Construction Plastics Market

Construction Plastics Market Outlook (2023 to 2033)

As per the data published by Fact.MR, the global construction plastics market is valued at US$ 93.61 billion in 2023. Worldwide demand for construction plastics is predicted to accelerate at a CAGR of 10.5% and reach US$ 254.5 billion by 2033. There are multiple benefits associated with the application of construction plastics. Higher strength, flexibility, low weight, scratch resistance, and low maintenance are some key benefits of using construction plastics.

Key Market Growth Drivers

• Continuous growth of the building & construction industry is projected to generate more revenue streams for suppliers of construction plastics over the decade.
• Abundant availability of plastics across regions at economical prices is predicted to present lucrative opportunities for providers of construction plastics.

Construction plastics are compounds that are chemically treated to ensure their suitability for construction purposes. These products are available in multiple forms, including luxury vinyl tiles, wood-plastic composites, and others. Easy availability and affordability, along with their multi-purpose uses, are opening up new opportunities for producers of construction plastics. Recyclability and reduced waste of construction plastics can contribute to the circular economy and thus minimize carbon footprints which is further beneficial for the environment.

• Worldwide sales of construction plastics for pipes are projected to rise at a CAGR of 11.8% and reach US$ 72.71 billion by 2033-end.
• Demand for construction plastics in China is predicted to accelerate at a 15.5% CAGR and reach a market value of US$ 44.81 billion by the end of 2033.

Among other types of plastics, polyvinyl chloride is used predominantly in the production of building plastics. Thermal conductivity, long life, insulation durability, ergonomic nature, design flexibility, and scratch resistance are potential characteristics of polyvinyl chloride, which are driving opportunities for industry players.

Raw materials used in the production of propylene, ethylene, etc., are derived from crude oil. Constant fluctuations in the prices of crude oil are predicted to have an adverse impact on the demand for construction plastics.

Report Attributes	Details
Construction Plastics Market Size (2022A)	US$ 84.71 Billion
Estimated Market Value (2023E)	US$ 93.61 Billion
Forecasted Market Value (2033F)	US$ 254.5 Billion
Global Market Growth Rate (2023 to 2033)	10.5% CAGR
United States Market Value (2022)	US$ 23.11 Billion
Pipes Segment Value (2033)	US$ 72.71 Billion
Japan Market Growth Rate (2023 to 2033)	6.1% CAGR
Germany Market Growth Rate (2023 to 2033)	7% CAGR
Key Companies Profiled	ACH Foam Technologies; Asahi Kasei Corporation; AEP Industries; BASF SE; Berry Plastics Corporation; Chevron Philips Chemical Company LLC; Borealis AG; China Petrochemical Corporation; DuPont de Nemours, Inc.; Dow, Inc.; Engineered Profiles LLC

What Makes Construction Plastics a Popular Material Globally?

“High Impact Strength and Moldability of Construction Plastics”

Plastics used in building and construction projects are used frequently in multiple applications, including insulation, roofing, pipes and ducts, windows, and doors. These plastics are used for multiple applications owing to their impact strength, moldability, and availability in various optically transparent grades. Expansion of the construction industry is predicted to boost demand for these plastics.

Governments in developing and developed countries are investing heavily in infrastructure development due to the growing population. Consequently, increased construction expenditure is predicted to generate lucrative opportunities for manufacturers of construction plastics in the coming 10 years.

“Growing Demand for Construction Plastics for Enhanced Energy Efficiency in Green Buildings”

In recent years, green structures have gained popularity compared to conventional ones. Plastics are utilized in the building industry significantly to save energy. The rising demand for green buildings is attributed to their better air quality, efficient energy & water use, lower operating costs, and decreased strain on metal structures compared to traditional buildings. Moreover, social influences, including fostering a community sense, promoting sustainable business practices, and enhancing the health and well-being of occupants, are leading to the increasing adoption of green building practices.

Plastics are used in several green building applications that include windows, pipes, roofs, floors, fire sprinkles, and insulation. The industry of building & construction plastics is estimated to expand at a significant rate owing to the growing demand for green buildings. Construction plastics come with multiple qualities that are boosting their demand for green buildings. Some of these characteristics include ease of installation, durability, corrosion resistance, lightweight, ease of handling, durability, and high-temperature resistance.

What is Denting the Demand Growth for Construction Plastics?

“Fluctuations in Prices of Raw Materials Used in Production of Construction Plastics”

Hydrocarbon fuels, including natural gas, coal, and crude oil, are used in the production of construction plastics. Natural gas, which is more cost-effective than oil, is used in the production of polyethylene (PE). Shifting trends in the demand and supply of PE are estimated to result in price volatility for construction plastics in major international markets.

A variety of raw materials, such as propylene, ethylene, and other chemicals, are derived from crude oil. These same monomers are subsequently used to produce various polymers like polypropylene and polyethylene, which are employed in construction plastics. Fluctuations in crude oil prices are expected to affect the overall cost of construction plastics. Supply-demand imbalances, geopolitical instability, and seasonal variations are other potential factors that could lead to fluctuations in crude oil costs.

What are the Strategies Adopted by Start-ups to Stay Profitable in This Market?

“Emphasis on R&D Activities to Expand Application Scope of Construction Plastics”

Bioplastic research and development is projected to open up lucrative opportunities for key market players. Potential growth opportunities are expected to rise alongside the increasing popularity of various plastic pipe and tubing systems, particularly those used in construction projects and building exteriors.

Fire protection, plumbing, water service, snow melting, geothermal piping, and hydronic heating and cooling systems widely use construction plastic pipes. Application of plastics in the building & construction industry is forecasted to contribute to the market expansion during the assessment period.

