Construction Plastics Market - Forecast(2024 - 2030)
Construction Plastics Market Overview
Construction
plastics market size is forecast to reach US$104.7 billion by 2027, after
growing at a CAGR of 5.3% during 2022-2027. The construction plastics market
has been expanding globally owing to the enhancements in infrastructure standards.
The unavailability of substitutes for high-quality construction plastics is
also driving the market growth. Construction plastics such as high density
polyethylene (HDPE), expanded polystyrene (EPS), polyethylene terephthalate
(PET), and polyvinyl chloride (PVC) is not only used in pipes and furniture,
but also in temporary staircases and dismantlable sections on construction
sites. Increase in the trend of making convertible sections in residential buildings,
and rise in recognition of recycled plastics is growing the demand for the
global construction plastics market. The use of construction plastics in
addressing many issues related with thermal conductivity, scratch resistance, insulation,
durability, flexibility, and design freedom, is expected to propel the
construction plastics market during the forecast period.
COVID-19 Impact
The
COVID-19 outbreak widely affected the construction plastics market over the year 2020. The manufacturing
process of various products in the end-use industry declined due to the
non-functioning of the manufacturing plants, during pandemic lockdown norms.
The sales of different raw materials have also witnessed a halt during this
period. Economies of each sector got affected and resulted in stagnation of
activities across the end use industries that uses construction plastics. For
instance, according to the journal by The Electrochemical Society, on “the
impact of COVID-19 in the construction sector and its remedial measures”, from
the 1st quarter to the 2nd quarter of 2020, gross domestic product (GDP) from
construction in Italy declined from 15803.80 EUR million (US$ 17,916.8 Million)
to 12168.40 EUR million (US$ 13,796.5 million). Thus, once the building and construction
activities get back on track and start functioning with total capacity, the
market for construction
plastics is estimated to incline in the upcoming years.
Report Coverage
The report: “Construction Plastics Market – Forecast (2022 - 2027)”, by IndustryARC, covers an in-depth analysis of the following
segments of the construction plastics industry.
By Plastics
Type: Acrylic,
Composites, Expanded polystyrene, ETFE, Polycarbonate, Polyethylene,
Polypropylene, Polyvinyl chloride (PVC), and Others.
By Application: Insulation Materials, Windows & Doors, Pipes,
Flooring, Roof Coverings, and Others.
By End User:
Residential
Construction (Independent homes, Row homes, Large apartment buildings), Non-Residential
Construction (Commercial Construction, Industrial,
Infrastructure), and Others.
By
Geography: North America
(U.S.A., Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands,
Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India,
South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest
of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South
America), Rest of the World (Middle East and Africa).
Key Takeaways
- The Asia Pacific
dominates the construction plastics market
owing to the rising growth and increasing investments in the construction
industry. For
instance, the building and construction industry with an increase of about 4.2%
reached about US$ 11.9 trillion in 2020 from 2019, according to the World Bank.
- The rising demand for construction plastics in residential sector, due to
its usage as a
protective material or as a barrier to sound, moisture, water, and in other
applications, has been a critical factor driving the
growth of the construction plastics market in the upcoming years.
- However, the environmental effects of construction plastics can hinder the growth of the construction plastics market over the forecast period.
Figure: Asia-Pacific Construction Plastics Market Revenue, 2021-2027 (US$ Billion)
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Construction Plastics Market Segment Analysis – By Plastics
Type
The
polyvinyl chloride (PVC) segment held the largest share in the construction plastics market in 2021. Polyvinyl chloride plastic is
widely used in the construction applications such as pipes, cables, flooring,
window profiles, and roofing. PVC enhances the quality, cost-effectiveness, and
safety of the construction materials, and also, have a less environmental
effect, as compared to other construction plastics such as acrylic, composites,
polypropylene, and other plastics. Polyvinyl chloride exhibits properties,
such as thermal conductivity, scratch resistance, durability, insulation, flexibility,
and design freedom. Thus, the growing demand for PVC plastic, in construction sector,
will drive the demand for construction plastics market over
the forecast period.
Construction Plastics Market Segment Analysis – By Application
The flooring segment held the largest share in the construction plastics market in 2021. Construction plastics are majorly used to provide extreme toughness, and abrasion resistance to the floors. Construction plastics materials such as polyvinyl chloride (PVC), polyethylene terephthalate (PET), and polyethylene (PE) are used to prevent wear and tear of flooring. Construction plastics flooring can also be cleaned easily. In industrial or commercial sectors, for flooring applications, construction plastics can be used in airplane hangars, hospitals, commercial stores, garages, and others. The rising investments in construction projects, will drive the market growth. For instance, according to the Government of Canada, the Government of Ontario, in 2021, announced the investment of up to US$41.8M for the construction of the new Grey Bruce Health Services Markdale Hospital. Thus, such investments will drive the demand for flooring applications and will raise the growth of the market over the forecast period.
