Summary of Research Findings

The domestic market of non-residential building materials and equipment is estimated to generate 2,080 billion yen for FY2019, down 1.0% from the previous fiscal year. 
Viewing by application, building materials and equipment for offices yielded 396.7 billion yen (up 14.6% YoY), for stores 131.4 billion yen (down 21.9% YoY), for factories and workplaces 293.4 billion yen (down 23.9% YoY), for warehouses 245.9 billion yen (up 20.9% YoY), for school buildings 127.0 billion yen (down 5.5% YoY), for hospitals/clinics 128.7 billion yen (up 33.8%YoY), for accommodations 170.5 billion yen (down 4.2% YoY), for restaurants 34.4 billion yen (up 5.4% YoY), for long term care facilities 150.3 billion yen (down 2.8% YoY), and for other purposes 401.7 billion yen (up 0.2% YoY).
Considering the downturn in business environment against the backdrop of COVID-19 calamity, the market for FY2020 is expected to decrease by 9.1% from the previous fiscal year to attain 1,890 billion yen.

Noteworthy Topics

Impact of COVID-19 on the Market of Non-Residential Building Materials and Equipment

Viewing the trend of new construction starts, which has large influence on demand for the market of non-residential building materials and equipment, warehouses are relatively in good shape at the moment. In addition to the conventional demand led by expansion of e-commerce, rise in so-called ‘stay-home consumption’ has attributed to the growth of e-commerce market. For this trend, the number of construction starts of warehouse, which underpins distribution, is expected to show stable growth hereafter. 
Meanwhile, as for offices (office buildings), drop in demand is anticipated against the background of pervasion of telework as a preventive measure against COVID-19 infections. Moreover, demand is expected to diminish for building materials and equipment for restaurants due to worries for outspread of infection in downtown, voluntary restaurant closures, and pervasion of telework among office workers. Demand for building materials and equipment for accommodations is also likely to decrease because people refrain from travels or business trips, and demand by inbound (foreign tourists from overseas) vanished.

Research Outline