The global building & construction plastics market size was valued at USD 102.23 billion in 2017. It is anticipated to witness a CAGR of 7.3% from 2018 to 2025. Growing population and increasing urbanization across the globe have been providing a fillip to the market. In addition, various government initiatives to improve building structures are projected to bolster the growth of the market.
The market is witnessing tremendous improvements, in terms of technology and material, to reduce production cost and improve overall infrastructure. Furthermore, eradication of barriers to promote foreign investments and introduction of green building projects as a part of government’s integral initiatives are poised to stimulate the growth of the market in Asia Pacific.
Green building construction uses resources that help in minimizing environmental pollution. Plastics such as PET, low-density polyethylene (LDPE), polyvinyl chloride (PVC), polypropylene (PP), high-density polyethylene (HDPE), and polystyrene (PS) are recyclable, durable, and exhibit high strength, which are likely to increase their utilization in the construction of green buildings. Therefore, burgeoning popularity of green buildings is expected to fuel the demand for plastics in construction.
Due to their low maintenance, a majority of architects, builders, and designers prefer plastics in building and construction to other materials. The demand for the product in construction and decoration is estimated to experience an upswing over the forecast period as a number of companies have started offering fire-resistant and cost-effective plastics.
BASF SE, Borealis AG, The Dow Chemical Company, DuPont, Solvay SA, and Trinseo are some of the leading players in the global market. These players are involved in the production of plastics for diverse applications in the infrastructure sector. Companies involved in the manufacturing of product for the infrastructure sector are highly integrated across the value chain and carry out operations beginning from production to sales and distribution of the products to various locations.
Prices of raw materials such as ethylene, propylene, and styrene are highly dependent on crude oil prices, which are volatile in nature. Plastic manufacturing uses 4.0% of crude oil, therefore, volatile prices are anticipated to hinder the growth of the market over the forecast period.
Polyvinyl Chloride (PVC) dominated the global market with a revenue share of 41.0% in 2017. The factors that contribute to the growth of the segment are lightweight of PVC and its ability to be assembled & molded in a variety of shapes. Furthermore, polyvinyl chloride can be removed and recycled with ease and is suitable for use at inaccessible locations and exposed conditions. It is a versatile thermoplastic material that is used in the manufacturing of majority consumer goods. In addition, PVC is widely used in a variety of applications such as construction, healthcare, and electronics.
The demand for polyvinyl chloride is projected to register significant growth during the forecast period due to its suitability in fabrication of both rigid and flexible products. Numerous PVC substitutes are available; however, these alternatives are not as efficient and are less cost-efficient as compared to PVC.
The product is widely used in the construction industry. Some of the major applications are pipes, tubes & fittings for water distribution, sewers, irrigation, electrical conduits, gutters & downspouts, fencing & decking, door frames & windows, roofing, and conveyor belts used for food processing, chemical processing, and floor & wall covering.
Polystyrene (PS) accounted for more than 15.0% of the overall volume in 2017. Polystyrene is a low conductor of heat and helps in retaining heat in infrastructure as well as maintains low temperatures of refrigerated spaces. PS is lightweight, which facilitates high safety during the lifting of heavy materials. Moreover, the cost of transportation for polystyrene is low and it is easy to install and handle.
Polyurethane will be the fastest growing segment in trems of value as well as volume over the forecast period. The ability of polyurethane to mold into any unusual shape is one of its essential qualities. Other prominent applications of polyurethane include footwear, automotive, refrigerator & freezer, furniture & bedding, elastomers, and sealants.
High-performance materials that are lightweight, strong, easy to install, durable, and versatile find relatively higher demand and polyurethane exhibits all these properties, which makes it a preferable choice in construction. Polyurethane is used for insulation in structure cavity walls, roofs, around pipes, around boilers, and floors.
Pipes & ducts were the leading application segment in the global building & construction plastics market with a revenue share of 36.5% in 2017. Plastic pipes and tubing systems are used within the building and on the outer premises for a variety of applications such as water service, plumbing, hydronic heating & cooling, fire protection, snow melting, and geothermal piping systems.
