Impact of COVID-19 on the Global Decorative Tiles Market
In March 2020, the declaration of the Coronavirus as a pandemic had resulted in lockdowns being implemented across most of the countries. The restrictions imposed by government authorities compelled the industry players to allow their employees to work remotely. However, the adoption of automated technologies to reduce human interaction in manufacturing facilities is expected to sustain production. The use of technologies has not only ensured the continuity of businesses but has also enhanced work productivity.
Several emerging and developed countries have implemented countrywide partial or complete lockdowns to maintain social distancing. The manufacture of construction-related products and the provision of related services was restricted to permitted limits during the lockdown. The production of decorative tiles was also affected, resulting in a demand and supply gap. The COVID-19 pandemic has affected the supply chains, limiting the growth of the global decorative tiles market. These factors have severely impacted the global economy and the revenue generation of the construction industry.
Real estate investments play a vital role in generating demand for construction-related products, including decorative tiles, owing to their high usage in the construction of commercial and residential buildings. The figure below shows the real estate investments in commercial buildings in China from January 2020 to May 2020, which is expected to influence the global decorative tiles market over the projected timeframe.
Real Estate Investments in Commercial Buildings in China: Year to date (USD Million)
According to the MRF analysis, the global construction industry is expected to witness slow growth in the coming year, which is likely to affect the demand for decorative tiles across the globe. The market is expected to recover in Q1 of 2021. Industry participants are likely to improve their manufacturing capabilities with the stabilizing market scenario over the projected timeframe.
Source: National Bureau of Statistics