Silicone sealant as a construction project and other industries, "additives", although the amount and cost of the total cost of a small proportion, but for product performance often play a decisive role, belong to the "small but fine" industry. Silicone sealant has a strong bond, tensile strength, weather resistance, vibration resistance, moisture resistance, adapt to hot and cold changes, easy to construct, etc., at the same time applicable to a wide range of scenarios, can achieve most of the building materials between the bonding of the product, because of the value of the application of the construction field. Silicone sealant for construction accounts for about 60% of all sealant consumption, is the largest application area, mainly used in building curtain wall, insulating glass, energy-saving doors and windows, assembly building, decoration and so on.

According to the "Silicone Sealant for Construction Status and Development Prospects" data, China's apparent consumption of room temperature vulcanized silicone rubber is about 1 million tons, the industry market size of about 30 billion yuan, of which the consumption of silicone sealant for construction accounted for about 58%, and the market space of silicone sealant in the field of construction is more than 15 billion yuan.2020 China's consumption structure of silicone sealant in the field of construction is as follows: 43.7% of the building curtain wall, door and window sealing, 43.7% of the door and window sealing, and the largest application area. 43.7%, doors and windows sealing and decoration accounted for 35.8%, insulating glass processing accounted for 20.50%.

National infrastructure development needs to promote the growth of the construction adhesive market, the growing demand for environmentally friendly products is the latest trend, green energy-saving building regulatory requirements, is promoting the demand for environmentally friendly construction sealant. The future construction silicone sealant market will mainly benefit from the following four aspects:

01 real estate as a pillar industry short-term pressure, but the market size is still considerable.

Building silicone sealant demand trends affected by real estate investment and development, in recent years, China's real estate development investment to maintain steady growth, real estate development investment accounted for about 13% of the total domestic GDP. As the pillar industry of China's national economy, the impact of real estate regulation, real estate investment short-term pressure.

Since 2022, the national level of real estate regulation and control of policies/events frequently, the Central Politburo meeting for the first time proposed to "support local real estate policies from the local actuality, support rigid and improved housing demand, optimize the supervision of pre-sale funds of commodities," laying down a period of time in the future of real estate regulation and control of the relaxed tone. Keynote.

In May, the central bank has lowered the lower limit of the first suite lending rate and five-year LPR, is the current round of control relaxation in the national policy with substantive benefits, relaxation-oriented signals are obvious, fully reflecting the central government to support the rigidity and improvement of housing demand, stabilizing the real estate market's determination. Real estate as a pillar industry short-term pressure, but the overall size of the market is still considerable, building silicone sealant potential market demand is stable.

02 developers to increase the concentration and collective procurement trend, the construction of silicone sealant market concentration increased.

According to the China Real Estate Association released the "2022 China Real Estate Development Enterprises Comprehensive Strength TOP500 Measurement and Evaluation Research Report", in 2021, the sales amount of the top 10, top 50 and top 100 real estate enterprises accounted for the proportion of the sales amount of the top 500 is about 30%, 65%, 83%, the head of the real estate enterprises still occupies the scale advantage.

China's consumption upgrade driven decoration, decoration industry upgrading, leading enterprises focus on decorative materials brand, began to specify the brand, the downstream real estate and building curtain wall industry to accelerate the collective procurement mode, only with brand, service, capital advantage of leading building materials suppliers to enter the collective procurement list, the procurement share of the head of the supplier concentration is obvious, to the sealant high-quality manufacturers to increase the share of procurement, the construction of organosilicon Sealant leading brand power appears.

At the same time, as the country continues to increase in environmental protection and low-end production capacity limitations, have introduced restrictions and elimination of backward products and capacity, increase the strength of environmental protection inspections of the policy, silicone downstream industry potential entrants have been reduced, and the number of existing enterprises continue to shrink. The promotion of the policy accelerated the high-quality development of the domestic silicone industry, the realization of the silicone industry chain from primary processing to high-value-added product development changes, and accelerate the low-end production capacity production line out, is conducive to the strong financial strength, technical precipitation of the industry's leading companies to further expand market share and advantages.

03 assembly building policy continues to increase, rapid growth of market segments.

In 2020, China's new assembly construction area of 629 million square meters, a year-on-year growth of 50%, accounting for 20.5% of new construction area, exceeding the "13th Five-Year Plan" assembly building action program "2020 new construction accounted for more than 15% of the target. 2021, the country's new assembly building area of 740 million square meters, a year-on-year growth of 50%, accounting for 20.5% of new construction area. In 2021, the newly-constructed assembled building area nationwide will reach 740 million square meters, which is higher than that in 2020.