Plumbing Demand to Increase

Plumbing Demand to Increase

A new study by The Freedonia Group, Inc, a Cleveland based industry market research firm, suggests that through 2018, global demand for plumbing fixtures and fittings is projected to advance 5.3% annually to over $70 billion.

In lower income countries, including many in the Asia/Pacific and Africa/Mideast regions, continued strong increases in building construction spending and rising personal income levels will support growth. In a number of West European countries and the US, expected rebounds in building construction spending will drive demand for plumbing products.

The Asia/Pacific region will post the fastest overall growth in plumbing products demand. According to analyst Allison Blackburn, “Even with an expected deceleration in demand, China alone will account for over one-third of the increase in global plumbing products demand generated between 2013 and 2018.” China’s vast population makes infrastructure and sewage system development a necessity, and therefore new homes are constantly being connected to water delivery systems. These systems are reaching previously unserved areas, thereby creating new customers and generating demand for plumbing products. Other industrializing countries in Asia, such as India and Indonesia, and in the Africa/Mideast region will also contribute to overall demand gains.

North America is also expected to post significant gains in demand for plumbing fixtures and fittings. A rebound in the US housing market will be the primary driver of gains. Accelerating building construction activity in Canada and recovering building construction spending in Mexico will also contribute to demand growth in North America.

Western Europe is expected to post the slowest gains in plumbing products demand through 2018. The region’s mature building infrastructure and slow population growth have combined to limit building construction activity, restricting plumbing products gains. While construction spending in Western Europe is forecast to grow at the slowest rate globally, it will nonetheless reflect a recovery from a low 2013 base. As a result, plumbing products demand growth in the region is forecast to reverse the declines experienced during the 2008-2013 period.

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