Construction Nail Market Size 2024-2028
The construction nail market size is forecast to increase by USD 2.67 billion at a CAGR of 4.8% between 2023 and 2028.
- The market is experiencing significant growth due to the expansion of commercial building construction and the increasing demand for seismic-resistant houses. Lightweight wood-based structures are gaining popularity, leading to increased usage of nails in this sector. Additionally, the need for protective coatings, such as zinc, chromium, and cadmium, for steel nails is driving market growth. Volatility in steel prices, however, poses a challenge to market participants. Optimizing product distribution channels and enhancing product offerings to cater to diverse customer needs are key strategies adopted by market players to mitigate this challenge.
What will be the Size of the Market During the Forecast Period?
- The market is a significant segment within the broader construction materials industry. These fasteners play a crucial role in various construction activities, including residential projects, commercial projects, and industrial projects. They are essential components in the construction of various structures, such as wood structures, cabins, wall-molding applications, fence-fixing applications, timber frames, and more. Construction nails are available in various materials, including carbon steel and stainless steel. Carbon steel nails are commonly used due to their affordability and ease of use. However, stainless steel nails offer superior corrosion resistance, making them an ideal choice for applications where the nails will be exposed to harsh environments.
- Moreover, the construction industry's focus on sustainability and green buildings has led to an increased demand for low carbon emissions materials, including wood-based construction and wood in construction. As a result, the construction nails market has seen a growing interest in stainless steel nails and other corrosion-resistant options. Construction nails are used extensively in residential spaces, commercial spaces, and infrastructure development projects. In residential projects, they are used to build decks, cabinets, and other wood structures. In commercial projects, they are used in the construction of commercial buildings, seismic-resistant houses, and lightweight wood-based structures. In infrastructure development, they are used in the construction of bridges, roads, and other large-scale projects.
How is this market segmented and which is the largest segment?
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
- Material
- Stainless steel
- Carbon steel
- Others
- Application
- Wood construction
- Concrete construction
- Geography
- APAC
- China
- India
- Japan
- North America
- Canada
- US
- Europe
- South America
- Middle East and Africa
- APAC
By Material Insights
- The stainless steel segment is estimated to witness significant growth during the forecast period.
Stainless steel nails hold a significant position in The market due to their adaptability and enduring quality. These nails are highly preferred for their strong strength and resistance to corrosion, making them a popular selection for various construction projects. In the residential sector, they are used for repairs and renovations, while in commercial and industrial projects, they are employed for large-scale undertakings. The outdoor application of stainless steel nails is a major advantage due to their corrosion resistance, ensuring extended usage and dependability in exposed conditions. This attribute makes them a preferred choice for structures like decks, fences, and outdoor furniture that are subjected to harsh weather elements.
In addition, geopolitical developments and increasing remodeling spending in further fuel the demand for these nails in the North American market.
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The stainless steel segment was valued at USD 5.20 billion in 2018 and showed a gradual increase during the forecast period.
Regional Analysis
- APAC is estimated to contribute 61% to the growth of the global market during the forecast period.
Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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In the Asia Pacific region, particularly in India, the construction industry is witnessing notable expansion, leading to an increased demand for construction nails in wood construction projects. However, this growth rate does not fully address the immense demand for housing, as India's rapidly growing economy is driving up household incomes and fueling a need for new residences. Indian home builders aim to construct up to 100 million new dwelling units within the next decade to accommodate this burgeoning demand. This substantial increase in construction activity highlights the importance of having access to dependable and superior quality construction materials, such as nails, to ensure the successful development of residential infrastructure. Online portals provide valuable material insights to builders, helping them make informed decisions regarding the use of recyclable materials and adhering to building requirements.
Market Dynamics
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
What are the key market drivers leading to the rise in adoption of Construction Nail Market?
Growth in construction activities is the key driver of the market.
- The market is witnessing substantial expansion due to the rise in construction activities. The rise in non-residential construction activities underscores the growing demand for commercial and industrial infrastructure, leading to an increased need for construction materials, including nails.
- Moreover, the trend towards sustainable and green buildings is gaining momentum with a focus on reducing carbon emissions. This trend is driving the demand for corrosion-resistant nails, such as stainless steel nails, in wood-based construction. These nails offer durability and resistance to weather conditions, making them an ideal choice for sustainable and green buildings. In summary, the market is experiencing growth due to the increase in construction activities, particularly in non-residential construction, and the trend towards sustainable and green buildings.
