Global Round Billets Market - 2023-2030

Global Round Billets Market - 2023-2030

Global Round Billets Market reached US$ 0.51 billion in 2022 and is expected to reach US$ 0.72 billion by 2030, growing with a CAGR of 10.1% during the forecast period 2023-2030. Construction, automotive, aerospace, oil & gas and manufacturing are among the industries driving demand for round billets.

Round billets are used in a variety of industries to make shafts, rods, tubes, fittings and other mechanical parts. Steel is the most commonly used material for round billets. The availability and cost of raw materials, particularly steel, are important factors in the global round billets market. Aluminum is expected to account for less than 1/4th of the global round billets market during the forecast period.

Aluminum round billets are employed in the automobile industry to manufacture various parts such as clutch levers, engine mounts and roof consoles due to its corrosion-resistant qualities and longevity, as well as their flexible inherent strength during vehicle crashes. Owing to the high volumetric energy density, it is used to make primary propellants for solid rocket booster motors in space shuttles.

Market Dynamics

The Growing Investments in Power Generations and Renewable Energy

The transition to renewable energy sources such as wind and solar involves the construction of new infrastructure such as wind turbines, solar farms and hydropower plants. Round billets are used to make a variety of components for the energy systems, including tower structures, support brackets and other components.

Rising investments in energy, infrastructure and power generation, among other things, are driving market expansion. U.S. Senate enacted a large infrastructure program worth US$ 1 trillion in 2021. According to this, the government is investing extensively in roads, bridges, Electric Vehicle (EV) networks, public transportation, high-speed internet and safe drinking water.

The rising investment in renewable energy and power generation is expected to boost the demand during the forecast period. For example, U.S. Senate enacted a US$ 550.00 billion clean energy investment bill in September 2021. The bill includes a US$ 73.00 billion provision for clean energy generation.

Technological Advancements and Energy-efficiency

When compared to other manufacturing methods, round billets have greater mechanical qualities. Continuous technological improvements in steel production increase the quality and qualities of round billets, making them ideal for a wide range of applications and industries. The technology advancements like as computer-aided design (CAD), simulation software and automated processes all contribute to the global round billets market's growth.

The improvements increase manufacturing productivity, save costs and improve the quality of components. Rising awareness of environmental issues and sustainable practices could drive demand for steel products derived from recycled resources, which may have an impact on the round billets market. The increased emphasis on energy efficiency and sustainability in numerous industries promotes demand for round billet components.

Environmental Regulations

Environmental regulations and concerns about sustainability hampers the growth of the round billets market. Economic downturns or slowdowns can have an influence on regulations, reducing demand for billets. Compliance with stringent emissions, waste management and resource consumption laws can raise operational costs and necessitate further investments in environmental protection measures.

The industry is always evolving and technological developments can be both an opportunity and a constraint. To remain competitive, businesses must spend in upgrading their equipment and implementing advanced techniques. However, for some firms, the expense and complexity of deploying new technologies can act as barrier for the growth.

COVID-19 Impact Analysis

The pandemic's supply-demand imbalances produced price changes in raw goods, particularly steel. The price volatility of raw materials influenced the cost of production for round billets. As countries gradually relaxed restrictions and restored economic activity, demand for round billets began to recover. Automotive and construction industries, which are key users of round billets, showed signs of recovery.

The rate of recovery differed between areas and industries. Billets and construction firms are expected to prioritize the protection of their workers, operations and supply networks in order to respond to serious issues and establish new methods of working following COVID-19. For example, providing sanitizers, keeping social distance and ensuring that every employee in the firm is vaccinated can all help to promote the health and safety of the workforce.

Russia- Ukraine War Impact

The dispute has the potential to have a greater influence on the regional round billets market, notably in Europe. Proximity to the conflict zone, as well as economic linkages to Ukraine and Russia, can have an impact on the local demand and supply trends for round billets in that region. Owing to the geopolitical concerns, companies reevaluate their supply chains and sourcing strategy. It resulted in supplier relationship adjustments and a demand for alternative suppliers of round billets.

Steel, iron ore concentrates, iron ore pellets, coal, merchant pig iron, merchant HBI and DRI are all major suppliers from Russia and Ukraine. Aside from Central Europe, the Middle East, North Africa, Turkey and U.S. are all affected, particularly for pig iron, DRI and HBI. Steel re-rollers in Turkey, Italy, Bulgaria and UK, both in-house and independent, are unable to obtain slabs and billets.

Segment Analysis

The global round billets market is segmented based on product, material, process, end-user and region.

The Demand of High Strength Components in Automotive Sector

Automotive end-user is expected to hold about 1/3rd of the global round billets market during the forecast period 2023-2030. To withstand the severe situations of vehicle operation, the automotive industry requires materials with high strength, durability and performance. Automotive parts made from round billets are stronger and can be modified to the client's specifications.

Round billets have a number of features that make them suited for a wide range of automotive applications and are used to manufacture a wide range of components like crankshafts, axles and gears. The ability to process round billets using forging, machining and other production techniques increases their importance for a variety of automotive applications.

Geographical Analysis

The Increasing Construction in North America

North America is anticipated to have a significant growth holding around 1/4th of the global round billets market during the forecast period 2023-2030. During the forecast period, increasing expenditure on residential and non-residential construction activities in North America is expected to boost product demand in the region. According to Statistics Canada, investment in building construction went up to US$ 20.0 billion in February 2022 from US$ 16.8 billion in February 2021.

The region's increasing infrastructure development and building projects drive steel demand, which has an impact on the market for round billets. The region's states are making investments in renewable energy, which is expected to drive product demand in project construction. For example, in April 2022, the Canadian government announced its intention to invest US$ 230.1 million in a sustainable energy project in rural and remote areas.

Competitive Landscape

The major global players include Alleima, Ellwood City Forge, UBE STEEL, Deutsche Nickel, Baosteel Group, AMETEK, Emirates Global Aluminium, Hindalco, Matalco and Vista Metals.

Why Purchase the Report?
• To visualize the global round billets market segmentation based on product, material, process, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of round billets market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global round billets market report would provide approximately 69 tables, 77 figures and 203 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies