The prospect of new building materials can be expected

As urbanization continues to accelerate, the demand for construction materials is expected to rise significantly, creating a positive outlook for the entire industry. However, despite this optimism, experts in the field believe that traditional sectors such as cement and glass will still struggle with overcapacity and weak supply-demand balance. In contrast, new building materials are seen as a promising area with strong growth potential. Urbanization is gaining momentum, and government plans like the "Healthy Urbanization Development Plan (2011–2020)" signal a shift toward more sustainable development. National departments are preparing for the first nationwide urbanization conference, while local governments are also working on strategies to capitalize on this opportunity. For instance, Zhejiang Province is exploring a pilot system for small cities, aiming to lead the way in urban development. While urbanization boosts construction demand, the impact on downstream industries has been limited so far. With overcapacity in traditional materials, the focus is shifting toward new building materials that support modern urban infrastructure. As urbanization progresses, especially in core cities, the building materials sector is likely to undergo structural transformation, favoring energy-efficient and eco-friendly solutions. Historically, when urbanization rates exceed 50%, infrastructure investment trends shift. Japan and South Korea, for example, saw a move from traditional to innovative materials. China is now at a similar stage, with new materials like gypsum boards, waterproof coatings, and water supply systems becoming key areas for future investment. Government policies also play a crucial role in supporting this transition. The "Twelfth Five-Year Development Plan" emphasizes the need for energy-saving materials and efficient construction solutions. By 2015, the output of new wall materials was expected to surpass 65% of total production, highlighting the push toward sustainability. Companies like Jiayu Group, which specializes in energy-efficient doors, windows, and curtain walls, are well-positioned to benefit from these changes. With new buildings requiring stricter energy standards and millions of existing homes needing upgrades, the market for these products is expanding rapidly. Beixin Building Materials, a leader in gypsum board production, has already established a national presence and is expanding its capacity. Its strong market position and cost control capabilities give it a competitive edge. Meanwhile, companies developing innovative materials like space boards—lightweight, fire-resistant, and energy-efficient—are also seeing growing opportunities. In 2011, residential construction accounted for a large portion of new building areas, and this trend is expected to continue as urbanization deepens. Economic regions in the east are maturing, while central and western areas are developing new urban clusters, offering fresh growth opportunities. Overall, China is in the mid-to-late stages of urbanization. Beyond housing, there's increasing demand for commercial spaces, public buildings, and affordable housing. This suggests that the construction sector, particularly new building materials, still has significant room to grow.