The economic regression days were hovering for most industries around the globe. Construction sector was one of the worst hit businesses that faced a complete dry phase both in India as well as aboard. Due to this slowdown many sub categories of the industry too were affected and faced heavy losses. However, the trend of migrating from rural regions to the cities actually increased during this economically dull season and this boosted the construction activities in all over the world. Especially in India and other Asian regions the tile industry witnessed a surge as its prices declined due to the many variants available and large scale production. The demand hiked due to the progressing construction sector.
The tiling sector according to the experts have a similar bright future as the number of companies entering the construction field is going up with every quarter and thus the demands for tiles will continue to stay upright. The global market for the commodity is predicted to reach $ 92.78 billion by the end of 2015; this is possible as requirements from the developing countries also known as emerging markets are likely to peak up further. Newer product innovations within the segment, growing economies mainly in the developing nations where the medium size countries are on road to turn global detectors and the easy availability of the products are highlighted as the major advantageous factors for the development of the industry globally. The developing real estate trends in the emerging nations like Brazil, China, India and Indonesia is also linked as a driving force for the positive worldwide tile market. Moreover, demands from the Gulf regions for specialized tiles stay on a positive mode. This is due to the construction sector in the desert lands is keeping impressive pace.
The Indian counterpart of the industry too is estimated to behave in the same pattern and follow a positive stride. The market is forecasted to touch a value of $ 4.9 billion just in a span of 3 years from now. Hence, the sector in the country is predicted a CAGR growth of a firing 18% for the period starting from 2012 to 2017. This growth in the industry is seen as the head count of the nation is growing at a sizable rate along with the per capita income booming. The Indian construction sector is witnessing the return of speedy recovery since the slowdown period and this in particular is providing a helping hand for the tile segment.
Talking of tiling industry inIndia; the sector is divided as organized and unorganized segments. The unorganized segment includes notable players from Gujarat especially from Morbi and Rajasthan mainly from Bikaner covering almost 40% of the total market share in the country. The organized industrial set-up has many players both from the India and worldwide having around 60% share of the demands of the market. H&R Johnson is the market ruler in India having maximum business from all parts of the country; it is followed by companies like Kajaria Ceramics, Nitco Tiles and So many Ceramics.
The sector is further assisted by governmental support and export benefits, reduction of taxes and better lifestyle of the middle class. However, the industry is also estimated to face a tough competition in the coming few years as it is likely to deal with alternate products which may replace the original form.