Faucet Market Trends

Growth Drivers

• Escalating advancement - Other reasons driving faucet industry growth include a variety of product advancements, such as the creation of digital, hybrid, and touch-free smart faucets with temperature gauges and efficiency sensors built in. An LED temperature display, for example, is included with the GROHE Plus smart faucet, as it reinterprets what variety means.

• Government aiding the population to build their home in a few regions - Various schemes have been put in place by governments of different countries around the world to ensure that there are concrete homes for people with a middle class or lower income.

For example, to overcome the current shortage of about 6 million housing units, India's Government is planning to build around 11 billion houses and developments. Moreover, by 2022, the Government intends to provide housing for all India's citizens. In the range of 5 to 6 million units, the need for housing is almost equally distributed in urban and rural areas, with the majority of these dwellings being affordable.

In addition, the Smart Cities Mission announced by the Indian Government calls for a spending of USD 7.75 billion over the next five years to build 100 such smart cities in India. As a result, with the advent of new residential and commercial buildings, demand for faucets and other products is expected to increase substantially.

• Demand for modern bathroom accessories - The increasing popularity of modular bathrooms has led to increased customer demand for modern, ceramic sanitary ware, and high-quality built-in bathroom appliances.
  
  The is therefore expected to grow over the forecast period, driven by an increase in faucet usage in modern bathrooms. Out of the 970,000 single-family houses finished in 2021, 27,000 had one and a half baths or less, and 320,000 had three or more bathrooms, according to the U.S. Census Bureau.

Challenges

• Price sensitivity issues - Especially in developing economies price is a major factor for many faucet buyers. This can put pressure on manufacturers to keep costs down which might impact quality or innovation.
• Shifting consumer preferences is a notable factor hindering market growth in the upcoming period.
• Competition from alternatives is another factor hampering the faucet market growth.