Thailand Fiber Cement Market Research Report: Forecast (2023-2028)

Market Definition

Fiber cement is a composite building & construction material used mainly in roofing & facade products &is made up of Portland cement, sand, water, and cellulose fibers. The high level of strength, durability, low maintenance, and environmental friendliness associated with it due to the use of recycled & sustainable products.

Market Insights

The Thailand Fiber Cement market is projected to grow at a CAGR of around 4.34% during the forecast period, i.e., 2023-28. This is owing to the increasing number of green & sustainable buildings in the country, combined with the rising awareness about this cement as a comparatively cleaner alternative to traditional construction raw material, etc. The growing inclination of the population & government toward clean & green solutions is thus accelerating the adoption of this cement among construction companies and residential & non-residential real-estate developers.

The construction sector of the country is witnessing major developments, such as the spike in the number of residential units. This is the result of the rising per capita income of the country. In addition, the increasing population in urban areas is raising the need for residential & commercial buildings, which is further supporting the demand for this cement products & would continue to do the same in the forthcoming period. Moreover, the growth of the industrial & commercial infrastructure in the country, including new construction & refurbishment is supported by government initiatives. This is done to level up the economic conditions of the nation, which further is expected to create market opportunities for fiber cement in the upcoming period. For instance,

• In 2022, the Transport Ministry of the country announced an investment of around USD42.61 billion in 37 infrastructure projects. This includes the construction of the Nakhon Phanom Cross-Border Logistics Centre & the refurbishment of Don Mueang, Chiang Mai, Chumphon, and Ranong airports for approximately USD1.73 billion.

Thus, the high growth rate of the construction sector of the country primarily focused on the development of sustainable infrastructure combined with the eco-friendliness associated with fiber cement, would positively impact the market in the following years.

Market Dynamics

Key Driver: Government Initiatives Toward Green Solutions

The government of Thailand has been progressively improving its efforts to enhance the sustainability level of the country & reducing its carbon footprints necessitated by climate change. Thailand aims to reduce its greenhouse gas emissions by 30% by 2030 compared to the business-as-usual scenario. This includes reforms in areas such as human settlement & security, tourism, agriculture, natural resources, health, and water. This is further leading to the emergence of Thailand as a model of green buildings in Asia.

Moreover, technical assistance & stakeholder engagement provided by UN Environment plays a crucial role in promoting sustainable & energy-efficient buildings that reduce greenhouse gas emissions. Such assistance under the program NAMA (Nationally Appropriate Mitigation Actions) announced for the building sector in Asia is supporting the development of government-led interventions to enrich investment in energy-efficient & green buildings. This would further support the demand for fiber cement in Thailand during the forecast period.

Possible Restraint: Labor Shortage Faced by the Country

The economy of Thailand has been witnessing a lack of efficient workforce in the historical years. This includes a range of skilled, unskilled, and managerial workforce in different industries such as construction, manufacturing, etc. Also, the requirement of skilled workers in the manufacturing of fiber cement, including knowledge of production processes, equipment operation, quality control, and safety protocols, combined with the high requirement of workers in the construction sector, would hinder the growth of the market in the forthcoming years.

Key Trend: Mounting Innovations to Reduce the Carbon Footprint of the Cement Industry

Thailand is one of the largest producers of Cement in Asia, manufacturing approximately 33 million tons of carbon per year. At the same time, the industry in the country is responsible for more than 30 million tons of greenhouse gas emissions annually. Thus, this high rate of carbon emissions linked with the cement industry has been raising the focus of major players in the industry to innovate & decarbonize this hard-to-abate industry. For instance,

• In 2022, Siam Cement Group (SCG) signed a memorandum of understanding (MoU) with Nippon Steel Engineering Co., Ltd (NSE) & Thai Nippon Steel Engineering and Construction Corporation, Ltd. (TNS) to conduct a study to demonstrate the carbon capture & utilization (CCUS) from cement plants exhaust gas in Thailand & Southeast Asia, intending to promote Japanese CCUS technology.

This was done to lower the carbon dioxide (CO2) levels emitted by the cement industry. Hence, this growing focus of companies toward the decarbonization of the sector is augmenting the growth of the fiber cement demand in the country & is expected to do the same in the coming years owing to the eco-friendliness of the product due to the involvement of a low level of carbon footprint.

Market Segmentation

Based on Material:

• Cellulosic Material
• Portland Cement
• Sand

The use of Portland cement for making Fiber Cement was high in Thailand during the historical period due to the booming construction & infrastructure industries in the country. The high binding properties of cement make it a common building material used to provide strength to structural elements. This makes it a popular choice for construction projects, such as bridges, dams, high-rise buildings, and residential & industrial complexes, which were being constructed rapidly in Thailand. Additionally, the suitability of Portland cement for agriculture, marine, and chemically aggressive environments, as well as deep pour foundations like those required for wind farms, would support the market development in Thailand during the forthcoming period.

Based on End User:

• Residential
• Non-residential

The Residential Sector of Thailand witnessed considerable growth during the historical period owing to the raised development of residential construction in the country combined with the acoustic & thermal insulation properties of fiber cement. This made it a preferred material for residential buildings in Thailand, owing to the prevalence of high rates of temperature & high humidity temperature. Additionally, easy installment & low labor cost makes them attractive to builders & homeowners. In addition, the rising disposable income & growth in home renovation projects would further fuel the demand for this cement in the residential sector in the following years.

Based on Production Process:

• Hatschek Process
• Extrusion Process
• Perlite Process

The Hatschek process acquired a considerable share in Thailand’s market for the manufacturing of fiber cement products owing to the production of high-quality, uniform products cost-effectively & efficiently. The suitability of the process to the local manufacturing environment, which often involves smaller-scale production facilities that require flexible & adaptable manufacturing processes. Hence, supporting the growth of the hatschek process in manufacturing fiber cement products. Additionally, the hatschek process can be easily customized to produce a wide variety of products, ranging from roofing tiles to wall cladding to decorative panels, combined with the requirement of flexibility in the Thai market owing to the variations in building designs & construction methods would augment the growth of this segment in the forthcoming years.

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