“Global Wood Plastic Composites Market to reach a market value of USD 12.5 Billion by 2030 growing at a CAGR of 9.6%”
The Global Wood Plastic Composites Market size is expected to reach $12.5 billion by 2030, rising at a market growth of 9.6% CAGR during the forecast period. In the year 2022, the market attained a volume of 4,332.8 kilo tonnes, experiencing a growth of 7.1% (2019-2022).
The North American region experienced a resurgence in construction and building activities, particularly in residential and commercial sectors, following the economic recovery post-recession. Therefore, the North America segment captured $2,323.0 million revenue in the market in 2022. WPCs found extensive application in decking, railing, fencing, and other outdoor structures, as they offered durability, low maintenance, and aesthetic appeal, catering to the demand for high-performance materials in construction projects. Also, the Mexico market would consume 266.3 killo tonnes in the market in 2030.
WPCs exhibit high durability, allowing them to withstand harsh environmental conditions, including moisture, UV radiation, and temperature fluctuations. Unlike natural wood, which is susceptible to fungal decay and insect infestation, WPCs offer long-lasting protection against these common threats, ensuring structural integrity and longevity in outdoor applications. Thus, owing to these factors, there will be increased demand for wood plastic composites in the coming years.
Additionally, Rapid urbanization and population growth in developed and emerging economies have increased demand for residential, commercial, and industrial construction. As per the Agencia de Noticias of the Government of Brazil 2021, the construction sector generated R$377.8 billion in value in 2021, with R$355.8 billion in works and/or services and R$22.0 billion in developments, works, and/or services (5.8%). Hence, owing to these factors, there will be enhanced demand for wood plastic composites.
However, fluctuations in the availability and pricing of raw materials directly impact WPC manufacturers' production costs and profitability. Rising raw material costs can inflate production expenses, squeezing profit margins and reducing overall profitability. Conversely, periods of raw material shortages or price spikes may force manufacturers to absorb higher costs or pass them on to consumers through price adjustments, potentially affecting market competitiveness and demand for WPC products.
On the basis of application, the market is divided into building & construction, automotive components, industrial & consumer products, and others. The building and construction segment recorded the 70.21% revenue share in the market in 2022. In terms of volume, building and construction segment would utilize 6,039.1 kilo tonnes in 2030. In construction applications, WPCs' minimal maintenance requirements compared to conventional materials are a significant advantage.
Based on type, the market is segmented into polyethylene, polyvinyl chloride, polypropylene, and others. In 2022, the polyvinyl chloride segment garnered a 18.18% revenue share in the market. In terms of volume, polyvinyl chloride segment would register 2,230.9 kilo tonnes in 2030. Polyvinylchloride offers excellent durability and weather resistance, making it well-suited for outdoor applications such as decking, fencing, railing, and cladding.
Free Valuable Insights: Global Wood Plastic Composites Market size to reach USD 12.5 Billion by 2030
The market exhibits a competitive landscape with established manufacturers, including Trex Company, Inc., The AZEK Company Inc. and TimberTech, leading the industry. These companies leverage their extensive experience, technological expertise, and robust distribution networks to maintain market dominance. Furthermore, the market witnesses the emergence of new entrants and regional players, driven by the increasing demand for sustainable construction materials and the growing adoption of wood plastic composites in various applications such as decking, fencing, and automotive components. Intense competition fosters innovation, prompting companies to focus on product development, technological advancements, and strategic collaborations to gain a competitive edge and expand their market presence.
By region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. In 2022, the Asia Pacific segment acquired a 24.25% revenue share in the market. In terms of volume, Asia Pacific segment make use of 1,348.2 kilo tonnes in 2022. The Asia Pacific region experienced unprecedented urbanization and construction activity, particularly in countries like China, India, and Southeast Asian nations.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 6 Billion |
| Market size forecast in 2030 | USD 12.5 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2030 |
| Revenue Growth Rate | CAGR of 9.6% from 2023 to 2030 |
| Quantitative Data | Volume in Kilo Tonnes, Revenue in USD Billion, and CAGR from 2019 to 2030 |
| Number of Pages | 271 |
| Number of Tables | 550 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Type, Application, Region |
| Country scope |
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| Companies Included | Trex Company, Inc., The AZEK Company Inc. (TimberTech), Fortune Brands Innovations, Inc., Dow, Inc., UFP Industries, Inc., Renolit SE, AIMPLAS, JELU-WERK J. Ehrler GmbH & Co. KG, FKuR Kunststoff GmbH, Beologic |
By Type (Volume, kilo Tonnes, USD Billion, 2019-2030)
By Application (Volume, kilo Tonnes, USD Billion, 2019-2030)
By Geography (Volume, kilo Tonnes, USD Billion, 2019-2030)
This Market size is expected to reach $12.5 billion by 2030.
Growing demand for sustainable building materials are driving the Market in coming years, however, Raw material availability and pricing fluctuations restrictions issues restraints the growth of the Market.
Trex Company, Inc., The AZEK Company Inc. (TimberTech), Fortune Brands Innovations, Inc., Dow, Inc., UFP Industries, Inc., Renolit SE, AIMPLAS, JELU-WERK J. Ehrler GmbH & Co. KG, FKuR Kunststoff GmbH, Beologic
In the year 2022, the market attained a volume of 4,332.8 kilo tonnes, experiencing a growth of 7.1% (2019-2022).
The Polyethylene segment is leading the Market, by Type in 2022; there by, achieving a market value of $7.9 Billion by 2030.
The North America region dominated the Market, by Region in 2022, and would continue to be a dominant market till 2030; there by, achieving a market value of $4.6 Billion by 2030.
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