The global geogrid market size was valued at USD 1,200.9 million in 2022. It is estimated to reach USD 2,785.65 million by 2031, growing at a CAGR of 9.80% during the forecast period (2023–2031).
Geogrid is one type of geosynthetic substance created from polymers, including polyester, polyethylene, polypropylene, and others. Geogrid is used more frequently in civil applications as a stabilizing or reinforcing material. Geogrid is used for soil reinforcements in retaining walls, dams, steep slopes, and other structures. It can be used to stabilize the material in roads, railroads, and other areas' pavements. Geogrid can also be used as a separator layer to lessen the likelihood of the material being incorporated into a soft sub-grade.
The demand for the geogrid is increasing along with the demand from the construction and infrastructure building industries. The U.S. is investing in upgrading infrastructure development in North America, which is driving the geogrid market there. The expansion of road construction projects in developing nations like China and India is also contributing to the significant growth of the Asia-Pacific transportation sector, which in turn is fueling the region's geogrid market. According to a study by the India Brand Equity Foundation (IBEF), 12,000 km of new national highways are anticipated to be constructed by 2020, further boosting geogrid demand.
Geogrid is a crucial component in the strengthening or reinforcing of the soil. It is lightweight, manageable, stable at high temperatures, simple to maintain, durable, and has long-lasting construction. These features make geogrid an attractive and practical choice for the building industry, which drives growth in the global geogrid market.
Since geogrid products are always buried, their lifespan and level of maintenance are always reliant on the installation of the material. As a result, the proper precautions must be taken when installing the geogrid material because it cannot be replaced or repaired once it has been put in place. Therefore, it must be installed the first time properly. The primary factor impeding the growth of the geogrid market during the forecast period is a lack of skilled labor in developing economies.
The demand for geogrid is increasing in the road construction business and railroad stabilization because of its usefulness in reinforcing the base, including soil, rock, and other materials. Also, using geogrid products to build roads lowers maintenance costs and cycles, making it a desirable choice for construction projects. The benefits mentioned above thus raise consumer awareness. Further, this causes an increase in R&D activities aimed at enhancing geogrid performance. This, in turn, supports the market's expansion.
The global geogrid market is segmented into applications.
Based on application, the global geogrid market is divided into road industry, railroad stabilization, and soil reinforcement.
The road industry segment is the largest contributor to the market and is expected to grow at a CAGR of 9.80% over the forecast period. Geogrids have been widely used in roadway construction since their introduction 30 years ago. They are utilized in roads for subgrade stabilization and base strengthening. They are positioned within unbound layers of flexible pavement systems to increase the load-handling capacity of the pavement under heavy traffic. They are employed in subgrade stabilization to build a base over unstable subgrades when constructing pavement systems. In addition, geogrids are used in subgrade stabilization for transportation infrastructure, including highways, bridges, and other structures. Globally expanding road construction projects increase the need for geogrid to fortify the pavement support layers. Subgrade and subbase are the foundations of a road, and geogrid's high tensile strength makes it a useful reinforcement substance.
Asia-Pacific Dominates the Global Market
Based on region, the global geogrid market is divided into North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific is the most significant global geogrid market shareholder and is anticipated to exhibit a CAGR of 10% during the forecast period. Asia-Pacific is the geogrid industry's primary market. It is both the biggest and most populous continent in the world. Geogrids are used in a variety of applications, including mining, soil reinforcement, railroad stabilization, and the road industry. In terms of revenue, Asia-Pacific accounted for 38.99% of the global geogrid market in 2018 and is anticipated to continue holding the largest market share over the forecast period. According to a study on the transport sector by the Asian Infrastructure Investment Bank (AIIB), Central Asia, Western Asia, Oceania, and Russia have higher infrastructure needs than other regions because of their vast landmasses and sparse populations.
Additionally, South Asia, East Asia, and South-East Asia have the highest growth rates in demand for high-speed rail transmission networks. The demand for geogrids in infrastructure projects rises due to the aforementioned factors, which further fuels the expansion of the geogrid market in Asia-Pacific. The region's governments planned and made sizable investments in transport infrastructure projects to maintain the region's significant economic growth over the past ten years. The demand for geogrids from the building and road construction industries is expected to increase over the forecast period.
North America is anticipated to exhibit a CAGR of 9.80% over the forecast period. The three largest nations in North America reporting the geogrid trend are the United States, Canada, and Mexico. In terms of the global geogrid market, North America is the second-largest region. Due to the boom in investments in constructing infrastructures such as roads, railroads, and other transportation systems in North America, there is an increase in the demand for geogrid. With a global market share of 31.0%, the geogrid market in North America ranked second. The demand for geogrids in North America is anticipated to increase as demand for opulent hotels and structures rises.
The geogrid market in the North American region is driven by an increase in investments in construction industries like roadway and railroad stabilizations to upgrade and expand the existing infrastructure facilities. Since five major landslides occurred in 2013, the United States has experienced the most landslides in North America. These landslides increased the need for geogrids, which is what is causing the market in North America to grow. Due to the growth of the industrial sector, Mexico has one of the most appealing construction markets in North America. Due to the aforementioned factors, the Mexico geogrid market is expected to expand significantly over the forecast period.
Geogrid products are widely used in Europe as a result of the region's increased construction activity. It accounts for 18.0% of the market share and is one of the biggest consumers of geogrid globally. The geogrid market in Europe is expanding due to increased investments in infrastructure projects to support emerging economies. According to Deloitte's European Construction Monitor, Northwestern Europe experienced the greatest market growth in the construction sector, driving up demand for geogrids. The economic expansion of the nations and the reasonable interest rates in this region support the construction industry's steady growth. This drives up demand for geogrids even more in this area.
Additionally, the expansion of roads, railways, airports, and harbors received a large portion of the increase in construction spending in the transportation sector. The need for geogrid products increases as a result. As a result of these initiatives by the European economies, the geogrid market is anticipated to expand over the forecast period.
The LAMEA's construction industry has seen consistent growth. In this region, geogrid is increasingly used in applications like infrastructure, road building, oil and gas, waste and energy, and access tracks in forestry, mining, and agriculture. Due to the resurgence of the construction industry in Latin America, geogrid saw phenomenal growth. The growth of the geogrid market in this region is driven by increased mining activities in Middle Eastern nations like the UAE, Saudi Arabia, Iran, Iraq, and other places. The Middle East is known for its massive infrastructure, structures, and road transportation in countries with economies like the United Arab Emirates, Saudi Arabia, and others. As a result, the market for geogrid in this region is growing as the need for geogrid in the road, soil, and railroad stabilization industries rise.
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|