Under the wave of globalization, Chinese products are actively entering the world market, and the waterproof industry is no exception.
The following is a detailed introduction to the overseas waterproof market and the overseas trends of Chinese companies.
North American market: high requirements, mainly polymer waterproofing, which is conducive to brand building
The markets of developed countries in North America have high quality requirements and are dominated by polymer products.
In the structure of new flat roof waterproofing products in 2016, TPO accounted for 40%, EDPM accounted for 22%, and PVC accounted for 12%.
Demand is highly resilient. The North American waterproofing market is expected to be about 300 billion yuan, with renovation and repair demand being the main demand.
The U.S. waterproofing market is worth hundreds of billions, of which the North American commercial roof waterproofing market in 2018 was about 40 billion yuan and the civilian roofing waterproofing market was about 95 billion yuan.
In terms of competition landscape, the concentration of commercial and civil roof waterproofing in the United States is higher than that in my country.
Construction spending in the United States has continued to grow since 2010, supporting the demand for waterproofing of flat roofs; non-civilian building construction in Canada is stable, and infrastructure investment growth is stable.
Middle East market: The waterproofing market is not large, but the construction boom is high
Due to the dry climate, the waterproofing market in the Middle East is not large, and is currently estimated to be in the order of billions or less.
However, the development of distributed photovoltaics may bring opportunities to increase the proportion of TPO waterproofing.
The market concentration is high, with CR6 in the Gulf region reaching 74% in 2014.
The construction demand is booming, many countries have launched medium- and long-term development plans, and it is a “Belt and Road” co-construction area, with Chinese-funded engineering companies participating in many projects.
Southeast Asian market: The market is relatively open and effective, with great potential for construction demand
The Southeast Asian market is highly open, with many multinational companies participating in the waterproofing and construction markets, and the market is relatively standardized.
Due to the humid climate, there are high requirements for waterproofing and a high effective market share.
The urbanization rate is not high, and the potential for construction demand is large. Construction demand will pick up in 2020, and waterproofing demand is expected to continue to grow.
Chinese-funded engineering companies are involved in many projects and it is an important area for the “One Belt and One Road” initiative.
Representative company: Oriental Yuhong goes overseas to welcome the new stage
Oriental Yuhong has been going overseas since 2005. All its overseas income comes from product exports and it currently has no factories overseas.
Overseas revenue in 2023H1 was 380 million yuan, accounting for 2.3% of total revenue.
The company focuses on developing countries and regions along the “Belt and Road” and participates in many key projects.
There are important milestones in its overseas history. For example, it started overseas layout in 2005, entered the Southeast Asian market in 2008, the “One Belt, One Road” initiative brought a new stage of export in 2013, and won the bid for the Singapore subway project in 2019 and was recognized by developed countries.
The company has product strength that is no less than that of foreign capital and more diligent and sophisticated service capabilities, and has established an overseas business system that drives both projects and channels.
2023 may be the starting point for a new stage of the company’s overseas expansion, and the company will be more proactive in promoting overseas channel and production capacity layout and localized operations.
Based on Southeast Asia, we focus on deepening the Middle East market and promote strategies such as overseas warehousing, investment and mergers and acquisitions, and factory construction.
It has a certain channel base in Southeast Asia and cooperates with Saudi Arabia’s leading dealers in the Middle East to break entry barriers.
In summary, Chinese waterproofing companies face different opportunities and challenges in overseas markets, but with their own advantages and continuous efforts, they are expected to achieve greater breakthroughs in the international market.
