Polyvinyl Chloride Market Size, Share & Trends Analysis Report By Type (Rigid PVC, Flexible PVC), By Application (Pipe & Fittings, Profiles & Tubes, Film & Sheets, Wires & Cables, Bottles, Others), By End-User (Building and Construction, Consumer and Institutional, Packaging, Electrical and Electronic, Transportation, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global polyvinyl chloride market size was valued at USD 41520 million in 2022 and is predicted to reach USD 58080.93 million by 2031, with a CAGR of 3.8 % during the forecast period, 2023–2031.

Polyvinyl Chloride is a synthetic polymer made by polymerizing vinyl chloride. It is a thermoplastic material with great strength that is utilized in pipes, films, sheets, wires, cables, fittings, tubes, and bottles. Due to its versatility, polyvinyl chloride is utilized in numerous industries, including construction, packaging, electrical, and consumer goods. PVC is the most often employed thermoplastic polymer. It has a naturally white hue and is extremely fragile. It is a synthetic resin made by polymerizing vinyl chloride. The polymerization of vinyl chloride monomer produces PVC. PVC has excellent resistance; it is lightweight and has good mechanical strength and toughness. PVC is easy to cut, weld, and shape, making it a useful component in building and construction. PVC is produced using the polymerization process of vinyl chloride monomer, which involves different methods such as emulsion, suspension, and mass polymerization.       

The raw material used to produce PVC is salt and oil; oil is obtained from hydrocarbon feedstock by cracking petroleum or natural gas. Nowadays, ethylene from sugar crops is also being used as a feedstock, thereby decreasing the dependence of Polyvinyl chloride on oil. PVC is already a mature product in the market, and there is still a huge demand for PVC for many applications without any signs of decline. However, green initiatives from various government bodies are foreseen to replace Polyvinyl chloride. The manufacturing process comprises suspension polymerization. First, the VCM is compressed and liquefied, then transferred to a polymerization reactor containing water and suspending materials. The water expels and regulates the heat generated by the polymerization process. The process is terminated when the PVC particles reach the desired size. PVC is split and dried to create a powder known as PVC resin. Polyvinyl Chloride is primarily manufactured in two categories: flexible and rigid (PVC). It is utilized in numerous industries, including building and construction, health care, electronics, automotive, etc. They are widely employed in producing bottles, profiles, tubes, films, pipes, fittings, sheets, wires, and cables.

Market Dynamics

What is Making the Global Polyvinyl Chloride Market Grow?

PVC is lightweight, sturdy, resistant to weathering, chemical corrosion, rotting, and abrasion, user-friendly, and adaptable, as it may be cut, welded, and combined in any configuration. These characteristics make it perfect for various uses, including windows, flooring, pipes, and roofing. PVC flooring has several benefits, including aesthetic freedom, durability, simplicity of cleaning, installation, and recycling. Consequently, PVC flooring has been utilized throughout the years. In addition, PVC is utilized in the roofing sector of the construction and building industries. It is utilized due to its low-maintenance and long-lasting nature. In the Middle East, Asia-Pacific, and North America, the most crucial factor is the expansion of infrastructure construction.

The 3D printing industry is the latest rage around the world. Consumers want their products designed, produced, and sourced quickly, which 3D printing can provide. Various materials such as ABS (Acrylonitrile butadiene styrene), PMA (polyamide), PET, and other polymers were used; however, PVC in the form of 3D vinyl has entered into the 3D printing technology. UV resistance, low embodied energy content, solvent resistance, fire retardance, weatherproof qualities, and improved rigidity are some of the features that 3D vinyl can provide. Besides, this material also proves to be an efficient alternative, reducing the carbon footprint of 3D printed products. Companies such as the Clemson Group and AONIQ have developed 3D vinyl filament and 3D printers compatible with PVC.

What are the Challenges for The Global Polyvinyl Chloride Market?

Fluctuations in raw materials and mechanical equipment costs pose a significant danger to market expansion. In addition, the uneven availability of raw materials at a specific place inhibits market expansion. The availability of affordable alternatives on the market would further retard the market's growth rate.

The increasing number of PVC-related health concerns will hinder long-term market expansion. In addition, rising environmental concerns like carbon emissions and global warming will impede the market's expansion. Furthermore, The government's imposition of rigorous rules on various industrial applications relevant to industrial activity would further slow the market growth rate. A lack of standardization requirements in Asia-Pacific and a shift in the demand-supply spectrum due to stricter regulations would worsen the market scenario.

What are the Future Opportunities for Global Polyvinyl Chloride Market?

Environmental problems with PVC use have been stressed for a long time. Every stage of the PVC lifecycle, from production to disposal, is considered environmentally hazardous. The United States Environmental Protection Agency has classified PVC as a human carcinogen (EPA). Therefore, manufacturers are eager to accelerate the creation of PVC substitutes.

Developing PVC replacements will give top worldwide producers significant expansion prospects. Some manufacturers have introduced high-density polyethylene (HDPE), a kind of plastic that is particularly robust. This variety is known to have a lower environmental impact than its counterpart. HDPE's capacity to be recycled considerably reduces landfill trash, which promotes its usage.

