Africa Mobile Infrastructure and Mobile Broadband: Ken Research

Improved mobile network capability in Africa stimulating smartphone adoption

Within Africa there is considerable diversity in the availability and capability of mobile telecom infrastructure. Vast tracks of the continent, particularly in the northern desert regions, are sparsely populated with little in the way of network coverage. However, intense investment programs undertaken by several pan-regional operators in recent years has meant that population coverage in most countries is excellent.

Much of the phenomenal growth in the take-up of mobile voice and data services has stemmed from the lack of fixed-line alternatives. Fixed-line networks provide limited reach, particularly so in rural areas but also in many urban areas. Before market liberalisation efforts started some two decades ago most incumbent telcos were government-owned enterprises. There was little commercial incentive to invest in infrastructure, and combined with a lack of regulatory oversight, poor management and government neglect, fixed-line penetration remained very low by global standards. In many countries, such as in the DRC, Sudan, Mozambique, South Sudan and Libya, war and civil conflict largely destroyed what little infrastructure there was in place.

Mobile voice and data services were able to fill this void very effectively. As a result, in many countries in the region the use of telecoms services is morphing from being predominantly mobile to being solely mobile. Investment in fixed-line infrastructure is being side-lined in favour of mobile infrastructure. Operators are predominantly investing in spectrum, particularly in the 700MHz band as this is being released into 2017 and 2018 following the switch from analogue to digital broadcasts. They are also strengthening the robustness of their networks by migrating from 3G to LTE-based services. This in turn is being supported by increased international connectivity from a number of new submarine and terrestrial cables. These cables are providing the required backbone infrastructure to support the growing flow of data. Prominent projects include the SACS cable running between Angola and Brazil, with onwards connectivity to Miami, as well as the Liquid Sea cable being built by the pan-regional infrastructure provider Liquid Telecom along the continent’s east coast.

Smartphones are increasingly becoming the principal mobile device used among consumers. The adoption of smartphones is being encouraged by a plethora of cheaper units manufactured locally. The growing take-up of such devices is in turn supporting a tremendous growth in m-commerce, m-money and m-banking services. With the majority of Africans being unbanked, m-payment systems are thriving in most markets where they have been deployed. This has been helped by operators facilitating money transfers between their cross-border networks, as also by co-operation among different players and by a wider number of banks hosting such services. M-money is particularly popular in markets such as Kenya, though the more sophisticated banking sector in South Africa was a contributing factor in the Vodacom’s M-Pesa service being withdrawn from that market in mid-2016.

More than three quarters of mobile subscribers on the continent are expected to subscribe to broadband services by 2020, compared to about a fifth in early 2016. With more than a billion mobile subscribers in the region this presents a vast market for vendors and application providers. Although the relatively low purchasing power in the region will not translate into a similarly rapid growth in revenue, considerable potential remains.

MOBILE INFRASTRUCTURE

High-Speed Packet Access (HSPA)

The regulator launched an international tender in mid-2010 to build and operate a third generation (3G) mobile network. It took until October 2011 to award the licence to Bharti Airtel (Airtel Gabon). To facilitate the development of 3G services a deal was brokered with Gabon Telecom in the following December allowing Bharti Airtel access to the SAT-3/WASC/SAFE submarine cable. An additional connection with the Africa Coast to Europe (ACE) cable was made in December 2012. In June 2013 © Copyright Paul Budde Communication Pty Ltd, 2016. The operator’s parent company announced plans to invest an additional $ million in its mobile operations in Gabon.

However, the Council of Ministers did not pass the decree authorising the 3G licence, extended to the use of 3.5G and 4G/LTE technologies, until January 2014, and Airtel Gabon did not secure its licence until the following March, having paid $ billion ($ million) for the year license.

In April 2014 Airtel Gabon launched a commercial W-CDMA/HSPA+ service in Libreville. The operator planned to cover the entire with the network, with a third phase expected in late 2014 to cover the second largest city, Port Gentil, and a fourth phase, to be completed by the end of 2014, reaching all provincial capitals. Bintel’s licence also includes a concession to offer 3G services. However, the company still offers only 2G and 2.5G services.

