BUILDING AND CONSTRUCTION PLASTICS MARKET ANALYSIS
The building and construction plastics market is estimated to be valued at USD 120.21 Bn in 2024 and is expected to reach USD 164.33 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 4.6% from 2024 to 2031.
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Key factors such as the growth of residential and commercial construction, particularly in emerging markets, will boost the demand for building and construction plastics in the coming years. Plastics are widely used in construction for various products, including pipes, doors, windows, roofing sheets, and insulation, thanks to their durability, flexibility, and lightweight nature. Rapid urbanization and increasing disposable incomes are anticipated to drive infrastructure development and the construction of residential and commercial properties, further supporting market growth through 2031.
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Insights By Product Type: Affordability Drives Polyvinyl Chloride (PVC) Segment’s Dominance
In terms of Product Type, Polyvinyl Chloride (PVC) segment is estimated to hold 32.2% market share in 2024, owing to its versatility and cost-effectiveness. Polyvinyl chloride, commonly known as PVC, has become the building and construction plastic of choice for many applications due to its adaptability and affordable price point. This versatile nature allows it to replace materials like wood, metal, and concrete in various structural and finishing applications.
Insights By Application: Pipes & Ducts Witness High Demand from the Construction Sector
In terms of Application, Pipes & Ducts segment is estimated to hold 34.3% market share in 2024 due to requirement in infrastructure and their ability to replace metal. Within the building and construction sector, plastic usage is most concentrated in pipe and ductwork applications. Both underground infrastructure and internal building systems require extensive piping and ducting to transport liquids and gases. Various plastics too have gained the structural strength to withstand water pressure needs.
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Regional Analysis:
Dominating Region: Asia Pacific
Asia Pacific is expected to dominate the overall market in 2024 with an estimated share of 43.2%. This growth can be attributed to strong industry presence and government support for infrastructure development in the region. Countries like China and India have seen significant investments in commercial and residential construction.
Fastest-Growing Region: North America
North America region exhibits the fastest growth, led by countries such as the U.S. and Canada. Rapid urbanization, and economic development are fueling new construction activity across sectors. Government initiatives to boost manufacturing and housing construction also provide opportunities.
Building and Construction Plastics Market Outlook for Key Countries
Growth Driven by Innovation, Versatility, and Advanced Polymer Technology in Non-Residential Applications
The U.S. building and construction plastics market is dominated by large players like DuPont and Dow Chemical. Their innovations in plastic formulations support the non-residential construction segment. The demand for building plastics in the U.S. is driven by technological advancements in polymer production and the versatility of plastics in applications such as insulation, windows, and roofing.
Growth in the Canada Construction Plastics Market Fueled by Population Rise, Housing Demand, and Energy-Efficiency Initiatives
The Canada building and construction plastics market remains robust backed by ongoing projects such as commercial projects. Prominent players include NOVA Chemicals and Interplastic Corporation. Canada’s building and construction plastics market is anticipated to grow significantly due to increasing housing demands driven by population growth and a focus on energy-efficient buildings.
The China Construction Plastics Market Thrives on Government-Driven Infrastructure, Sustainability Initiatives, and Urban Expansion
China continues to lead Asia Pacific with its massive infrastructure programs. State-owned enterprises like Sinopec fuel polymer demand. Government initiatives promoting sustainable practices and infrastructure development are key drivers of this growth. The demand for plastics in construction is expected to rise, particularly in urban areas and through government-funded infrastructure projects.
The India Construction Plastics Market Accelerates with Urbanization, Real Estate Boom, and Smart City Initiatives
The India building and construction plastics market is gaining momentum on the back of housing and smart city projects. Reliance Industries and Formosa Plastics are eying expansion. India is projected to witness the fastest growth in the building and construction plastics sector among these key countries, driven by rapid urbanization and significant investments in real estate and infrastructure projects.
Steady Growth in the Japan Construction Plastics Market Driven by Infrastructure Recovery, Sustainability Efforts, and Supportive Government Policies
The Japan building and construction plastics market remains stable with recovery in commercial projects. BASF and Covestro supply advanced materials. This growth is supported by favorable government policies aimed at enhancing infrastructure development and sustainability.
