Market Trends of North America Particle Board Industry
This section covers the major market trends shaping the North America Particle Board Market according to our research experts:
Growing Demand from the Construction Industry
- In the construction industry, particle boards are used for flooring, walls, staircases, etc. Compared to plywood, particle boards are less expensive, lighter, more environmentally friendly, and better for insulating buildings.
- The need for particle boards in new construction is anticipated to increase as the construction sector grows. The region's market is anticipated to be driven by the rising new construction demand in the United States, Canada, and Mexico.
- Due to cheaper land transportation costs and a duty-free trade agreement, Mexico is the major exporter of building materials to the United States. In recent years, panel-based construction has become more prevalent in Mexico as builders abandon conventional brick and concrete construction. Although, particle board is utilized for paneling, molding, and flooring in interior design.
- The value of the Mexican construction industry was USD 88.14 billion in 2021 and will be USD 96.77 billion by the end of 2022, according to the International Trade study.
- The residential and commercial construction sectors in Canada are experiencing high demand. By the end of 2022, it is anticipated that spending on new residential development will exceed USD 177 billion, compared to USD 164.59 billion in 2021, according to Statistics Canada. Similarly, it is anticipated that the spending on non-residential buildings will be USD 62 billion by the end of 2022, compared to USD 56.42 billion in 2021.
- Market expansion would be aided by the rising government investment and the rising demand for construction projects. For instance, the World Bank estimates that by the end of 2022, Mexico will construct 28,864 public housing units for low-income families. The Canadian government announced a USD 200 million budget for 2022 that will create 6,000 affordable homes.
- Overall, it is anticipated that the market for particle board is expected to be driven throughout the projected period by the expanding construction industry across all regions.
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United States is Anticipated to Hold a Major Share
- The United States is the biggest economy in the world, and the region's demand for particle board is being driven by the exponential growth of the furniture and building sectors. In the building sector, particle boards are used for stairways, walls, and flooring, among other things.
- Every year, the United States spends more than USD 1 trillion on new buildings. 1,526,000 new residential housing permits were issued, and construction investment reached USD 1,811.1 billion in August 2022, up by 10% from August 2021, according to the US Census data from the fourth quarter of 2022.
- Interior design ideas for homes, offices, and apartments are always evolving in the furniture market. In terms of designs, sizes, and colors, this is essentially driving innovation and progress. The volume of furniture production is expected to rise as a result. The US furniture and retail sales reached USD 48.23 billion in the third quarter of 2022, according to the Federal Reserve Bank of St. Louis.
- Additionally, according to the FRED economic data, the US furniture market will be one of the largest in the world in 2021 with a projected value of USD 323 billion. In 2021, consumers spent an average of USD 2,701 per year on equipment and furniture for their homes.
- Considering all the above-mentioned factors, the demand for particle boards in the United States is anticipated to grow during the forecast period.
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