Plasterboard Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Global Plasterboard Market was  valued at over 8435.04 million meter square in 2020 and the market is projected to register a CAGR of  more than 5% during the forecast period (2021-2026).

The outbreak of COVID-19 is likely to bring several short-term and long-term consequences in the construction industry. According to The Associated General Contractors of America (AGC), there were disruptions to work or canceled projects and hence less demand for “non-essential” projects, like offices, entertainment, and sports facilities. Moreover, the performance of the construction sector is projected to be temporarily affected due to a negative impact on the liquidity of money as a result of the affected income of a relatively larger section of the society. Besides, the disrupted supply of raw materials and labor are some of the major factors which have affected the construction activities during 2020, after the lockdown ends. But, as the lockdowns were lifted in most of the countries around the world, and residential sales picking up is an encouraging sign.

• The demand for plasterboards has witnessed an increase from the construction sector, owing to superior quality, low cost, and ease of installation.
• The finished board offers unique properties, such as insulation to sound and heat, impact resistance, and resistance to moisture accumulation in bathrooms and kitchens.
• Strong demand for dry construction methods, over wet methods, and rising demand for fire-resistant construction materials are augmenting the growth of the market.
• Lack of awareness among residential end users and low availability of plasterboard waste disposal plants are likely to hinder the market growth.
• Emerging lightweight plasterboards are projected to act as an opportunity for the market, in the future.

Key Market Trends

Increasing Demand from the Residential Industry

• The increasing middle-class population, coupled with their increasing disposable income, has facilitated the expansion in the middle-class housing segment, thereby increasing the use of plasterboard, during the forecast period.
• Despite the higher demand, there is still a significant under-supply to meet the demand for housing, globally. This is presenting a major opportunity for investors and developers to embrace alternative methods of construction and new partnerships, in order to bring forward development.
• The highest growth is expected to be registered in the Asia-Pacific region, due to the expanding housing construction market in China and India. Asia-Pacific has the largest low-cost housing construction segment, which is led by China, India, and the Southeast Asia countries.
• According to the National Statistics Bureau of China, around, 154,567 units of households were sold in the month of December 2020 compared to nearly 140,000 units in December 2019.
• Where as in the United States, in the month of January 2021 private owned single family housings that finished construction were more than 1 million units compared to 942 thousand units in 2020 January.
• In India, the government initiated a project called ‘Housing for All by 2022’, which is expected to immensely drive the low-cost residential construction segment in the country, throughout the forecast period.
• Owing to the increasing middle-class population and residential buildings construction, coupled with government initiatives and investments, the demand for plasterboard in the residential sector, across all the regions, is expected to increase during the forecast period.

Asia-Pacific Region to Dominate the Market

• In Asia-Pacific, China is the largest economy, in terms of GDP. The growth in the country remains high, but it is gradually diminishing, as the population is aging and the economy is rebalancing from investment to consumption, manufacturing to services, and external to internal demand.
• China’s construction industry developed rapidly, due to the central government’s push for infrastructure investment, to sustain economic growth.
• According to the National Bureau of Statistics of China, the construction output value in the country increased from CNY 9.6 trillion in 2010 to CNY 24.84 trillion in 2019. Though there is a slow down in the market's growth because of COVID-19, but the market is surging after the relaxation of the lockdown. It is expected that the construction output value may surge by near to 14%
• Despite the volatile growth in the real estate sector, the significant development of rail and road infrastructure by the Chinese government, to withstand the growing industrial and service sectors, has resulted in significant growth of the Chinese construction industry in recent years. As the construction industry is dominated by state-owned enterprises, the increased government spending is boosting the industry in the country.
• The China New Urbanization project 2014-2020 has also been initiated by the government, in order to provide social housing to migrants, as well as expand the existing urban facilities in major cities.
• India is likely to witness an investment of around USD 1.3 trillion in housing over the next few years, during which, the country is likely to witness the construction of 60 million new homes. The availability of affordable housing is expected to rise around 70%, by 2024, in India.
• Overall, the market studied is projected to increase at high rates, owing to the rapid growth of the construction industry in the country in the region.

Competitive Landscape

The global plasterboard market is consolidated among the top players, with the top five players accounting for a major chunk of the market. Key players in the plasterboard market include Etex Group, National Gypsum Services Company, Saint-Gobain, Georgia-Pacific, and AWI Licensing LLC.

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