The global construction plastic market was valued at USD 72.3 billion in 2018 and is projected to reach a value of USD 125.16 billion by 2026, registering a CAGR of 7.1% during the forecast period, 2019–2026.
Building and construction plastic is a plastic polymer that is treated chemically to obtain various products such as pipes, ducts, doors, and others. It is extensively used in the construction industry owing to its low maintenance, improved material performance, durability, easy handling, and widespread availability. Additionally, characteristics such as lightweight, energy efficiency, scratch resistance, durability, design freedom, and flexibility also boost the use of plastics in construction products. Increasing residential and non-residential construction activities and demand for plastics due to their low cost and physical properties are expected to propel market growth. Moreover, green building practices and growth in the use of recycled plastics in the constructions industry are also expected to positively influence the market in the coming years.
Over the past few years, the building and construction sector has been experiencing significant growth on account of the increasing global population. Plastic materials such as polyurethanes, PVC, thermoplastics, acrylics, and composites find application in the building and construction industry for the building of doors, windows, fittings, pipes, and ducts. According to the U.S. Census Bureau, in October 2018, total construction spending was pegged at 1,308,848 USD.
Poor quality construction has increased the number of respiratory diseases, due to which the demand for green buildings has substantially increased over the years. Conventional plastic materials used for building and construction emit VOCs, which are harmful to human health. Thus, manufacturers are focusing on the production of environment-friendly plastics to meet customer requirements. Green materials are mixed with conventional plastic to produce green plastics, which are likely to emit fewer VOCs. Plastic manufacturers are capitalizing on the emergence of green building plastic materials and the increasing demand for green plastics in building and construction is expected to drive market growth during the forecast period.
The construction plastic market has been segmented on the basis of product and application.
By product, the global market has been segmented into polyvinyl chloride, polystyrene, acrylics, polyurethanes, thermoplastics, elastomers, and composite materials. The polyvinyl chloride segment dominates the global market is expected to remain the frontrunner throughout the forecast period. Polyvinyl chloride’s predominance can be attributed to its easy installation, cost-effectiveness, durability, and safety. According to The European Council of Vinyl Manufacturers, more than 75% of PVC pipes will have a 40-year lifespan and in-service lives of up to 100 years.
Based on application, the market has been segmented into pipes and ducts, insulation, and door fittings. Construction plastic is significantly used for pipes and ducts and door fittings in construction activities, owing to its benefits offered such as durability, strength, and reasonable price point. Additionally, it can easily be produced in much larger quantities than metal.
Geographically, the construction plastic market has been segmented into North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).
Asia Pacific holds the largest share in the constructional plastic market due to the higher adoption of these materials in Asian countries such as India and China. China is the largest producer of thermoplastic and polyurethane plastic materials and accounts for the largest market share in the region. Rapid industrialization, increasing personal disposable income, and increasing demand for plastics from various end-use industries such as construction drive the growth of the constructional plastic market in Asia Pacific. China has the largest production capacity at low rates, making the country an attractive market for constructional plastics. With the availability of cheap labor, supportive government policies, and availability of natural resources in China and India, various key industries such as building and construction are shifting from western countries to Asian countries, which is expected to propel the demand for plastics and in turn, drive the growth of the constructional plastic market. The growing building & construction industry in the region, backed by increasing population and urbanization, is also expected to positively influence market growth.
North America accounts for the second largest share in the global construction plastic market. The growing construction sector in developed countries such as the U.S. and Canada is projected to drive market growth in the region. The U.S. construction industry is projected to witness substantial growth in both commercial and non-commercial sectors, owing to a large urban population. Increasing demand for renovation of old buildings is expected to motivate the growth of the market in the region during the forecast period. Furthermore, industry trade groups from North America such as the National Association of Plastic Industries (ANIPAC) and the Plastics Industry Association are taking initiatives to enhance the growth and development of plastic and its end applications.
Europe is a developing region in the construction plastic market. Government funding for public infrastructure and rising demand for commercial buildings fuel market growth in the region. Furthermore, increasing living standards and growing environmental awareness are also projected to drive market growth. Germany holds a prominent market share in the region; as of 2016, 13 million tons of plastics were produced in Germany.
In the LAMEA region, emerging countries are expected to drive the construction plastic market. Brazil is a hot spot for urbanization; thus, the country is expected to witness significant growth in the construction market. The demand for construction is rising with an increase in the region’s population. Moreover, government funding in public infrastructure and rising demand for commercial buildings are projected to fuel the demand for construction plastics in the region.
Some of the prominent players operating in the construction plastic market are
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