Long-term Evolution (LTE)

In March 2014 the government announced that Gabon Telecom was to be allocated additional licenses to enable it to offer 3G and 4G services. The deal was part of a number of strategic agreements signed between Morocco and the Gabonese government which cover areas including agriculture, health, housing, finance and banking, technologies, transport and tourism.

Mobile satellite services

The satellite service provider Thuraya in April 2014 signed an agreement with Bharti Airtel to provide mobile satellite services to customers across the operator's footprint, including Gabon. The project is aimed at providing satellite voice and data services to subscribers in remote and rural areas in 17 countries across the region.

Mobile payments

In early 2013 Gabon Telecom partnered with the mobile financial solutions provider Mahindra Comviva to develop its Mobi Cash mobile money services and ‘mobiquity’ mobile financial applications via its Libertis mobile division. These enable customers to make remittances, receive salary payments, pay bills and make purchases at retailers. For many Gabonese without bank accounts mobiquity provides a cost-effective banking alternative.

Mobile broadband

Internet access via General Packet Radio Service (GPRS) has been available in Kenya since 2004 from Safaricom, followed by Bharti Airtel in 2006. ISPs started to feel increased competitive pressure after 3G services were introduced by Safaricom in 2008.

For more information on the market research report please refer to the below link:

https://www.kenresearch.com/technology-and-telecom/telecommunications-and-networking/africa-mobile-infrastructure-mobile-broadband/71683-105.html

Contact: 
Ken Research
Ankur Gupta, Head Marketing & Communications
query@kenresearch.com
+91-124-4230204

Penetration of smartphones to elevate m-commerce Demand in France: Ken Research

Ken research announced its most recent publication on “Consumer Payments Country Snapshot: France 2016,” which offers comprehensive overview on the consumer payments market in the France, concentrated on payment cards, online payments, P2P payments, and new payment technologies such as mobile wallets and contactless and also the shrewd examination of the regulations implied in the industry that players must comply with, and how these have evolved lately. The distribution offers an in-depth analysis of the major payment card types in terms of both card holding and usage, explores the online payment market in the France by merchant type & payment tool and the regulations affecting the payments market and how they are likely to affect new incumbents and disruptors, furthermore it has investigated the consumer attitudes towards prepaid cards, P2P tools, mobile payment tools, and contactless cards, and how the industry in the France are deploying these tools to satisfy customer needs. The distribution serves a lot of purposes individuals who are seeking data about the key facts and figures in the consumer payments market in the France, regulatory requirements affecting the players, major competitors new product launches and customers various sentiments over various payment options.

Observations from the Macro economic imbalances

• The on-going deterioration in the current account and the international investment position showcases a risk for the long-term sustainability of the French growth model. France has witnessed important losses in export market shares over the last few years (-14.0% between 2007 and 2012). Contrary to developments in other deficit countries, limited signs of a durable rebalancing can be seen in France so far.
• The efforts to improve the non-cost competitiveness of French companies are hampered by their low profitability and increasing indebtedness.

The low profit margins of French companies, which continued to deteriorate in 2012 significantly due to a still increasing tax burden, led them to escalate their indebtedness in order to finance investment. Moreover credit constraints appear moderate at this stage, such a situation may lessen their ability to invest and to effectively engage in export activities.

• The high general government deficit, jointly with a still rising public debt constitutes a major vulnerability, which calls for further adjustment.

