The Wood Plastic Composite Market is estimated to be
valued at US$ 7.34 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 Overview:
Wood plastic composites (WPCs) are composite materials made from recycled wood
fiber/sawdust and recycled thermoplastics via an extrusion process. They are
used as substitutes for traditional building materials like wood, plastic and
metal and primarily used in decking, siding, railings and fencing applications.
They offer various benefits over solid wood such as resistance to warping,
rotting, splintering, insect infestation and requires low maintenance. Their
lightweight yet durable nature makes them suitable for various residential and
commercial construction and outdoor furniture applications.
Market Dynamics:
Growing construction industry globally along with increasing demand for low
maintenance and eco-friendly building materials is a major driver fueling
growth of the wood plastic composite market. Construction output across the
globe is increasing significantly due to rapid urbanization and infrastructure
development activities. This has augmented the demand for building materials.
WPC materials being durable, environment friendly and easy to install are
gradually replacing conventional wood and plastic materials in decking, railing
and window applications. Additionally, favorable government regulations
supporting use of eco-friendly composites will further propel the market growth
over the forecast period. However, fluctuating raw material prices may hamper
the market growth.
Segment
Analysis
The wood plastic composite market is dominated
by the decking & railing and industrial & commercial flooring segments.
The decking & railing segment dominates due to the high demand for wood
plastic composite in residential decking and outdoor applications. It provides
the aesthetics of wood combined with the durability and low maintenance of
plastic materials.
PEST Analysis
Political: There are no significant trade restrictions on wood plastic composite
globally. Various government initiatives promotes the adoption of sustainable
and eco-friendly construction materials.
Economic: The growing construction industry and renovation activities are
driving the demand for low maintenance and durable building materials like wood
plastic composite. Its competitive pricing compared to wood further augments
the market growth.
Social: Rising consumer preference for eco-friendly products boosts the
adoption of wood plastic composite as it contains significantly less amount of
compounds and chemicals as compared to pure plastic.
Technological: Advancements in plastic compounding technologies help
manufacturers develop wood plastic composite products with physical properties
equivalent or superior to natural wood at competitive costs.
Key Takeaways
Global
Wood Plastic Composite Market Demand is expected to witness high
growth, exhibiting CAGR of 12% over
the forecast period, due to increasing renovation and remodeling activities
globally. The market size is projected to reach US$ 14 Bn by 2030 from US$ 7.34
Bn in 2023.
Regional analysis: North America dominates the global wood plastic composite
market led by the U.S. followed by Europe. Asia Pacific is expected to be the
fastest growing regional market with double digit growth rates driven by rising
construction spending and growth of outdoor applications in China, India.
Key players operating in the wood plastic composite market are Tamco Building
Products, Trex company Inc, Meghani group, Beologic, Seven Trust, UFP Industries
Inc, Fiberson LLC, Axion International, Polyplank AB, TimberTech, Universal
forests Products, and Josef Ehrler GmbH & Co KG. Key players are focusing
on new product launches, partnerships and mergers to strengthen their market
position.
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