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Government Energy Saving Codes Drive Demand for Thermal Insulation Materials in the Chinese Building Industry - New analysis from Frost & Sullivan, Chinese Thermal Insulation Materials Markets for the Building Industry, finds that the market earned revenues of $3.18 billion in 2007 and estimates this to reach $7.70 billion in 2014
Government Energy Saving Codes Drive Demand for Thermal Insulation Materials in the Chinese Building Industry

 

PRZOOM - /newswire/ - Beijing, China, 2008/01/23 - New analysis from Frost & Sullivan, Chinese Thermal Insulation Materials Markets for the Building Industry, finds that the market earned revenues of $3.18 billion in 2007 and estimates this to reach $7.70 billion in 2014.

   
 
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The Chinese thermal insulation materials market for the building industry is witnessing robust growth, thanks largely to the increasingly stringent government energy saving codes. Regulations constituted by the State Department in 2004 aim to save 50 percent energy in all new buildings, 65 percent energy in new buildings in colder districts, and the four municipalities, which are directly under the jurisdiction of the Central Government.

New analysis from Frost & Sullivan (chemicalsandmaterials.frost.com), Chinese Thermal Insulation Materials Markets for the Building Industry, finds that the market earned revenues of $3.18 billion in 2007 and estimates this to reach $7.70 billion in 2014.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the Chinese Thermal Insulation Materials Markets for the Building Industry, then send an email to Amelia Wong, Corporate Communications, at amelia.wong[.]frost.com, with your full name, company name, title, telephone number, fax number, and email address. Upon receipt of the above information, an overview will be sent to you by email.

"Government energy saving initiatives and related building policies are driving the usage of thermal insulation materials in buildings," notes Frost & Sullivan Research Analyst Rodger Yang. "China became the second largest oil consumer in 2007, further strengthening the government's resolve to regulate energy consumption."

Furthermore, increasing disposable incomes and the government's emphasis on urbanization have together initiated a boom in the Chinese building construction market. According to the forecast by the Ministry of Construction of the People's Republic of China (MCPRC), new housing and commercial buildings area will increase up to 2.00 billion square meters in the coming years, which is proportional to half of the total number of new buildings world wide. Simultaneously, new homebuyers are becoming increasingly aware of saving energy in buildings.

Notwithstanding these drivers, increasing competition has had a significant impact on prices. Since 2002, the prices of thermal insulation materials for the building industry have reduced by 20 to 50 percent.

"This apart, increasing energy and raw material costs are also adversely impacting profit margins," says Yang. "For instance, while oil prices have nearly doubled between August 2003 and August 2007, there was a considerable drop in the prices of thermal insulation materials during the same period."

Given the increasing competition levels, it is imperative that market participants adopt a strong brand strategy. A well-known brand will not only help negate low-end and virulent price competition, but also ensure wider market reach.

Chinese Thermal Insulation Materials Markets for the Building Industry, is part of the Chemicals & Materials Growth Partnership Service program, which also includes research in the following markets: U.S. Thermal Insulation Materials Market for the Building Industry and European Inorganic and Renewable Resource Thermal Insulation Markets. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

About Frost & Sullivan
Frost & Sullivan, the Global Growth Consulting Company, partners with clients to accelerate their growth. The company's Growth Partnership Services, Growth Consulting, and Career Best Practices empower clients to create a growth focused culture that generates, evaluates, and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses, and the investment community from more than 30 offices on six continents.

 
 
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Government Energy Saving Codes Drive Demand for Thermal Insulation Materials in the Chinese Building Industry

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