France's government deficit expanded sharply in 2009 as a result of the economic crisis. Since then, fiscal consolidation has been undertaken in order to bring the deficit below 3% of GDP by 2013, a deadline which has been extended to 2015. While risks to the medium-term sustainability appear moderate, the expansion in public debt following the financial crisis means that the economy has become more sensitive to potential adverse economic events.
 Latest Trends
France has the lowest card penetration in Western Europe, with less than one payment card per person in circulation and for this The French government has acquainted legislation obliging organizations to install payment terminals equipped of accepting contactless cards and NFC-based mobile wallets when purchasing new POS terminals.
E-commerce continues to account for the wide majority of online purchases in France. However, m-commerce is gaining ground, with its share of online purchases rapidly developing from 1% in 2010 to 12% in 2014. Payment providers should look to invest in mobile to ensure their long-term relevance.
 Topics Covered in the Report

• Global payment industry research
• France payment industry
• Consumer payment industry France
• Europe payment industry
• M-commerce Market France
• Ecommerce payment industry
• Wallet payment market France
• Plastic Card Money France
• P2P payments France
• Online Payment channels France

To know more on the coverage, tap on the link underneath:
https://www.kenresearch.com/banking-financial-services-and-insurance/financial-services/consumer-payments-country-snapshot-france-2016/70709-93.html
Related Links
Consumer Payments Country Snapshot: Netherlands 2016
Consumer Payments Country Snapshot: New Zealand 2016
Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
query@kenresearch.com
+91-124-4230204

Asia Mobile Infrastructure and Mobile Broadband: Ken Research

Asian mobile broadband market continues to grow strongly
With 3.9 billion mobile subscribers and over 50% of the mobile subscribers in the world, spread across a diverse range of markets, the region is already rapidly advancing in the adoption of mobile broadband services. Mobile broadband as a proportion of the total Asian mobile broadband subscriber base, has increased from 2% in 2008 to 18% in 2013, 27% in 2014, 33% in 2015 and 37% in 2016. Thus mobile broadband subscribers now account for over one third of all mobile subscribers in Asia.

Growth across the region in high speed access to the internet by means of mobile broadband services has been largely driven by highly competitive markets combined with the preparedness of the customer to embrace new generation mobile technologies. With 3G, 3G+ and 4G platforms extensively covering the region, mobile broadband services have already become well established. The rapid take up has been underpinned by increasingly cheaper smartphone prices and lower airtime tariffs combining to support even wider adoption.

A major shift from mobile voice to mobile data continues across most markets in Asia. The more highly developed markets in the region, such as Japan, South Korea, Hong Kong, Singapore and Taiwan, have seen their mobile networks strongly driven by mobile data services. They have positioned themselves well to exploit mobile data and broadband wireless opportunities and lead the rest of the region into the next generations of mobile applications.

The mobile broadband subscriber base across all of Asia continues to grow strongly. The total number of mobile broadband subscribers has increased from 1.12 billion in 2014 to 1.41 billion in 2015 and 1.6 billion in 2016. Although the rate of increase of mobile broadband subscribers has subsided as the initial rapid rollout of services has slowed down, the growth rate is still reasonably strong, implying that there is still significant growth opportunity left in the market over the next five years to 2021, especially in the less developed Asian markets that are still predominately dependant on voice networks for mobile services.

 MOBILE BROADBAND

With the two mobile operators, Dhiraagu and Wataniya, launching 3G+ offerings in 2009/2010, there has been rapid expansion of mobile broadband services in the Maldives. By mid-2015 mobile broadband dominated the internet market in terms of subscriber numbers and growth rate.

MOBILE INFRASTRUCTURE  Digital networks
3G
The mobile operator Wataniya launched a commercial 3G network in 2008. The company also soft launched a 3.5G High-Speed Packet Access (HSPA) network. It progressively offered additional new generation services including Wataniya Mobile Broadband, Wataniya Mobile Video Surveillance and Wataniya Mobile TV services. The ‘Wataniya Broadband (3G+)’ service was launched in 2009.

After Wataniya successfully transitioned to the Ooredoo brand in 2013, the operator made significant strides. By September 2013 Ooredoo Maldives had extended its 3.5G HSPA+ network to the island of Kaafu Dhiffushi in line with the network modernisation plan launched in July. The HSPA+ network now covers about of the population.

