Market Trends of Asia-Pacific Gypsum Board Industry
Increasing Investments in the Construction Sector in the Emerging Economies
- Residential properties such as apartments, bungalows, and villas are gaining popularity in emerging nations and are mainly driven by urbanization. Increasing government initiatives seem to be propelling the demand for affordable housing.
- Gypsum board is a covering material for interior walls and residential building ceilings. In addition, the product is used in building lightweight and durable walls. In addition, the gypsum market is driven by rising real estate costs, particularly the development of single-family homes and multistory apartments in emerging economies.
- The number of dwellings completed and sanctioned under the PMAY plan in India's metropolitan regions in 2022, according to the Federation of Indian Chambers of Commerce and Industry (FICCI), was roughly around 5.5 million and 11.4 million, respectively.
- According to Anarock, a well-known real estate service provider in India, more than 300,000 housing units will be sold in India in 2022, breaking the previous record in 2014 in terms of all-time high sales of houses in India's top seven cities. In the fourth quarter of 2022, house sales in the country climbed by roughly 16% compared to the fourth quarter of 2021.
- Moreover, the Indonesian government introduced the 'One Million Houses' (OMH) program to construct at least 1 million units annually. According to the Ministry of Public Works and Public Housing (PUPR), about 1,117,491 housing units were recorded until the end of 2022 under the One Million Houses program.
- The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) of Japan also stated in its report that approximately 859.5 thousand housing starts were initiated in Japan in 2022, just 0.4% more than the previous year's value (856.48 thousand).
- All these housing expenditures and expansions create a significant demand for gypsum board in the region. Manufacturers have begun to respond to this requirement and take action. The regional market for gypsum board is expected to grow at a favorable rate in the countries in the Asia-Pacific region.
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China to Dominate the Market
- China held much of the Asia-Pacific market share for the gypsum board market. The growing demand for housing will likely drive residential construction in the country, both in the public and private sectors. Moreover, the rising investments in the industrial and commercial segments of the construction industry are also expected to affect the market positively.
- China is experiencing massive growth in its construction sector. According to the National Bureau of Statistics of China, in the fourth quarter of 2022, the construction output in China was valued at approximately CNY 276 billion (USD 40 billion), a growth of roughly 50% compared with the previous quarter (USD 27.6 billion).
- Moreover, the value added in the Chinese construction industry in 2022 was estimated to be more than CNY 8,330 billion (USD 1.2 trillion), approximately 4% more than the previous year's value, as stated by the National Bureau of Statistics of China.
- Shining Building Business Co., a Taiwanese construction company, plans to launch new home projects totaling NTD 30 billion (USD 1.08 billion) in Taiwan and China in February 2022. Projects valued at NTD 10.8 billion (USD 0.39 billion) in Taiwan and NTD 19 million (USD 6.81 million) in Chengdu, China, were included in the plan.
- According to official figures, infrastructure investment in the country increased by 6.7% year on year in the first five months of 2022, and overall planned investment in newly initiated projects increased by 23.3% year on year during the period, according to a National Bureau of Statistics statement.
- All the factors mentioned above, in turn, are expected to drive the market for gypsum boards in the country during the forecast period.
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