The global issue of global warming is wreaking havoc on the environment, making it imperative to adopt measures that can effectively mitigate its impact. One highly effective strategy in this regard is enhancing energy efficiency in the construction sector. By reducing the consumption of natural resources, land, raw materials, and energy in the construction of buildings, a substantial decrease in greenhouse gas (GHG) emissions can be achieved. This approach aligns with the broader goal of creating structures that are not only high-performing but also environmentally friendly. Among the materials contributing to this cause is prestressing steel strand coated with epoxy, recognized for its cost-effectiveness and time-saving attributes in concrete projects.
The significance of energy efficiency is underscored by the achievements of programs such as the Energy Star Programme. In 2020, approximately 6,500 commercial buildings earned the ENERGY STAR label, resulting in savings of USD 1.6 billion and the prevention of more than 5 million metric tons of GHG emissions. ENERGY STAR certified buildings, on average, consume 35% less energy compared to typical buildings nationwide. Over 800 companies have partnered with the EPA's Energy Star program, representing a diverse range of industrial sectors, including food industries, bakeries, steel mills, petroleum refineries, and pharmaceutical plants. Notably, studies reveal that Energy Star certified buildings command a premium of up to 16% for both sales and rental rates.
The impact of energy-efficient construction practices is not limited to developed nations. In India, where buildings account for over 30% of electricity consumption, there is a growing realization of the importance of adopting energy-efficient measures. Moreover, considering that two-thirds of the buildings that will exist in India by 2030 are yet to be constructed, the opportunity to incorporate energy-efficient technologies is substantial. The rapid pace of urbanization in recent years has led to a significant expansion of urban building floor area, thereby increasing the demand for prestressing steel.
The demand for prestressing steel wire and strands is expected to surge in the coming decades, driven by the ongoing trend of urbanization and the pressing need to address energy security and GHG emissions. The construction industry's reliance on prestressing steel underscores its role not only in ensuring structural integrity but also in contributing to sustainable and environmentally conscious building practices. As the world grapples with the challenges posed by climate change, the adoption of energy-efficient construction materials like prestressing steel emerges as a crucial step toward creating a more sustainable and resilient future. By embracing these technologies, the construction industry can play a pivotal role in mitigating the environmental impact of global warming and fostering a more sustainable built environment for future generations.
Report Attribute/Metric | Details |
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Market Opportunities | Use of prestressed steel strands for energy purposes |
The global Prestressed Steel Wire And Strands Market is projected to register healthy growth during the forecast period, 2022–2030. The market was valued at USD 3,417.7 in 2021 and is projected to register a CAGR of 4.79% to reach USD 5,118.4 million by the end of 2030.
A prominent factor driving the growth of the global market is the rising demand for prestressed steel in the building and construction industry. Prestressed steel wire and strands offer superior properties such as high strength, bendability, good resistance to corrosion, ductility, durability, and low relaxation, driving the demand for prestressed steel wire and strands in the construction industry. The increasing demand for epoxy-coated prestressing steel strands in various end-use applications such as railroad industry is expected to boost the demand for prestressed steel strand and, hence, favor the global market's growth in the years to follow. Likewise, increasing use of prestressed steel strands for energy sector in various applications, including wind turbines, nuclear reactor shields, and liquefied natural gas (LNG) tanks, are projected to propel the market growth during the review period. Furthermore, the growing demand for energy-efficient buildings is projected to create lucrative opportunities for players operating in the global prestressed steel wire and strands market.
COVID-19 it also severely affected the global economy and financial markets, in addition to the public health crisis. Significant reductions in income, a rise in unemployment, and disruptions in the transportation, service, and manufacturing industries are few of the consequences of the outbreak of COVID-19 and the regulations imposed to mitigate its spread. The pandemic has resulted in proactive international actions required to save lives as well as to protect economic prosperity. The significant economic impact has already occurred across the globe due to reduced productivity, loss of life, business closures, trade disruption, and decimation of the tourism industry. The global pandemic threatened the economic recoveries and thus poses a problem for smooth functioning in all the markets. The pandemic plunges most countries into recession in 2020, with per capita income contracting in the largest fraction of countries globally since 1870. Advanced economies were projected to shrink by 7%. According to the United Nations, the global economy is projected to contract by around 3% or more instead of registering 2.5% growth projected by the World Economic Situation and Prospects report 2020.
Most raw materials suppliers in this market had to shut down their operating facilities due to the outbreak of COVID-19. In response to combat the virus, the key suppliers shifted their focus towards offering relief in the pandemic. COVID-19 disrupted Chinese industrial activity and led to the temporary closure of factories and construction sites across the country, with demand from the steel sector declining as much as 30-10% in February 2020, according to Focus Economics. Whereas manufacturers in this market have decreased their production capacities owing to the decline in demand from the end-use industries, reduced prices, and disruptions in the supply of raw materials. The outbreak has severely impacted the demand from end-use industries, which has resulted in a decline in the production of prestressed steel wire and strands. Moreover, players are focused on COVID relief and is taking action for the same.
