Wood Plastic Composite Market Analysis Report By Type, By Application, By Region And Segment Forecasts From 2020 To 2027

Industry Insights

The global wood-plastic composite (WPC) market size was worth USD 5.3 billion in 2019. The market is estimated to grow at 11.4% CAGR from 2020 to 2027. Increasing focus on the development of sustainable construction materials coupled with rising repair and renovation activities are driving the market growth.

Wood-plastic composite is durable and has high shear strength, bending strength and it has a low content of moisture as compared to traditional wood products. These properties of wood plastic composite have resulted in increasing use of this material in windows, exterior siding, door, flooring, landscape, fencing, and interior molding. Thus, demand for wood-plastic composite is on the rise compared to traditional woods.

The U.S. is witnessing increasing demand for nuclear family rental houses. Considering this, builders are emphasizing redesigning models to cater to the growing demand. Additionally, more than 70% of large urban areas witnessed growth in the development of infill housing in 2018. Thus, increasing infill development in urban areas is estimated to boost the market growth over the forecast duration.

As compared to traditional wood, the wood-plastic melting temperature is lower, thereby, reducing the adverse impact on the environment and lowering energy costs. Moreover, some tools can be used while working upon wood plastic products as used on traditional woods. This results in reducing the cost of manufacturers.

Leading companies including Cisco, IBM, and Microsoft are investing to create sustainable cities and build smart infrastructure. It is predicted that such investment would reach USD 135 trillion over the next two years. Megaprojects such as Masdar City and Hudson Yards have offered a huge opportunity for industry players.

Product Insights

By product, the WPC market is categorized into polypropylene, polyvinylchloride, and polyethylene. Among them, polypropylene is estimated to witness considerable growth over the forecast duration. Increasing use of this segment in various niche applications such as furniture and water-resistant coatings is driving its demand.

On the other hand, polyvinylchloride thermoplastics are being increasingly used in the automotive sector to manufacture seat cushions, backrests, dashboards, and door panels owing to their superior insulation properties, which, in turn, is driving its growth.

Additionally, the polyethylene category is predicted to grow at the fastest pace from 2020 to 2027. Increasing use of polyethylene in offices, resorts, hospitals, and homes is attributing to its growth. Further, increasing demand for wood plastic composite from the automobile industry due to its low stiffness, cost-effectiveness, and durability is propelling its demand.

Application Insights

Depending on the application, the market is segregated into industrial & consumer goods, automotive components, building & construction, and others. Growing foreign direct investment and changing consumer preferences for green building is the growth of the building & construction category. Further, rapidly growing infrastructural development in emerging countries such as India, China, Brazil, and Thailand coupled with an increasing attraction towards aesthetically appealing flooring and furniture is propelling the growth of the wood-plastic composite in the building & construction segment.

Consumer spending on building products for exterior design is increasing significantly. The demand for building products that are capable of withstanding harsh environments and high resistance to moisture is gaining traction in the recent past. Further, increasing demand for a wood composite, that limits premature degradation and mold growth is on the rise, thereby supplementing the market growth.

Rising demand for wood plastic composite in the construction of noise barrier, sheet pilings, and furniture for gardens are estimated to bolster its demand. Additionally, wood plastic composite is also used in the manufacturing of showpieces and toys, thereby, generating considerable demand.

Regional Insights

The U.S.is anticipated witnessing significant demand for wood plastic composite owing to increasing use in the manufacturing of window frames, porches, and docks. Additionally, bio-based plastics demand is increasing in street construction and landscaping application, thereby, estimated to propel the wood plastic composite (WPC) market growth.

Asia Pacific is predicted to grow with the highest CAGR over the forecast duration, primarily because of growing industrialization and increasing purchasing power. Further, changing consumer preferences in China, fragmented distribution, increasing competition in the local market, and the growing number of households with dual-income are creating lucrative opportunities for the industry players.

However, increasing concern associated with trade wars between the U.S. and China, uncertainty surrounding Brexit, and the outbreak of COVID-19 are estimated to significantly delay the investment in construction projects, thereby, adversely affecting the market growth.

Impact of COVID-19

The outbreak of COVID-19 has adversely affected the growth of the market. The pandemic has led to the closure of various end-user industries such as manufacturing, construction, and automotive. Thus, the closure of this industry has significantly affected the supply chain. Construction and automotive are among major end-user industries for wood plastic composite. Further, consumer spending on construction projects has reduced significantly, thereby, adversely affecting the market growth. However, with relaxing lockdown norms, companies have started their operations, which, in turn, are estimated to boost industry growth. In addition, several construction projects, which were put on hold due to COVID-19, are expected to resume soon, thus, offering a lucrative opportunity for the manufacturers.

Wood Plastic Composite Market Share Insights

Key market players are emphasizing taking strategic initiatives to consolidate their position and gain a competitive edge in the market. CertainTeed Corporation is a leading player in the market that offers different kinds of wood plastic composite products. It is a subsidiary of Saint Gobain and the company is engaged in merger & acquisition, new product development, and expanding its production capacity to strengthen its dominance in the market. Additionally, companies are aiming to improve the quality of their product to garner a larger consumer base.

Report Scope

Segments Covered in the Report 

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Million Insights has segmented the global wood plastic composite market report on the basis of product, application, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
    • Polyethylene
    • Polypropylene
    • Polyvinylchloride
    • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
    • Building and Construction
        • Decking
        • Molding & siding
        • Fencing
    • Automotive Components
    • Industrial and Consumer Goods
    • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
    • North America
        • The U.S.
        • Canada
        • Mexico
    • Europe
        • Germany
        • The U.K.
        • France
        • Spain
        • Italy
        • Russia
        • Netherlands
        • Switzerland
    • the Asia Pacific
        • China
        • India
        • Japan
        • Australia
        • South Korea
        • Thailand
        • Indonesia
        • Singapore
        • New Zealand
        • Philippines
    • Central & South America
        • Brazil
        • Argentina
        • Chile
    • Middle East & Africa
        • Saudi Arabia
        • South Africa
        • United Arab Emirates (UAE)
        • Egypt
        • Iran