Market Trends of italy sealants Industry
Increasing government policies and investments in the infrastructure sector to propel the construction industry
- In Italy, the Budget Law 2017 was introduced to boost public and private investments in the public infrastructure sectors. A budget of USD 53 billion was also allotted for the development of government infrastructure in the country for the period 2017-2032. In 2019, the Municipality of Florence also approved land to develop a new stadium as part of the larger urban redevelopment plan. The stadium is likely to hold a capacity of 40,000 seats; it is expected to be completed by 2023.
- However, in 2020, the Italian construction market contracted by 23%, as Italy was one of the worst-hit nations during the COVID-19 pandemic. In 2021, the Italian construction market registered the highest growth rate of 16.59%. According to the European Commission, the Italian government announced several initiatives to promote the residential/housing market. Under its 2021 Budget Law, Italy extended the timeline for the super bonus, 110% deduction up to June 30, 2022. The Italian government has been promoting construction subsidies to invest a minimum of USD 20,000 per house in some cities to promote the population of the city by providing sponsorship for stay. This is expected to boost house construction in the future, as construction in Italy is significantly cheaper than in many other parts of Europe, especially for vacation homes.
- The Italian construction market is expected to register a CAGR of 3.2% during the forecast period (2022-2028). As the government focuses on improving commercial infrastructure and other civil engineering activities across the country, changes in government policies for foreign direct investments and tax deductions are expected to drive the construction industry in the country, which, in turn, is expected to drive the market.
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Rising electric vehicles demand is likely to boost automotive production
- Italy is one of the major automotive manufacturers in Europe. Compared to 2017, automotive vehicle production in the country contracted by 9.26% in 2018 and 22.2% in 2019, as in 2018 and 2019, factors like the fallout from Brexit, the implementation of more complex environmental regulations, and the tensions between the United States and China negatively affected the market for automotive vehicles in Italy.
- The automotive vehicle production volume contracted by 20% in 2020 compared to the same period in 2019. The COVID-19 pandemic resulted in disruptions in car manufacturing and had a negative impact on the whole supply chain. Many suppliers additionally suffer from increased raw material costs (e.g., for steel, plastics, and resin) and higher energy prices, affecting the automotive market in the country.
- In 2020, the country's electric vehicle growth further increased. Registrations for pure EVs in the first six months of 2020 were up by 86% compared to 2019. Almost 31,000 pure EVs were sold in 2020 till the end of June. Total sales of all plug-in vehicles rose to 50,500 units. The average pure-electric market share also increased significantly, driving the market for adhesives and sealants in the country.
- Similarly, the year 2021 witnessed continued growth in the Italian EV market. In recent years, electric vehicle sales increased by six-fold in just three years. Similarly, the market share of electric vehicles increased to 4.6% in 2021. Thus, it is expected to improve the market for adhesives and sealants in the country.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- With rising exports to other countries including the United Arab Emirates, Italy’s aerospace sector is likely to increase
