Construction Plastics Market Share, Industry Analysis [2031]

Report Description

Construction Plastics Market Outlook 2031

The global construction plastics market size was USD 142.31 Billion in 2022 and is likely to reach USD 252.1 Billion by 2031, expanding at a CAGR of 7.1% during 2023–2031. The market is driven by the expansion of the real estate and construction industries to meet the rising housing and commercial building demands.

Growing necessity for space-efficient structures and faster construction has increased demand for construction plastics in recent years. The construction industry utilizes plastics for a variety of purposes such as window frames, insulation, and interior design. With the growing population, there is an upsurge in the need for building new residential and commercial spaces, especially in developing nations. These factors are likely to boost the market during the forecast period.

• As per the report published by the United Nations Conference on Trade and Development in 2022, the share of people living in developing nations has surged from 66% in 1950 to 83% in the present. By the end of 2050, it is expected to reach 86%.

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Plastics are favored for various construction products due to their strength, flexibility, lightweight nature, corrosion resistance, and processability. Polymers such as polyvinyl chloride (PVC) are being widely used in this industry owing to their fire resistance characteristics. There is also a high demand for the manufacture of various safety products such as automatic firefighting systems, smoke detectors, and alarms are often made with building and construction plastics. Moreover, plastic requires minimal maintenance and is easy to install and use. Their wide range of applications in different end-use industries is likely to push the market forward in the coming years.

The research report finds that the COVID-19 pandemic impeded the market due to the lockdowns imposed by various governments all around the world. The supply and distribution networks were affected by this, causing a considerable deficit in supply and demand. Moreover, most of the resources were diverted by governments towards healthcare, causing a slowdown in other industries, including construction and real estate industries. This hindered the construction plastics market.

Artificial Intelligence Impact on the Construction Plastics Market

The use of artificial intelligence is anticipated to provide substantial propulsion to the construction plastics market. IoT devices and sensors in construction are driving the adoption of AI. Real-time data from these devices, when combined with AI algorithms, can optimize construction processes, enhance decision-making, and improve safety. The use of AI-powered drones and robotics is gaining popularity, leading to smart and automated construction practices and increased efficiency, productivity, and quality in projects. For instance, Takenaka Corporation, a leading provider of construction services, selected ALICE Technologies in July 2022 for critical projects, using ALICE's architecture optioneering structure to quickly and securely use AI for bidding, planning, and constructing large infrastructure developments.

Construction Plastics Market Dynamics

Major Drivers

Expansion of the construction industry is expected to drive the market during the projection period. The increase in global population has fueled demand for residential and commercial properties. As a result, a large number of construction projects are taking place all across the world to fulfill those demands. This has resulted in tremendous growth in the construction industry. As a result, the requirement for insulation, pipes and ducts, windows, doors, and roofing is experiencing a significant upsurge. This is likely to propel the market in the coming years.

• As per a survey report published in August 2023, the global revenue of the construction industry in 2030 is expected to be twice as much as it was in 2020. This value was approximately USD 6.4 trillion in 2020 and is likely to reach USD 14.4 trillion in 2030.

Rise in demand for the construction of green buildings is projected to boost the market during the assessment period. The increase in environmental awareness has led to a rise in demand for the construction of green buildings. These buildings have highly efficient designs, promote sustainable business practices, and aid in augmenting occupant health and well-being. In addition, several factors such as its low operational cost, resourceful use of energy and water, and better air quality are expected to fuel the market.

Existing Restraints

High variations in the cost of raw materials are likely to hamper the market during the forecast period. All forms of plastic used in construction are manufactured by processing fossil fuels including crude oil, coal, and natural gas to obtain chemicals such as ethylene and propylene. Since the price of such petroleum-based materials is extremely volatile, it affects the cost of raw materials as well. Such price fluctuations disrupt the supply and demand of end-use products.

Emerging Opportunities

Increasing research and development in bioplastic is anticipated to provide substantial growth opportunities for the market. The use of bioplastic helps in reducing carbon emissions and creates less plastic pollution. Its use in manufacturing plastic pipes and tubing that are used in construction and outside the buildings can significantly push the market forward. These pipes are used for various purposes, including plumbing, water service, hydronic heating and cooling, snow melting, and geothermal piping systems. The use of bioplastic in the production of these pipes, due to its biodegradability, can significantly help in reducing plastic pollution and therefore has a very high chance of adoption by construction companies.

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Scope of the Construction Plastics Market Report

The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Construction Plastics Market Segment Insights

Material Segment Analysis

Based on material, the construction plastics market is divided into polyvinyl chloride, polyethylene, polycarbonate, polystyrene, polypropylene, and others. The polyethylene segment is further divided into low-density and high-density variants. The polyvinyl chloride segment is projected to hold the major share of the market during the projection period, owing to its extensive use in building and construction. Polyvinyl chloride (PVC) is a highly versatile thermoplastic material used in pipes and fittings due to its ideal physical properties for construction, such as strength, ductility, and durability. Its increasing use in windows, roofing, doors, and ducting applications is likely to boost the market in the coming years.

• According to a survey report published in March 2023, the global production of PVC in 2018 was close to 44 million metric tons. This value is anticipated to reach 60 million metric tons by the end of 2025.

The polystyrene segment is projected to register a considerable CAGR during the forecast period, as it is one of the widely used materials for construction applications. The most frequent use is found in plumbing fixtures, insulation, and others due to the physical characteristics of expandable polystyrene such as longevity, excellent strength, lightweight, and processing ease. With the expansion of the construction industry, this segment is projected to have substantial growth.

• As per a survey published in March 2023, the global capacity for the production of polystyrene in 2021 was close to 15.61 million metric tons. By the year 2026, this is expected to reach 16.75 million metric tons owing to the emergence of a large number of polystyrene production plants in Asia during this time.

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Application Segment Analysis

On the basis of application, the global market is segregated into pipes & ducts, insulation, roofing, wall covering, door & windows, and others. The pipes & ducts segment is projected to register a high CAGR during the forecast period, due to their use in construction-centric purposes, such as hydronic cooling and heating, water services and plumbing, snow-melting, geothermal piping systems, and fire protection.

These pipes are made using polystyrene, polyvinyl chloride, polypropylene, and polyethylene as their primary constituents. Furthermore, these pipes and ducts can withstand harsh environments due to their excellent resistance to chemicals, water, and corrosion. The globally increasing demand for plastic construction materials in construction activities is likely to drive the growth of this segment.

Regional Outlook

In terms of region, the global construction plastics market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is projected to dominate the market during the projection period, owing to the presence of several developing economies such as India and China, where the development of infrastructure is happening at a tremendous pace. Furthermore, factors such as the expansion of the industrial sector, residential requirements from the growing population, and rising disposable income are anticipated to fuel the market in this region during the projection period.

The market in North America is expected to witness significant progress during the assessment years due to the presence of an advanced real-estate infrastructure. This region is one of the top consumers of construction and building plastic as a result of the high demand for these materials in the construction industry. The adaptable qualities of construction plastic make them ideal for numerous construction industry applications, such as roofing, pipes and ducts, insulation, windows, and doors. With the growth in the real estate sector, the construction plastic market is likely to have a tremendous rise in this region during the forecast period.

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