Market Trends of china sealants Industry
Housing, hospitals, and healthcare facilities schemes by the Chinese government to lead the construction in the country
- China has been majorly driven by the ample developments in the residential and commercial construction sectors and supported by the growing economy. China is promoting and undergoing a process of continuous urbanization, with a target rate of 70% for 2030. The increased living spaces required in the urban areas resulting from urbanization and the desire of middle-class urban residents to improve their living conditions may have a profound effect on the housing market and thereby increase the residential construction in the country.
- Non-residential infrastructure is likely to expand significantly. The country's aging population necessitates the construction of additional healthcare facilities and hospitals. The Chinese government approved 26 infrastructure projects worth approximately USD 142 billion in 2019, with completion due in 2023. The country boasts the world's largest construction market, accounting for 20% of all worldwide construction investments.
- In China, the housing authorities of Hong Kong launched several measures to push start the construction of low-cost housing. The officials aim to provide 301,000 public housing units by 2030. The rising household income levels, combined with the population migrating from rural to urban areas, are expected to continue to drive the demand for the residential construction sector in the country. By 2030, the country is estimated to spend over USD 13 trillion on construction. Thus, the construction market is expected to register a 4.48% CAGR during the forecast period (2022-2028).
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Owing to government policies, EVs demand in China is rising and is likely to propel the automotive production
- China's automotive market for passenger vehicles is the largest in the world, as it accounted for 21.41 million units in 2021 compared to other major global players such as Japan, the United States, and Germany. This number is expected to grow at the same pace because of the increasing production capacity of automotive companies post-pandemic in China, as BYD, which is a local electric vehicle manufacturer in China, holds 8.84% of total electric vehicle production in the world.
- China, being the epicenter of the COVID-19 pandemic, witnessed huge losses in the automotive industry in 2020 as it led to nationwide lockdowns, supply chain disruptions, lack of human resources availability, etc. This was the reason for the negative Y-o-Y growth rate in China in 2020.
- The Chinese government's policies for electric vehicle owners, such as time-limited purchase subsidies, traffic regulations waivers, and charging rebates for EV owners, have encouraged the sale and demand for EVs in China. The sales of electric vehicles are expected to reach 7,526 thousand in 2027. EV production in China increased from 1 million units in 2019 to 3.5 million units in 2021, and it is expected to record a 15.07% CAGR in the forecast period (2022-2028).
- Shanghai Automotive Industry Corporation is China's largest automotive company in terms of production. The growth in the number of both passenger and commercial vehicles manufactured by SAIC is significant, as it increased from nearly 2 million units in 2019 to 7 million units in 2021. This growth trend shows that the Chinese automotive market is expected to grow steadily during the forecast period.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Growing general aviation opportunities to boost the aerospace industry
