Steel Wire Market

The global Steel Wire Market is valued at USD 108.6 Billion in 2023 and is projected to reach a value of USD 181 Billion by 2032 at a CAGR (Compound Annual Growth Rate) of 5.9% between 2024 and 2032

Key Highlights

• Asia Pacific dominated the market in 2023, with 57.5% market share driven by the growth in demand from rising construction activities, growing steel exports and imports, and a booming automotive industry
• North America is anticipated to register the fastest growth rate during the forecast period
• The Carbon Steel segment dominated the market and accounted for revenue share of 65.2% in 2023, driven by its extensive use in various applications such as construction, automotive, and military sectors
• Based on End-Use Industry, the Construction segment dominated the market in 2023, with 41.5% of the market share, driven by increased construction activities and increasing demand for Steel Wire in various building and infrastructure projects
• New applications for Steel Wire are emerging, including use in advanced aerospace materials, specialized medical devices, and innovative construction techniques. This trend reflects the industry’s adaptability and drive to meet evolving market needs

Regional Overview

In 2023, Asia Pacific dominated the global market with a revenue share of 57.5%. The market growth is driven by the rising demand resulting from growing construction activities. In addition, the growing export and import of steel from nations such as India is projected to increase the regional market growth. The rising automotive industry, requires Steel Wire for manufacturing various components of automobiles. According to the data, China is the world's major producer of vehicles, manufacturing over 21.4 million cars and 4.6 million commercial vehicles in 2023 for a total production of just over 26 million vehicles.

The region's dominance is also due to the presence of raw material suppliers, manufacturers, and end-users. Manufacturers in Asia are intensifying their production to meet both domestic and international demands. For example, in October 2021, India-based Rajratan Global Wire Limited announced plans to build a new facility in Chennai, Tamil Nadu, with a 60-kiloton annual capacity to serve markets in the US and Europe, in addition to local demand. The company, which already operates two plants in Pithampur, M.P., and Ratchaburi, Thailand, with a combined capacity of 100,000 tons, specializes in producing tire beads and high-carbon Steel Wire.

North America is expected to be the fastest-growing region in the global market. Increased investments in construction, energy, and industrial sectors are likely to drive demand for products in the region during the forecast period. Additionally, the rising construction spending in the US is projected to boost Steel Wire demand. The American Society of Civil Engineers estimates that over USD 2.6 trillion will be needed in the next decade to address infrastructure repair needs. In response, the government allocated USD 550 billion for infrastructure improvements through the Infrastructure Investment and Jobs Act in November 2021.

Type Overview

The Carbon Steel segment held the largest revenue share of 65.2% of the global market in 2023. Based on Type, the global market is segmented into Carbon Steel, Alloy Steel, and Stainless Steel.

The carbon steel led the global market in 2023. Both low as well as high carbon steels are utilized in wire production for various sectors including automotive, construction, and military applications. These wires can be manufactured in a wide diameter range from 0.2 mm to 8 mm. High carbon steel wires are employed in applications such as cutting silicon ingots for the photovoltaic industry, bridge cables, tire reinforcement, and musical instruments. Although less ductile than low carbon steel, high carbon steel is stronger and offers benefits like recyclability, durability, and safety. These features, along with extensive use in railways, construction, and machinery, are likely to drive the segment growth.

Stainless steel segment is expected to experience the fastest growth rate during the forecast period. This material is used for manufacturing springs, metallic nets, cables, screws, and hardware. Its high demand in the electronics, oil, and kitchenware industries is due to its superior properties such as corrosion and pressure resistance, flexibility, aesthetic appeal, resistance to heat & fire, and durability. However, its relatively low market share is due to its higher cost compared to other materials.

Key Trends

1. The industry is increasingly focusing on reducing carbon footprints through green technologies. Innovations like electric arc furnaces & low-CO2 steel products are becoming more prevalent, driven by stricter environmental regulations and sustainability goals.
2. Advances in production technologies, such as improved Steel Wire manufacturing processes and automation, are enhancing product quality & operational efficiency. Such advancements contribute to higher performance standards and cost-effectiveness in Steel Wire production.
3. The automotive industry’s need for high-strength, lightweight materials is propelling the demand for advanced Steel Wire products. Similarly, the construction sector's requirements for reinforcement materials are driving growth in Steel Wire applications.
4. Companies are increasingly diversifying their product offerings to include specialized Steel Wire products, such as high-tensile & corrosion-resistant wires. This trend aims to meet specific industry requirements and differentiate o fferings in a competitive market.
5. Significant investments in infrastructure projects worldwide, such as bridges, roads, & railways, are creating a steady demand for Steel Wire. The need for high-strength and durable materials in these projects is driving market growth.

Premium Insights

The energy sector is expected to be the fastest-growing segment for Steel Wire market. The rising investments in power generation and distribution are driving this trend. For example, a significant investment of AED 40 billion (USD 10.9 billion) was announced in April 2022 for electricity and water projects in Dubai. This investment will cover distribution networks and clean energy initiatives, enhancing the demand for Steel Wire used in armored cables for power networks, underground systems, and cable ducting, where they provide essential mechanical protection.

Agriculture is also experiencing rapid growth, further boosting the Steel Wire market. Steel Wire is crucial in agricultural applications such as fencing, poultry cages, creeper cages, and baling. With the increasing global population and the subsequent rise in crop production needs, the demand for Steel Wire is escalating. According to the USDA, world wheat production is expected to increase by 1.9% in 2022, reflecting the growing necessity for agricultural wire products.

