The construction composites market size is expected to reach USD 9 billion by 2027, with a CAGR of 6.8% during the forecast period 2020 to 2027.
The market is majorly driven by the growing construction industry across the globe. Technological innovations involving construction composites have led to the use of the product as a replacement for aluminum and wood.
The construction composites industry includes a wide range of products such as gratings, stairways, decks, railing, and fences with application scope in the industrial, commercial, and household segments. Technological innovations have led to the use of the products in the making of various structures that have complex shapes and are impossible to build with other materials such as wood and steel.
The U.S. product market was estimated at USD 900 million in 2020 and is anticipated to grow at a CAGR of 5.5% from 2020 to 2027. A number of research agencies have been conducting R&D investments and activities in the field of construction composites over the past few years. This has helped in discovering various applications of the product, thus increasing its usage scope. Technological innovations have led to the use of the products in the making of various structures that have complex shapes and are impossible to build with other materials such as wood and steel.
The major players in the construction composites market are focused on manufacturing products that suit all types of construction industry requirements. Floor tiles, fences, and railings are now increasingly being used and are replacing traditional materials, such as wood and steel. Composites are much more durable than other materials. They are lightweight, have low thermal conductivity, and are corrosion resistant. These properties have led to increased use of the products in the construction industry.
The products are specially designed for environments that are exposed to corrosion, heat, and pressure. Composites offer a longer life as compared to other materials. For instance, in factories, the railings used on walkways were previously made of steel or other metals. Due to the constant exposure to heat and other environmental conditions, they corrode easily and require to be repainted and polished from time to time. Since the products are resistant to heat and moisture, they do not corrode away and last longer without requiring regular maintenance
The growing demand for customized components in the construction industry has urged industry participants to integrate their portfolios with downstream production technologies. The use of construction composites is approved by various governing bodies and can be used while following the required restrictions and regulations. The manufacturers must strictly accommodate the regulations pertaining to the Toxic Substances Control Act and the Clean Air Act, which specifies the chemical and physical dangers of formaldehyde, which is emitted during the production of composites.
The residential application segment will experience the highest growth in terms of revenue, slated to grow at a CAGR of 6.8% from 2020 to 2027, mainly on account of the growing need for environmental-friendly and durable products.
The industrial application was the largest segment for the product in 2016, accounting for nearly 36% of the overall revenues. The increasing use of the product in application areas such as stairways, walkways, trash gates, gratings, and ladders in the industrial segment, owing to the anti-corrosion and moisture-proof properties, is expected to drive the segment growth.
The thermoplastic segment is expected to witness growth to the tune of nearly 9% during the forecast period. This can be attributed to the lower costs, recyclability, and non-toxicity. The thermoset segment, on the other hand, is projected to grow at a slower CAGR of around 5% during the forecast years.
Carbon fiber emerged as the largest segment among fiber types in 2019, in terms of revenue, and is estimated to reach a market size of over USD 4.80 billion by 2025. The segment revenue was recorded at nearly USD 4 billion in 2019. This slow growth can be attributed to these fibers being increasingly replaced with glass fibers, which is expected to grow at a CAGR of nearly 7.5% during the forecast period.
Glass fiber, also known as fiberglass, is made from fine fibers of glass. Glass fiber is comparatively cheaper and less brittle than carbon fiber, and thus used significantly more in composites. Glass fibers are used as reinforcing agents in various polymer products to form lightweight plastic polymers. Glass fibers are easy to handle and cheap as compared to its counterparts and has the highest breaking point.
The Asia Pacific dominated the overall industry in 2020, in terms of revenue, and this trend is expected to continue over the forecast period. This regional segment, estimated at USD 1,608 million in 2019, is anticipated to witness growth to the tune of over 7% during the forecast period. The increasing demand for construction composites in countries such as India and China is expected to propel the market growth over the forecast period.
The Asia Pacific was the largest market segment in 2020 in terms of volume and is expected to grow the fastest over the forecast period. The growth of the construction industry in countries such as India and China is expected to propel the demand for construction composites in industrial applications. Industrial growth in these countries is expected to impact the market. In addition, the booming construction industry is expected to fuel market growth over the forecast period.
The key players in the global market include Fibergrate Composite Structures, Inc.; Advanced Environmental Recycling Technologies, Inc.; Fiberon LLC; Strongwell Corporation; and Trex Company, Inc as well as a few medium and small regional players such as Zhengzhou Yalong Pultrex Composite Materials Co., Ltd.; Jiangsu Jiuding New Material Co., Ltd.; and Fibrolux GmbH operating in China and Germany. The companies are emphasizing on acquisitions, capacity expansions, and new product developments to increase their shares and competitiveness in the industry.
Segments Covered in the Report
Fiber Type Outlook
Resin Type Outlook
Central & South America
Middle East & Africa
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