Building and Construction Plastics Market Is Estimated to Witness High Growth Owing to Rising Infrastructure Spending and Increasing Usage of Plastic Pipes
The Building and Construction Plastics Market is estimated to be valued at USD 120.21 Bn in 2024 and exhibit a CAGR of 4.6% over the forecast period 2024-2031. Furthermore, the rising application of plastics in insulation, roofing, and cladding solutions is anticipated to boost the market growth.
Market Dynamics:
The global building and construction plastics market is projected to witness significant growth due to factors such as rising infrastructure spending and increasing usage of plastic pipes. Rising government expenditure towards infrastructure development, especially in developing countries, is creating high demand for cost-effective building materials like plastics. Plastic pipes are increasingly replacing traditional materials like metal and concrete pipes in the building and construction industry due to their lightweight and corrosion resistance property. Furthermore, properties of plastics like durability, versatility, and ease of installation make them suitable for a wide range of construction applications including doors, windows, ducts, and roofs. Plastics help in saving construction time and costs. Thus, growth in the construction sector along with the cost and time savings offered by plastics is expected to drive the market growth over the forecast period.
Increase in Infrastructural Development Projects
One of the major drivers for the building and construction plastics market is the rise in infrastructural development projects across both developed and developing regions. Governments around the world are increasingly investing in infrastructure such as roads, bridges, highways, rail networks, airports, etc. to boost economic growth. This rise in infrastructure spending naturally leads to higher demand for various construction materials including plastics. Plastics offer advantages over traditional materials like concrete and steel in terms of being lightweight, durable, and easier to install. They also reduce construction timelines and costs.
Growing Emphasis on Green and Energy-Efficient Buildings
Another key growth driver is the increasing focus on green and energy-efficient buildings globally. Plastics play a vital role in improving the energy-efficiency of buildings through innovative applications like insulated windows, doors and roofs made from plastic composites. They help reduce heat transfer and energy losses significantly. Plastics also allow for improved designs that optimize use of natural light and ventilation. The push for sustainable construction is a major opportunity area that is propelling the demand for "green plastics" in the industry.
Volatility in Oil Prices
One major restraint for the market is the volatility in international oil prices, which is a key raw material for producing most plastics. Unstable crude prices push up production costs for plastic manufacturers. When costs rise, producers are forced to pass on at least some amount of increase to customers in the form of higher product prices. This affects the price-competitiveness of plastics against traditional alternatives in the construction industry. Stable and predictable oil price trends are critical for the growth of the building and construction plastics industry.
Stringent Environmental Regulations
Stringent environmental regulations, particularly those restricting the use of certain hazardous chemicals in plastic production, act as a key challenge. Regulations around the world are tightening on the use of chemicals like phthalates, BPA, heavy metals and halogens due to their potential negative impacts. Complying with such rules increases production costs and complexity. It also sometimes requires manufacturers to invest in altering or upgrading production processes. Excessive regulatory hurdles pose a barrier to the smooth growth of the market.
Rising Demand for Lightweight Materials
One significant opportunity for market expansion is the rising global demand for lightweight construction materials. The infrastructural industry constantly looks for materials that can build stronger structures while keeping weight in check. This is where plastics have a clear advantage - they can achieve equal or better strength at a fraction of the weight of materials like concrete and steel. Their light weight also eases transportation and installation processes. It is a factor driving broader acceptance and use of plastics in modern construction applications.
Growing Need for Durable and Weather-Resistant Materials
Another key market opportunity lies in the increasing industry-wide need for construction materials with excellent durability and weather resistance qualities. Plastics fit this need perfectly through products like impact-resistant panels, roofing sheets, insulation boards, piping etc. They can withstand all kinds of weather extremes like heavy rainfall, storms, drastic temperature changes without deterioration - offering far superior longevity than traditional alternatives. This superiority in withstanding outdoor conditions without maintenance translates to higher demand over time.
In conclusion, factors like the rising global infrastructure spending, focus on eco-friendly buildings, demand for lightweight materials and need for durable solutions present several high growth opportunities for the building and construction plastics industry. However, volatility in raw material prices and tightening environmental regulations continue to pose challenges. On balance, the opportunities generally outweigh the restraints, pointing to a largely positive overall outlook.
Link: https://www.coherentmarketinsights.com/market-insight/construction-and-building-plastics-market-4099
Key Developments
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 Players
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