Dhiraagu launched its 3G service, branded ‘3G plus’, in 2010, and quickly provided coverage across a significant proportion of the Maldives.

Dhiraagu had expanded coverage of its 3G network to all inhabited islands by the end of 2015.

LTE

The two mobile operators have made good progress in expanding their LTE services. Dhiraagu launched LTE using spectrum in the 1800MHz band in October 2014, and by January 2015 the service was available in the island of Fuvahmulah and Addu City, the country’s second largest city. In addition to these two new locations, network coverage extended to Malé City, Villingili, Hulhumale’, Ibrahim Nasir International Airport, Villingilli, Thinadhoo, Kulhudhufushi, Naifaru. In April 2016 LTE services were extended to the island of Dhidhdhoo. By August 2016 the operator’s LTE network provided population coverage.

The network initially supported download speeds of up to s, with customers experiencing average data rates of between s and s. In late 2015 Dhiraagu launched an LTE-Advanced (LTE-A) network using carrier aggregation (CA) technology (utilising its concessions in the 1800MHz and 2600MHz bands), which improved download speeds to /s downlink and s uplink.

For more information on the market research report please refer to the below link:

https://www.kenresearch.com/technology-and-telecom/telecommunications-and-networking/asia-mobile-infrastructure-mobile-broadband/63857-105.html

Contact: 
Ken Research
Ankur Gupta, Head Marketing & Communications
query@kenresearch.com
+91-124-4230204

China Large Appliances Market Forecast to 2020: Ken Research

How China Large Appliances Market Is Positioned?

Large appliances are considered as durable consumer goods which have varying replacement rate depending on type of appliance and user experience desired. It is a very dynamic market and continuous innovation is required to make the products more economical and user friendly.

It was reported that urban households in China own ~ television sets, ~ washing machines, ~ refrigerators and ~ air conditioners per 100 households. Urbanization in China was at ~% in 2015 which translates into ~ million people living in urban locations. Living conditions of rural population is also improving as an investment in infrastructure has helped in better connectivity and living conditions of people. There is significant rise in the ownership of large appliances in rural areas especially air conditioners and refrigerators. It has increased from ~air conditioners in 2010 to ~ air conditioners and ~ to ~ refrigerators per 100 household in rural areas in 2014.

Demand for large appliances in China is mainly driven by replacement of existing old products with new ones. Demand for large appliances has increased from ~ million in 2010 to ~ million in 2015 registering a CAGR of ~%. In terms of revenue market has increased from USD ~ billion in 2010 to USD ~ billion in 2015 registering a CAGR of ~%. Programs like Go rural subsidy, subsidized trade in home appliances, launch of energy saving products has helped large appliances companies to make substantial sales increase in 2011. Volume sales increased from ~ million in 2010 to ~ million in 2011.

The sales of large appliances during 2013 witnessed launch of many smart consumer appliances which became the major growth driver especially driving the replacement demand. This helped the large appliances market to register a positive growth rate of ~% in 2013. Programs like go rural have helped to develop sales network in rural areas which has benefitted the market in 2013 and years after.

What have been the Major Segments that has Driven Change

Demand for refrigerator has risen initially in 2011 but after that continuous decline was registered in sales volume. Sudden rise in demand for refrigerator in 2011 was mainly due to demand coming from rural areas especially on account of subsidy offered which started in 2009.

Majority of the demand for refrigerator in urban areas was witnessed for larger size refrigerators with multiple doors, energy saving rating and other added features. Average size of the television being demanded in China has registered a consistent increase. The demand preference has increased in first quarter of 2012 from 37.8 inches to 45.3 inches in first quarter of 2016.

Demand for television was mainly driven by replacement with high end technology products. For instance, CRT TV is not manufactured by any major TV manufacturing company in China. Consumer preference has changed to LED and Curve television with many other added features. Television market in china was dominated by Skyworth, Hisense, TCL, Changhong and others. Top three companies have accounted for a revenue share of more than ~% during 2015.

