Faucets Market

Market Overview

The global faucets market size was valued at USD 43,927 million in 2021. It is expected to reach USD 88,554 million by 2030, growing at a CAGR of 8.1% during the forecast period (2022–2030).

A faucet is a part of a plumbing system that lets water flow in or out. It can have a spout, one or more handles, a lift rod, a cartridge, an aerator, a mixing chamber, and one or more water inlets. The body of a faucet is usually made of brass, but it can also be made of zinc that has been die-cast or chrome-plated plastic. Bathroom faucets are one of the smart accessories that consumers and manufacturers are paying more attention to. With the help of new technologies, companies are making a wide range of digital and electronic faucets for homes and businesses. One of the main things that drive the growth of the global faucet market is the rise in consumers' disposable income. The market for trendy and smart bathroom accessories is likely to grow as home remodeling becomes more popular and more people use them. During the forecast period, the growth of the global faucet market is also expected to be helped by the introduction of sensor-based bathroom faucets. These faucets are meant to improve hygiene and save water.

Market Dynamics

Market Drivers

• Increase in the Number of Household Units Globally

The rise of nuclear families has led to fewer living arrangements with extended families and a gradual rise in the number of households. In 1850, almost 70% of people over 65 lived with their grown children. By 2000, less than 15% did that. Changes in society at a deeper level, like industrialization, urbanization, rising living standards (especially for older adults), and less immigration, have led to more households worldwide. The governments of many countries worldwide have set up programs to help middle-class and low-income people get concrete homes.

For example, the government of India wants to build about 11 billion housing units, including projects to make up for the current shortage of about 6 billion units. Also, the government wants to give all Indian citizens a place to live by 2025. The 5–6 crore units of housing that are needed are almost equally split between cities and rural areas, and most of them are cheap houses. Also, the Indian government's Smart Cities Mission calls for USD 7,750 million to be spent over the next five years to build the 100 smart cities planned for India. Therefore, the demand for faucets and other products will likely increase as new homes and businesses open.

Also, builders have started to realize how important it is to have bathrooms with a high-end look as the demand for these units grows. People are buying more high-end and technologically advanced products as their incomes and spending habits improve worldwide. Real estate players get better returns on high-end flats, so they are building apartments with high-end features like automated faucets.

• Rise in Urbanization

Urbanization is happening because people are moving to towns and cities to find jobs. The United Nations says that most regions are now becoming more urbanized. Nearly 54.8% of the world's people live in cities and towns. People's lives have changed as the number of people living in cities has grown. With more single-parent families, especially in developing countries, and more people living in cities, there is a massive demand for faucets.

In the coming years, there will be more demand for sanitary ware because more people will live in cities and care about basic sanitation. India could become the biggest middle-class consumer market in the world if consumer spending keeps going up. This group is becoming more open to international ways of living, driving demand for modern amenities.

Market Restraint

• Availability of Counterfeit Brands

Since the faucet brands like Delta, Grohe, Kohler, Peerless, Moen, and others sell for a lot of money and are very popular, there are now fake versions of these brands. Most counterfeit brands are found in developing economies, where people are very price-conscious. This makes it harder to sell the original brands of faucets in these areas. Fake brands are not very good and often cause inconveniences and safety problems that make customers feel wrong about the brand. One of the main ways that fake brands can be sold without being noticed is through online distribution channels.

Such fake products give consumers a bad impression of faucet products, which slows the market growth. More faucets are being sold in the US and Canada that have not been tested. By a wide margin, most manufacturers and suppliers of fake goods come from Mainland China. In 2000, only three Asian companies, Huntington Brass, Kingston Brass, and Santec, sold faucets in the US and Canada. These companies got their faucets from Taiwan, which were thoroughly tested, legal, and of good quality.

International payments are much easier than they used to be. With services like PayPal and AliPay, making safe and reliable international payments with just one click or using a credit card is easy. Major U.S. credit cards that are worth dollars are the most common form of payment around the world. So, the growth of the faucet market is likely to be slowed by the growth of the fake industry.

Market Opportunities

• Development of Smart Faucets

Smart home technologies, such as smart faucets, bathrooms, and electronic appliances, have become more popular among consumers. Smart faucets are becoming more and more common in smart homes. These products come with various motion sensors, touch sensors, and temperature gauges that let people control and keep an eye on how much water is used in the kitchen and bathrooms. Also, these products have hands-free technology that works with different sensors and the internet. This makes the customer's life more luxurious, connected, and accessible.

Touchless faucets are essential for the environment because they help people save water at home and in businesses. People waste some water when they use regular faucets, even though they do not mean to. These technological products can help stop these small amounts of water from being wasted. During the forecast period, smart faucets will likely be more valuable because of the abovementioned factors.

