Analysis of the building materials industry in 2025

Analysis of the building materials industry in 2025: demand to stop falling and stabilize and reshape the industrial pattern As an important pillar industry of the national economy, the development of the building materials industry is closely related to real estate and infrastructure construction. In 2025, with the changes in the macroeconomic environment and the promotion of policies, the building materials industry is expected to usher in a stable demand decline. This article will conduct an in-depth analysis of the current situation of the industry, market size and space, future trends, competition pattern, supply and demand, etc., and discuss the development prospects of the building materials industry in 2025. 1. The status quo of the industry and the market size - the starting point for demand to stop falling and stabilize The building materials industry has experienced the challenges of declining demand over the past few years, especially against the backdrop of a correction in the real estate market and a slowdown in infrastructure investment. However, 2025 is expected to be the starting point for industry demand to stop falling and stabilize. According to relevant forecasts, although the real estate market is still facing some downward pressure, the decline in various indicators is expected to narrow with policy support. For example, commercial housing sales, new housing starts and real estate development investment are expected to decline by 6%, 15% and 8.7% year-on-year, respectively, but the decline has narrowed significantly compared to 2024. At the same time, the introduction of the "6+4+2" trillion yuan bond policy in the infrastructure sector will provide key support for the demand for building materials. In terms of market size, the building materials industry has experienced great fluctuations in the past few years. In 2023, the output of the cement industry will decrease by 4.5% year-on-year, while from January to October 2024, the national cement output will decrease by 10.3% year-on-year. This continued contraction in demand has had a significant impact on industry earnings. However, with the promotion of policies and the recovery of market confidence, the industry is expected to usher in a gradual stabilization of demand in 2025. In addition, there is also a positive adjustment within the industry. For example, the glass fiber and cement industries experienced an industry-wide loss in the first quarter of 2024, but through the coordinated adjustment of the supply side, the industry's profitability improved significantly in the second quarter. This supply-side adjustment and coordinated repricing behavior has laid the foundation for the stable development of the industry in 2025. 2. Future trends and market space - policy support and industrial upgrading In 2025, the development of the building materials industry will be affected by many factors. First of all, policy support will become an important driver of industry demand. Policy adjustments in the real estate market, such as the construction of affordable housing, the activation of the second-hand housing market, and the debt policy in the field of infrastructure, will bring new market space to the building materials industry. From the perspective of industrial upgrading, the building materials industry is developing in the direction of green and intelligent. For example, the promotion of the carbon emission trading market in the cement industry will prompt enterprises to pay more attention to energy conservation, emission reduction and green production. At the same time, the glass industry is also enhancing the added value of products through technological innovation, such as the development of photovoltaic glass and electronic glass, which has brought new growth points to the industry. In terms of market space, 2025 is expected to usher in a gradual stabilization of demand. Although the area of new real estate starts may continue to decline, the drag on the demand for building materials will gradually weaken as the base of new starts gradually decreases. At the same time, the promotion of affordable housing construction and municipal engineering will bring new market demand for consumer building materials. In addition, with the upgrading of consumption and the enhancement of environmental awareness, the market demand for building materials will pay more attention to quality and environmental performance. Three: the competitive landscape and supply and demand - leading enterprises lead the industry integration The competitive landscape of the building materials industry is undergoing profound changes. With the gradual stabilization of market demand, the leading enterprises in the industry will further consolidate their market position by virtue of their scale advantages, technical strength and brand influence. For example, in the field of consumer building materials, leading enterprises are developing in the direction of platform through category expansion and channel transformation. This platform-based development model will give it a more competitive edge in the market. In terms of supply and demand, the building materials industry will face certain supply and demand pressure in 2025. Taking glass fiber as an example, it is expected that the global output of glass fiber roving will increase by 11.21% year-on-year in 2025, while the demand will only increase by 5.4% year-on-year. This imbalance between supply and demand will prompt enterprises to pay more attention to supply-side adjustment and coordinated repricing. At the same time, the growth of demand in subdivisions such as photovoltaic glass and electronic yarn will also bring new opportunities to the industry. From the perspective of industry integration, 2025 is expected to become an important time node for industry mergers and acquisitions. With the gradual stabilization of market demand and policy support, small and medium-sized enterprises in the industry will face greater pressure to survive, while leading enterprises have the opportunity to further expand their market share through mergers and acquisitions. For example, the northern cement market may take the lead in giving birth to a new round of mergers and acquisitions due to the good implementation of coordinated repricing. Fourth: industrial chain and consumption trends - focusing on cost advantages and emerging markets The industrial chain of the building materials industry covers multiple links from raw material mining, production and processing to sales and services. In 2025, the development of the industry will pay more attention to the coordination and integration of the industrial chain. For example, leading enterprises in the cement industry will enhance their cost advantages and market competitiveness through the integrated layout of the industrial chain. At the same time, the development of emerging fields such as photovoltaic glass and electronic glass in the glass industry will also promote the upgrading of the industrial chain in the direction of high-end and intelligence. From the perspective of consumer trends, the building materials industry will pay more attention to product quality and environmental performance in 2025. With the upgrading of consumption and the enhancement of environmental awareness, consumers' demand for building materials will pay more attention to green, environmental protection and sustainability. For example, the growth of market demand for photovoltaic glass will promote the expansion of the glass industry into the field of new energy. At the same time, leading enterprises in the field of consumer building materials will also meet consumers' demand for high-quality and one-stop procurement through category expansion and channel transformation. In terms of cost advantages, leading enterprises will further consolidate their market position by virtue of their economies of scale, technological innovation and integrated layout of the industrial chain. For example, Kibing Group and Xinyi Glass can maintain a good level of profitability even in the case of low industry prosperity by virtue of their cost advantages in the field of float glass. This cost advantage will become an important moat for enterprises in market competition. The above is the analysis of the building materials industry in 2025. Overall, 2025 is expected to be the starting point for the demand of the building materials industry to stop falling and stabilize. In the context of policy support and the recovery of market confidence, the leading enterprises in the industry will further consolidate their market position by virtue of their scale advantages, technical strength and brand influence. At the same time, with the transformation of industrial upgrading and consumption trends, the building materials industry will pay more attention to green, intelligent and industrial chain coordination. Although the industry is still facing certain supply and demand pressure, the industry is expected to achieve stable development in 2025 through supply-side adjustment and coordinated repricing.