Construction plastics to register moderate to high growth as urbanization increases
Developing countries to advance market by 6.5% despite pandemic
SANTA CLARA, Calif. — Frost & Sullivan’s recent analysis, Affordable Housing Driving the Global Market for Construction Plastics, finds that rising urbanization and development of high-rise buildings, especially in developing countries, are key factors pushing the demand for construction plastics across the globe.
The market for construction plastics is estimated to garner a revenue of US$98.78 billion by 2026 from US$63.72 billion in 2019, up at a compound annual growth rate (CAGR) of 6.5%. However, COVID-19 is likely to impact the global consumption of construction plastics throughout 2020 as various countries have enforced strict lockdown measures to contain the pandemic, which resulted in significant delays in new and existing construction projects worldwide. The situation is expected to improve from 2021, following a reduction in the pandemic’s impact, thereby resuming construction activities across the globe.
“With increasing demand for innovative and sustainable product offerings, companies may gain wider market coverage by improving the physical and chemical properties of plastic materials to make them durable, long-lasting, lightweight, weather-resistant, recyclable, and fireproof,” said Sayantan Sengupta, chemicals, materials & foods research analyst at Frost & Sullivan, in a prepared statement. “Going forward, to maximize the revenue and ensure uninterrupted supply into markets globally, participants should focus more on strengthening long-term relationships with distributors, compounders, and extruders.”
Sengupta added: “From an end-use industry perspective, pipes and ducts are expected to retain their dominant share throughout the forecast period, whereas the windows and doors segment is likely to grow at the highest CAGR, both by value and volume. Further, from a regional perspective, with increasing industrialization, population, and construction of residential buildings, Asia-Pacific (APAC) will remain a key market for construction plastics, followed by the Americas, Europe, and Middle East, Africa and South Asia (MEASA).”
The growing inclination toward using high-quality plastic pipes for water supply and sewage disposal is driving the revenue growth of the global construction plastics market, presenting immense growth prospects for its market participants. These include:
- Companies need to adopt strategies involving capacity expansion and additions to better cater to the increasing demand for construction plastics.
- Manufacturers should focus on mergers and acquisitions as well as vertical integration to ensure sustainability across the value chain and enhance business growth.
- Developing a complete product portfolio with improved functionalities and enhanced physical and chemical properties will help manufacturers command a premium in the market.
- Manufacturers should expand operations to countries in APAC and MEASA that have high-growth prospects for construction plastics due to the increasing demand for recyclable materials in the sector.