Market Trends of North America Repair and Rehabilitation Industry
This section covers the major market trends shaping the North America Repair & Rehabilitation Market according to our research experts:
Rising Demand from the Residential Segment
- In the residential segment, repair and rehabilitation are used for old or new buildings or infrastructure to improve their strength and appearance, like a new structure. Different chemicals, such as mortars, concrete, fibres, and grouting materials, are used to reconstruct the building. With the increasing demand from consumers for high-quality and reliable consumer products, the need for repair and rehabilitation is expected to increase.
- Reconstruction of residential buildings in North America has witnessed significant growth over the past few years, owing to population expansion, migration from rural regions to service industry clusters, and the rising tendency of single families.
- According to the US Census Bureau, the total number of single-family units authorized by building permits in the United States was approximately 1,115,300 (in the Northeast about 65000, the Midwest about 142,000, the South about 65,000, and the West about 252,000), with the south region having the most permits (655,200 in 2021 compared to 568,000 the previous year). In each area, receipts have increased compared to last year, which needs more repair and rehabilitation within the country.
- In recent years, there has been a sharp increase in new residential development in Canada. Various factors, such as an increase in population, a robust economy, and cheap interest rates, contribute to this. A multitude of causes, such as immigration, aging populations, and an expanding middle class, has fueled the need for housing. By the end of 2021, there were 75.64 million new residential units under construction, up 30% from the previous year, according to Statistics Canada.
- According to the Bank of Montreal (BM O), Canada, 62% of home respondents stated they intend to modify their homes in 2021, up from 49% the previous year.
- According to the American Road & Transportation Builders Association (ARTBA), over 220,000 bridges in the United States require repair. This fact also predicts the region's future use of repair and rehabilitation products.
- Therefore, considering the abovementioned factors, the demand for repair and rehabilitation products is expected to rise in the segment shortly.
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United States to Dominate the Market
- The United States dominated the North American repair and rehabilitation market in 2021, with a considerable revenue share, and is expected to maintain its dominance during the forecast period.
- Residential development in the United States has been steadily increasing in recent years, as has foreign investment in the country. The demand for new homes in the U.S. housing market has been steadily expanding, with the number of new residential buildings increasing by 18% in 2021 compared to the previous year. According to the United States Census Bureau, the government issued 1.74 million new home permits.
- Mortars, polyester, epoxy-based resin mortars, and cement-based grounding materials are used for repair and rehabilitation purposes in the existing infrastructure to improve or reconstruct. Repair and rehabilitation products are used due to their properties in construction activities such as durability, strength, density, chemical resistance, less permeability, better workability and compaction, and less permeability.
- According to the United States Bureau of Reclamation (USBR), around USD 18 billion to USD 21 billion is spent every year on concrete repair in the United States alone. However, annually, approximately USD 1.2 billion out of USD 20 billion is spent on wate.r storage, hydropower, and management facilities, as well as related structures. This trend is expected to continue, resulting in a rise in demand for repair and rehabilitation products in the United States.
- According to National Historic Preservation Act (NHPA), the total spent on home renovation in the United States was around USD 537 billion in 2021, witnessing a growth rate of around 8% compared to the previous year. This trend shows the recent increase in the consumption of repair and rehabilitation products within the country.
- All aforementioned factors are likely to fuel the growth of the repair and rehabilitation market in North America over the forecast period.
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