Market Trends of Asia-Pacific Medium-Density Fiberboard Industry
This section covers the major market trends shaping the APAC Medium-Density Fiberboard Market according to our research experts:
The Residential Segment to Dominate the Market
- Medium-density fiberboard (MDF) is more stable than solid wood due to its superior grade quality. It includes excellent heat-resistant and humidity-resistant properties and is used in furniture, cabinets, and flooring.
- MDF is further used to manufacture decorative doors and panels, sculptures and moldings, beds, and sofas. Furthermore, rising construction in the Asia-Pacific region is likely to increase the MDF market in the residential sector.
- In the residential sector, Asia-Pacific is likely to dominate the market, owing to the expanding housing construction market in China and India. In addition, Asia Pacific is the most significant region for low-cost housing construction, led by China, India, and several countries in Southeast Asia.
- In September 2022, 51 construction & real estate industry deals worth USD 1.1 billion were announced for the Asia-Pacific region.
- According to the National Bureau of Statistics of China (Department of Investment and Construction), the floor space of new residential real estate construction in 2021 was roughly 1.46 trillion sq m.
- Japan includes around 300 high-rise buildings, with Tokyo serving as a central hub for such structures. Planning and construction of such networks are seeing modest growth in Japan in the near term, which is projected to boost market expansion.
- India is the world's fifth-biggest manufacturer and fourth-greatest consumer of furniture. The overall rental furniture and appliances market in India reached INR 33,500 crores (USD 4,522.5 million) during FY21, according to the National Investment Promotion and Facilitation Agency.
- Hence, increasing demand for medium-density fiberboard (FDM) in the residential segment will likely dominate the market.
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China to Dominate the Market in Asia-Pacific
- China led the Asia-Pacific's medium-density fiberboard (MDF) market and attributed it to the growing construction activities.
- China is the largest building market in the Asia-Pacific region, with around 20% of the worldwide investment. China is expected to spend over USD 13 trillion on buildings by 2030, indicating future expansion in China.
- According to the National Bureau of Statistics of China, the construction industry in China is continuously expanding, with a total production value of roughly CNY 25.9 trillion (USD 3.77 trillion) in 2021. Taking advantage of growing urbanization, China's construction sector generated more than CNY 29 trillion (~USD 4.3 trillion) in production that year.
- China is focusing on reducing environmental impact by lowering carbon and other waste emissions. The usage of MDF will help the country's vision by having a positive environmental impact since medium-density fibreboard (MDF) can be recovered and reused when used in suitable applications.
- China is one of the leading Asian-Pacific countries for a substantial number of shopping malls. China benefited from the rapid expansion of shipping centers in recent years. Over 7,000 shopping malls are predicted to open in the country over the next two years.
- All factors above are likely to fuel the growth of China's medium-density fibreboard (MDF) market over the forecast period.
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