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Market Dynamics

The construction industry is the largest segment of the Steel Wire market by volume. Steel Wire is extensively used in constructing road, river, and railway bridges, flyovers, atomic reactor domes, silos, slabs, hangers, aqueducts, high-rise buildings, viaducts, and railway sleepers. The growing demand in these areas is expected to boost the Steel Wire market in the forecast period. In the US, cities are focusing on using funds for road and bridge repairs and prioritizing vehicle infrastructure projects. Significant bridge projects initiated include the Portal Bridge Enhancement ($1.88 billion), Sherman Minton Bridge Rehabilitation ($137 million), I-70 Rocheport Bridge & Mineola Climbing Lanes ($240 million), and Rumson-Sea Bright Bridge Replacement ($130 million).

Steel Wire plays a key role in the automotive industry, where it is primarily used to reinforce tire beads, enhancing performance, durability, and safety for components such as windshields. This wire is also employed in manufacturing processes, including the creation of wire rope isolators for military vehicles. These isolators are designed to endure heavy vibrations, shocks, and extreme conditions, making them suitable for rugged environments encountered by military vehicles like jeeps, tanks, & aircraft. Additionally, with the rapid expansion of the Electric Vehicle (EV) industry, the demand for electric wire harnesses used three times more in EVs than in traditional internal combustion engine vehicles is expected to drive increased production volumes in the cables and wires segment. This growth in the EV sector is anticipated to further propel the market.

However, the rise of plastic & hybrid ropes poses a major constraint to the market. Plastic ropes offer superior strength and reduced weight compared to Steel Wire ropes. While Steel Wire ropes remain prevalent in many industries due to limited awareness of plastic ropes benefits and the higher cost of plastic fibers, advancements in plastic materials are making plastic ropes an increasingly attractive alternative. Unlike Steel Wire ropes, plastic ropes exhibit minimal stretch, reducing the risk of injury by falling gently to the ground without snapping back if they break.

Competitive Landscape

The market is highly competitive due to strong demand, established industry players, and vertical integration across the value chain. Companies like ArcelorMittal and Nippon Steel Corporation are engaged in producing billets, wire rods, and wires. The increasing demand is driving these players to expand their production capabilities. For instance, ArcelorMittal introduces latest developments at Wire and Tube fair, with ArcelorMittal Europe expanding its XCarb range of recycled and renewably produced steel, utilizing a high percentage of steel scrap and 100% renewable electricity. The new Free Cutting Steel offers similar mechanical properties to standard leaded grades with reduced CO2 emissions. Additionally, an investment in ultrasound technology at ArcelorMittal Dortmund enhances their capability to deliver defect-free, customized products.

Additionally, Tata Steel has strategically positioned itself through the amalgamation of several key businesses, reinforcing its market presence and operational efficiency. The successful mergers of Tata Steel Mining Limited, Tata Steel Long Products Limited, S&T Mining Company Limited, The Tinplate Company of India Limited, and Tata Metaliks Limited—cumulatively contributing an annual turnover of approximately Rs 19,700 crore in FY23—mark a significant consolidation within Tata Steel's portfolio.

In June 2022, Nippon Steel Corporation has published EcoLeaf Environmental Product Declarations (EPDs) for its process-omission Steel Wire products under the Japan EPD Program by SuMPO. This certification, based on Life Cycle Assessment (LCA), provides a quantitative view of the environmental impact of products from resource extraction to recycling, enabling customers to assess the environmental burden of the Steel Wire products they use.

Recent Market Developments

ArcelorMittal Invests €213 Million in New EAF at Gijón Plant

• In May 2024, ArcelorMittal has initiated the construction of an electric arc furnace (EAF) at its Gijón plant, representing a €213 million investment. This new facility will boost production capacity to 1.1 million tonnes of semi-finished steel annually, supplying the plant's rail and wire-rod mills. The EAF is expected to cut CO2 emissions by over 35% initially, potentially reaching a reduction of up to 1 million tonnes of CO2 equivalent per year after full implementation.

Kobe Steel’s Kobenable Steel Selected for Automotive Wire Rods in Japan

• In July 2023, Kobe Steel, Ltd. has revealed that its low-CO2 blast furnace steel product, Kobenable Steel, has been chosen for use in special Steel Wire rods for automobiles in Japan for the first time. Since its introduction in 2022, Kobenable Steel has been utilized across various industries, including automotive steel sheets, building materials, and shipbuilding.

Kobe Steel Acquires 25% Stake in Thai Wire Rod Facility

• In November 2022, Kobe Steel, Ltd. announced that it has signed a share transfer agreement with Millcon Steel Public Company Limited. According to the agreement, Kobe Steel has acquired 25% of Millcon Steel's shares in Kobelco Millcon Steel Co., Ltd. (KMS), a wire rod production facility in Thailand established in 2016 as a 50-50 joint venture with Millcon Steel. Following this share transfer, KMS has become a consolidated subsidiary of Kobe Steel.

ArcelorMittal to Purchase 80% Stake in voestalpine’s HBI Plant in Texas

• In April 2022, ArcelorMittal has announced that it has reached an agreement to acquire an 80% stake in voestalpine’s high-quality Hot Briquetted Iron (HBI) plant in Corpus Christi, Texas. voestalpine will retain the remaining 20% share. The deal values the Corpus Christi operations at $1 billion, with the transaction pending customary regulatory approvals.

The global Steel Wire market can be categorized as Type, From, Thickness, End-Use Industry, and Region.