World Plumbing Demand to Reach $66 Billion in 2013

Global demand for plumbing fixtures and fittings is forecast to increase 3.5 percent per annum through 2013 to $66 billion. While decelerating from the 2003-2008 pace, advances will still be quite healthy, as worldwide building construction spending and economic activity rebound from several years of slow growth caused by the global financial crisis.  Moreover, a substantial part of the growth recorded between 2003 and 2008 can be attributed to the appreciation of many world currencies relative to the US dollar; in unit terms, plumbing product demand gains during this period were significantly smaller. These and other trends, including market share and product segmentation, are presented in World Plumbing, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

The Asia/Pacific region will see the most rapid gains in plumbing product demand through 2013, as residential and nonresidential building construction increases.  Initiatives to expand water and sanitation networks throughout the region will further aid demand for plumbing products.  China alone will account for over half of all new worldwide demand generated between 2008 and 2013.  Other Asian countries, including India, Indonesia and Vietnam, are also expected to post large gains. Growth in developed countries, such as the US, Canada, Japan, Western Europe and Australia, will not be as strong as that in most industrializing regions.  As the economies of these countries recover from the global financial crisis, building construction will generally grow at a much slower pace than during the 2003-2008 period, limiting demand for plumbing fixtures and fittings. 

In the US, however, building construction expenditure growth will accelerate through 2013 because the country experienced the effects of the financial crisis at a much earlier date.  Nearly all spending gains for plumbing products will be concentrated in the residential building market. The fixtures segment of the world plumbing products market is expected to grow at a somewhat faster pace than the fittings segment through 2013.  Rising per capita incomes in industrializing countries, especially among the urban population, will spur demand for more sophisticated fixtures.  Efforts to expand water supply and sanitation networks will also stimulate product sales.  In developed countries, increasing demand for low-consumption fixtures (e.g., electronic faucets) and recreational bathing fixtures will contribute to gains.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.