Market Trends of Building and Construction Sheets Industry
This section covers the major market trends shaping the Building & Construction Sheets Market according to our research experts:
Rising Infrastructural Development Activities
In emerging economies, the government has to speed up its investments in the building and construction materials market because the population is growing and cities and factories are growing quickly. The accelerated investment will further satisfy rising infrastructural needs and ultimately boost the market. Besides, the market is projected to experience significant growth in the construction industry due to the rising disposable income in developing countries.
In China, the infrastructure projects in development or execution worth over 25 million U.S. dollars as of May 2022 were worth over 5 trillion U.S. dollars. The United States and India were the next two countries on the list, with around 2 trillion dollars worth of infrastructure projects. Because of the positive developments seen in Germany and the UK, the building industry in Europe is expected to rebound and show positive growth.
Also, many western European economies are expected to see their budget deficits go down, which is likely to be good for the demand for building and construction materials. Over the next few years, Latin America is expected to grow steadily because there is a higher demand for atactic polypropylene, which has better properties like resistance to UV light, durability at low temperatures, and resistance to flow at high temperatures.
So, the building and construction sheets market will grow over the next few years because more infrastructure is being built and more polymer and metal sheets are being used in building applications.
Asia-Pacific is Likely to Dominate the Market
The construction industry grew to a spending value of close to 12 trillion U.S. dollars before the coronavirus pandemic and is expected to grow by three percent per annum. This includes building projects in real estate, either residential or commercial, but also in infrastructure or industrial structures. In 2021, Asia-Pacific will have the highest construction industry output in the world. In that year, the Asia-Pacific region's construction output was 4.8 trillion U.S. dollars. More than half of the total value of new contracts signed by China's construction enterprises in 2022 was worth approximately 36.65 trillion yuan.
Steel sheet metal is widely used in multiple end-user industries. For instance, the construction sector accounts for around 50% of global steel consumption. China remains the global leader in crude steel production, with December 2022 reaching 77.9 million metric tons, roughly 10 percent less than its production in December of the year before. India, Japan, the United States, and Russia follow distantly.
During the forecast period, Asia-Pacific is expected to be the largest regional market and the one that grows the fastest. The growth is attributed to rapid industrialization and urbanization in the region. Moreover, the continuously growing population is further expected to boost the production and consumption of building and construction sheets during the forecast period. For instance, India's population was 141.7 crore as of the end of 2022.
The Asia-Pacific market is expected to have the most demand for polyolefins. The region has the presence of many global leaders in polymer sheet manufacturing. The region has a relatively high growth rate as a result of its continuously increasing demand. The demand in the region is mainly due to the increasing appetite for polymer sheets in China.
Governments in several countries, especially the U.S., India, and China, are expected to spend more on construction to meet rising needs for industrial and public infrastructure. This is expected to be a major factor driving the demand for the product in construction applications.
