Wood Plastic Composites Market Size Forecast to Reach $7.4 Billion by 2026

(Publishing-NewsWire.com, September 11, 2021 ) Wood Plastic Composites Market is forecast to reach $7.4 billion by 2026, after growing at a CAGR of 11.4% during 2021-2026. Wood Plastic Composite is a composite material made from sawdust and plastic as a polymer like PE-based Composites, recycled plastics, Polyvinyl chloride (PVC) based, and Polypropylene (PP), which better bonding and provide sustainability, longevity, and cost savings in a wide array of applications such as car interiors, home furniture, and kitchen accessories.

Wood-plastic composite offers 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, and interior molding, and raised its demand from automotive and construction industries. Whereas, the growing building & construction sector in emerging countries like China, India, Brazil, Argentina, and the African region is also driving the market growth during the forecast period.

Covid-19 Impact

COVID-19 proved to be a major challenge for the wood plastic composite market. The outbreak of coronavirus has disrupted the supply chain and postponed the deliveries of wood composites and other raw materials from yards, due to lockdown and shortages of staff. Industries are shuttered all around the world. Decrease in purchasing capital of people has a direct impact on the automotive, and construction industries, which in turn lowered the demand for wood-plastic composite and hampered the growth of the market.

According to the Society of India Automobile Manufacturers (SIAM), passenger vehicle sales declined by 51% to 143,014 units in March 2020 whereas the sales of commercial vehicles crashed 88% to 13,027 units. In addition, 40% of construction firms have had to lay off staff due to the Covid-19 outbreak, according to data from Associated General Contractors of America (AGC) which in turn negatively impacts the growth of the wood-plastic composites market.

Wood-Plastic Composites (WPC) Market Segment Analysis – By Resin Type

Polyethylene the segment held the largest share of more than 35% in the Wood-Plastic Composites (WPC) market in 2020. Owing to its molecular structure and special arrangement of the molecules, PE-based composites of wood-plastic are widely used for producing decking including flooring, lumber, molding strips, furniture materials, wall cladding, hollow boards, and hollow filler profiles. Increase in construction activities across the globe augments the growth of the wood-plastic composites market.

According to, The Institution of Civil Engineers, the volume of construction output will grow by 85% to $15.5 trillion worldwide by 2030, and three countries i.e. China, the US, and India alone accounts for 57% of all global growth. Thus, accelerating construction activities in emerging nations and developing countries aids the market growth. Moreover, the rising demand for polyethylene composites in the automotive industry owing to their low cost and high stiffness is expected to further propel market growth over the coming years.

Request for Sample Report @ https://www.industryarc.com/pdfdownload.php?id=16415

Report Price: $ 4500 (Single User License)

Wood-Plastic Composites (WPC) Market Segment Analysis – By Process

Extrusion method held the largest share of more than 55% in the Wood-Plastic Composites (WPC) market in 2020. Owing to its variety of extruder types such as a single screw or double screw to form the final shape of the material, this method is widely used for producing decking by using wood and polymers like PE-based Composites, recycled plastics, Polyvinyl chloride (PVC), Polypropylene (PP).

The WPC deck has a production cost of about 15% more as compared to that of pressure-treated lumber, but requires a lower maintenance cost. It's excellent dimensional stability along with less variability also can be considered as another main advantage of WPC products thus augments the growth of the wood-plastic composite market.

Wood-Plastic Composites (WPC) Market Segment Analysis - End-Use Industry

Based on the end-use industry, the automotive segment held the largest share of more than 25% in the Wood Plastic Composites (WPC) market. The growing trend for lightweight vehicles with miniatured engine compartments increases the demand for wood-plastic composites. Wood-plastic composites are used in engine compartments and in automotive applications for manufacturing door panels, luggage cabin linings, and dashboards to enhance mechanical strength and acoustic performance, reduce material weight, and lower production cost.

According to OICA, light commercial vehicle production rose by 5.9% and reached 20,635,799 units in 2018 (Q4). Therefore, increasing demand for automotive augments the growth of the wood-plastic composites market. Additionally, the Federal Corporate Average Fuel Economy (CAFE) standards are becoming increasingly stringent, requiring carmakers to improve the overall efficiency of their fleets. This further increases the demand to utilize lighter-weight materials such as wood-plastic composites.

