Rising Investments for Infrastructure Development Will Tend to Increase the Market Growth of Europe Magnesium Oxide Boards

The investment in construction activities in European countries along with the rising government initiative towards energy efficient and green construction is expected to drive the market growth during the forecast period. Europe Magnesium Oxide Market size is forecast to reach $337.0 million by 2025, after growing at a CAGR of 4% during 2020-2025.

The major factor contributing to the growing demand of the Europe magnesium oxide board market includes the increasing application in different sectors such as shopping centers, schools, sports facilities owning to its various characteristics, such as resistance to fire, non-combustibility, lightness, time, and cost-effectiveness, and acoustic insulation. Furthermore, magnesium oxide boards have emerged as the greener alternative to traditional drywalls in recent years. Hence, the following factors will overall increase the growth of the Europe magnesium oxide industry over the forecast period.

The production and demand in European countries for the Europe magnesium oxide boards market is expected to boom over the next five years. In terms of revenue in 2019, medium oxide boards held the largest share with 47%, in Europe magnesium oxide boards market. Magnesium oxide boards of 8-15 mm are the most environmentally sustainable multipurpose building frames. This 9 mm (11/32 inch) thick layer is most widely used as walls and ceilings for commercial buildings. 8-15 mm magnesium oxide boards replace the drywall with a substance that is resistant to fire, fungi, mold, mildew, and chemicals. Magnesium oxide boards of 8-15 mm can be used in both applications. However, they cannot be directly exposed to water or environmental conditions. Inside houses, they can be used to complete walls, ceilings, and floors and outside buildings – under elevator claddings, but only if the board is shielded from weather conditions.

Magnesium oxide board is a variety of new-age, highly resilient, non-combustible, multi-purpose board, used in exterior applications requiring a combination of moisture and thermal resistance as well as superior fire efficiency. Magnesium oxide boards can be used on the outside as wall sheathing, trim, fascia, and siding. Magnesium oxide board typically withstands salt exposure in coastal areas. The European construction industry is also likely to see a change in its growth engine from residential construction to the infrastructure sector. Across the European countries surveyed by Euroconstruct in 2018-2019, the demand for constructing new homes is forecast to rise only below 0.5 percent per year over the next two years. With the increasing building and construction sector, the demand for magnesium oxide boards for exterior applications will also substantially increase, which will boost the Europe magnesium oxide boards market during the forecast period.

Germany dominated the Europe magnesium oxide boards market with a share of 21% in 2019 and is projected to dominate the market during the forecast period (2020-2025). A stable economy, investment climate, and steady emphasis on energy efficiency, backed by the federal government, booms the construction industry in Germany. The German construction industry is strongly concentrated and rapid growth offers foreign firms the chance to join the industry with new goods and services. Due to the growing commercial and residential construction activities, the demand for magnesium oxide board as an alternative to cement is increasing. Also, because of its highly beneficial factors, the German constructors are using the MgO board for the interior application to provide fire-resistant property, and on the exterior application, it is applied as wall sheathing, and so on. Thus, increasing various construction activities in this country will further drive the market for Europe magnesium oxide boards in the forecast period.

Buildings & construction is one of the major end-user industries driving the growth of the Europe magnesium oxide boards market. With rapid industrialization, the need for cost-effective building solutions is growing which in turn is increasing the demand for magnesium oxide board. Due to lightweight, impact resistance, and their easy installation properties, magnesium oxide boards are gaining popularity. The increasing construction of factories, manufacturing plants, stadiums, and corporate offices is having a positive impact on the European magnesium oxide boards market. According to the Global Construction Perspectives and Oxford Economics report, the U.K is expected to become the world’s sixth-largest construction market by 2030. Over the next 15 years, the U.K. needs to build 3.3 million homes to meet the needs of the growing population. Also, Paris will host the Summer Olympic Games in 2024. It is expected that construction work related to the Games will also increase, as the government plans to spend 6.8 billion Euros to develop and refurbish the infrastructure needed to complete such a large-scale sporting event. The growing investments for infrastructure development will tend to increase the market growth of Europe magnesium oxide boards.

According to NASA, the world's energy-related carbon dioxide (CO2) emissions will grow from 32.3 billion metric tonnes in 2012 to 43.4 billion metric tonnes in 2040. The building and construction industry is known as being a leading exploiter of a large proportion of primary energy and natural resources. Therefore, the European government is taking several initiatives to reduce emissions. For instance, in November 2018, The European Commission presented its strategic long-term vision to reduce greenhouse gas (GHG) emissions, showing how Europe can contribute to climate neutrality. Sustainable and climate-resistant buildings are needed to meet the targets to achieve climate-neutral Europe by 2050. Also, The European Commission (EC), according to the Paris Agreement, intends to reduce greenhouse gas emissions by 80% below 1990 levels in 2050. As the magnesium oxide board is an energy-efficient, lightweight and renewable material with high thermal performance, government support for energy-efficient and green constructions is supporting the product demand in the region. Thus, the rising support of the government for energy-efficient and green construction will lead towards the growth of the European magnesium oxide boards market globally over the forecast period.

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Europe magnesium oxide boards market. In 2019, the market of Europe magnesium oxide boards has been consolidated by the top six players accounting for 12.3% of the share. Major players in the Europe magnesium oxide boards market are Resistant Building Products Limited, Yorkshire Plywood Ltd., SINH Building Solutions B.V., SPT Systems (Kepi International Limited), LLC «RPE «Ukrmagnesit», NevraYapıbirNevGroupiştirakidir.,Tecresa ProtecciónPasiva, S.L., ORYX Boards, Modelpan UK Ltd., and Module Technologies SA, among others.

Furthermore, the impact of COVID-19 will have a ripple effect on the Europe magnesium oxide boards market, as the industries it serves continue to be negatively impacted. Due to COVID-19 palindrome, for Europe magnesium oxide boards, record declines in consumer spending, customer shutdowns, and lack of capital expenditures are trends all harming the market. Currently, due to the COVID-19 pandemic, the construction sector in Europe seems to be low, as social distancing and other policies have shut down the construction activity for a certain period of 2020. Owing to this, the demand for magnesium oxide board has also been decreased drastically from the period of lockdown in 2020. According to the International Monetary Fund, Europe's GDP decline by 6.7% in 2020. The pandemic is affecting operations of various industries including construction, as various European countries have issued “stay at home guidance” i.e., lockdown. While some construction sites remained open in Europe, but work was slowed by a lack of equipment and supplies.