Market Trends of Stainless Steel Plumbing Pipes & Fittings Industry
Nonresidential Industry to Dominate the Market
- The nonresidential sector, such as commercial spaces, requires durable and dependable materials. Stainless-steel plumbing pipes and fittings are in high demand for this purpose due to their strength, longevity, and corrosion resistance. Stainless-steel is frequently used in construction and has many other applications, including chemicals, medical, and food processing.
- Corrosive chemicals, including acids, alkalis, and solvents, are frequently transported via stainless-steel pipes in chemical processing businesses. In addition to delivering hot liquids like steam, stainless-steel plumbing pipes are also utilized to transport gases like oxygen and nitrogen. Due to their non-toxicity and non-reactivity, stainless-steel plumbing pipes are also used in the food processing industry.
- The United States holds the world's largest construction industry. According to the American Institute of Architects' (AIA) Construction Consensus Forecast Panel, the overall seasonally adjusted rate of nonresidential construction spending in 2023 showed an 18.1% increase year over year in November 2023. Driven by government policies such as the IIJA, IRA, and CHIPS legislation, US manufacturing construction spending dramatically surged with a 59.1% increase in 2023. Other markets showing robust growth included education (+16.7%), healthcare (+11.7%), and religious institutions (+31.1%).
- The Jingcheng Wafer and Integrated Circuit Packaging Plant Phase I, valued at USD 7,768 million, is underway in Beijing. This 12-inch wafer and integrated circuit packaging plant aims to cater to the region's surging demand for integrated circuit products. Construction began in Q1 2022, and completion is slated for Q4 2024.
- The Niseko Hotel project in Hokkaido, Japan, is another significant endeavor. Spanning 1.17 ha of land, the six-story hotel will feature 482 rooms across a 20,000 m² floor area. Construction commenced in Q3 2023, and it is projected to wrap up by Q4 2025.
- In India, a surge in demand for office space is evident, especially with the government's concerted efforts leading to a rise in recognized startups, tallying up to 1,17,254 as of December 2023, according to the Department for Promotion of Industry and Internal Trade (DPIIT).
- Given the rising population, the demand for new infrastructure and commercial spaces is set to grow, subsequently bolstering the stainless-steel plumbing pipes and fittings market.
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Asia-Pacific Anticipated to Dominate the Market
- The stainless-steel plumbing pipes and fittings market in Asia-Pacific is poised for significant growth. This surge is primarily fueled by rising demand from both residential and commercial sectors. The growing population in the region is driving the rise in residential construction, further amplifying this demand. The heightened construction activities across the region are bolstering market expansion.
- As tourism and business travel flourish, the Asia-Pacific hotel construction market is witnessing rapid growth. The region's appetite for luxury hotels, resorts, and diverse hospitality services is driving this momentum. With an uptick in international travelers, the region's hotel development market continues to gain traction. This demand, especially for luxury accommodations and services, propels the broader construction market.
- Increased disposable incomes have led to a boom in upscale commercial spaces in Asia-Pacific, including malls and hotels. China stands out as a leader in shopping center construction, boasting nearly 4,000 existing centers and an estimated 7,000 more set to open by 2025.
- Japan is witnessing a surge in luxury apartment and residential complex constructions. For instance, Mitsubishi State is erecting the nation's tallest edifice, featuring 50 opulent apartments. Each apartment is projected to command a monthly rent of USD 43,000. Strategically located near Tokyo station, this ambitious project is slated for completion in 2027.
- According to Invest India, the availability of affordable housing in India is projected to surge by approximately 70% in 2024. Furthermore, India’s construction industry is on track to hit USD 1.4 trillion by 2025. With over 30% of the population expected to urbanize by 2030, there is a burgeoning demand for 25 million additional mid-end and affordable housing units.
- Given these dynamics, the demand for stainless-steel plumbing pipes and fittings in Asia-Pacific is set to rise during the forecast period.
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