“Growing construction industry is offering high scope for the market. The growth in construction industry is offering huge scope for the market. The UK construction industry has witnessed the fastest growth. The construction purchasing managers’ index has increased from 52.8 in November to 54.2 in December 2016, showing stronger expansion of UK in construction sector. Residential building is the prime driver for construction growth and increasing at a fast rate. High civil engineering project activities also boosts the construction activities as well as commercial construction is also growing rapidly. In APAC, China & India is showing huge growth potential coupled with growing population as well as increasing disposable income which has led the demand of residential houses. Moreover, growing commercialization in the region is also supporting the market demand and offering huge scope for the market players to take advantage from the region. The factors driving the market demand are rapid growth in flooring market, growing demand for new residential restructures, government support for infrastructure development.
Rapid Growth in Flooring Market-Key Driver
There has been rapid growth witnessed in the flooring coupled with growing construction industries as well as growing urbanization and population. In China, the local governments are planning to develop over 3,500 new urban areas during the next few years, with the average capacity for house 3.4 billion people. Between 1982 and 2015, the urbanization rate in China has risen from 21% to 56%. The Chinese central government is planning to enhance the urbanization rate to 60% by 2020. That will need further approx. 100 million people to leave in the countryside during the next four years. Thus, such kind of support influences infrastructural activities and supports to boost the market demand.
Asia Pacific- Key market region
Asia Pacific is the major revenue generating region for ceramic tiles market. The reason for its dominance is rapid urbanization coupled with growing construction activities in the region. Moreover, growing population and increasing disposable income of consumers is also supporting the market demand in the region. Government support is also another factor boosting the market demand.
In China, the Ministry of Transport has announced that approx. $ 104.17 billion will be invested on infrastructure from 2016-2018 which covers 303 projects. The 13th Five-Year-Plan (FYP) contains slightly higher targets in airports and city rail as compared to the previous Five-Year-Plan. The investment today accounts for 6.9% of 2015 GDP or 8.5% of fixed investment and it is expected to increase more in the next three years. Total spending in China on infrastructure was just around $ 0.33 trillion in 2007 and is currently over $ 1.59 trillion. Thus, these are some factors encouraging the market demand in APAC region.
Contact: Ms. Shyamal Moghe
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Email: sales@occamsresearch.com