Wood Plastic Composite Market Size, Market Research and Industry Forecast Report, 2027 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Wood Plastic Composite Market


The global wood plastic composite market size was estimated at USD 5.3 billion in 2019 and is expected to register a growth rate of 11.4% over the forecast period. The market is driven by the rising demand for sustainable construction materials along with an increase in the renovation and repair activities in the residential sector across the globe.
Wood plastic composite has high durability, bending strength, shear strength, low moisture content, and low water absorption, as compared to conventional wood products. These properties have made it viable for use in railings, windows, doors, exterior siding, fencing, flooring, interior molding, and landscape materials. Thus, end-users are increasingly preferring wood plastic composite products over conventional wood products.

The rising demand for single-family rental homes is surging in U.S. Builders are focusing on redesigning the models which are expected to boost product demand over the coming years. In addition, over 70% of the large urban regions saw a boost in infill housing development in 2018. The rise of infill development is projected to create opportunities for wood plastic composite manufacturers over the forecast period.

Wood plastic composites have a lower melting temperature as compared to conventional wood products, which lowers the energy cost for end-users and also reduces the environmental impact of the product. Wood plastic composite can be worked upon by the same tools utilized for wood products. This factor eliminates the investments to be made by the manufacturers and the risks associated with recouping the same.

Biggest tech companies such as IBM, Microsoft, and Cisco are investing in megaprojects to build smart and sustainable cities across the globe. The investments in these cities are expected to reach USD 135 trillion in the next two years. In addition to these cities, international megaprojects such as Hudson Yards and Masdar City have created opportunities for interior construction manufacturers resulting in surging the wood plastic composite demand over the coming years.

Wood flour is hygroscopic in nature and must be wetted properly with the use of thermoplastic matrix, otherwise, it can absorb moisture which leads to weak mechanical properties, unwanted odors, and microbial attacks. The technique requires complex machine arrangements and skilled laborers resulting in increasing the overall cost of the products. This, in turn, can restrict the market for wood plastic composite over the next eight years.

Product Insights of Wood Plastic Composite Market

In terms of product segmentation, the market is categorized into polyethylene, polypropylene, and polyvinylchloride. The polypropylene segment is anticipated to see a boom, over the forecast period, owing to its heavy use in the niche application segments such as water resistant coatings on furniture and high temperature controllable wooden units.
Growing demand for polyvinylchloride thermoplastics in automotive applications for manufacturing door panels, seat cushions, cabin linings, backrests and dashboards on account of its excellent insulation properties is expected to have a positive impact on the market for wood plastic composite, over the forecast period.

The polyethylene segment is one of the fastest growing product segments on account of its high demand in manufacturing furniture for homes, offices, restaurants, resorts, and hospitals. Moreover, the rising demand for polyethylene composites in the automotive industry owing to its low cost, high stiffness, and biodegradability is expected to further propel market growth over the coming years.

The rising demand for polystyrene and acrylonitrile butadiene styrene composites in a wide range of applications such as kitchen furniture, shower receptors, bathtubs, windowsills, and whirlpool baths on account of its high durability and environment friendly characteristics is expected to boost market growth over the next eight years.

Application Insights of Wood Plastic Composite Market

In terms of application, the wood plastic composite market is categorized into building and construction, automotive components, industrial and consumer goods, and others. Eradication of barriers to promote foreign investments coupled with changing consumer focus towards green buildings is projected to boost the demand for wood plastic composite in the construction industry over the coming years.

Increasing infrastructural development activities, especially in the emerging economies such as China, India, Thailand, and Brazil coupled with the growing demand for aesthetically appealing furniture and flooring solutions across the globe, has surged the demand for wood plastic composite in the construction industry in the recent times.

Rising consumer spending on exterior building products which have high resistance to moisture and can withstand extreme environmental conditions is expected to increase product demand in the molding and siding application segment. In addition, rising demand for composites that restricts the growth of mold and premature degradation in the decking application segment is projected to further stimulate market growth over the forecast period.
Increasing demand for wood plastic composite in manufacturing noise barriers for street construction, sheet pilings for landscaping and garden furniture, is expected to surge product demand over the forecast period. In addition, rising demand for wood plastic composite in the manufacturing of consumer goods including, toys, and showpieces is anticipated to further propel market growth over the coming years.

Regional Insights of Wood Plastic Composite Market

The demand for wood plastic composite in U.S. is expected to grow significantly over the next eight years on account of the rising application scope of wood plastic composite in manufacturing docks, porches, and window frames. In addition, growing demand for bio based plastics in landscaping and street construction is anticipated to further propel market growth over the coming years.

Asia Pacific is expected to emerge as the fastest-growing market for wood plastic composite owing to the increased per capita income, coupled with rapid industrialization. The shift in consumer behavior in China, growing local competition, fragmented distribution, and rising dual income households is expected to create opportunities for wood plastic composite manufacturers over the forecast period.

Construction activities in the Central and South American economies have grown substantially owing to rising income levels and shifting consumer preference towards green buildings. Expanding commercial construction sector coupled with the government initiatives to create awareness about green buildings among people is expected to stimulate the growth of the market for wood plastic composite over the next eight years.

The rising concerns about the global economy because of the continued deceleration in the Eurozone and China, US-China trade discussions, political situation between China and Hong Kong, and uncertainty over Brexit are expected to impact the global investments, trade, upcoming and ongoing residential/commercial projects and equity markets across the globe. This, in turn, is anticipated to restrict the market over the coming years.

Market Share Insights of Wood Plastic Composite Market

The market participants are adopting various strategies to gain a competitive edge, and thus sustain the growing industry rivalry. CertainTeed Corporation, a subsidiary of Saint Gobain is a major player in the industry with a variety of wood plastic composite products. The company is indulged in mergers and acquisitions, as well as production capacity expansion strategies in order to gain a strong foothold in the market wood plastic composite.
The companies resort to multiple mergers and acquisitions in a bid to gain market share in a particular region. In some cases, the companies build technological collaborations for the production of an advanced product with superior performance characteristics to increase the company revenues.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Wood Plastic Composite Market Research 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 2019 to 2030. For the purpose of this study, this market research report has segmented the global wood plastic composite market report on the basis of product, application and region:

Product Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  
Polyethylene
  
Polypropylene
  
Polyvinylchloride
  
Others

Application Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  
Building and Construction
  
Decking
  
Molding & siding
  
Fencing
  
Automotive Components
  
Industrial and Consumer Goods
  
Othersb