Pipes are used for the distribution & removal of waterborne duct systems that are used in the transfer of air in heating, air conditioning, exhaust systems, and for air ventilation. Ducts are fabricated with various materials, some of which are mild steel, aluminum, polyurethane, fiberglass, and flex ducts.
The insulation segment represented over one fourth of the total revenue in 2017. Plastic composites that are used in insulation of walls & roofs help in sound deadening, fire protection, and thermal insulation. Moreover, they maintain the temperature of the building to an appropriate level by reducing leakages.
The product is widely used in windows due to their lightweight and low thermal conductivity, which reduces the heating as well as cooling cost. Plastic composites are durable and help in reducing maintenance cost and time. This, in turn, is poised to contribute to the growth of the segment.
Asia Pacific was the leading revenue contributor in 2017. It is likely to observe increase in infrastructure spending over the coming years on account of rapid urbanization and growing population. The government project and infrastructure market in the region is expected to rise by approximately 7% to 8% every year over the next decade and reach over USD 5,300.0 billion towards the end of the forecast period.
North America is one of the key markets for building and construction plastics. Expanding construction sector in countries such as the U.S. and Canada is estimated to propel the market. Rising demand for renovation of old buildings is anticipated to stimulate the growth of the region during the forecast period. Moreover, industry trade groups from North America such as the Plastics Industry Association and National Association of Plastic Industries (ANIPAC) are undertaking initiatives to support the growth and development of plastics and its end applications.
The U.S. was at the forefront of North America with a revenue share of over 80.0% in 2017. The construction industry in the U.S. is poised to witness growth in both commercial and non-commercial sectors due to high urban population.
Central and South America is majorly driven by rising demand from Brazil and Chile. The demand for construction is growing with increasing population in the region. Government investments in public infrastructure and surging demand for commercial building are anticipated to fuel the demand for the product.
The global market is highly competitive in nature with presence of several multinationals and local manufacturers. Companies opt for significant capacity expansions and additions to cater to spiraling demand in emerging economies. They are involved in mergers and acquisitions of leading manufacturers in emerging regions. Moreover, companies are also involved in extensive research & development activities.
Some of the key players in the market are BASF SE, Borealis AG, The Dow Chemical, DuPont, Solvay SA, and Trinseo. These companies have set up their manufacturing facilities globally and have a wide distribution channel in order to increase their global presence.
Attribute |
Details |
Base year for estimation |
2017 |
Actual estimates/Historical data |
2014 - 2017 |
Forecast period |
2018 - 2025 |
Market representation |
Revenue in USD Million, Volume in Kilotons, and CAGR from 2017 to 2025 |
Regional scope |
North America, Europe, Asia Pacific, Central & South America, Middle East & Africa |
Country scope |
U.S., Germany, U.K., France, China, India, Japan, Brazil |
Report coverage |
Revenue forecast, competitive landscape, growth factors and trends |
15% free customization scope (equivalent to 5 analyst working days) |
If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization |
This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global building & construction plastics market report on the basis of product, application, and region:
Product Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
Polyvinyl Chloride
Polystyrene
Polyethylene
Polyurethanes
Others
Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
Roofing
Polyvinyl Chloride
Polyurethanes
Others
Insulation
Polystyrene
Polyurethanes
Others
Pipes & Ducts
Polyvinyl Chloride
Polystyrene
Polyethylene
Others
Wall Coverings
Polyvinyl Chloride
Others
Windows
Polyvinyl Chloride
Polyurethanes
Others
Others
Polyvinyl Chloride
Polystyrene
Polyethylene
Polyurethanes
Others
Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
North America
U.S.
Europe
Germany
U.K.
Asia Pacific
China
India
Central & South America
Brazil
Middle East & Africa
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The global COVID-19 pandemic has led to a sudden pause to manufacturing activities across the globe, affecting the demand for plastics and also production & processing of them. The most critically impacted end-use segments of the plastics industry include automotive & transportation, consumer goods, industrial equipment, construction, and electronics. The report will account for Covid19 as a key market contributor.
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