Market Trends of Construction Adhesives Industry
Residential Segment to Dominate the Market
- In residential construction, adhesives have several application areas like carpet laying, laminating countertops, installing flooring, wallpapering, etc. The use of adhesives can reduce the usage of screws and help in weatherproofing the house.
- Residential construction across the globe has been witnessing significant growth over the past few years owing to factors like population growth, migration from rural areas to service sector clusters, and the growing trend of nuclear families. Besides, the decreasing land-to-population ratio and the growing trend of constructing high-rise residential buildings and townships have been driving the application of adhesives in the residential construction segment across the globe.
- Globally, there has been a significant undersupply to meet the demand for housing. This presented a major opportunity for the investors and developers to embrace alternative construction methods and new partnerships to bring forward development.
- According to Oxford Economics Estimates, in 2020, the global construction output was USD 10.7 trillion and is expected to grow by 42% or USD 4.5 trillion between 2020 and 2030 to reach USD 15.2 trillion. For instance:
- In the United States, according to World Construction Today, the Associated General Contractors of America's- AGC evaluation of the federal data determined that the demand for numerous kinds of commercial construction will remain strong for the immediate future.
- According to International Construction, the Chinese government is set to increase its spending on large construction and infrastructure projects by USD 1.8 trillion year-on-year starting from 2023 to help regional economies recover from the pandemic.
- Various government projects in Canada, including the Affordable Housing Initiative (AHI), New Building Canada Plan (NBCP), and Made in Canada, have supported the sector's expansion.
- According to Eurostat, in February 2023, construction production increased by 2.3% in the euro area (EA20) and 2.1% in EU-27 compared to January 2023.
- Due to all the factors above, the global construction industry is expected to grow, so the demand for construction adhesives is also expected to increase.
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Asia-Pacific Region to Dominate the Market
- Asia-Pacific accounted for the largest market for construction adhesives, owing to huge demand from the construction market in India, China, and various countries in Southeast Asia.
- The number of commercial offices and buildings in the region has increased since the last decade, owing to major economic and business centers' growth and competition among the construction players for attractive looks and sustainable and economical construction.
- China's construction industry developed rapidly due to the central government's push for investment in the construction industry as a means to sustain economic growth.
- China's construction industry generated an added value of around 8.3 trillion yuan (USD 1.18 trillion) in 2022, according to the National Bureau of Statistics of China.
- The Chinese government rolled out massive construction plans, including making provision for the movement of 250 million people to its new megacities over the next ten years, despite efforts to rebalance its economy to a more service-oriented form.
- According to the India Brand Equity Foundation (IBEF), India's construction industry is set to emerge as the third-largest market in the world, with a size of almost USD 1 trillion by 2025.
- According to MLIT (Japan), around 859.5 thousand housing units were initiated in Japan in 2022. According to the Economic Research Association, as of April 2023, Japan's construction materials monthly price index stood at 147.8.
- These factors are expected to drive the construction adhesives market in the Asia-Pacific region.
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