Construction Materials and Equipment: The Chinese Market

Report Highlights

• In 2006, total production for the Chinese construction materials market was about $171.5 billion. The total production value will reach $294.8 billion by 2011, an average annual growth rate (AAGR) of 11.4%.
• China's construction materials industry saw a 24.7% increase in 2005, reaching $127.4 billion. In 2006 the industry sector will see 20% growth.
• According to the statistics of the China Building Materials Industry Association, in the first half year of 2006 China's total imports and exports experienced rapid growth, up 26.6% and 33.3% respectively. Based on these growth rates, in 2006 China's total imports and exports of construction materials will reach $7 billion and $13 billion respectively.

INTRODUCTION

The construction materials industry has been a major player in China's overall manufacturing sector. In 2005, China's construction materials industry accounted for 6.8% and 4.1% respectively of total enterprises number and national output. Rapid economic development in China has led to a corresponding increase in construction materials consumption. Leading international players that have formed joint ventures in China include Lafarge, Taiheiyo Cement, Pilkington, Saint-Gobain, AGC, Kohler, American Standard, Toto, Owens Corning, Sarnafil, Sekisui, and others. China is now one of the world's largest construction materials producers with annual output of cement, flat glass, building ceramic and ceramic sanitaryware ranking first in the world. China will continue to be an important player in the global construction materials marketplace.

BCC's goal in conducting this study was to determine the current status of China's construction materials and equipment industry and assess its growth potential over a 5-year period from 2006 to 2011. Our key objective was to present a comprehensive analysis of China's current construction materials and equipment market and its future direction.

SCOPE OF STUDY

This report contains:

• A detailed industry overview of the construction materials and equipment with definitions and a particular focus on the industry in China
• A market analysis with focus on product type, broken down into eight segments: cement, cement products, flat glass, building ceramic & ceramic sanitary-ware, house building materials, construction stone, inorganic non-metallic new materials and construction equipment
• Detailed market forecasts for the Chinese market with five-year projections to 2011
• Analyses of the major players and market shares within the industry Technology overviews and a patent analysis.

METHODOLOGY AND INFORMATION SOURCES

The material presented is based on extensive reviews of sources such as technical papers, industry conferences, trade publications, industry associations, company literature, and government data/customs statistics and the Construction Materials Industry Yearbook.

Our final analyses and projections are based on a consensus among these sources combined with our understanding of the impact of trends from a historical perspective.

All dollar data presented in this report are based on the exchange rate: U.S. $1 = RMB 8.0.

ANALYST CREDENTIALS

Baijun Li is a research analyst covering Advanced Materials, Environmental Protection and Auto Components. Mr. Li is an independent consultant in China, and has worked with BCC for 6 years. He has authored marketing/technical reports on magnetic materials, engineering plastics, environmental protection, industrial machinery and auto components. With over 13 years of research and business experience in China, he has assisted in numerous business consulting studies---market opportunity analysis; market profiles and assessment; competitive intelligence; market feasibility and market entry. He has a B.S., Materials Science from Shanghai Jiaotong University; and is a certified securities investment consultant.