Demand for Windows and Doors in China to Rise 7.7 Percent

Demand for doors and windows in China is forecast to rise 7.7 percent annually to $57 billion U.S. dollars in 2014, according to a new study by the Freedonia Group. Although this is a deceleration from the 2004-2009 pace it is still among the fastest rates of increase in the world, according to the research firm.

Gains will primarily be driven by strong building construction activity, spurred by the country’s further industrialization and urbanization, and a rise in the average size of a housing unit.

Following are additional insights from the study.

Material Preferences: Metal windows comprise about 60 percent of the market. The second most popular material is plastic, which is growing at the fastest rate and is taking share from metal windows, particularly in the residential market. Wood windows comprise a very small portion of the total, with their use generally limited to high-end residential construction.

Door Demand: Demand for this segment is expected to advance 8.2 percent annually through 2014 to $17.4 billion U.S. dollars. Wood is the dominant material, and the emergence of wood doors made from new composite materials, such as plastic/wood composites, will further support advances in overall wood door demand. Metal doors account for nearly a quarter of the door market in China where they mainly serve as entrance doors in both residential and non-residential applications.

Residential Demand: The residential market accounted for 54 percent of door and window demand in 2009. That is projected to rise 7.4 percent per year to $30 billion U.S. dollars in 2014, boosted by growth in spending on residential construction, especially in the urban-based multi-family market. Demand for doors and windows in the nonresidential segment is expected to grow faster, rising 8.1 percent per year, due to strong construction activity in institutional and industrial markets.
www.freedoniagroup.com

Construction Expenditures in China to Rise 9.4 Percent Annually Through 2015
Construction expenditures in China are expected to rise 9.4 percent per annum in real terms through 2015, moderating from the rapid pace of the 2005-2010 period. According to the new study Construction Outlook in China from the Freedonia Group’s Beijing office, the three major construction segments—residential buildings, nonresidential buildings and non-building structures—each accounted for approximately one-third of total spending in 2010.

The study notes that spending on residential buildings is projected to grow at an annual pace of 9.7 percent in real terms through 2015. Gains will be primarily supported by rising personal income levels and ongoing population migration from rural to urban areas.

WINDOW & DOOR DEMAND IN CHINA
(approximate billion USD dollars)

% Annual Growth

© 2010 by The Freedonia Group, Inc.

Stats at a Glance
• The BuildFax Remodeling Index (BFRI) for June 2011 shows that this month recorded the highest level of remodeling activity since the index was introduced in 2004. The June 2011 index rose 23 percent year-over-year—and for the 20th straight month—in June to 129.5, the highest number ever in the index to date.

• The National Association of Homebuilders (NAHB) reported that builder confidence remained unchanged in August.

• NAHB also reported that 55+ Builders are more optimistic about multi-family rentals than new home sales, according to the latest 55+ Housing Market Indices that are compiled quarterly by the association.

DWM
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