What are the market trends shaping the Construction Nail Market?
Optimization of product distribution is the upcoming trend in the market.
- The market in North America is experiencing a noteworthy development in optimizing product distribution to cater to the increasing demand and enhance operational efficiency. This expansion is part of a larger strategy to strengthen its distribution network in the region. The Calgary facility, which stocks around 1,300 stock-keeping units, will cater to a wide range of construction products for both residential and commercial projects.
- With this expansion, Simpson Strong-Tie aims to offer next-day delivery services across the Prairie provinces, thereby improving product availability and reducing lead times. This strategic move is expected to significantly boost the company's market presence and customer satisfaction.
What challenges does Construction Nail Market face during the growth?
Volatility in steel prices is a key challenge affecting the market growth.
- The market is experiencing fluctuations in steel prices, posing a significant challenge for manufacturers. In 2023, steel demand rebounded by approximately 2.3%, reaching nearly 1.8 billion metric tons (MT). This trend is anticipated to continue, with a projected growth of 1.7% in 2024, reaching around 1.85 billion MT. The manufacturing sector is primarily driving this recovery. However, high interest rates are expected to continue putting pressure on steel demand, adding complexity to market dynamics. The cost of steel, a primary raw material for construction nails, significantly influences production costs. Any substantial changes in steel prices can lead to increased production expenses, negatively impacting manufacturers' profitability.
- As the construction industry relies heavily on steel for nail production, these price fluctuations can have a ripple effect on the overall market. In the context of the market, commercial buildings and seismic-resistant houses are major consumers of construction nails. Lightweight wood-based structures also utilize nails extensively. To enhance the durability and resistance of nails, manufacturers use various coatings such as zinc, chromium, and cadmium. Keeping up with the latest trends and incorporating these coatings can help manufacturers maintain a competitive edge.
Exclusive Customer Landscape
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Key Companies & Market Insights
Companies are implementing various strategies, such as strategic alliances, market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market. The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
- Adolf Wurth GmbH and Co. KG
- Duchesne et Fils ltee
- Grip Rite
- Herco Sp. zoo
- Kongo Special Nail Mfg. Co Ltd.
- Maze Nails
- MID CONTINENT STEEL AND WIRE
- Pan Chem Corp
- Raimund Beck KG
- Simpson Strong Tie Co Inc
- TITIBI
- Tree Island Steel
- Yalong new material co Ltd
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Research Analyst Overview
The market is witnessing significant growth due to the increasing number of renovation and remodeling projects in both residential and commercial sectors. Infrastructure development, transportation systems, and industrial projects are also contributing to the market's expansion. The demand for fasteners, including construction nails, is driven by the need for materials that offer superior strength and durability. Carbon steel and stainless steel are popular choices for construction nails due to their corrosion resistance and strength. Renovation spending on energy-efficient buildings, sustainable buildings, and green buildings is also driving the demand for construction nails made of recyclable materials. Wood construction, including wood structures, cabinets, wall-molding applications, and fence-fixing applications, is a significant end-user for construction nails.
Furthermore, the trend towards lightweight wood-based structures and seismic-resistant houses is expected to further boost the market's growth. The construction industry's shift towards online portals for procuring materials and building requirements provides valuable insights into material trends and preferences. The use of zinc, chromium, cadmium, and nickel coatings on stainless steel nails enhances their corrosion resistance, making them a preferred choice for various applications. Overall, the market is expected to witness steady growth due to the increasing demand for durable and sustainable construction materials.
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Market Scope |
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Report Coverage |
Details |
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Page number |
192 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.8% |
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Market growth 2024-2028 |
USD 2.66 billion |
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Market structure |
Concentrated |
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YoY growth 2023-2024(%) |
3.4 |
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Key countries |
US, China, Canada, Japan, and India |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
What are the Key Data Covered in this Market Research and Growth Report?
- CAGR of the market during the forecast period
- Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
- Precise estimation of the size of the market and its contribution of the market in focus to the parent market
- Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
- Growth of the market across APAC, North America, Europe, South America, and Middle East and Africa
- Thorough analysis of the market's competitive landscape and detailed information about companies
- Comprehensive analysis of factors that will challenge the growth of market companies
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