With the economy back to its ‘optimistic’ nature and booming investments in new and existing projects, the global housing and construction sector is all set to gain growth at a steady pace across the world. A number of drivers have been catapulting the housing and construction sector back to its self-sustained growth. The persistence of the insatiable hunger for energy and infrastructure projects; a number of developing nations looking to actively shift towards economic prosperity, the wider growth of capable Asian markets in China and India, and a cyclical rally of growth in the US. Riding on the back of this growth are organizations in the construction composites space, looking to take advantage of the rapid urbanization, needs of the rising populations and desire for sustained economic growth in the process.
Firms dealing in construction composites materials supply a wide variety of products to meet the needs of the household, commercial and industrial segments like stairways, gratings, railing, decks, and fences to name a few. Various technological innovations in the space have enabled using these products in making structures having complex shapes, something that isn’t possible to construct with traditional materials like steel and wood. These products offer superior durability compared to traditional materials (due to their moisture-proof and anti-corrosion properties), find applications in walkways, stairways, gratings, trash gates, ladders, decks, rails etc. in the industrial segment.
Geographically, Asia-Pacific is predicted to continue having the largest share in the housing and construction industry globally, since it includes the potential markets of India, China, and Japan. Also, the emerging markets in Southeast Asia such as Malaysia, Philippines and Indonesia are investing heavily in new infrastructure projects. The construction industry in the US is also set to continue solid growth over the next few years, supported mainly by the growing residential sector. In Canada, investment in the New Canada Building Plan will boost the sector. A similar growth trend is expected in Europe with Italy, France, Greece, Spain and Portugal leading the way. In South America, Peru, Chile, and Colombia will post a solid growth due to the need for improved infrastructure and housing developments. An effort to divert from an oil-reliant economy has also made countries in the Middle East and Africa (MEA) to invest in infrastructure and non-oil industrial & commercial zones. Thus, will drive the construction activities in many countries in the MEA region.
The key companies operating in the construction composites industry are Advanced Environmental Recycling Technologies (US), Bedford Reinforced Plastics (US), Exel Composites Oyj (Finland), Diversified Structural Composites (US), Jamco Corporation (Japan), Hughes Brothers (US), Strongwell Corporation (US), Schoeck International (Germany), UPM Biocomposites (Finland) and Trex Company (US) among others. Some of these players are focusing heavily on capacity expansions, mergers, and acquisitions to reinforce their market positions and become more competitive.
Author: Pratik Patra
Pratik is a Writer, Artist, and Technocrat from India. He is an engineer from IIT Bombay and is currently pursuing his MBA from XIMB.