Construction Plastics Market Segment Analysis – By End-User
The non - residential construction segment held the largest share in the construction plastics market in 2021 and is estimated to grow at a CAGR of 6.2% during 2022-2027. Construction plastics are majorly used for thermal insulation, carpet, window and door frames, and piping in buildings. Construction plastics can be utilized in showrooms, manufacturing plants, hospitals, retail stores, and others, in non - residential construction sectors. The increasing investments in non - residential construction, will drive the market growth. For instance, in 2019, Larsen & Toubro, won projects for building manufacturing capacity, commercial complexes, and hospitals, costing between US$ 336.6 million to US$ 673.2 million, in India. Thus, such investments will drive the demand for non - residential construction plastics segment and will increase the growth of the construction plastics market over the forecast period.
Construction Plastics Market Segment Analysis – By Geography
Asia-Pacific region dominated the construction plastics market with a share of 37% in the year 2021. The Asia Pacific region is predicted to continue its dominance in the market during the forecast period due to the increasing requirement for construction plastics in developing countries such as China, Japan, India, and South Korea. China is estimated to continue its dominance in the construction plastics market, due to the growth of the construction industries, during the forecast period. India is also predicted to increase their construction plastics market during the forecast period, with the rise in investments by the government in construction industry. For instance, in 2021, Union Minister of Road Transport Highways, invested US$ 3.4 billion, to launch 1,080 km road construction projects in Gujarat under the Bharatmala Pariyojana. Construction plastics are used for applications such as insulation materials, flooring, roof coverings, and others. Thus, the rising usage of construction plastics, will drive the market growth in the forecast period.
Construction Plastics Market Drivers
Rise in Usage of Plastics in the Construction Industry is Expected to Propel the Market Growth
Plastics are used in construction industry due to their light weight, due to which it is easier to transport and handle the construction plastics. Construction plastics are resistant to rotting and corrosion, and are also weather resistant. Plastic can be flexible, easily extruded, moulded, and bent. Therefore, construction plastics are usually used in pipes, coverings, cables, panels, sheets, and films. The demand for plastics such as polyethylene terephthalate (PET), expanded polystyrene (EPS), and polyvinyl chloride (PVC), will rise with the growth of building and construction activities in emerging economies. For instance, according to Invest India, by 2025, the building and construction industry is estimated to reach US$ 1.4 Tn. Thus, with the growth of the construction sector, the market for construction plastics is anticipated to propel over the forecast period.
Surge in Demand for Residential Construction is Driving the Market Growth
The residential construction segment is growing by increasing investments and funding in the residential construction. Construction plastics are utilized in residential construction industry as a protective material or as a barrier to sound, moisture, water, and in other applications. Globally, the rise in housing projects launched by the governments, is driving the residential construction segment growth. For instance, according to the Invest India, in 2021, total of 91.5 lakh houses were grounded for construction and 53 lakhs houses were completed, out of 1.14 Cr sanctioned houses. Thus, with the increasing housing projects in residential construction sector, the market for construction plastics is anticipated to propel over the forecast period.
Construction Plastics Market Challenges
Environmental Effects of Construction Plastics Will Hamper the Market Growth
The
most widely used plastics in construction sector are high density polyethylene
(HDPE), expanded polystyrene (EPS), polyethylene
terephthalate (PET), and polyvinyl chloride (PVC). Construction plastics
are utilized for different applications such as seals, doors, pipes, windows, cables,
insulation, and floor coverings. The main challenge of construction plastics is
segregation, reuse, and recycle of plastic waste. Construction plastics materials
takes up to 1,000 years to degrade in landfill, creating land and water
pollution. Additionally, plastics are degraded under direct sunlight which decreases
their mechanical strength, also, thermoplastics creeps and softens at moderate
temperatures. Thus, the environmental effects of construction plastics will
hamper the market growth.
Construction Plastics Industry Outlook
Technology launches, acquisitions, and R&D activities are key strategies players adopt in this market. Construction Plastics top 10 companies include:
- DowDuPont
- BASF SE
- Asahi Kasei Corporation
- LyondellBasell Industries Holdings B.V.
- Borealis AG
- Solvay S.A.
- Saudi Basic Industries Corporation (SABIC)
- Berry Plastics Corporation
- Total S.A.
- Security Matters,
Ltd
Recent Developments
- In April 2020, BASF and Security Matters, Ltd collaborated to accelerate progress towards a circular economy for plastics, to improve the traceability and sorting of plastics in the value chain.
Relevant Reports
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Growth And Forecast 2021 - 2026
Report Code: CMR 53040
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