New York, Nov. 03, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Wood-based Panel Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06360543/?utm_source=GNW
Owing to the COVID-19 scenario, several countries around the world went into lockdown, which led to complete disruption in the supply chain. Several countries have imposed anti-dumping duty on the import of a certain variety of fiberboard used in furniture in order to aid domestic producers. For instance, in India, domestic producers, like Greenply Industries, Greenpanel Industries, Century Plyboards, and Rushil Décor, have alleged that they are being impacted due to dumped imports from foreign players. Thus, the slowing down of exporting activities due to the economic slowdown caused by the COVID-19 outbreak is expected to have a negative impact on the growth of the market studied in the short/mid-term. All the construction work and other activities were put on hold to curb the spreading of the virus, thereby negatively affecting the market. However, conditions are expected to recover in 2021, which is expected to restore the growth trajectory of the market during the forecast period.
Key Highlights
Over the medium term, increasing demand from the infrastructure sector in Asia-Pacific is driving the market’s growth. For instance, in India, in November 2019, the Union Cabinet approved to set up an Alternative Investment Fund (AIF) of INR 25,000 crore (USD 3.58 billion) to revive about 1,600 delayed housing projects across the top cities in the country. Besides, Puravankara Ltd planned investment of about INR 850 crore (USD 121.6 million) for the development of three ultra-luxury residential projects in Chennai, Bengaluru, and Mumbai, over the next four years.
On the flip side, stringent government regulations and the impact of COVID-19 on the global economy are likely to hinder the market’s growth.
Potential growth in residential construction in developing economies is projected to act as an opportunity for the market’s growth in the future.
Asia-Pacific is estimated to witness healthy growth over the assessment period in the wood-based panel market due to the wide usage of wood-based panels in end-use application segments, such as furniture, construction, and packaging, due to their desirable properties.
Key Market Trends
Increasing Demand from the Construction Industry
Wood-based panels are crucial to the construction industry, providing high structural durability to roofs and floors, walls, beams, doors, staircases, etc.
The building and construction industry are currently a thriving industry in several emerging economies of Asia-Pacific and the South American region, and this is expected to drive the use of wood-based panels, minimizing infrastructure failures.
Oriented strand boards are a cost-effective alternative for home construction. As per the National Association of Certified Home Inspectors (NACHI), OSB costs USD 700 less than plywood for a typical 2400-square foot home.
In OSB panels, they produce a stronger and stiffer panel than other products used in similar types of construction projects. The material eliminates rings and knots, which makes it more uniform. Its structure provides OSB a great deal of strength, which means it can be used in a broad range of applications, particularly for load-bearing applications.
The factors driving the building and construction industry are the ever-increasing populations, rapid urbanization, and the rise in purchasing power. As a result of the aforementioned factors, investments in infrastructure are being made and are included in plans.
The Chinese government has rolled out massive construction plans, including making provisions for the movement of 250 million people to its new megacities over the next ten years, creating a major scope for the market studied.
In Germany, the increasing migration to the country has been stimulating the current demand for new residential construction. ?About 3.6 million migrants were expected to arrive in Germany by the end of 2020-2021, which will require at least 350,000 new dwellings per year.
France’s development policy falls within 2030’s Agenda for Sustainable Development. Under this scheme, the country decided to increase the funding of the French Development Agency (Agence Française de Développement- AFD) by EUR 4 billion (~USD 4.6 billion) by the end of 2020 to develop new, affordable community houses across the country.
Moreover, according to the survey ‘Non-residential building spending to grow through 2020’ by the American Institute of Architects, the overall non-residential sector is expected to increase by 0.9% in 2020 and 1.5% in 2021 in the United States. However, the construction of hotels is expected to dip by 1% in 2020 and 0.7% in 2021. On an optimistic note, the construction of office spaces is expected to increase by 0.5% in 2020 and further by 3% in 2021. According to the same survey, the industrial sector is expected to rise by 0.5% in 2020 and by 0.3% in 2021.
All the above-mentioned factors are expected to drive the market for wood-based panels market in the coming years.
Asia-Pacific Region to Dominate the Market
The Asia-Pacific region dominated the global market share. With growing construction activities and the increasing demand for furniture in the countries such as China, India, and Japan, the demand for wood-based panels is increasing in the region.
India is one of the largest markets for wood-based panels in the region. The construction sector in the country has been growing rapidly, with increased investment by the government. The Indian government’s ‘Housing for All by 2022’ is also a major game-changer for the industry.
The country is likely to witness an investment of around USD 1.3 trillion in housing over the next seven 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 by 70% by 2024.
In global comparison, the country is among the top three largest furniture markets. India’s total revenue generated from the furniture industry was projected to be USD 194 billion in 2019. The furniture market in the country is further predicted to generated revenue of USD 238 billion by 2023.
China is investing USD 1.43 trillion in the next five years till 2025 in major construction projects. According to National Development and Reform Commission (NDRC), the Shanghai plan includes the investment of USD 38.7 billion in the next three years, whereas Guangzhou has signed 16 new infrastructure projects with an investment of USD 8.09 billion.
The country has the largest building market in the world, making up to 20% of all construction investments globally. The country alone is expected to spend nearly USD 13 trillion on buildings by 2030. 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.
The construction sector in Indonesia is estimated to have recorded a growth of 6.2% in 2019, as compared to 2018. The construction sector has witnessed healthy growth, owing to the infrastructure budget of IDR 420.5 trillion allocated by the government in 2019, greater than the 2018 budget of IDR 410.7 trillion.
However, due to the outbreak of COVID-19, many construction projects were halted and faced supply chain disruptions, in turn affecting the market temporarily across the region. But the condition is expected to recover in 2021, thereby driving the market studied.
The aforementioned factors are contributing to the increasing demand for wood-based panel consumption in the region during the forecast period.
Competitive Landscape
The wood-based panels market is fragmented, with numerous players. The major players include Kronoplus Limited, Binderholz GmbH, West Fraser, Georgia-Pacific Wood Products LLC, and EGGER Group, among others.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06360543/?utm_source=GNW
About Reportlinker
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.
__________________________
