Building and Construction Plastics Market

Market Overview

The global building and construction plastics market was valued at USD 130.16 billion in 2021. It is expected to reach USD 239.29 billion by 2030, growing at a CAGR of 7% during the forecast period (2022–2030).

Plastics are used in the building and construction industry for various purposes, including window frames, insulation, and interior design. Plastics are suitable for various building and construction products due to their strength, lightweight, corrosion resistance, flexibility, and processability. Building and construction plastics make most safety products, including automatic firefighting systems, smoke detectors, and alarms. Polyvinyl chloride (PVC) is a popular polymer used in the building and construction industry and has excellent fire performance characteristics. Plastics require little maintenance and are not only simple to install and use. In addition, considering the malleability of plastics, the pipes can adapt to the shifting of the soil.

Market Dynamics

Global Building and Construction Plastics Market Drivers

Growing Construction Industry

Plastics used in building and construction are frequently used in applications such as roofing, insulation, pipes and ducts, doors, and windows. These plastics are increasingly being used in construction applications thanks to their moldability, impact strength, and availability in optically transparent grades. The expansion of the global construction industry primarily drives the demand for building and construction plastics.

Additionally, the United States, the United Kingdom, Indonesia, China, India, the United Arab Emirates, and Saudi Arabia have all made significant contributions to the growth of the global construction industry. The governments of the nations above have been encouraged to increase their construction spending to accelerate infrastructure development through rising industrialization and growing populations. Consequently, rising construction spending will be anticipated to generate a lucrative demand for building and construction plastics over the forecast period.

Rising Demand for Green Buildings

Green structures have become more and more preferred over traditional ones in recent years. Plastics are used in the building industry to save energy. The demand for green buildings is fueled by lower operating costs, better air quality, renewable energy, efficient energy and water use, and a lighter overall load on metal structures than conventional buildings. Social influences like fostering a sense of community, enhancing occupant health and well-being, and promoting sustainable business practices increase green buildings' growth.

Plastic is used in many green building applications, including pipes, windows, floors, roofs, insulation, and fire sprinklers. Due to the rising demand for green buildings, the market for building and construction plastics is anticipated to grow significantly over the forecast period. Building and construction plastics have several qualities that are expected to increase demand for them in green buildings, including superior corrosion resistance, ease of installation, light weight, durability, ease of transport, ease of handling, and high-temperature resistance.

Global Building and Construction Plastics Market Restraints

Variable Prices for Raw Materials

Hydrocarbon fuels like crude oil, natural gas, and coal are significant raw materials used in building and construction plastics. Natural gas, which can be found in the area for a meager price and is a significant component of the production of polyethylene (PE), is a necessity in North America. Due to this, PE producers in the region maintain a fiercely competitive resins market and export in significant quantities. Future shifts in supply and demand are predicted to cause price volatility for building and construction plastics in all international markets.

Most raw materials, including ethylene, propylene, and other chemicals, are made from crude oils. These monomers are further processed to create various polymers, including polyethylene, polypropylene, and others. These polymers also create plastic components with various profiles that can be used as building and construction materials. Therefore, the price of building and construction plastics is significantly impacted by changes in crude oil prices. Seasonal variations, political unrest, and supply-demand imbalances are all potential causes of fluctuations in crude oil prices.

Global Building and Construction Plastics Market Opportunities

Growing Research and Development

It is anticipated that expanding bioplastic research and development will open lucrative market opportunities. Potential growth opportunities are predicted to be provided by the rising popularity of plastic pipe and tubing systems, primarily utilized in construction and on the exterior of buildings. Snow melting, water service, plumbing, fire protection, hydronic heating and cooling, and geothermal piping systems frequently use plastic pipes. This new use of plastic in the building and construction sector is anticipated to fuel market expansion over the forecast period.

Regional Analysis

By region, the global building and construction plastics market is segmented into North America, Europe, Asia-Pacific, Central and South America, and the Middle East and Africa.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant shareholder in the global building and construction plastics market and is expected to grow at a CAGR of 5.1% during the forecast period. China dominates the regional market in terms of both volume and revenue. The region's demand for building and construction plastics is anticipated to increase significantly due to expanding construction activities. Due to the availability of inexpensive labor and proximity to raw material suppliers, Asia-Pacific's industrial and manufacturing sectors have been drawing significant investments from top multinational corporations. As a result, the region's construction industry is expanding thanks to the manufacturing and industrial sectors. This is expected to increase demand for building and construction plastics over the coming years.

North America is expected to grow at a CAGR of 3.4%, generating USD 48,684.29 million during the forecast period. North America is one of the world's top consumers of building and construction plastics because of the substantial demand for these materials in the construction industry. Due to their adaptable qualities and simplicity in molding into any desired shape, plastics are used in various applications in the construction industry, including roofing, insulation, pipes and ducts, doors, and windows. The North American building and construction plastics market is expanding due to the country's and Canada's expanding industrial infrastructure, increasing product commercialization, and rising demand for PVC, PP, and PE-based plastics in the construction industry.

Europe is expected to grow significantly over the forecast period. Germany, Italy, Spain, France, and the UK are the region's top building and construction plastics producers. Growing greenhouse gas emissions are expected to increase consumer demand for plastics in the construction sector, along with sustainability and environmental awareness. The expansion of the construction industry in the region is anticipated to be fueled by favorable macroeconomic conditions and the development of industrial facilities in European nations, which is anticipated to increase demand for building and construction plastics over the forecast period. The growing demand for vinyl in the building and construction sector is likely to be met by significant vinyl producers like BASF, Mexichem, Ercros, Inovyn, Shin-Etsu Chemical Co., Ltd., VESTOLIT GmbH, Vinnolit GmbH & Co. KG, and Vynova Group. They make up the European Council of Vinyl Manufacturers (ECVM) and produce nearly 70% of the PVC resin made in the continent. Building and construction plastics market growth is anticipated to be positively impacted by the availability of raw material suppliers over the forecast period.

Central and South America are expected to grow significantly during the forecast period due to regional economic and industrial growth. Growing disposable income and rising GDP in the region, particularly in Argentina, Brazil, and Chile, are driving the expansion of the construction industry. Over the forecast period, this is expected to produce lucrative opportunities for the building and construction plastics market. The availability of inexpensive labor, proximity to suppliers of raw materials, and low cost of production are luring investors to the area, accelerating the growth of the building and construction plastics market in Central and South America.

The consumption of building and construction plastics in the Middle East and Africa has significantly increased over the past ten years due to the rapid development of infrastructure and water distribution systems in emerging economies like Turkey, Iran, and Saudi Arabia. One of the critical markets for building and construction plastics in the Middle East and Africa is pipes and ducts. Drainage systems and fresh water supply to residential and non-residential buildings in the region use pipes and ducts. Given the Middle East's easy access to and plentiful high-density polyethylene (HDPE), pipes for household use are typically made with plastic resins like PVC and PP because they are more durable and economical than conventional copper and iron pipes. The demand for building and construction plastics is also anticipated to increase over the forecast period due to ongoing investments in the region's water and construction infrastructure in GCC nations.

Segmental Analysis

The global building and construction plastics market is segmented by product and application.

By Product Analysis

Based on product, the global market is bifurcated into polyvinyl chloride, polypropylene, polystyrene, acrylics, polyurethane, and polyethylene.

The polyvinyl chloride segment is the highest contributor to the market and is expected to grow at a CAGR of 4.3% during the forecast period. PVC is one of the thermoplastic polymers with the most excellent use in building and construction applications globally. PVC is used in the construction industry for roofing, windows, doors, and ducting applications. It is also used in pipes and fittings because of its durability, strength, and affordability. PVC has the disadvantage of potentially endangering human and environmental health when it burns, releasing carbon monoxide.

Polystyrene resins are the most frequently used materials in building and construction applications, including insulation, plumbing fixtures, and others. Polystyrene materials are used more frequently in the building and construction industry because of their excellent strength, longevity, processing ease, and lightweight.

By Application Analysis

Based on application, the global market is bifurcated into roofing, insulation, pipes and ducts, doors, and windows.

The pipes and ducts segment owns the highest market share and is expected to grow at a CAGR of 3.6% during the forecast period. For various purposes, including water service, plumbing, hydronic heating and cooling, fire protection, snow melting, and geothermal piping systems, plastic pipes, and tubing systems are used inside and on the exterior of the building. Polyethylene, polystyrene, polyvinyl chloride, and polypropylene are the leading plastics utilized for pipe systems. The pipes can be used in harsh environments thanks to these plastics' excellent performance and high chemical and water resistance. These plastics are also lightweight, durable, and resistant to corrosion. They also offer advantages like simple handling, transport, and installation, making the construction industry a significant user.

Building and construction plastics are primarily used to insulate walls and roofs, which aids in thermal insulation, sound insulation, and fire protection. By reducing leakages, they keep the building's temperature comfortable. Plastics used in construction and building also have properties that control moisture and save energy. The two primary materials used in insulation applications are polyurethane and polystyrene.

Recent Developments

• October 2022- BASF and Hannong Chemicals intend to establish a production joint venture called "BASF Hannong Chemicals Solutions Ltd.", subject to approval from all necessary authorities. The proposed joint venture will have a 51% shareholding by BASF and a 49% shareholding by Hannong Chemicals.
• October 2022- Dow Inc. claimed it would advance more quickly toward the sustainability targets the company established in 2020 by changing its Stop the Waste target into a Transform the Waste target. By 2030, Dow will transform plastic waste and alternative feedstock to commercialize 3 million metric tons of circular and renewable solutions annually. Dow will step up its efforts to stop waste by creating industrial ecosystems to collect, reuse, or recycle waste and expanding its portfolio to keep up with the rapidly growing demand.