Increase in the commercial as well as residential construction activities in the developing regions to drive the demands for ceramic tiles market
The global ceramic tiles market accounted for US$ 81.01 Bn in 2017 and is expected to grow at a CAGR of 5.5% over the forecast period 2018–2025, to account for US$ 122.59 Bn by 2025. The construction industry is expanding at a steady growth rate in the developed regions across the globe. While on the other hand, in the developing regions, the industry is experiencing a substantial growth rate. Investments in infrastructure construction industry is continuously growing across the globe.
The major focus of investments is on the residential sectors as the global population is constantly increasing at an exponential rate, which is demanding more residential spaces. The number of new residential buildings or individual houses rose rapidly over the years in the developed as well as developing nations worldwide. The US infrastructure industry is set to continue relatively fair growth rate during the forecast period which is heavily supported by residential constructions. Similarly, Canada’s New Canada Building Plan is supporting the construction industry in the country and the same is expected to drive the industry in the coming years. The growing investments and initiatives in the residential and commercial construction in North American countries is influencing the ceramic tiles manufacturers to increase their production. This factor is boasting the ceramic tiles market in the North America region.
The infrastructure industry witnessed a major downfall in the year 2012, where the real estate prices hit a new low in the US. Real estate prices went low, recession surfaced in the US Market, and the construction industry suffered huge losses. Post recovery in the US, the Government in the country encouraged increasing public-private partnerships for implementing commercial infrastructure works. Increasing infrastructure spending in the years enables timely completion of projects, efficient management of funds for the projects, inexpensive cost of the project as compared to that of a purely Government project. This has further led to more constructions of commercial infrastructures in the country in the recent times.
Construction in European countries is also increasing slowly, demanding improved building materials such as ceramic tiles. European countries namely; Spain, Italy, and Turkey are experiencing demand for increased number of residential sectors as well as commercial spaces, thereby, catalyzing the demand for ceramic tiles. The increased demand from the builders in the countries is propelling the production lines of ceramic tiles year on year in these countries, thereby, substantially driving the ceramic tiles market in the European region. Countries in Asia Pacific region have significantly invested in construction industry, and are still continuing the trend which is catalyzing the infrastructure construction over the years. For instance, Philippines government has invested US$ 144 Billion in 2016, with an aim to expand the commercial, residential and energy sectors of the country. Similarly, Indonesian government is also increasing the investments, which is facilitating the commercial, residential and energy infrastructure to climb year on year.
The increasing focus towards enhancing construction of commercial buildings and residential spaces in APAC region is helping ceramic tiles manufacturers to increase their production, which has proliferated the demand for ceramic tiles in the region. Furthermore, countries in Middle East and Africa namely; UAE, Tanzania, and Kenya are showcasing substantial growth in commercial and residential infrastructure growth since the last few years, thereby, has created a potential market for ceramic tiles, and this factor is driving the market in the present scenario. Hence, the upward trend in commercial and residential infrastructure construction is heavily driving the market for ceramic tiles in the recent years.