Market Overview

Size of the waterproofing materials market (based on the floor area) for FY2019 is estimated at 82,826,000 square meters, 99.4% of that of the previous fiscal year. Although the market grew in FY2018 against the background of stable demand for new building construction and special demand for maintenance/refurbishment of buildings after the disasterous typhoon,  it turned to worth in FY2019.

Noteworthy Topics

Waterproofing Materials Market Trends Amidst COVID-19 Crisis

While the construction works for new buildings continued in FY2020, the demand for waterproofing materials remained stable. Despite the influence of 2020 declaration of state emergency that led to temporal suspension and/or delays and changes in schedule, construction works were mostly on schedule. 
On the other hand, spread of the COVID-19 infections impacted the demands for waterproofing material used for refurbishment considerably. Since refurbishment requires shorter time for customer negotiations and construction compared to time needed for construction of new buildings, quite a few refurbishment projects had been postponed or cancelled. The number of postponements and cancellations rose particularly in condominium refurbishments. Because decisions could not be made without condo association board meetings or resident representative’s board meetings, and condominiums with no urgent need for repairs took a wait-and-see attitude during the pandemic, much of the refurbishing projects were rescheduled or cancelled. Similarly, refurbishment projects were put off or cancelled for non-residential buildings like office buildings and manufacturing plants, due to reduced motivation for capital investments. 

Future Outlook

Waterproofing materials market (based on the floor area) is projected to attain 79,662,000 square meters for FY2020, 96.2% of the previous fiscal year.
Future trends for the waterproofing materials market exhibit different aspects for new build and refurbishment. 
Before the outbreak of COVID-19, the demand for new build was fueled by rejuvenation projects of metropolitan areas and construction of accommodations for inbounds (foreign tourists visiting Japan). Nonetheless, pandemic caused a sharp drop in demand, making it difficult for makers to anticipate rise in demand for new build. Moreover, as manufacturer’s sentiment declined for capital investments like plant construction, it is assumed that recovery takes time for new build demand.
In the refurbishment market, from a short-term perspective the demand is vulnerable because refurbishment projects are subject to postponement or cancellation in the event of unexpected circumstances like COVID-19. Meanwhile, in view of a long-term perspective, it should be noted that refurbishment is inevitable as all buildings need waterproofing maintainenance, at one point or another, to improve property value. 

Although the waterproofing market experienced a demand decline for refurbishment in FY2020, it carries a strong sense of ‘postponement’ rather than demand loss. As a matter of fact, from the latter half of FY2020, business inquiries to waterproofing material makers are multiplying, and it is recovering faster than the demand for new build. Therefore, as an entire market, a rise in demand for refurbishment is expected to cover the loss in demand for new build.

Research Outline