The global wood plastic composite market size was USD 4.77 billion in 2019 and is projected to reach USD 9.03 billion by 2027, exhibiting a CAGR of 8.57% during the forecast period.
According to a research report by Fortune Business Insights™ the global wood plastic composites market is likely to gain impetus from their increasing application in kitchen accessories, home furniture, vehicle interiors, and car speakers. They are considered to be the highest growing plastic additives at present. This information is given by Fortune Business Insights™ in a recently published report, titled, “Wood Plastic Composites Market Size, Share & Industry Analysis and Regional Forecast, 2024–2032.”
Lists of all the manufacturers of wood plastic composites present in the market
- Trex Company, Inc. (U.S.)
- Seven Trust (China)
- Meghmani Group (India)
- Beologic (Belgium)
- UFP Industries, Inc. (U.S.)
- Fiberon LLC (U.S.)
- Axion International, Inc. (U.S.)
- Josef Ehrler GmbH & Co KG (Germany)
- Croda International Plc (UK)
- CertainTeed (U.S.)
- Others
Drivers & Restraints-
Increasing Usage of Sustainable Fibers to Boost Growth
Wood plastic composites are green materials that have high potential in bringing about sustainability. They don’t contain excessive chemicals that may pose toxic for the environment and are durable in nature. Plant-based fibers are mainly used in reinforced plastics, instead of fibrous materials as they are cost effective, robust, highly stiff, and annually renewable. Such fibers also emit less carbon dioxide, have low density, and possess biodegradability properties. Numerous automakers worldwide are aiming to develop biodegradable or recyclable parts of vehicles by using sustainable wood plastic composites. They would aid in lowering fuel consumption and production cost, offering shatterproof performance under harsh weather conditions, enhance passenger safety, lower weight of the material, and improve acoustic performance. However, wood plastic composites require higher initial cost spending. It may obstruct growth.
Segment-
The WPC market can be segmented based on product type and application
a. By Product Type
- Polyethylene (PE)-based WPC: This segment dominates the market due to its low cost and high durability. PE-based WPC is widely used in decking, siding, and fencing applications.
- Polypropylene (PP)-based WPC: Known for its enhanced mechanical properties, PP-based WPC is mainly used in automotive and construction applications.
- Polyvinyl Chloride (PVC)-based WPC: PVC-based WPC is favored for its high resistance to moisture and termites, making it ideal for exterior applications like cladding and windows.
- Others (ABS, PLA, etc.): These are emerging materials in niche applications due to their unique properties, including recyclability and higher performance.
b. By Application
- Building and Construction: This is the largest segment, accounting for over 70% of the total market share in 2023. WPC products are extensively used in decking, railings, windows, doors, and structural components.
- Automotive: WPC is increasingly being adopted in the automotive sector for interior components like dashboards, trims, and door panels due to its lightweight, high strength, and ability to reduce vehicle weight.
- Consumer Goods: This segment includes the use of WPC in the production of furniture, home décor items, and household accessories.
- Others: Packaging and electronics are smaller but growing segments as companies explore the use of WPC materials for sustainable packaging and casings.
Challenges
- Higher Initial Costs: WPC products are more expensive upfront than traditional wood materials, which may hinder their adoption in cost-sensitive markets.
- Limited Awareness: In some regions, the knowledge about the benefits and applications of WPC remains limited, slowing down market penetration.
Opportunities
- R&D and Innovation: Companies are investing in research and development to create advanced WPC products with enhanced performance properties, including better weather resistance, flexibility, and recyclability.
- Recyclable and Bio-based WPC: The trend toward using bio-based polymers and fully recyclable materials is expected to open new opportunities for growth in the WPC market.
Regional Analysis-
Rapid Industrialization in China & India to Favor Growth in Asia Pacific
In terms of region, North America procured USD 2.24 billion revenue in 2019 stocked by the rising demand for environmentally-friendly solutions and products in this region. In addition to this, the rising application of wood plastic composites in decking would drive growth. In Asia Pacific, developing countries, such as China and India are experiencing rapid industrialization. Coupled with this, the improvements and modernizations in buildings and road construction activities would accelerate growth in this region. The Middle East and Africa and Latin America are set to exhibit steady growth fueled by the surging number of construction activities in both regions.
Get More Information: https://www.fortunebusinessinsights.com/wood-plastic-composite-market-102821
Competitive Landscape-
Key Companies Follow Acquisition Strategy to Gain Competitive Edge
The wood plastic composites market is fragmented with the presence of more than 100 organizations accounting for the total revenue across the globe. They are constantly investing huge sums in research and development activities to innovate their in-house wood plastic composites. Some of them are also adopting the strategy of mergers and acquisitions to enhance their product offerings. Below are a couple of the latest industry developments:
- August 2018: Alvic Plastics Limited was acquired by BSW Group. This new deal would aid BSW in broadening its product portfolio and production capacity. It would also enable the company to bring in diversification to increase its range of products.
- November 2015: Vannplastic Limited, a prominent manufacturer of wood plastic composite was acquired by the Boral Epwin Group for an initial consideration of approximately USD 5.67 million. It would aid Boral in widening its line of low maintenance building materials.
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