Gypsum Board Market Analysis By Product (Wallboard, Ceiling & Pre-decorated Board) By End-Use (Pre-Engineering Metal Buildings, Residential, Industrial, Commercial, Institutional), And Segment Forecasts, 2018 - 2025

Industry Insights

The global gypsum board market size was estimated at 11.68 billion sq. meters in 2016. Rapidly expanding manufacturing and construction industries owing to exponential GDP growth in emerging markets such as India, Mexico, Brazil, Indonesia, and Thailand is expected to be a key factor driving industry growth.

The past decade has also witnessed considerable investments by governments, foreign corporations and local companies in these economies with construction industry being a fore runner. Rapid industrialization and population growth have also led to tremendous rise in living standards and income levels thereby increasing demand for better infrastructure facilities both in terms of residential as well as commercial & institutional segments.

U.S. gypsum board market revenue by product, 2014 - 2025 (USD Million)

Product Insights

Wallboard emerged as the dominant application segment in 2016, with 54% volume share. They are primarily used as an interior surfacing for buildings and accounts for over 50% of all products manufactured. These varieties are manufactured in a variety of thicknesses with regular and fire-resistant core materials.

The material holds significant potential to replace other conventional building materials including plywood, hard and fiberboard in various residential, commercial and institutional structure owing to their exceptional inherent characteristics. These structures are widely preferred owing to their ease of installation, durability, fire resistance, sound isolation and versatility.

Industrialized nations including the U.S. are primarily using the product for manufacturing such products. However, the developing regions, such as the Middle East and Asia Pacific are using vast amounts of the product to manufacture plaster or cement. Synthetic alternatives are also increasingly being utilized to significantly reduce the need to mine the natural gypsum deposits.

Ceiling boards are anticipated to emerge as the fastest growing product segment over the forecast period. These products significantly improve the thermal and sound insulation in buildings at a relatively lower cost whilst offering high rigidity and core strength. Rapidly increasing hotels and commercial constructions, requiring ceiling panels with high aesthetics is the key factor driving segment’s growth.

Gypsum ceiling board is rapidly gaining popularity in industrial applications as well owing to its inherent characteristics such as shear and fire resistance, structural integrity, time sensitivity and weight reduction. Furthermore, it is increasingly replacing other conventional counterparts as well including plaster in ceilings and interior walls.

Pre-decorated boards are gaining wide acceptance in various construction projects owing to their low maintenance and easy installation properties which makes them cost and time effective. These structures are widely utilized in commercial applications since they provide flexibility to changing workspace configuration whilst offering maximum stability and color retention to surfaces.

End-Use Insights

Residential emerged as the largest application segment in 2016, with over 43% revenue share. Increasing emphasis on the delivery of affordable housing coupled with increased government spending and buoyant local real estate sector are major driver of industry growth in GCC countries. The residential buildings segment witnessed over 18% growth rate in 2016 across the region.

The most common product utilized in residential applications is wallboard, in which the joints between the panels and internal corners are reinforced with tape and covered with joint compound to create a surface suitable for final decoration.

Global gypsum board market volume by end-use, 2016 (%)

Residential construction is anticipated to witness high growth rate in India owing to various government’s initiatives including Smart Cities, easing FDI norms, flexible housing loans and increasing investment in urban infrastructure development. The U.S. residential housing industry also witnessed rapid growth rate in recent years owing to easy access to home mortgages loans, continued employment growth, rising demand for apartments and burgeoning population.

Pre-engineered metal buildings are rapidly gaining popularity owing to their wide application scope and excellent attributes such as easy installation, low cost maintenance and easy transportation to other manufacturing sites. The concept of these building materials has largely been benefitted by the technological advancement in recent years, which has helped in computerizing their design and producing tailor made solutions.

These high performance materials are very popular in the U.S. market, wherein 60% non-residential buildings are pre-engineered buildings (PEBs). However, it is a relatively new concept in emerging economies such as India, wherein they are witnessing an impressive growth rate of over 25%.

PTMEG-based urethanes offer flexibility at low temperatures, resistance to hydrolysis and fungus, high resiliency, low heat buildup, very low noise characteristics, and low viscosity, thus making them suitable for diverse applications such as forklift tires, automotive hoses and gaskets, industrial belts, roller skate wheels, tank & pipe liners, athletic shoes, and medical prostheses, catheters and other devices.

Regional Insights

Asia Pacific was the leading region and accounted for over 44% volume share in 2016. Major industry players that are dominant in North America and Europe are gradually shifting their production capabilities to cater to high potential markets in Asia Pacific owing to the availability of low-cost labor and ample raw material stocks.

China is the leading producer across the globe, with over 1.30 million metric tons produced in 2016. The consumption in residential construction is relatively low in China in comparison to commercial construction (consumes over 80% domestically produced goods), wherein the products are widely utilized in ceilings and non-load bearing walls

India and Thailand along with few other Southeast Asian economies also exhibit ample opportunities owing to the rapid economic expansion and higher housing demand in rural as well as semi-urban regions. However, the key cement and plaster board companies are exploring alternate sources of coal and gypsum owing to unfavorable factors such as rising raw material, transportation and energy costs.

Middle East region is expected to emerge as a major player over the forecast period owing to rapid demand in countries such as Oman, Saudi Arabia, Jordan and Qatar. Major economies are focusing on expanding their production capabilities in order to cater to growing construction markets in the GCC, Middle East and Asia Pacific region. This trend is positively influencing gypsum demand across the region.

Competitive Insights

The industry is largely influenced by cost of machinery and raw materials.  The industry is moderately fragmented in nature and is poised to experience threat from forward integrating companies that are previously involved in mining and production. Key players include Global Mining Company LLC, Knauf Dubai, Lafarge, Gypsemna and Saint Gobain Gyproc among others.

Presently, the global industry is fragmented in nature and in a state of consolidation owing to functional disparities between regional markets. Larger corporations are expected to undergo M&A with small scale gypsum board manufacturers over the forecast period in order to consolidate their positions

Report Scope

Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on 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 gypsum board market on the basis of product, end-use and region:

• Product Outlook (Volume, Million Square Meters; Revenue, USD Million, 2014 - 2025)

  • Wallboard

  • Ceiling board

  • Pre-decorated board

  • Others

• End-Use Outlook (Volume, Million Square Meters; Revenue, USD Million, 2014 - 2025)

  • Pre-engineered metal buildings

  • Residential

  • Industrial

  • Commercial

  • Institutional

• Regional Outlook (Volume, Million Square Meters; Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • Bahrain

    • Kuwait

    • Qatar

    • Oman

    • Saudi Arabia

    • UAE

    • Jordan

    • Iraq

    • Iran

    • Egypt

    • Syria

    • Turkey

    • Libya

    • Sudan