Regional Analysis
Based on country, the global prestressed steel wire and strand market has been divided into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. The Asia-Pacific region accounted for the largest market share of 40.65% in 2020. Europe captured the second-largest market share of 19.49% in the same year.
The increasing demand for prestressed steel wire and strands from the construction industry in North America is the major driving factor of the prestressed steel wire and strand market. The US is a major contributor to the market in the region. The US is the world's third-largest steel producer, accounting for approximately 5.4 percent of global crude steel output, as well as one of the largest steel users. Prestressed Steel demand in the automotive, construction, and oil and gas industries has soared, benefiting the business.
Prestressed steel wire and strand is largely supplied by European countries such as the UK and Germany. In 2020, the steel sector employed over 326,400 people across the European Union, with Germany employing over 83,200 people. This was more than double the employment in the steel industry in Italy. The growing demand for prestressing steel from the automotive industry in the region is likely to boost the demand for the prestressed steel wire and strands market. This, in turn, is expected to accelerate the growth of the prestressed steel wire and strand industry in the region over the forthcoming years.
China produces the most prestressed steel wire and strands in Asia-Pacific, followed by Japan, India, and Korea. China has traditionally been the primary engine of global prestressed steel wire and strand sector growth, projected to continue in the coming years. Any change in the country's steel production impacts worldwide prestressed steel wire and strand trading. The demand for prestressed steel wire and strands in China is primarily driven by increasing urbanization and industrialization, as well as strong GDP growth that outpaces that of most western countries.
Prestressed steel is widely utilized in various industries, including automotive, construction, infrastructure, energy, and others. In important Latin American country markets, the building sector is predicted to restart in 2021. Brazil, Chile, Colombia, and Peru are among the countries expected to rise. According to the construction database, there are now 534 hotel projects under construction in Latin America, with Mexico leading the way. This, in turn, is likely to boom the growth of the prestressed steel wire and strand market in the region over the forthcoming years.
Due to the country's increasing construction industry, Saudi Arabia has the largest share of the Middle East & Africa. The government's significant investments have been a major driver of the country's primary construction expansion. This, in turn, is expected to boost the growth of the prestressed steel wire and strand market.
The global prestressed steel wire and strands market is characterized by the presence of many global, regional, and local players. The market is fragmented, with all the players competing to gain maximum market share. High demand in the cosntruction and infrastucture industry and several advantages offered by prestressed steel wire and strands are the key factors influencing global market growth. The vendors compete based on cost, brand identity, product quality, and availability and reliability of the products. It is crucial for vendors to provide cost-effective and high-quality products that adhere to the requirements of the end-use to compete in the market. To establish their market position, the key players are expanding their production bases.
Key players in the global prestressed steel wire and strands market include Baekert (Belgium), ÇELİK HALAT ve Tel Sanayii A.Ş (Turkey), DNA PC Strand (Turkey), DWK Drahtwerke Köln GmbH (Germany), FAPRICELA - Indústria de Trefilaria, S.A. (Portugal), Henan Hengxing Science & Technology Co., Ltd. (China), Hjulsbro Steel AB (Sweden), Hubei Fuxing New Material Technology Co.,Ltd (China), Insteel Industries, Inc. (US), KISWIRE Ltd. (South Korea), Maklada (Tunisia), NEDRI Spanstaal BV (Netherlands), ORI Martin Group (Italy), Pretensados Del Norte SL (Spain), SBN Runowo Sp. z o.o. (Poland), Zhangjiagang Xinhua Prestressing Steel Strand Co.,Ltd (China), CB Trafilati Acciai S.P.A (Italy), Sumiden Wire Products Corporation (US), Trefil Union (France), TYCSA (Spain), Usha Martin Limited (India), voestalpine Group (Austria), Southern Steel Berhad Group (Malaysia), Mechel (Russia), AL ITTEFAQ STEEL PRODUCTS CO. (Saudi Arabia), ArcelorMittal (Luxembourg), and The Siam Industrial Wire Company Limited (Thailand).
Some of the key developments include:
The prestressed steel wire and strands market is segmented by type, application and region in the report. In terms of insights, this report has focused on various levels of analysis such as market dynamics, value chain analysis, Porter's five forces, competitive landscape, and company profiles—all of which comprise and discuss views on the global prestressed steel wire and strands emerging and fast-growing segments, regions, and countries.
Objectives of the Study
Intended Audience
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