Building and construction plastics Market will be worth of USD 57.51 billion in 2019, growing at a CAGR of 7.1% between 2013-2019.
Due to the presence of numerous multinational companies, the competition in the global building and construction plastic market is relatively high, reports Transparency Market Research in a new study. As the global building and construction plastics market is highly price sensitive and often witnesses price wars, the leading companies are focusing on unique pricing strategies to gain competitive advantage. The four key players, BASF SE, Borealis AG, DuPont, and The Dow Chemical Company, accounted for almost 20.67% of the overall global revenue in 2012.
The leading companies are striving to increase their productivity by enhancing their plant capacities through technological developments. To expand their business globally, companies are entering into strategic partnerships and acquiring regional and local players to increase their share in the market.
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Growing Construction Industry to Drive Demand for Building and Construction Plastics
According to a TMR analyst, “The key end-use industry for building and construction plastic is the construction industry.” Over the past few years, the building and construction sector is rising at a significant rate owing to the increasing world population. According to a recent survey, the world population is expected to reach 8,108 million by 2025. As a result, the need for building and construction plastics is likely to rise due to the rise in construction activities.
Plastic materials such as polyurethanes, PVC, thermoplastics, acrylics, and composites have applications in building and construction. These materials are employed in doors and windows, fittings, and pipes and ducts. The demand for building and construction plastic is significantly high in Asia Pacific owing to the growing urbanization in the region. Thus, the growing construction industry is anticipated to drive the growth of the global building and construction plastic market in the upcoming years.
Price Volatility of Crude Oil to Dampen Growth of Building and Construction Plastics Industry
Crude oil is an essential component in the plastics manufacturing market. Petroleum product derivatives are used in the formulation of various types of plastics such as polyethylene, poly vinyl chloride, polypropylene, polyurethane, and polystyrene. As a result, manufacturers of plastic have to acquire large quantities of crude oil for the production process. Due to the depleting petroleum reserves, the price of crude oil and other petroleum products is continuously fluctuating. Moreover, the fluctuating prices in oil commodities has also led to an increase in the prices of plastic products. As the building and construction industry uses a substantial amount of plastics produced from petroleum derivatives, the fluctuation in the price of crude oil is likely to impede the production of building and construction plastics.
Increasing Demand for Green Building to Provide Lucrative Opportunities to Manufacturers
Due to increase in number of respiratory diseases occurring from poor quality constructions, the demand for green buildings has substantially increased over the years. The conventional plastic materials used in buildings emit VOCs which are considered to have a negative impact on human health. As a result, manufacturers of building and construction plastic are focusing on the production of environment and health friendly plastics to meet the requirements of consumers. Green materials are mixed with conventional plastics to produce green plastics that will help in lowering the VOC content. Thus, plastic manufacturers can capitalize on the emergence of green building plastic materials.
Considering all these factors, the global building and construction market is expected to expand at a CAGR of 7.1% from 2013 to 2019. The market stood at US$43.39 bn in 2015 and is projected to reach a market worth US$57.51 bn by the end of 2019. North America is likely to dominate the global building and construction market until 2019 with a projected share of 37.7% in terms of volume. Pipes and ducts are anticipated to emerge as the prime segment in terms of application of building and construction plastics with 36.1% of the overall share in 2019.
The review is based on the findings of a TMR report titled, “Building and Construction Plastics Market: Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 – 2019.”
Key Segments of the Global Building & Construction Plastics Market:
Building & Construction Plastics Market: Product Segment Analysis
Polyvinyl chloride (PVC)
Thermoplastics Elastomers (TPE)
Others (Includes polypropylene, polycarbonates, etc.)
Building & Construction Plastics Market: Application Analysis
Pipes & Ducts
Others (Including roofing, cladding, water proofing, etc.)
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