Market Trends of APAC Advanced Building Materials Industry
Infrastructure developments driving the market demand
- The Asia-Pacific region is currently experiencing significant growth in infrastructure development projects, primarily driven by increased investments. This surge in investment is, in turn, bolstering the demand for advanced building materials within these projects. For example, in May 2022, the United States, India, and Australia announced plans to invest over USD 50 billion in infrastructure projects across the Asia-Pacific region.
- Moreover, developing countries such as India, China, and Japan are undergoing numerous infrastructure projects, which are further propelling their respective economies. In April 2023, the Indian government revealed plans for infrastructure projects exceeding USD 740 million. Additionally, through the National Infrastructure Pipeline, the government aims to allocate more than USD 1,300 billion to infrastructure development projects in India.
- Meanwhile, in May 2023, Japan committed to funding India with over USD 860 million for three infrastructure projects, including the Patna Metro Rail Construction Project and the Rajasthan Water Sector Livelihood Improvement Project. Furthermore, Chinese public expenditure in 2022 witnessed a substantial growth of over 5% compared to the previous year. Consequently, these increasing investments in infrastructure development projects across the Asia Pacific region are generating a significant demand for advanced building materials.
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China construction sector is driving market growth
- The Chinese construction industry is experiencing significant growth despite the pandemic crisis, fueled by substantial investments in infrastructure as outlined in the 14th Five-Year Plan (spanning from 2021 to 2025). This plan comprises 20 quantitative targets across five categories. The Chinese government has allocated over USD 1.1 trillion for diverse infrastructure projects nationwide by 2023, further boosting the development of advanced building materials manufacturing plants in the country.
- Additionally, in 2022, the Chinese government earmarked more than USD 14 billion for green construction projects aimed at curbing pollution associated with buildings. To achieve net-zero carbon emission goals, the government allocated over USD 780 million specifically to mitigate building-related pollution.
- Furthermore, efforts to preserve cultural heritage involve the construction of numerous museums nationwide. For example, the Beijing Municipal Cultural Heritage Bureau planned to build over 460 museums in the city by February 2023, with more than 215 museums already registered. These continuous investments and expanding projects have driven the country's construction output to grow by over 6% compared to the previous year, thereby generating increased demand for manufacturers of advanced construction materials.
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