Wood Plastic Composite Market Research, Key Players, Analysis And Forecast 2027: Grand View Research Inc.

 

The global wood plastic composite market size is expected to reach USD 12.5 billion by 2027, expanding at a revenue-based CAGR of 11.4%, according to a new report by Grand View Research, Inc. Increasing demand for wood plastic composite in manufacturing noise barriers for street construction and sheet pilings for landscaping and garden furniture is expected to drive market growth.

The shortage in supply of raw materials from Chinese manufacturers has resulted in a severe demand-supply gap. The manufacturers are further expected to be stranded on raw material orders owing to the logistics industry being significantly impacted due to lockdown amid COVID-19. However, the producers are expected to move away from China aiming to reduce the future risks that would affect the business and to reduce the manufacturers' cluster in a single country in order to smoothen the supply chain. The report will account for Covid19 as a key market contributor.

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.

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.

To Request Sample Copy of this report, click the link:

https://www.grandviewresearch.com/industry-analysis/wood-plastic-composites-market/request/rs1

The rising demand for single-family rental homes is surging in U.S. which has urged builders to focus on redesigning the models. Over 70% of the large urban regions saw a boost in infill housing development in 2018. This rise in infill development is projected to create opportunities for wood plastic composite manufacturers over the forecast period.

Further key findings from the report suggest:

• Polypropylene composites are expected to witness a CAGR of 11.8% from 2020 to 2027 in terms of revenue owing to its heavy use in the niche application segments such as water-resistant coatings on furniture and high temperature controllable wooden units
• The penetration of wood plastic composite in the automotive industry accounted for 15.9% of the global revenue in 2020 on account of its favorable properties such as lightweight, machinability, durability, and environmental friendliness
• The building and construction segment is expected to witness a revenue-based CAGR of 11.5% from 2020 to 2027 owing to rise in foreign investments coupled with changing consumer focus towards green buildings
• Asia Pacific accounted for 31.3% of the volume share in 2020 on account of the shift in consumer behavior, growing local competition, fragmented distribution, and rising dual income households
• Key players are adopting partnership strategies with companies in order to gain dominance in the wood plastic composite market which provides them a competitive advantage in terms of manufacturing sustainable products and use advanced technologies in the field.

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.

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.

Grand View Research has segmented the global wood plastic composite market on the basis of product, application:

Wood Plastic Composite Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

• Polyethylene
• Polypropylene
• Polyvinylchloride
• Others

Wood Plastic Composite Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

• Building and Construction
• Decking
• Molding & Siding
• Fencing
• Automotive Components
• Industrial and Consumer Goods
• Others