During 2015, around ~ million washing machines were sold with an aggregate value of USD ~ million.

Replacement demand for existing washing machines was the major reason for growing demand for washing machine. Replacement demand has accounted for more than ~% of total domestic sales of washing machine in China during 2015.

Market demand for new technology based air conditioners was on the rise in 2015. Retail sale of artistic high end intelligent air conditioner accounted for ~% sales volume in 2015 registering year-on-year increase of ~%. Sale of new air conditioner to replace existing air conditioner accounted for approximately ~% of total sales in 2015. Distribution and sales network for large appliances has evolved over a period of time. More and more companies are focusing to create a centralized distribution network to reduce inventory and give better consumer experience by promoting timely delivery and installation. Companies such as Haier have separate logistics company to handle distribution and sales network of large appliances in China.

Which Large Appliances are Majorly Preferred by Chinese?

With ever improving technology and picture quality, demand for large screen television is on the rise. The demand for television with size greater than 45 inches has consistently increased during the period 2012-2015. Decline in final price of the television has helped to augment the market for large screen size. Reduced thickness achieved with improvement in technology has reduced the space occupied and is also the very important reason for the increased replacement demand for CRT TV in urban cities where personal space is in limited quantity.

With rising purchasing power of consumers in China, the demand for high end technology and large volume refrigerators has increased. The volume share of multi-door and bi-fold refrigerators has showcased an increase with share increasing from ~% in 2011 to ~% in 2015.

The companies are launching smart and efficient refrigerators with advancement in technology through consistent product modification. There has been substantial decline in product demand for low cost machine mainly due to smaller capacity and demand for high end and automatic and smart machine. From macroeconomic perspective, rising urbanization and high per capita income in urban areas has led to increase in demand for high end and costly refrigerators as they are technologically more advanced and have high capacity.

Demand for pulsator type or front loading washing machine was on the rise on account of its efficiency and reduced water consumption and faster cleaning. These positive attributes have contributed significantly to growth in share for pulsator type washing machine. Rising demand for energy efficient and increased scarcity of water has promoted the sale of roller type washing machine.

Increased demand for energy efficient and low water consuming washing machines has promoted the sale of more expensive roller type washing machine. Increased demand for these products has led to increased share of products which are priced above RMB 3,000.

Front loading washing machines have shown continuous increase in demand on account of its high efficiency and low water consumption.

The share of front loading washing machine have increased significantly over the years with market share rising from ~% in 2013 to ~% in 2015. Most of the new washing machine launched in China market is of front loading type. Top loading machines still dominate the market owing to their low prices.

Focus on energy efficient products has led to increased demand for inverter type air conditioners (frequency conversion) which are more efficient and consume less power compared to normal air conditioner. These air conditioners being energy efficient products, saves a part of the cost on electricity bill this saving on electricity bill promotes the consumers to invest in energy efficient air conditioners. Over the years, the volume share of frequency conversion type air conditioner has increased from ~% in 2011 to ~% on 2015.

Air conditioner is high priced product with majority of demand coming from products priced above 3,000 RMB. In 2015, ~% of the demand for air conditioners was originated from products priced above RMB 3,000 demand for high priced product. This was mainly on account for better and more energy efficient products. Demand for air conditioner was mainly reported from urban areas where per 100 household ownership was reported at 107.4 in 2014.

How the Logistics is Handled for Large Appliances by Online Companies in China?

Most of the manufacturers have their own logistic system and they use their services for supply to warehouse and delivery at location of whole-sellers, retailers and exclusive stores. Fully developed logistics system is necessary to cut down on inventory and ensure faster delivery in very competitive market.

Midea group consolidated its internal and external social logistics resources, improving its overall capability to provide logistical solution. It launched an integrated logistic system covering 17 provinces and cities nationwide, initially completing the construction of a highly efficient end to end logistic system from storage, trunk routes and branch transport to the last kilometer delivery.

