steel wire market. 

• The first and foremost is the rising cost of raw materials. The price of iron ore, the main raw material used in the production of steel, has been on the rise in recent years. This has made steel wire products more expensive to produce, and has led to a decline in demand from customers who are price-sensitive.
• In addition, the global economic slowdown has also had an impact on steel wire demand. A slowdown in construction activity and manufacturing output has led to a reduction in demand for steel wire products. This is particularly evident in developed economies such as North America and Europe, where the construction and manufacturing sectors have been particularly hard hit by the economic downturn.
• Finally, another factor that is dampening demand for steel wire is increased competition from alternative materials such as aluminum and plastic. These materials are often used as substitutes for steel wire in many applications, and their use has been growing in recent years. This increased competition is likely to continue, which will further erode demand for steel wire products.

Competitive Landscape:

Top 5 players in the global steel wire market is holding around 32% share of the global steel wire market. Wherein, POSCO (8.3%), JFE Steel Corporation (7.1%), Jiangsu Shagang Group (6.2%), and Jianglin Stainless Stees (4.4%) are top 4 players. In order to stay competitive, these key players are adopting a variety of competitive strategies, such as mergers and acquisitions, to accommodate emerging markets. In addition, large companies are expanding their geographical footprint by acquiring smaller brands and domestic companies.

Recent Developments by Players

• In February 2021, JFE Steel Corporation signed MOU with BHP, which is engaged in the production of resources which would help in the reduction of CO2 emissions in steelmaking process. These two companies would aim to develop highly effective technologies for CO2 emissions. Further, they will jointly take into account the options like the use of blast furnaces and direct reduced iron (DRI) in steel making process and would develop new ways to use raw materials in steel making in the global steel wire market. JFE Steel, through this partnership, aims for the reduction of CO2 emissions in the whole steel-industry supply chains.
• NIPPON Steel Cold Heading Wire Indiana INC. (NSCI) was established by NIPPON STEEL corporation in February 2016. NSCI is a U.S. company which manufactures are sells steel wires for cold heading and forging. NSCI constructed a plant, did trial operations, shipped samples to customers since 2016, and have recently started its commercial production. This new plant at NSCI holds an annual production capacity of 36,000 tons and can further manufacture steel wires with a maximum diameter of 40 mm.

Market Segmentation

Type Analysis

Based on type, the carbon steel segment held 56.4% share of the global steel wire market. Carbon steel is a low-cost metal as compared to other steels. It is ideal for the application in large structural components such as tubes, beams and rolled sheet steel. Meanwhile, stainless steel is projected to observe a highest CAGR of 11.94% over the forecast period, 2022-2030. 

Form Analysis

By form, rope segment held 58.8% share of the global steel wire market in 2021. Ropes are often produced as a final product of steel wire. Steel wire ropes are extensively used within the rail industry as a strong and sturdy piece of equipment for lifting. Furthermore, steel wire ropes are used in other industries including engineering, construction, automotive and manufacturing. 

Coating Type Analysis

Based on coating type, zinc segment held 33.6% share of global steel wire market in 2021. Zinc coated steel wires are often used for general and industrial applications such as construction, fencing, woven wire mesh, product packaging, handicraft, and other daily use. Meanwhile, stainless steel is expected to grow at the highest CAGR of 12.90% over the forecast period due to its growing adoption as a safest choice for long term use along with an excellent corrosion resistance.

Thickness Analysis

By thickness, 0.8mm to 1.6 mm segment contributed around 41.8% revenue to the global steel wire market in 2021 and is projected to grow at the highest CAGR of 12.45% during the forecast period, 2022-2030. 0.8mm to 1.6mm thickness of steel wire is used in for industrial purpose such as in construction for binding rebars, electronics, automotive, manufacturing, entertainment, mining, aerospace, and other industries.

End User Analysis

Based on end user, construction segment held 23.7% share of the global steel wire market in 2021. Steel wire is widely used for binding or tying the rebars at the junctions to keep the position intact. Furthermore, they are used for lifting heavy objects like cement blocks and machinery in construction site. However, in the manufacturing industry steel wires can be a component of conveyer belts, lifts or elevators and other devices. Thus, manufacturing segment is anticipated to grow with the highest CAGR of 13.35% over the forecast period, 2022-2030.

Region Analysis

Asia Pacific dominated the global steel wire market in 2021 with the China accounting for approximately 66.5% of the regional market share. Wherein, China and India are the largest steel producers in the world. Moreover, a large number of market players in these countries have also accelerated the production of steel wires in the region. Moreover, the smart cities and infrastructure development projects in the region will trigger the steel wire market in future. 

Asia Pacific is the world’s largest producer of steel wire with China alone accounting for more than 66.5% of total production. Other major steel wire producing countries in the Asia Pacific region include Japan, South Korea, India, and Taiwan. The Asia Pacific region has seen significant growth in steel wire production in recent years, driven largely by strong economic growth in China and other developing countries in the region. Steel wire is a key input into a wide range of industries, including construction, automotive, and electronics. As such, the rise in steel wire production in the Asia Pacific region has been accompanied by strong growth in these industries as well.

Looking forward, the Asia Pacific region is expected to continue to be the largest producer of steel wire in the global steel wire market, as strong economic growth and rising demand from key end-use industries are expected to drive further expansion in production capacity.

List of Key Companies Profiled

• ArcelorMittal
• Bekaert SA
• Bharat Wire Ropes Limited
• China Baowu Group
• CSN Steel
• Ferrier Nord
• Gustav Wolf GmbH
• HBIS Group
• JFE Steel Corporation
• Jianglin Stainless
• JSW Steel Ltd.
• Kobe Steel, Ltd.
• Nippon Steel
• POSCO
• SHAGANG GROUP Inc.
• TATA Steel Limited
• Teufelberger
• Usha Martin
• Other Prominent Players

Segmentation Overview

The global steel wire market is segmented as follows:

By Type

• Carbon Steel
• Alloy Steel
• Stainless Steel

By Form

• Rope
• Non- Rope

By Coating Type

• PVC
• Zinc
• Aluminum Alloy
• Stainless Steel
• Others

By Thickness

• 0.01 mm to 0.8 mm
• 0.8 mm to 1.6 mm
• 1.6 mm to 4 mm
• 4 mm & above

By End User

• Oil and Gas
• Aerospace
• Mining
• Manufacturing
• Automotive
• Construction
• Agriculture
• Entertainment
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Western Europe
    • The UK
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Western Europe
  • Eastern Europe
    • Poland
    • Russia
    • Rest of Eastern Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia & New Zealand
  • South Korea
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa (MEA)
  • Saudi Arabia
  • South Africa
  • UAE
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America