• Increased Demand for Smart Faucets

The growth of the market is likely to be helped by the rise of the hospitality industry in developing economies like the US, France, Japan, Germany, and others. From 2021 to 2024, the US Department of Commerce and the International Trade Administration say that foreign travel in the US will grow at 3% per year.

The travel and tourism industry is expected to grow a lot, which helps the hotel industry in the US grow, which is expected to help the electronic faucet market grow. Rosewood Hotels & Resorts, for example, continues to grow worldwide with rosewood residence projects. The company already has 15 high-end housing projects, and another 14 are in the works. Also, the company's 150-room hotel in Texas, the US, is expected to open by the end of 2023. The demand for electronic faucets in the country is expected to go up in the next few years because of these buildings by major players.

Regional Analysis

Region-wise, the global faucets market is primarily segmented into North America, Europe, Asia-Pacific, and LAMEA.

Predominance of Asia-Pacific Over Other Regions

Asia-Pacific is the most dominant region in the global faucets market and is estimated to grow at a CAGR of 8.9% by 2030. During the forecast, Asia-Pacific will likely build more homes and businesses, leading to high demand for faucets. The government has pushed forward with many housing construction programs in China, India, Indonesia, Singapore, and other emerging economies. For example, the Government of India reports that the Indian government launched the Pradhan Mantri Awas Yojana (PMAY), which aims to create 20 million affordable homes and is intended to provide housing for the urban poor population. According to estimates, the increased government backing for home construction will increase demand for faucets in Asia-Pacific.

Europe is the second-largest market for faucets worldwide. It is expected to reach a market value of USD 13,434 million by 2030, growing at a CAGR of 8.5%. This is mainly because hotels, restaurants, and other businesses are deploying faucets rigorously. The need for distinctive and elegant faucets is expected to increase as hotels and restaurants expand across Europe. The hospitality industry is becoming more competitive, prompting owners of hotels and restaurants to repair and redesign their properties. The need for attractive faucets has been rising among businesses, including hotel chains, eateries, lodges, etc.

North America will likely witness an increased demand for faucets due to the rising number of commercial buildings. Commercial constructions include restaurants, grocery stores, skyscrapers, shopping centers, sports facilities, hospitals, private schools, universities, etc. This has been helping the market for faucets to grow. Dynamic shifts in consumer preferences and a rising propensity for a high standard of living are expected to encourage consumers to install new, technologically advanced faucets in their homes and businesses. Additionally, rising luxury housing investments have been continuously assisting in the market's expansion in North America.

Segmental Analysis

The global faucets market share is segmented by product type and material.

Product Type-Wise

Te global faucets market is segmented into Electronic and Manual.

Manual Faucets account for the largest market share and are expected to grow at a CAGR of 7.5% during the forecast period. The manual growth of the faucets market is because more apartments and commercial spaces are being built, homes are being remodeled, and old faucets are being replaced. With the popularity of updated bathrooms and coordinated sanitary ware, fittings, and accessories on the rise, the key players on the market are offering a one-stop shop for all sanitary ware and fitting equipment.

The valve on an Electronic Faucet can be opened and closed without using your hands. It is used a lot in modern bathrooms and kitchens. The electronic faucet is a great way to save water and keep things clean. It does not need to be touched, is environmentally friendly, gives you more pleasure from water, responds quickly, and makes you safer by improving hygiene; with this, the Electronic sub-segment is expected to grow rapidly.

By Material-Wise

the global faucets market is classified into Metal and Plastics.

Metal Faucets are the largest market shareholder and are expected to grow at a CAGR of 7.7% during the forecast period. Metal faucets can be mild steel, brass, zinc, stainless steel, and other materials. Mild steel is inexpensive but rusts easily. Most sinks are made of galvanized materials like these. Due to its high cost and tendency to rust, however, metal is giving way to other materials for faucets. Also, metal faucets are hard to sell because they are heavy and come in only a few shapes and sizes. It is the most popular material for making high-quality faucets because it can be used in many ways and looks nice.

Plastic Faucets are expected to gain a lot of popularity in the global faucets market during the forecast period. Plastic faucets are used more often in public or government buildings, where water taps, such as government offices, public toilets, and other places. This is mainly because plastic faucets last longer. Most of the time, plastic faucets are used in homes, public, and portable toilets (Slums) for cleaning, maintenance, and repairs.

Recent Developments

• June 2022- Lixil Group Corporation established its first public sector engagement platform to strengthen the collaboration on water, sanitation, and hygiene.
• May 2022- Franke Group and the Artemis Group announced that the company had significantly increased net sales and profits.
• May 2022- Masco Corporation announced a whopping USD 500 million accelerated share repurchase to its shareholders.
• April 2022- Fortune Brands Home and Security Inc. announced a partnership with Yellowstone Forever to support the Yellowstone National Park in the US.