It is no secret that the Indian tile market has expanded dramatically over the last decade. This might be ascribed to a surge in commercial and residential construction activity. Nevertheless, the Indian tile sector, like many other businesses, was affected by the COVID-19 pandemic. However, there is some positive news: the Indian tile sector is increasingly regarded as a more dependable supplier by worldwide tile wholesalers. Continue reading to find out why.
On a worldwide scale, India is one of the fastest-growing ceramic tile markets. Some primary drivers boosting the growth of ceramic tile demand in India include the expanding real estate sector, as well as government initiatives promoting rapid expansion in the housing sector. Furthermore, increased disposable income in India, as well as a desire to beautify living and working environments, are fuelling the demand for ceramic tiles in the country. Demand for items such as the new touchless and other hygiene-centric bath equipment, as well as germ-free tiles, will take centre stage and gain traction throughout the projection period. Government initiatives like the ‘Pradhan Mantri Awas Yojana’ and ‘Smart Cities,’ among others, are set to give additional impetus.
The Real Estate Regulatory Authority (RERA), which went into effect on May 1st, 2017, has benefited the real estate business. RERA improves transparency and the process-driven nature of the real estate industry. RERA has a direct impact on the ceramic industry as well. An increase in remodelling activities is likely to boost product demand in the Indian ceramic tiles market’s residential segment during the forecast period. Consumers are spending a lot of money to enhance the look of their walls and floors, which will drive product demand in the residential sector in the future years.
In India, the ceramic tile industry has been steadily growing over the previous few years. However, the industry was severely harmed as a result of the COVID-19 pandemic, as India’s GDP plummeted dramatically in 2020, and the Indian economy declined by 7.3 percent in the April-June quarter of 2021. After India implemented a countrywide lockdown in response to the COVID-19 outbreak in March 2020, an estimated 10 million migrant labourers returned to their home countries. As a result of the labour scarcity, one of the greatest obstacles for ceramic tile makers in the midst of the pandemic is completing projects on time. However, once the lockdown was lifted, the tile sector was the first to emerge from the crisis stronger than ever, and it is predicted that the ceramic tile sector in India is predicted to grow rapidly.
Trends in the Market
The market is being driven by rising urbanisation
India is rapidly urbanising, with the urban proportion of the population expected to reach over 35% by 2020. Furthermore, it is predicted to reach 40% by 2030, resulting in about 600 million urban residents. The growth of cities and movement of people are the primary causes of urbanisation in India. Housing, road networks, urban transportation, water supply, power-related infrastructures, smart cities, and other types of urban administration are all being invested in by the central government. Urbanisation increases demand for the country’s residential and commercial building markets, resulting in strong growth for the Indian ceramic tiles industry. Because of rising middle-class income levels and a stable democracy, India’s urban population is increasing in absolute terms. Furthermore, people are migrating.
Rising Investments in Real Estate in India is Driving the Market
Despite the economic downturn, real estate investing has always been seen as beneficial, delivering favourable benefits over time. In March 2021, foreign portfolio investment in the Indian real estate market was estimated at USD 497 million. Godrej Group entered the financial services market in 2020 with Godrej Housing Finance (GHF), with the goal of establishing a long-term and sustainable retail financial services business in India. Blackstone is one of India’s top private market investors, with around USD 50 billion in market value in the real estate industry as of 2021. These increased expenditures have resulted in increased housing demand in India, with rising house demand accounting for 70% of total tile demand.
The research focuses on the top international players in the Indian ceramic tile industry. In terms of market share, the industry is currently dominated by a few significant competitors. However, thanks to technical advancements and product innovation, mid-size to smaller businesses are expanding their market presence by gaining new contracts and entering new industries.
Global Tile Market 2015-2022
The worldwide tile marketplace persevered its run till 2020 whilst the pandemic added the whole international to a stand-still; however, the boom in industrial and home creation is certain to boost up the marketplace boom but again. The marketplace is anticipated to attain a whopping $145,949 million in 2022 and that’s certainly exact information for tile producers and tile vendors.
Emphasis on Environment Friendly Production Processes
There isn’t any doubt that the future holds tremendous possibilities for the ceramic tile marketplace, however the stakeholders will want to pay attention to adopting steps which will lead to lessen carbon emissions. Governments worldwide have laid down strict norms in relation to manufacturing techniques and subsequently ceramic, and vitrified tile producers should pay attention to the manufacturing of responsibly synthetic tiles.
- Ceramic Tiles Market in India to Reach $7.14 Billion by 2027: Allied Market Research
- Weakness in tiles industry to exacerbate due to COVID-19: Report
- Ceramic Tiles Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027
- Tile Industry to thrive exponentially post-COVID, says EMCER
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