Country-wise Insights

As per Fact.MR, demand for construction plastics in Asia Pacific is projected to advance at a CAGR of 5.1% from 2023 to 2033. This steady market growth in the region is attributed to the increasing construction activities. Furthermore, the North American market is predicted to expand at 3.5% CAGR through 2033 mainly due to the expansion of industrial infrastructure and increasing product commercialization.

What Makes the United States an Investment-worthy Market in North America?

“Market Benefitting from Expansion of Industrial Infrastructure”

The United States market was valued at US$ 23.11 billion in 2022, according to Fact.MR, a market research and competitive intelligence provider. The increased adaptability of building plastics is attributed to their simplicity in getting molded into desired shapes. They are used in multiple applications, including insulation, doors, pipes and ducts, roofing, and windows.

Significant expansion of the industrial infrastructure along with growing product commercialization is generating demand for construction plastics in the United States.

Which Countries in Europe are Presenting Lucrative Opportunities for Market Players?

“Focus on Environmental Sustainability in Germany, United Kingdom, Spain, and Italy”

Sales of construction plastics in Germany are projected to advance at a CAGR of 7% through 2033. The United Kingdom, Germany, Spain, Germany, and Italy are prominent producers of construction plastics. Increasing greenhouse gas emissions is projected to boost demand for plastics for construction projects.

Environmental awareness and sustainability are creating prospects for suppliers of construction plastics. Favorable macroeconomic conditions along with the development of industrial facilities are creating demand for construction plastics.

Which Asia Pacific Countries are Key Markets for Manufacturers of Construction Plastics?

“Favourable Government Policies Promoting Infrastructure Development in China, India, and Japan”

Demand for construction plastics in China is forecasted to increase at a CAGR of 15.5% and reach a value of US$ 44.81 billion by 2033-end. Further, the Japanese market is projected to advance at a CAGR of 6.1% through 2033.

Rising adoption of construction plastics in China, India, and Japan is driving opportunities for players. China is considered one of the significant producers of thermoplastics and polyurethane plastic materials. Rapid urbanization and industrialization in these markets are generating demand for construction plastics.

Favorable conditions for market growth, including cheap labor, supporting government policies supporting infrastructure development, industrial facilities, and abundant natural resources are positively influencing opportunities for suppliers of construction plastics.

Category-wise Insights

Construction plastics are used significantly in the production of pipes due to their corrosion resistance, low weight, and durability. Sales of construction plastics for pipes are predicted to accelerate at a CAGR of 11.8% through 2033. Polyvinyl chloride (PVC) is used in the manufacturing of construction plastics due to its durability and affordability. Worldwide demand for PVC is forecasted to rise at 4.4% CAGR from 2023 to 2033.

Which Plastic Type is Extensively Used in the Construction Sector?

“Extensive Use of PVC in Production of Construction Plastics Due to its Durability and Strength”

Based on plastic type, the global market is classified into polyvinyl chloride, polystyrene, polypropylene, and polyethylene. Global demand for polyvinyl chloride (PVC) is predicted to accelerate at a CAGR of 4.4% through 2033.

PVC is one of the popular thermoplastic polymers that come with excellent application in the building & construction industry. PVC is applied in the construction sector for windows, roofing, ducting, and doors. It is also utilized in pipes and fittings due to its strength, affordability, and durability.

Which Application of Construction Plastics is Significantly Contributing to Market Revenue Growth?

“Corrosion Resistance of Plastic Materials Fueling Adoption in Pipe Construction”

Windows & doors, insulation materials, and pipes are key applications of construction plastics. Among these, demand for construction plastics for the construction of pipes is forecasted to increase at an 11.8% CAGR and reach US$ 72.71 billion by 2033.

Plastic pipes, tubing systems, and geothermal piping systems are used for multiple purposes both inside and outside buildings, including plumbing, water services, fire protection, hydronic heating and cooling, and snow melting. Prominent plastic types used for these pipe systems include polypropylene, polyvinyl chloride, polystyrene, and polyethylene.

Pipes are used in harsh environments due to their high water and chemical resistance and performance. Construction plastics are durable, lightweight, and resistant to corrosion. Simple installation, transport, and handling make plastic pipes a popular choice in the construction sector.

Market Competition

Industry players are focusing on ensuring product quality control, innovation, and efficient management of supply chain systems to gain a competitive edge in the market. Market players are investing in collaborations, partnerships, product launches, etc., to enhance their profit margins.

For instance :

• BASF SE and Hannong Chemicals, in October 2022, intend to start a joint venture called BASF Hannong Chemicals Solutions Ltd., subject to regulatory approvals. BASF SE will hold a 51% stake in the venture, with Hannong Chemicals holding the remaining 49%.
• Westlake Chemical Corporation, in November 2021, confirmed the introduction of GreenVin Polyvinyl Chloride (PVC) by its Germany-based subsidiary Vinnolit. It is a popular low-carbon alternative PVC with extensive applications in various industries, including construction, automotive, and medical. This newly launched product is eco-friendly and ensures effective performance similar to conventional PVC.

Key players in the market include ACH Foam Technologies, Asahi Kasei Corporation, AEP Industries, BASF SE, Berry Plastics Corporation, Chevron Philips Chemical Company LLC, Borealis AG, China Petrochemical Corporation, DuPont de Nemours, Inc., Dow, Inc., and Engineered Profiles LLC.

Segmentation of Construction Plastics Industry Research

• By Plastic Type :

  • Polystyrene
  • Polyethylene
  • Polypropylene
  • Polyvinyl Chloride

• By Application :

  • Pipes
  • Windows & Doors
  • Insulation Materials

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa