Construction Plastic Market

Market Overview

The global construction plastics market size is valued at USD 93.61 billion in 2023. It is estimated to reach USD 229.52 billion by 2032, growing at a CAGR of 10.5% during the forecast period (2024–2032). In recent years, the global construction plastic market has been surging due to various factors like urbanization and population growth, expanding construction activities in the residential and commercial areas, benefits of plastics in construction, energy efficiency and sustainability, infrastructure development and renovation, and more.

Construction plastics are a group of synthetic materials specifically modified through chemical treatments to enhance their suitability for building and construction applications. Compared to standard plastics, these treatments improve durability, weather resistance, and fire safety. Construction plastics come in various shapes and forms, including pipes, insulation panels, window frames, vinyl tiles, and wood-plastic composites (WPCs).

Construction plastics are utilized in a broad and expanding range of applications, such as piping, insulation, window frames, and interior design, even though they are not very visible in buildings. Compared to more conventional building materials like metal or wood, they mix price and functionality well. Construction plastics can be manufactured with recycled content and often have good recyclability, contributing to a circular economy and reducing environmental impact.

Highlights

• Polyvinyl Chloride dominates the product segment 
• Pipes and ducts dominate the application segment
• Non-residential construction dominates the end-user segment 
• Asia-Pacific is the largest shareholder in the global market

Market Dynamics

Construction Plastics Market Drivers

Urbanization and Population Growth

Rapid urbanization and population growth propel demand for building materials, particularly plastics, in residential, commercial, and infrastructure projects. As more people move to cities, there's a growing need for residential and commercial buildings, putting pressure on the construction industry. The population of the world is predicted to rise by almost 2.0 billion people over the next 30 years, from 8.0 billion to 9.71 billion in 2050.

Furthermore, expanding urban populations necessitates infrastructure development, including roads, bridges, water treatment plants, and electrical grids. Thus, construction plastics offer a cost-effective and versatile solution for various building applications, unlike traditional materials like wood or metal. Moreover, governments in developing and developed nations are investing heavily in infrastructure development due to the growing population. Consequently, increased construction expenditure is predicted to generate lucrative opportunities for manufacturers of construction plastics in the coming ten years.

Construction Plastics Market Restraint

Price Volatility for Raw Materials

Variations in crude oil and petrochemical prices, two necessary raw materials for the creation of construction plastics, can impact a manufacturer's bottom line. This volatility may cause problems for pricing strategies and cost management. Manufacturers must closely monitor their raw materials and completed product inventories. They risk losing money if they buy petrochemicals or crude oil in bulk at a discount and the prices decline before they can utilize the materials.

On the other hand, if they don't buy enough when prices are low, they may experience shortages when prices go up later, which could delay production and cause sales to be lost. Ultimately, the profitability of companies that produce construction plastics can be greatly impacted by the fluctuations in raw material prices.

Unexpected price increases may result in losses or reduce their profit margins. For instance, the May 2023 PPI report shows that the price index for "Plastics Fabricated Products" increased by 10.2% compared to May 2022. This significant increase highlights the volatility of construction plastics manufacturers due to fluctuations in raw material prices.

Construction Plastics Market Opportunities

Rising Sustainable Construction

The growing demand for environmentally friendly building techniques propelled the use of bio-based and recycled plastics. Regarding the environment, these substitutes for traditional plastics are less harmful. Governments across the globe are implementing stricter environmental laws about the production and management of plastic waste, which further encourages the use of eco-friendly substitutes in various industries, including construction. Bio-based and recycled plastics have various advantages for the environment over conventional plastics made from fossil fuels.

Furthermore, some advantages include a low carbon footprint, reduced reliance on landfills, biodegradability under specific conditions, and more, which help in sustainable construction. For instance, As awareness grows about the environmental impact of construction activities, Indian builders and developers are embracing sustainable practices with innovative solutions. In 2024, several trends are set to reshape the Indian construction landscape, paving the way for a more eco-friendly and responsible future.

Regional Analysis

Asia-Pacific Dominates the Global Market

Based on region, the global construction plastic market is bifurcated into North America, Europe, Asia-Pacific, Latin America, the Middle East and Africa. 

Asia-Pacific is the most significant global construction plastic market shareholder and is expected to expand substantially during the forecast period. The Asia-Pacific region is poised to maintain its prominence in the construction plastics market, driven primarily by the burgeoning demand in developing nations such as China, Japan, India, and South Korea. China, in particular, is anticipated to sustain its leadership position in this market owing to its robust expansion in the construction sector. The continuous growth in construction activities, fueled by urbanization and infrastructure development initiatives, including China's ambitious Belt and Road Initiative (BRI), necessitates significant quantities of construction plastics.

