Asia-Pacific Anchors and Grouts Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Key Highlights

• Over the short term, expansions of petrochemical plants and significant development in the construction industry​ are projected to fuel market growth throughout the forecast period.
• However, it is estimated that VOC emission restrictions and a shortage of skilled workforce are the major factors that are likely to hamper the growth of the Asia-Pacific anchors and grouts market size.
• Nevertheless, increasing technological innovations in the construction industry and a greater emphasis on green building materials will likely create lucrative delivery opportunities for the Asia-Pacific anchors and grouts market over the forecast period.

Key Market Trends

Non-Residential Segment to Dominate the Market

• Anchors and grouts are widely employed in the non-residential or commercial sector for building repair and rehabilitation. Furthermore, they are commonly used in new building projects because of their superior, long-lasting performance.
• Cementitious grout is appropriate for structural fixing solutions in commercial constructions such as offices, hospitals, and other buildings since it does not shrink when plastic and firm. Corrosion resistance, non-expansive nature, rapid strength growth, vibration resistance, and smooth operation even underwater are some critical advantages supplied by anchors and grouts in the industrial sector.
• Furan grouts are chemically resistant and are favored materials in the chemical and pharmaceutical sectors. They are frequently used in industrial projects like labs, dairies, and meat-packing operations. The increasing usage of underwater and chemical-resistant grouting drives the industrial market for polyester and furan grouts.
• In recent years, the Asia-Pacific region, one of the most significant commercial buildings, has been a growing market for office spaces. For many years, demand for office space in India and China has been growing in tandem with the respective governments' constant development plans.
• Even though the COVID-19 pandemic has resulted in adopting a hybrid model of working from home and an office, technology advancements leading to new inventive initiatives are anticipated to sustain the growth in the need for office space. Furthermore, with the ongoing demand for technology, e-commerce, and banking-financial services, the region's office space requirement is considerably increasing, leading to the development of new offices.
• Asia-Pacific (APAC) has been driving worldwide hotel sector expansion. In 2021, 667 new hotels were expected to open, adding 162,102 rooms to APAC's hotel inventory. This fast expansion continues in 2022, with 444 hotels and 111,798 rooms planned, followed by another 179 properties and 43,735 rooms in 2023. Moreover, 515 hotels with 127,104 rooms have been confirmed for 2024.
• Lotte Chemical announced USD 3.9 billion proposals to establish petrochemical complexes in Indonesia in January 2022, which is expected to help the business meet the rising demand for petrochemical derivatives in the local and Asia-Pacific markets. The project's construction is planned to be finished by 2025.
• Chintels India Pvt. Ltd announced an INR 400 crore (USD 48.532 million) investment in October 2021 for the development of 9,28,000 sq. ft. of retail and office space at Chintels Center in Sector 114, Gurugram on a land size of 2,95,772.4 sq. ft. with a total built-up area of 2,00,000 sq. ft. for commercial construction.
• According to the Korean Statistical Information Service, in 2022, the revenue of the South Korean industry, 'Renting of non-residential buildings,' was USD 10.27 billion. Renting non-residential buildings in South Korea will generate around USD 11,2 billion by 2024.
• All the factors above are expected to drive the non-residential segment, enhancing the demand for anchors and grouts during the forecast period.

China is Anticipated to Hold a Major Share of the Asia-Pacific

• China holds a prominent share of the Asia-Pacific Anchors and grouts market in terms of market share and market revenue. The region is set to continue to flourish in its dominance over the forecast period.
• China is experiencing a massive infrastructure boom. The Chinese government has announced vast development plans, including plans to relocate 250 million people to new megacities over the next ten years. As a result, there may be a future need for anchors and grouts used in various applications during building construction, which improves the building's qualities.
• China's construction industry is the world's largest, employing 746,520,000 workers in 2021. According to the National Bureau of Statistics, China's construction sector production, valued at CNY 29.3 trillion (USD 4.2 trillion) in 2021, grew rapidly, contributing 25.7% to the country's GDP in comparison to the 11.0% GDP contribution in 2020. This rapid expansion can be attributable to two policy changes. The first is the ongoing push from China's central government fiscal stimulus in the form of infrastructure projects. Second, the domestic real estate market improved as local governments steadily loosened real estate rules, buying requirements, and credit availability.
• To accelerate economic growth, China's Ministry of Finance and National Development intends to invest CNY 500 billion (USD 71.60 billion) in the establishment of a state infrastructure fund in the third quarter of 2022, to encourage infrastructure expenditure.
• The demographics of the nation are likely to promote residential and commercial development operations. The rising population has prompted both the public and private sectors to invest in inexpensive housing colonies. China's government has taken the initiative to provide 6.5 million government-subsidized rental dwellings in 40 significant cities around the country, which are expected to house approximately 13 million people.
• As China recovered from the pandemic, the country saw a surge in residential development. Evergrande Group of China has pledged to construct 600,000 houses by 2022. Hong Kong's housing authorities took many steps to encourage the building low-cost homes. Officials hope to provide 301,000 public housing units over the next ten years, until 2030.
• Furthermore, the country's rising disposable wealth has fueled the expansion of opulent commercial facilities such as malls, hotels, and offices. China is a world leader in the development of retail malls. China now has about 4,000 shopping malls, with an additional 7,000 expected to build by 2025. Furthermore, the development of office spaces, such as Wuhan Fosun Bund Center T1 in China, is likely to increase the market under consideration. The project's construction began in Q3 2021 and is expected to be finished in Q4 2025.
• Thus, all the above-mentioned factors are likely to provide the increasing demand for the Asia-Pacific anchors and grouts market during the forecast period.

Competitive Landscape

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