Wood Plastic Composites (WPC) Market Segment Analysis - Geography

North America has dominated the Wood Plastic Composites (WPC) market with a share of more than 35% in 2019 followed by the Asia Pacific and Europe. Increasing building and construction activities in North American regions such as the United States and Mexico due to economic reforms and rising per capita income of the individuals proliferates the demand for wood-plastic composites. Wood-plastic composites are preferred due to their lightweight and good chemical and pest resistance compared to conventional wood.

According to the US Census Bureau, in February 2020 total construction was at a seasonally adjusted annual rate of 1,366,697 which is 6.0 percent above February 2019. The building and construction activities are also increasing owing to the various government initiatives and Foreign Direct Investments (FDI), which acts as a driver for the wood-plastic composites market during the forecast period.

Inquiry Before Buying @ https://www.industryarc.com/reports/request-quote?id=16415

Wood-Plastic Composites (WPC) Market Drivers

Governments initiatives to boost construction activities

Government schemes for boosting construction and remodeling activities drive the growth of the wood-plastic composites market. The growing use of recycled plastics materials in the construction sector also drives the market growth. Green building schemes such as BREEAM and LEED (Leadership in Energy and Environmental Design), which encourages the practice of creating structures and using processes that are environmentally friendly further aids the market growth.

The Smart City Mission and Indira Awaas Yojana which aims to bring the most innovative construction technologies to India through a competitive platform also boost the wood-plastic composites market. The budget allocated for the Smart Cities Mission in the Union Budget 2018-19 was US$ 29.2 Bn. In addition British government’s ENABLE Build Programme launched in 2019, provides financial support to the smaller housebuilders so that they can contribute to the infrastructure development of the nation.

Additionally, in order to achieve sustainable urban development, the government of France pledged to build all public buildings with at least 50% of wood or other wood-based sustainable materials by 2022. This may drive the growth of the wood-plastic composites market.

Wood-Plastic Composites (WPC) Market Challenges

Volatility in raw material prices and lower tensile strength

The raw materials often used for manufacturing wood-plastic composites such as polypropylene, polyethylene, polyvinyl chloride, and polylactide are derived from crude oil. Hence, uncertainty in crude oil prices also fluctuates the prices for wood-plastic composites. According to, BP Statistical Review of World Energy, In the recent year there is been an increase in the price volatility of crude oil, such as the crude oil price decreased from $98.95 in 2014 to $52.39 in 2015 and increased from $43.73 in 2016 to $71.31 in 2018.

Thus, the volatility in crude oil prices is expected to be a significant challenge for the wood plastic composite manufacturers during the forecast period. In addition, the tensile strength of wood-plastic composites (WPC) is lower than common tropical wood, which is only 5.54 to 12.75 MPa, due to the absence of grain in WPC. Low tensile strength also acts as a restraint for wood-plastic composites market.

Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Wood Plastic Composites (WPC) market report. Major players in the Wood Plastic Composites (WPC) market are Trex Company, Inc., Axion Structural Innovations LLC, Beologic N.V., Oldcastle Architectural Inc., CertainTeed Corporation, Fiberon, LLC, Fkur Kunststoff GmbH, Guangzhou Kindwood Co. Ltd., Jelu-Werk Josef Ehrler GmbH & Co. KG, Woodmass, PolyPlank AB, Renolit, TAMKO Building Products, Inc., TimberTech, and Universal Forest Product., among others.

Acquisitions/Technology Launches

In July 2020, Nusaned Investment, owned by SABIC signed a deal with Suhul Alkhalej for Industrial Development. The new venture will own and operate a factory to manufacture wood-plastic composite (WPC) profiles for decking and cladding, WPC sheets, WPC doors.

Key Takeaways

Wood Plastic Composites are made from recycled materials or byproducts from the furniture industry, thereby reducing deforestation. Increasing environmental concerns and stringent government regulation boosts the growth of the Wood-Plastic Composites (WPC) market.

Growing demand for recyclable materials in the automobile industry also augment the wood-plastic composites market.

Lockdown and disruption of supply chain due to coronavirus pandemic slowed the growth of wood plastic composites marke

Related Reports :

A. Plastic Lumber Market

https://www.industryarc.com/Research/Plastic-Lumber-Market-Research-501528

B. Wood Packaging Market

https://www.industryarc.com/Report/18490/wood-packaging-market-research-report-analysis.html

For more Chemicals and Materials Market reports, please click here

About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to sales@industryarc.com to discuss more about our consulting services.

IndustryARC

Venkat Reddy

(+1) 970-236-3677

venkat@industryarc.com

Source: EmailWire.Com