Haier has started a new subsidiary to handle its logistics requirement for supply of large appliances and ensure proper integration of online and offline sales. In 2015, ~ self-built warehouses were constructed adding up to a total of ~ self built warehouses. The operations in 3rd and 4th tier cities were still in development phase and need excellent logistics network to fully integrate these areas to the main system. HUB coverage was expanded to further enhance the delivery speed to villages and to doors in 3rd and 4th tier markets.

Other major companies manage their logistics through parties depending on their needs and region they target. Many companies include logistics cost as part of their operations. Companies also maintain good relationship with large retailers to tap the tier1 and tier2 cities. In tier3 and tier4 cities they rely on flagship stores, exclusive shops, and other traditional and nontraditional methods for effective delivery of products to the consumer.

Key Factors Considered in the Report

• Comprehensive analysis of China Large Appliances Market and its segments
• Listed major players and their positioning in the market
• Identified major industry developments in last few years and assessed the future growth of the industry
• Large Appliances Market of China with their Products

 For more information about the publication, refer to below link:

https://www.kenresearch.com/consumer-products-and-retail/consumer-electronics/china-large-appliances-market/57225-95.html

Related Reports
https://www.kenresearch.com/consumer-products-and-retail/consumer-electronics/india-led-television-market-research-report/585-95.html

https://www.kenresearch.com/consumer-products-and-retail/home-and-office-furnishings/india-vacuum-cleaner-market-research-report/680-95.html

https://www.kenresearch.com/consumer-products-and-retail/home-and-office-furnishings/india-kitchenware-products-market-research-report/671-95.html
Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

Future growth of Africa dairy product market is expected to grow with the growing demand for yoghurt and ice cream in Africa : Ken Research

Being a pronounced continent both in terms of geographical area and population, Africa has a high growth and profit earning opportunities for various dairy products manufactures and retailers in the continent. However, presence of volatility in the economies and fluctuating currency exchange rates of various nations in Africa, most of the countries in Africa are still tagged as developing or under developed nations in world.

In dairy industry Africa , the continent is observed to grow at a steady pace in terms of local currency. The increasing use of high yield milk producing hybrid cow and inclining number of dairy farms across various nations in Africa, the overall milk production capacity in Africa has been recorded to increase from ~ million tonnes in 2010 to ~ million tones in 2015.

This rise in the milk production capacity at various dairy farms has increased the profit shares of various dairy product manufacturers in different nations of Africa but subsequently due to the declining exchange rate of regional currency/USD of different nations of Africa, the import of dairy products from foreign continents had become costlier for the dairy product dealers. Consequently, it has decreased the profit share of dairy manufacturers in the various nations of the continent; resulting which Africa dairy product market declined from the market size of USD ~ billion in 2013 to USD ~ billion in 2015.

Which Government Regultory Bodies Are Regulating Dairy Product Market In Africa?

The national government policies framework for the dairy sector in African countries differs substantially among each other. None of these countries have a proper farm policy for the dairy sector instead rely on the general agricultural and livestock policy frameworks.

In Algeria, Government of Algeria (GoA) has prioritized development of dairy sector in its nation by establishing several programs to promote dairy practice in country. Major example of this is “Finance law 2014 (Art 44)”, which was framed in 2014 to give exemption from duties and VAT on animal feed inputs and co-products to help dairy farmers in the nation to provide better quality feed to their cattle.

Ethiopia has no specific dairy sector policy in effect and it is currently in the process of formulating a Livestock Master Plan that shall address dairy related issues. Livestock master plan focuses on three key sector areas including dairy cows, milk production from cattle, sheep, goat and camels and specialized poultry-broilers and layers. Under Growth and Transformation Plan (GTP) II drafted by the government of Ethiopia, the projected cow milk production is projected to increase by      ~% reaching out to ~ million liters during the period (2015–2020). This production increase would make it possible to meet the milk production targets in the GTP II phase, exceeding the growing domestic demand for milk by ~%.

