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The wood-plastic composites market size is estimated to grow by USD 4.47 billion at a CAGR of 11.25% between 2022 and 2027. The need for compliance with regulations, such as regulations related to environmental protection and sustainability, is driving market growth by increasing the demand for eco-friendly building materials like WPCs. Increasing infrastructure investments, driven by factors such as urbanization and infrastructure development projects, are also boosting market expansion by increasing the demand for durable and cost-effective materials like WPCs. Additionally, the superior properties of WPCs over conventional wood, such as resistance to moisture, insects, and rot, are driving market growth by increasing the adoption of WPCs in various applications.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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This market report extensively covers market segmentation by product (polyethylene, polyvinyl chloride, polypropylene, and others), end-user (building and construction, automotive, industrial and consumer goods, and others), and geography (North America, APAC, Europe, Middle East and Africa, and South America).
The market share growth by the polyethylene segment will be significant during the forecast period. PE WPCs are used in various applications, such as flooring, molding strips, hollow boards, furniture materials, lumber, and wall cladding. The growing demand for PE WPCs in the building and construction industry is aiding the growth of the PE or the recycled PE market.
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The polyethylene segment was valued at USD 2.96 billion in 2017. Among the various types of thermoplastic polymers, one of the most commonly used polymers is polyethylene (PE). It is available in different forms, such as HDPE, low-density polyethylene (LDPE), linear LDPE (LLDPE), and ultra-high-molecular-weight-polyethylene (UHMWPE), which are used in their specific applications. PE-WPC provides properties such as high strength, structural hardness, and water resistance due to its molecular structure and special arrangement of molecules. Such factors will increase the segment's growth during the forecast period.
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North America is estimated to contribute 47% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The United States is the most important market for North American automakers. The country is one of the most important markets in the world and a leading country in terms of automotive technology. The presence of a large consumer base with high disposable income is driving up domestic vehicle sales, resulting in the need for automotive OEMs to expand their manufacturing capacity. Mexico closely follows the US in terms of automotive production in North America. This North American passenger car market will increase the demand for WPC in the auto parts segment. All these factors will increase the demand for WPC in North America during the forecast period.
Wood-plastic composites (WPC) offer a sustainable solution in the production of automobiles and various other industries, significantly reducing the carbon footprint. These composites combine the physical and aesthetic properties of wood and plastic, resulting in a material that is not only beautiful but also durable and weather-resistant. The fusion of plant-based fibers with plastic provides flexibility and longevity, making WPCs suitable for a wide range of applications, including building structures, temporary installations, underwater structures, bridges, and roofs. Moreover, WPCs are free from toxic chemicals, making them environmentally friendly and ideal for sustainable construction practices. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing infrastructure investments is the key factor driving the growth of the market. The global construction industry is growing rapidly with significant contributions from emerging markets. In 2017, the global construction industry grew to approximately USD 9.07 trillion from USD 7.91 trillion in 2012. It is expected to reach a value of USD 14.98 trillion by 2025. The building and construction industry predominantly uses WPC products for decking, interiors, furniture, fencing, and railing, benefiting from their physical, aesthetic, and practical properties. WPCs are known for being comfortable, beautiful, and durable, thanks to the fusion of plastic and wood. Their longevity, flexibility, and weather resistance make them ideal for various building structures. In 2016, emerging countries contributed 51.9% of the total construction industry and will account for approximately 62.5% by 2025. This can be attributed to the increased number of public infrastructure projects such as airports, IT parks, and hospitals.
Infrastructure investments in EMEA and America are also impacting the growth of the WPC market. The housing market is growing steadily in Canada and the United States, supported by lower lending rates and moderate economic growth. The construction industry in Central and South America is growing at a considerably high rate despite the slow economic growth of Brazil. Thus, these investments in infrastructure development activities are expected to impact the growth of the global WPCs market during the forecast period.
Increasing prices of hardwood is the primary trend in the market. Hardwood quality and supply have proven to be a global challenge for both manufacturers and stakeholders. It is widely used due to its high prices for all types of timber are steadily rising as imbalances in demand and supply prevail. Exchange rates are expected to have a significant impact on hardwood prices as the domestic market looks promising. Exports from the European hardwood market are expected to increase due to the devaluation of currencies against the dollar in most exporting countries. In North America, the supply side of the market has witnessed improvement despite the low yield from emerald ash borer (EAB) quarantined areas.
However, there have been instances of restrictions while trying to source packs of wide or longboards. The hardwood prices in Europe witnessed price hikes due to the tight European oak supply. The higher costs are expected to be translated to the high prices of sawn timber. Thus, these factors are expected to impact the growth of the WPCs market during the forecast period.
Quality assurance and consumer perception are major challenges to the growth of the market. As the materials used for manufacturing WPCs are relatively novel, the newly developed WPCs products will take time to penetrate the market. Wood is traditionally used for a variety of requirements, primarily in the building and construction industry. WPCs have excellent performance, but consumers may perceive them as counterfeit wood. This consumer perception might act as a deterrent to the growth of the global WPCs market.
Moreover, aesthetics and economic considerations also contribute to the building of consumer perceptions. The high cost-to-performance ratio of WPCs to wood makes them less preferable. Therefore, the low preference for recycled materials in WPC products might hinder the growth of the global WPCs market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AIMPLAS: The company offers wood plastic composites such as polymer matrices. They offer products for the plastics industry.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is experiencing significant growth due to its unique physical properties that make it ideal for various applications. WPC is commonly used in the construction industry for terraces, paths, and garden products due to its resistance to cracking, fading, and warping. It is also used in protective products that require resistance to dirt and washing with water. WPC's high demand is attributed to its potential as a sustainable green material with durability, stiffness, and biodegradability. Additionally, it offers low density and low CO2 emission compared to traditional materials. WPC's mechanical strength and acoustic performance make it suitable for various applications, including door panels, seat cushions, cabin linings, backrests, and dashboards. Its aesthetic appeal makes it popular for furniture and flooring solutions, further driving its market growth.
Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.25% |
Market growth 2023-2027 |
USD 4.47 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
10.85 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
North America at 47% |
Key countries |
US, China, India, Germany, and France |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AIMPLAS, Axion Structural Innovations LLC, Beologic N.V., Cargill Inc., Compagnie de Saint Gobain, CRH Plc, Dow Inc., Fkur Kunststoff GmbH, Fortune Brands Innovations Inc., Guangzhou Kindwood Co. Ltd., Hardy Smith Designs Pvt. Ltd., JELU WERK J. Ehrler GmbH and Co. KG, Meghmani Organics Ltd, PolyPlank AB, RENOLIT SE, Shanghai Seven Trust Industry Co. Ltd., The AZEK Co. Inc., Trex Co. Inc., TVL Engineers Pvt. Ltd., and UFP Industries Inc. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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