Gypsum board, commonly known as drywall or plasterboard, is a panel made of calcium sulfate dihydrate and gypsum plaster pressed between afacings of paper. It is widely used as an interior wall and ceiling covering in residential (houses and apartments) and commercial (hotels, hospitals, offices etc.) properties. Gypsum board offers advantages likelightweight, fire resistant, affordable and easy to install. The growing construction industry driven by increased investment in infrastructure projects andresidential buildings is driving the demand for gypsum boards globally.
The global Gypsum Board Market is estimated to be valued at US$ 56.68 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Growing infrastructure sector in emerging economies provides huge growth opportunity for gypsum board market. There is increased government spending on infrastructure development projects like roads, bridges, airports etc. in countries like India, China and several African nations. This is driven by rapid urbanization and industrialization. As gypsum boards are widely used in construction of commercial buildings, the increasing construction of infrastructure projects will enhance the market growth. The emerging economies offer immense potential for gypsum board manufacturers given the improving economic conditions and rising disposable income levels. With growing construction needs, these regions are expected to dominate the gypsum board consumption in the coming years.
Porter’s Analysis
Threat of new entrants: The gypsum board market has moderate threat of new entrants owing to requirement of large capital investments for infrastructure and manufacturing facilities. Addition, existing players have established supply chains and brand recognition.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitute products like concrete boards. However, gypsum boards are widely used construction material.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power as raw materials required for gypsum board production such as gypsum rock and recycled paper are abundantly available.
Threat of new substitutes: Threat from substitutes is moderate as concrete boards provide competition but gypsum boards have advantage of light weight and easy installation.
Competitive rivalry: The market has high competitive rivalry due to market being fragmented with many regional and international players.
SWOT Analysis
Strength: Gypsum boards have light weight, fire resistance, sound insulation and moisture resistance properties. Easy to install and recyclable.
Weakness: Transportation of gypsum boards leads to damage requiring packaging improvements. Susceptibility to dampness during construction needs proper site handling and storage.
Opportunity: Growing construction industry in developing regions of Asia Pacific and Middle East & Africa provides expansion opportunities. Increasing renovations and infrastructure projects boosts market.
Threats: Supply chain disruptions due to COVID-19 pandemic and trade barriers pose major threats. Economic slowdowns impact construction sector negatively affecting gypsum board demand.
Key Takeaways
The global gypsum board market is expected to witness high growth during the forecast period of 2023 to 2030 registering a CAGR of around 12%. Rapid urbanization and increasing residential and commercial construction in developing regions drives the market. The global Gypsum Board Market is estimated to be valued at US$ 56.68 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030.
The Asia Pacific region dominates the global gypsum board market with China, India and other Southeast Asian countries accounting for majority share owing to their huge populations and economic growth leading to construction booms. Rapid urbanization coupled with government initiatives to develop infrastructure and improve housing has been primary growth drivers in the region.
Key players operating in the gypsum board market are Saint-Gobain, United Mining Industries, Taishan Gypsum Co., Ltd., Knauf, Baier Group, Yoshino Gypsum Co., Ltd., Gulf Gypsum Board, Gypsemna, Georgia-Pacific Gypsum LLC, and Arcat, Inc.
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