How Innovation And New Product Development Impact The Africa Dairy Product Market

Dairy products used in Africa post liberalization of dairy sector was limited essentially to raw milk and pasteurized milk, but with the modernization in the industry and entry of new market players, consumers can now easily access to wide range of processed products, such as UHT milk, fermented milk (or traditional sour milk) and dairy products such as butter, cheese, yoghurt, milk powder, ice creams and so forth. Dairy product market in Africa has shown innovation in its product line with the introduction of various types of new products such as flavored milk, sugar free milk, fats free cheese designed for special population segment such as high protein rich cheese for children and low fat cheese for health conscious adults.

Topics Covered in the Report

·         Dairy Farms in Africa

·         Competition Yoghurt Industry

·         Developments Africa Dairy Sector

·         Africa Dairy Industry

·         Uganda Dairy Industry

·         Ethiopia Milk Power Market

·         Developments Africa Dairy Sector

·         Africa Dairy Powder Sector

To know more on the coverage, tap on the link underneath:

https://www.kenresearch.com/food-beverage-and-tobacco/dairy-products/africa-dairy-products-market-report/60302-11.html

Related Reports:

India Dairy Products Industry Outlook to 2019 - Dominating Branded Players and Rising Milk Availability to Foster Growth

Denmark Dairy Products Market Outlook to 2018 - Driven by Consumer Preferences and Innovations in the Industry

Germany Packaged Food Industry Outlook to 2018 - Focus on Nutritional Food and Staples Market

Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

Germany Construction Chemical Market Forecast To 2020: Ken Research

How the Germany Construction chemicals Market Is Positioned?

Construction chemical market in Germany has the largest share among all European nations accounting for nearly ~% of the entire European market in terms of revenues. Growth in construction sector, robust economic policies and moreover, Germany being regarded as manufacturing hub of Europe along with its central location has supported the economic development. Sale of construction chemical in Germany was reportedly driven by necessity of the usage of construction chemicals in construction of certain type of building and manufacturing unit. For instance, it was required by regulation to waterproof all areas where there are chances of spillage of hazardous chemicals as well as to water proof areas of hazardous garbage disposal areas in Germany.

Real estate construction was the major growth driver for sale of construction chemical in German market as investment in public infrastructure has observed a decline in last few years

Growth prospects for construction chemical market in Germany is bright and is expected to record positive growth in future as construction activities picks up pace along with government investment in infrastructure. Repair and rehabilitation of existing infrastructure and existing buildings will also create huge potential demand for construction chemicals in future.

The market for construction chemical in Germany is very

well organized and is majorly dominated by BASF and SIKA. These two companies has comprehended almost ~% share of the market in terms of revenues. The market for construction chemicals is concentrated by almost 70 players which is quite limited compared to other countries.

The market for construction chemicals in Germany has grown at a CAGR of ~% during the period 2010-2015 with revenues being registered at USD ~ million during 2015.

What have been the Major Segments that has Driven Change

Concrete admixture has accounted for a revenues share of ~% in the overall India construction chemical market. Concrete admixture market in Germany was observed to be majorly governed by cement companies as concrete admixture is provided along with cement. Major concrete admixture manufacturing companies have B2B tie up with these cement companies for the sale of concrete admixture in German market.

Water proofing becomes more important in areas with underground construction and areas receiving heavy rain and snowfall. Germany construction standards are among best in world requiring strict compliance which drives the sale of all type of construction chemical.

Market for sheet membrane is high in Germany because they are easy to manufacture and have long shelf life. They are also easy to apply in already constructed houses. Water proofing market in Germany is mainly dominated by SIKA which is also the major construction chemical company.

Flooring compounds market was observed to have smaller share in 2015 on account of low investment in construction of new malls, parking spaces, sports complexes and other areas of application. Majority of demand comes from renovation and modernization of existing structures.

