Market Trends of united kingdom sealants Industry
Rising investments in housing and infrastructure by the government to boost the construction industry
- The United Kingdom is one of the largest construction markets in Europe. In 2020, the UK construction market contracted by 19.5% due to the COVID pandemic. The number of new homes registered to be built in the United Kingdom declined by 23.2% in 2020, falling to 123,151 homes. There were 115,455 new homes completed, 23% down from the previous year because of COVID-19 in the country. However, in 2021, the construction market recovered and registered a growth rate of 4.7% compared to the same period in 2020. The National House Building Council (NHBC) announced 153,339 new home registrations in 2021, a 25% increase compared to 2020.
- Private sector registrations are the key driver in the United Kingdom, and registrations rose from 80,475 in 2020 to 114,477 in 2021, an increase of more than 40%. In contrast, new home registrations in the rental sector decreased by 8% from 42,460 in 2020 to 38,862 in 2021 due to the deflection of Housing Association capital budgets toward building safety remediation on existing housing stock.
- The annual construction output increased by a record 12.7% in 2021 compared to 2020, mainly due to the pandemic contributing to a very weak 2020. The total new orders for construction increased by 9.2% (EUR1,121 million) in Q4 2021 compared to Q3 2021. The total construction output (seasonally adjusted) grew by 2.0% (EUR 281 million) in December 2021 compared to November 2021.
- To provide better infrastructure to the population across the country, the government has planned to invest 1-2% of its GDP in construction and infrastructure between 2020 and 2050 as part of the National Productivity Investment Fund (NPIF). Therefore, all the abovementioned factors are likely to impact the market studied.
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In addition to eco-friendly transportation by 2030, electric vehicle registrations growth is likely to propel the automotive production
- The UK automotive industry is a vital part of the UK economy, worth more than EUR 60.2 billion in turnover and adding EUR 11.9 billion value to the UK economy. However, in 2020, the automotive vehicle production in the country reduced by 29.5% compared to the same period in 2019, as the UK automotive sector faced some of the biggest challenges in its history while responding to the COVID-19 pandemic and repositioning for Brexit implications.
- After contracting by 29.5% in 2020, British automotive vehicle production further declined by 4.7% in 2021, as the semiconductor shortage severely affected production. New car registrations decreased 34% Y-o-Y in September 2021, which is excepted to affect the UK sealants market in the future.
- The United Kingdom is planning to phase out gasoline and diesel vehicles to promote the transition to more eco-friendly transportation by 2030. The country also planned an investment of over GBP 1.8 billion in infrastructure and grants to expand access to zero-emission vehicles and support a green economic recovery, thereby increasing the demand for the electric vehicles market in the country.
- The total number of BEV, PHEV, and HEV registrations in the United Kingdom accounted for 452,527 in 2021, registering a growth rate of 58.7% Y-o-Y, compared to 285,199 registrations in 2020. Out of total registrations in 2021 (with percentage Y-o-Y change), 190,727 (76.3%) were BEVs, 114,554 (70.6%) were PHEVs, and 147,246 (34.0%) were HEVs. In 2021, BEV, PHEV, and HEV captured around 27.5% share of total car registrations in the country.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Being the second largest aerospace sector in the world and with forecast of around 10% market share by 2030, United Kingdom aerospace sector is expected to increase
