Market Trends of canada sealants Industry
Rapid commercial construction and infrastructure investment of around USD 140 billion by 2028 to boost the construction industry
- According to the Canadian Construction Association, the construction sector is one of Canada’s largest employers and a significant contributor to the country’s economic success. The industry contributes 7% of the country’s Gross Domestic Product (GDP). In 2019, the Canadian construction market contracted by 6.5% as the COVID-19 pandemic halted construction activities in the country.
- Despite the COVID-19 pandemic, the Canadian construction market registered a decent growth rate of 6.19% in 2020. The Canadian government approved and implemented infrastructure projects worth USD 180 billion. In 2021 the construction market in the country registered a growth rate of 12.2% compared to the same period in 2020. The Canadian government approved various construction projects, such as New Building Canada Plan (NBCP) and Affordable Housing Initiative (AHI), supporting the sector’s growth. The construction industry in Canada was expected to recover by Q4 2021 and is estimated to experience moderate growth over the forecast period.
- There has been a boom in the construction of skyscrapers in Canada (more specifically in Toronto) in recent times. Over 30 high-rise buildings are expected to be completed by 2025, and another 50 such buildings are in the proposal and planning phase in Toronto. As part of the ‘Investing in Canada Plan,’ the government announced plans to invest nearly USD 140 billion for major infrastructure developments in the country by 2028. Thus, the Canadian construction market is expected to register a CAGR of 3.6% during the forecast period (2022-2028).
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Rising investments from OEMs in Electrical Vehicle production in the country is likely to fuel the automotive production
- Canada is the 11th-largest vehicle manufacturing country in the world and the second-largest in North America. The automotive sector in the country employs nearly 117,200 people. Canada's automotive manufacturing industry is highly integrated with the United States. Automotive components may cross Canadian-US-Mexican borders as many as eight times before being installed in a final assembly. Vehicles are Canada's second-most exported products, of which 93% were exported to the United States in 2020. The decline in automotive production from 2017 to 2019 was due to a demand drop in US markets because of rising interest rates and demand saturation.
- Automotive production declined by a staggering 26.3% in 2020 compared to 2019 due to operational and supply chain restrictions resulting from the COVID-19 pandemic. The ongoing semiconductor chip shortage, caused by pandemic-related production issues and a surge in demand for electronics, has restricted the growth of automotive production in the country. Due to these constraints, automotive production in Canada is expected to record a CAGR of just 1.46% during the forecast period.
- However, the prospects for electric vehicle production are bright in Canada as the country ranks sixth globally for heavy-duty EV production. With more than 700 suppliers of parts and raw materials and investments from global Original Equipment Manufacturers (OEMs) like Ford (USD 1.5 billion), GM (USD 785 million), and Stellantis (USD 1.14 billion) to establish production lines for EVs as well as for EV batteries in Canada, the automotive industry is expected to grow over the forecast period.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- With strong Original Equipment Manufacturers (OEMs) and supply chains of international OEMs and Tier1 partners, the country's aerospace industry maintained one of the largest in the world
