Market Trends of Cable Duct Industry
This section covers the major market trends shaping the Cable Duct Market according to our research experts:
Growing Construction Industry is to Play a Dominant Role
- The construction industry grew at a steady rate of 3.7%, in 2018, and is expected to gain momentum, over the next five years. As per consensus forecast, in 2018, the US construction industry is expected to grow at 4%, with the residential sector poised to record the highest growth of 6%, whereas, the non-residential and non-building sectors are expected to record growth rates of 2% and 4%, respectively.
- Rising investments in real estate and infrastructure development activities is a major factor responsible for the steadfast growth of the global cable duct market. Besides this, surging demand from data centers and IT facilities and rapid urbanization are also propelling expansion in the global cable duct market. Foreign Direct Investment (FDI) received in Construction Development sector (townships, housing, built-up infrastructure, and construction development projects) from April 2000 to March 2019 stood at USD 25.05 billion in India, according to the Department of Industrial Policy and Promotion (DIPP).
- Besides, during the first five months of this year, construction spending amounted to USD 498.8 billion, 0.3 percent (±1.3 percent) below the USD 500.3 billion for the same period in 2018. The highest growth rate is observed in the US hotel construction industry. With the expansion in the construction industry, a rise in the demand for cable ducts is expected, thus leading to the growth of the market studied.
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Asia-Pacific to Witness Fastest Growth
- The growth in Asia-Pacific is attributed to the rapid infrastructure building activities being undertaken in the region, mainly in China and India. In these countries, rural areas are being converted into urban areas and these countries will collectively be responsible for more than a 50% share of the growth in the construction industry by the end of 2020.
- Moreover, the increasing projects in the field of electrification and power supply in these regions also provide ample opportunity for the growth of the electrical conduit pipe market.
- Additionally, in India, the initiatives (such as excise duty exemption for Ferro-silicon-magnesium and pig iron used for manufacturing components for wind-operated electric power generators as well as the target set by the Jawaharlal Nehru National Solar Mission to generate more than 1,00,000 MW of solar power by the end of 2022) are expected to boost the demand for electrical wires and cables.
- With this continuous growth in the building and construction industry, along with the increase in demand for renewable sources of energy, the demand for electrical conduit pipes is expected to increase over the forecast period.
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