Similarly, India's construction plastics market is forecast to grow substantially, propelled by increased government investments in the building sector and initiatives like "Housing for All," which prioritize affordable housing and infrastructure development. The rapid economic growth in these countries underscores the need for housing projects and urbanization investments, further driving the demand for construction plastics. With the Asia-Pacific region accounting for approximately 60 percent of the world's population, the scale of construction activities and infrastructure projects in these countries is immense, ensuring sustained demand for construction plastics in the foreseeable future.

The North American market emerges as the fastest-growing segment during the forecast period, driven by a surge in remodeling projects and escalating plastic consumption rates. Notably, North America boasts the highest per capita plastic consumption globally, a factor contributing significantly to market expansion. The United States and Canada spearhead this growth within the region, propelled by the dynamic building industry. Refurbishing older structures continues to underpin market expansion, particularly in urban areas.

Moreover, the robust growth and innovation in plastic technologies, along with their diverse applications, are bolstered by initiatives led by industry trade groups like the Plastics Industry Association and the National Association of Plastic Industries (ANIPAC). Government investments in public infrastructure further amplify the demand for building and construction plastics, while the burgeoning need for commercial buildings adds impetus to market growth. As these factors converge, the North American market is poised for sustained expansion in the forthcoming years.

Segmental Analysis

The global construction plastic market is bifurcated into products, applications, and end-users.

Based on product, the global construction plastic market is segmented into polyvinyl chloride (PVC), polystyrene (PS), acrylics, polyurethanes (PU), thermoplastic elastomers (TPE), composite materials, and others (polypropylene, polycarbonates, and others).

The polyvinyl chloride (PVC) segment dominates the global market. Polyvinyl chloride (PVC) stands as a cornerstone material in various industries beyond just building plastics. Its versatility extends to applications in healthcare, automotive, packaging, and even fashion. In healthcare, PVC is utilized in medical devices such as IV tubing and blood bags due to its compatibility with sterilization processes and ability to maintain critical fluids' integrity. In the automotive sector, PVC finds its place in upholstery, door panels, and under-the-hood components for its resistance to oils, fuels, and chemicals.

Packaging benefits from PVC's excellent barrier properties against moisture and gases, ensuring the preservation of food and pharmaceutical products. Moreover, PVC's malleability allows designers in the fashion industry to explore innovative creations ranging from synthetic leather to durable handbags. Its widespread use is a testament to its inherent properties, economic viability, and positive environmental footprint, making it a material of choice across diverse sectors.

Based on application, the global construction plastic market is segmented into pipes and ducts, insulation, door fittings, and others (roofing, cladding, waterproofing, and others).

The pipes and ducts segment held a dominant position. In addition to their widespread use in building construction and exterior applications, plastic pipe systems have become increasingly indispensable across a diverse range of industries and infrastructure projects. Within the building sector, plastic pipes are favored for their durability, flexibility, and cost-effectiveness, making them ideal for various plumbing needs such as drainage, sewage, and potable water distribution.

Beyond traditional building applications, plastic pipes play a crucial role in specialized areas such as geothermal piping systems, offering efficient and environmentally sustainable solutions for heating and cooling needs. Moreover, in fire safety applications, plastic pipes provide reliable conveyance for firefighting water, while their resistance to corrosion and rust ensures longevity and reliability in harsh environments.

Based on end-users, the global construction plastic market is bifurcated into residential construction (independent homes, row homes, large apartment buildings), non-residential construction (commercial construction, industrial, infrastructure), and others.

The non-residential construction segment held the largest share. Non-residential construction sectors can use construction plastics in showrooms, manufacturing facilities, hospitals, retail establishments, and other places. The market will grow as a result of growing investments in non-residential construction. For example, Larsen & Toubro was awarded contracts in 2019 to construct hospitals, commercial buildings, and manufacturing facilities in India at a cost ranging from USD 336.6 million to USD 673.2 million. These investments will propel demand for the non-residential construction plastics segment and augment the growth of the construction plastics market.

Recent Developments

January 2024: Based on information from the public works department, the UP state government (India) improved and built 813 km of roads using bitumen and plastic trash, particularly single-use plastic. Through creative initiative, 466 roads and pathways have been upgraded overall. "This procedure promotes the appropriate disposal of waste made by single-use plastics.

July 2023: Lepech and Li investigated the state, requirements, and obstacles of plastic recycling in a circular economy in a recently published white paper commissioned by the National Academies of Sciences, Engineering, and Medicine (NASEM). Lepech and Li analyze case studies using plastic waste for pavement in a California Department of Transportation road project and façade panels in the San Francisco Museum of Modern Art using a combination of computer modeling, scientific research, experimental and field data, as well as interviews with stakeholders in the recycling industry.