The world is slowly moving toward electric vehicles as consumers look for environment-friendly alternatives and low-carbon emission solutions. Electric vehicles are dramatically turning mainstream for component suppliers to earn profits. EV manufacturers are after decreasing the weight of the vehicle to scale up efficiency and mileage. Plastics, which include Polypropylene (PP), Polyurethane (PUR), Acrylonitrile Butadiene Styrene (ABS), and Polyvinyl Chloride (PVC), among others, play a crucial role in EV production. PVC properties make it a strong contender due to its ready availability, dense composition, better strength, and durability.

Regional Analysis

The global polyvinyl chloride market has been segmented based on geography into North America, Europe, Asia Pacific, and LAMEA.

In the future, Asia-Pacific will likely lead the worldwide polyvinyl chloride market. It produces enormous growth from Southeast Asian nations due to increasing trade activities, significant manufacturing investment, and a weak currency. In Southeast Asia, countries such as Vietnam and Indonesia have become centers for food production, necessitating the creation of manufacturing facilities. The facilities will use a considerable quantity of PVC products, creating an excellent potential for resin makers in the region. Asian manufacturers have been dominating the global PVC market for a long; companies such as Shin-Etsu Chemical and Formosa Plastics Group, both from Asia, have been at the forefront of PVC production. Many companies, such as Mitsubishi Chemical Corporation, strive to expand their PVC business through an acquisition strategy.

The U.S. has been one of the largest exporters of PVC because of the abundance of shale gas by which ethylene is obtained, a major requirement of Polyvinyl Chloride. Following the U.S., Germany, China, Taiwan, and France are the top PVC exporting countries. Other companies, such as Inovyn, a merger of the PVC business of Ineos and Solvin, which is a U.K.-based company, have shown massive strides in developing a bio-based PVC in Oct 2019.

Middle East & Africa is anticipated to be the fastest-growing market because of the increasing need for building activities in countries such as UAE, Saudi Arabia, and Qatar. Economic growth in Africa has contributed to expanding the consumer market, which is projected to fuel the sector's expansion. In addition to driving the expansion of the electrical & electronics and consumer industries, rising disposable incomes in countries such as Mexico and Brazil are anticipated to bolster the industry's growth over the next years.

Segmental Analysis

The global polyvinyl chloride market is categorized by type, application, and end-user.

The global market is segmented by type as rigid, flexible, and others. The sector of rigid products is projected to hold a sizeable market share. Rigid PVC is a rigid, durable, and inexpensive PVC that is simple to bond and construct with solvents or adhesives. It is a typical kind of PVC used in the production of fittings, valves, pipes, sheets, ducts, and machining shapes. Pipes can benefit from rigid polyvinyl chloride's excellent strength-to-weight ratio and inexpensive cost.

The global market is segmented by application into pipes & fittings, profiles, films & sheets, cables, and others. Pipes & Fittings had the greatest revenue share. It is likely to maintain its dominance during the projected era. PVC fittings and pipes are in high demand due to their resilience and durability in harsh environments.

The global market is segmented by end-use industry into construction, electrical cables, packaging, and transportation, among others. The construction industry generated the most revenue. This pattern will certainly continue in the future years. The construction industry is anticipated to grow at a constant rate. Due to its favorable chemical, physical, and mechanical properties, PVC is utilized in numerous end-use industries. Due to its simplicity of processing, low production cost, and lightweight, PVC is a commonly used material in the building sector.

Impact of covid-19

Restrictions brought forth by governments in light of the COVID-19 outbreak have put a lot of pressure on mining companies operating in affected countries such as China, Italy, and others. Key vendors such as Rio Tinto and Anglo American have reported a massive slowdown in production in recent months. Oyu Tolgoi project in Mongolia has been suspended as the Mongolian government tightened restrictions following the country’s first confirmed COVID-19 case. Anglo American demobilized most of the 10,000-strong construction workforce at its Qullaveco copper project in Peru, after the announcement of a 15-day quarantine to curb the spread of COVID-19 in the region.

Recent Developments

• In January 2021, Shintech announced a USD 1.25 billion capital investment to strengthen its integrated PVC company, Shin-Etsu Chemical Co. Ltd, which will increase the production capacity of Shintech Inc., its US subsidiary. The annual PVC production capacity of Shintech is anticipated to exceed 3.62 million metric tonnes.
• In January 2021, Orbia planned to sell its PVC Unit because of demand restrictions. However, the final decision about the divestment has not been made public.
• In October 2020, The AGR resin of Xinjiang Zhongtai Chemical Fukang Energy Company passed the National Standard Project Evaluation. Due to the disadvantage of universal polyvinyl chloride resin's low impact strength, AGR resin is a specialized anti-scour polyvinyl chloride resin. It is a polyvinyl chloride resin with modifications.
• In July 2020, KEM ONE collaborated with Polyloop to explore PVC recycling. This agreement will result in the development of novel PVC recycling solutions at the Balan site by combining their abilities and knowledge.
• In February 2020, INEOS and UPM Biofuels signed a long-term deal to supply a renewable raw material for producing novel and innovative bio-attributed polymers at the INEOS Koln facility in Germany. The world's first bio-attributed PVC is manufactured from wood pulp production byproducts.