Market Trends of Zinc Industry
Construction Industry to Dominate the Market
- Zinc is commonly used in the construction industry due to its durability, corrosion resistance, and resilience. It has various applications, such as roofing, cladding facades, gutters and downspouts, structural elements, and coatings. Zinc is also popular due to its aesthetic appeal, low maintenance requirements, and resistance to severe weather.
- Additionally, zinc-coated steel can be used for structural elements because it provides strength and durability while preventing corrosion. Incorporating zinc into new building designs can result in structures that are aesthetically appealing, sustainable, and long-lasting.
- In North America, the construction industry is a crucial contributor to the regional economy. It includes residential, commercial, infrastructure, and industrial construction, among others. Due to several factors, the construction industry in North America has experienced increased demand in recent years.
- Population growth is a significant factor contributing to the increased demand. In recent years, North America has experienced consistent population growth, especially in urban areas, which has led to an increase in demand for housing, commercial structures, and infrastructure. Population growth has led to an increase in construction initiatives, including residential dwellings, commercial structures, hospitals, and schools.
- Construction spending in the United States has gone up significantly in recent years, especially in some areas. According to data from the U.S. Census Bureau, construction spending reached USD 1,429.2 billion at the end of 2022.
- In Canada, strong demand has been observed in the housing and construction sectors. Statistics Canada data showed that the total value of building permits rose from September to October 2023 by 2.3 %, with an overall increase of USD 11.2 billion.
- According to Oxford Economics, Global construction work is expected to grow by over USD 4.2 trillion over the next 15 years.
- As a result of the factors above, it is anticipated that the construction industry will dominate the market.
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Asia-Pacific to Dominate the Market
- Asia-Pacific is anticipated to dominate the market owing to its massive growth in the construction and electronics sectors.
- Zinc is a versatile material widely used in the electronics industry due to its excellent electrical conductivity, corrosion resistance, and low cost. It is used in various forms, such as galvanizing to prevent corrosion, zinc alloys for electronic components, zinc oxide for various electronic applications, and zinc-carbon batteries for low-power applications. Overall, zinc is an essential material in the electronics industry.
- The Japanese electronics industry is one of the largest in the world. According to the Ministry of Economy, Trade and Industry (METI), in 2022, Production by the Japanese Electronics Industry was Yen 920,485 million (USD 6,222.7 million) with an increase of 95.8 %.
- South Korea's electronics industry is among the most advanced in the world. It is a global leader in the production of consumer electronics, semiconductors, and other electronic components. South Korea is home to some of the world's largest electronic corporations, including Samsung and LG. According to the Ministry of Science and ICT (South Korea), the market size of Information and Communication Technology (ICT) in South Korea was KRW 543.6 trillion (USD 0.41 trillion) in 2022.
- According to the Consumer Electronics and Appliances Manufacturers Association, in 2022, India's production value of consumer electronics increased from Rs 705.15 billion (USD 8.48 billion) in 2021 to Rs 745.03 billion (USD 8.96 billion) in 2023. This potentially impacts the zinc market due to its use in electronic components.
- The construction industry in the Asia-Pacific region is one of the most dynamic and rapidly growing sectors in the world. The region's construction industry accounts for over half of the global construction output and is projected to continue growing in the coming years.
- Considering the factors above, the Asia-Pacific market is anticipated to rise steadily over the forecast period.
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