Flooring material demand mainly comes from the construction of new parking lots, hospitals, indoor playgrounds and manufacturing units. Polyurethane flooring was mainly preferred in Germany as it is more human friendly and is less reactive compared to epoxy flooring. Epoxy flooring is preferred in closed areas of manufacturing floors, commercial kitchens, shopping complexes and other areas.

Germany is in developed stage of economic growth and hence demand for basic infrastructure is observed to be lower and thus majority of demand as observed was created to improve existing quality and facilities. Germany is the manufacturing hub of Europe and manufacturing floors require coating based on product being manufactured. Based on quality requirement demand for type of flooring compound, epoxy polyurethane or cementitious or their combination is required.

Repair and rehabilitation of many old buildings was adopted to accommodate refugees coming in different part of Germany, earlier they were staying in makeshift tents. Major investment were made in these chemical due to large amount of work going on to make building apartments more energy efficient. Buildings in Germany have to comply with German regulation on energy efficiency.

Aging infrastructure in Germany creates high demand for repair and refurbishment chemicals especially epoxy based repair as they give better finish to the infrastructure.

What Have been the Major Trend in the Market

Construction of new residential buildings recorded constant growth during the period 2010-2015 whereas repair and construction of existing residential buildings recorded a constant decline in its share. It was observed that majority of the amount spent on construction was has been made to refurbish the old structures in Germany. Growth in construction of residential sector was mainly driven by internal migration and influx of refugees in Germany.

Influx of refugees has created additional demand for infrastructure development in Germany as it was major receiver of refugees among all European nations. Net migration of foreign people amounted to 1.14 million in 2015 (Based on data from 1st January 2015 to 31st August 2015 and estimate for four months) which was 49.0% higher compared to 2014 when Germany witnessed net migration of 577,000 foreigners as per data reported by statistics office of Germany.

The raw materials mix of the German construction chemical industry will is biased in favor of the renewable raw materials. Today, the German construction chemical industry uses slightly less than 19 million tonnes of fossil raw materials (petroleum products, natural gas and coal), 2.7 million tonnes of renewable raw materials and approximately 20 million tonnes of mineral raw materials.

The chemical industry is one of the most innovative sectors of the German economy. In Germany the research intensity, or the ratio of R&D expenditures to the production value, is slightly less than 5.8 per cent.

How is the Competition Concentrated in the Market

Germany is regarded as the hub for few major leading constructions chemical companies namely BASF and several others. Moreover, achieving economy of scale in operations is important in chemical industry which is highly evident amongst the companies operating in this sector in Germany. There are certain advantages in setting up a construction chemical industry in Germany such as stable supply of raw materials, increasing number of applications of downstream industries, superior management and technology, relative superiority in base environment and others.

The market for construction chemicals in Germany is highly organized with the presence of few major international players in the space such as BASF and SIKA Chemicals. These two companies have dominated the market space with an approximate share of 50% in terms of revenues during 2015. These international players are consistently enhancing their production capacity in the domestic market by acquiring local companies. This trend has been leading the industry to become more integrated in terms of technology and the market is becoming more concentrated.

In addition to this, there are certain government regulations such as initiatives from State Council on accelerating the development of strategically rising industries, regulations related to environmental concerns and others which have been acting as one of the major barriers in the industry. These factors are restraining newer small companies to enter into the market.

Companies Cited in the Report

List of Companies                                           Companies Covered in the Report

• MC Bauchemie                                        Major Players                                           
• SIKA Germany
• BASF Germany
• Quick Mix Group
• Widopan
• HASIT
  

Key Factors Considered in the Report

• Comprehensive analysis of Germany Construction Chemicals Market and its segments
• Listed major players and their positioning in the market
• Identified major industry developments in last few years and assessed the future growth of the industry
• Construction Chemicals Market of Germany with their Products

For more information about the publication, refer to below link:

https://www.kenresearch.com/manufacturing-and-construction/construction-materials/germany-construction-chemical-market/55720-97.html

Contact: 
Ken Research
Ankur Gupta, Head Marketing & Communications
query@kenresearch.com
+91-124-4230204