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Top Strategies Followed by Building and Construction Plastics Market Players
Emerging Startups in the Industry
Innovative Technologies: Startups like Chromatic 3D and Biovation are developing advanced plastic composites using recycled materials infused with algae or bacteria. These sustainable solutions could lower raw material costs while cutting industry emissions over time.
Sustainable Solutions: Firms like Agilyx focus on plastic waste recycling technologies to convert non-recyclable plastics into renewable fuels or virgin plastic feedstock. Their chemical recycling innovations may help divert millions of tons of plastic from landfills annually. Based in Europe, NetZero specializes in carbon-neutral plastic formulations. The company’s bioplastics and recyclable products are tailored for building applications, aligning with the demand for eco-friendly materials in urban construction.
Market Contribution: Startups often address niche industry needs through cooperation. Protoplastic partners with manufacturers to commercialize rapidly renewable, low-cost bioplastic resins for consumers.
In May 2024, Clariant launched Liocolub PED 1316, a new oxidized high-density polyethylene (HDPE) suitable for both internal and external applications in PVC processing, including windows, pool steps, and non-potable pipes.
In December 2023, Arkema acquired Arc Building Products in Ireland, enhancing its presence in the country's construction adhesives market.
Key Takeaways from Analyst
The market has strong potential for growth, driven by increasing residential and commercial construction activities globally. The rise of smart cities and focus on green buildings also provides opportunities for polymeric materials that improves energy efficiency. Asia Pacific is anticipated to continue dominating the market owing to rapid infrastructure development and urbanization in major countries like China and India.
However, stringent regulations surrounding plastic waste disposal and recycling may act as a restraint for the market. Additionally, the versatility of alternative materials like wood, concrete, and metals pose competition to plastics. The development of bio-based and recyclable plastics through advanced recycling technologies can help overcome some of these challenges. North America also remains an important region due to renovation and remodeling activities in the U.S.
Building and Construction Plastics Market Report Coverage
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2023 | Market Size in 2024: | US$ 120.21 Bn |
| Historical Data for: | 2019 To 2023 | Forecast Period: | 2024 To 2031 |
| Forecast Period 2024 to 2031 CAGR: | 4.6% | 2031 Value Projection: | US$ 164.33 Bn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
BASF, DuPont, Dow, LG Chem, SABIC, Arkema, LyondellBasell Industries Holdings B.V., Borealis AG, Solvay, Evonik Industries AG, Covestro AG, Eastman Chemical Company, Huntsman Corporation, Teknor Apex, and Avient Corporation |
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| Growth Drivers: |
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| Restraints & Challenges: |
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Market Driver - Rise in infrastructure development projects
With rapid urbanization taking place globally, the need for well-developed infrastructure is growing exponentially. Governments across both developed and developing economies have realized the importance of investing heavily in infrastructure to improve overall connectivity, mobility and quality of life of their citizens. The European Commission also allocated over US$ 110 Bn for Trans-European Transport Network (TEN-T) Core Network Corridors between 2021 and 2027 aiming to establish multimodal long-distance links across Europe.
Market Challenge - Fluctuation in crude oil prices
The market faces significant challenges due to fluctuations in crude oil prices in the global market. Crude oil is the primary feedstock used in manufacturing of plastics for construction purposes. For example, data from the World Bank showed that building permits released in June 2022, a key indicator of construction activity, fell sharply by 30% on average across OECD countries due to rising costs driven by higher crude oil prices in 2022 compared to pre-pandemic 2019 levels.
Market Opportunity: Development of bio-based and recycled plastics for market
The market sees significant opportunities in developing innovative bio-based and recycled plastics. With growing concerns about environmental pollution and depletion of crude oil reserves, bio-based plastics derived from renewable feedstock such as vegetables oils, corn, and sugarcane are gaining major traction. Recycled plastics provide an eco-friendly solution and reduce dependence on fossil fuel-based virgin plastics.
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About Author
Yash Doshi is a Senior Management Consultant. He has 12+ years of experience in conducting research and handling consulting projects across verticals in APAC, EMEA, and the Americas.
He brings strong acumen in helping chemical companies navigate complex challenges and identify growth opportunities. He has deep expertise across the chemicals value chain, including commodity, specialty and fine chemicals, plastics and polymers, and petrochemicals. Yash is a sought-after speaker at industry conferences and contributes to various publications on topics related commodity, specialty and fine chemicals, plastics and polymers, and petrochemicals.
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