Market Trends of Asbestos Industry
Building Materials Application to Dominate the Market
- Asbestos has been extensively used in building materials in the construction and infrastructure industries due to the highly effective and inexpensive fire-retardant and thermal and acoustic insulation properties that it exhibits. Asbestos can be mixed up with cement, adhesives, and roofing shingles and can be used in many more ways in order to impart its properties.
- According to the Bureau of Economic Analysis, the total value added by the construction industry at seasonally adjusted rates in the United States was a little bit over USD 4,000 billion in the year 2022, which was approximately 6% more than the value added in the previous year. Moreover, the total value added in the final quarter of the year 2022 crossed the USD 1,000 billion mark, reaching the highest value to date.
- The United States Census Bureau estimates that the United States spent USD 1,809.8 billion on construction-related expenses in December 2022. Comparing December 2022 to December 2021, when the total amount spent was USD 1,681.0 billion, the construction sector showed a rise of roughly 7.7%. This, in turn, would have helped the market for phase change materials grow.
- According to the Ministry of Housing, Communities, and Local Government (United Kingdom), a total of 177,820 houses were completed in England in 2022, up from 174,930 in 2021. Furthermore, the number of households in England is predicted to progressively expand to 26.9 million units by 2043, indicating an annual increase of around 150,000 households, according to a recent House of Commons report issued in 2022.
- Germany also approved the construction of 25,399 dwellings in October 2022. According to the Federal Statistics Office (Destatis), there was a 14.2% decrease in building permits in October 2021. Also, 297,453 residential building licenses were issued between January and October 2022.'
- All these development and construction activities in numerous areas throughout the world raise the industry's need for building materials, which will eventually increase the demand for asbestos in the market.
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Asia-Pacific to Dominate the Market
- The Asia-Pacific region is expected to have the highest growth during the forecast period, owing to the increase in demand from applications including building materials (roofing shingles, ceiling and floor tiles, and asbestos cement products), electrical insulation, packaging, and friction products (automobile clutch, brake, and transmission parts).
- Asbestos' resistance to heat, wear, alkalis and acids, and flexibility, among its other attributes, make it a good material for use as insulation, in industrial textiles, building materials, and in a variety of other sectors.
- The construction industry in China is rapidly increasing and is the largest in the Asia-Pacific region. According to the National Bureau of Statistics of China, construction output in China in the fourth quarter of 2022 was valued at roughly CNY 276 billion (USD 40 billion), marking a 50% increase over the previous quarter (USD 27.6 billion).
- The Japanese construction industry is also predicted to boom as a result of the events that will be held in the country. For example, in 2025, Osaka will host the World Expo. Redevelopment and recovery following natural disasters drive the majority of construction.
- Moreover, asbestos is also utilized in the automobile industry in manufacturing brake pads and clutch fittings for cars and trucks owing to the various properties that it exhibits, such as its heat resistance and strength. In terms of car production and sales of all types, China has been the largest and most dominant nation. According to the China Association of Automobile Manufacturers (CAAM), the country's automobile production in 2022 reached 27.02 million units, an increase of around 3.4% over the 26.08 million vehicles produced in 2021.
- Furthermore, the Packaging Industry Association of India (PIAI) predicts that the Indian packaging sector will develop at a rate of 22% throughout the forecast period. Furthermore, the Indian packaging industry is predicted to reach USD 204.81 billion by 2025, registering a CAGR of 26.7% between now and then.
- Hence, with the rapidly growing end-user industries in countries of the Asia-Pacific region, the application of asbestos is also expected to rise, and therefore the region is expected to dominate the global market during the forecast period.
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