The Global Wood Plastic Composites Market was valued at USD 5.43 Bn in 2020 and is expected to reach USD 12.85 Bn by 2027, with a growing CAGR of 13.1% during the forecast period.
Wood Plastic composites (WPC) are hybrid materials consisting of wood wastes and recycled plastic. The methods for manufacturing WPCs include injection molding, compression molding, and extrusion. Newer manufacturing processes for WPCs consist of additive manufacturing through fused layer modelling and laser sintering. WPC offers beneficial features like decreased melting temperature leading to lower energy costs for producers and further helps in reducing the environmental impact of the product. Owing to this, they have a wide application in several end-use industries such as building and construction, consumer and industrial goods, and automotive components among many others.
The Wood Plastic composites market is majorly experiencing traction owing to the increasing demand for eco-friendly materials in the production of automobiles. Owing to growing environmental concerns, automotive manufacturers are now more focused on switching to biodegradable or recyclable parts and opt for lightweight materials in manufacturing vehicles. Wood Plastic composite (WPC) is a sustainable, green material that offers durability without using toxic chemicals. It consists of plant fiber and offers them relatively high stiffness and strength, low CO2 emission, biodegradability, and low density. Owing to this, WPC is used in a variety of automotive components and increasingly replacing fiberglass or metal components in the automotive sector. Therefore, the rapidly increasing production of the automotive, particularly from Europe and the Asia-Pacific region is expected to proliferate the Wood Plastic composites industry growth.
Moreover, the high availability of non-utilized wood and plastic wastes is another major factor bolstering the Wood Plastic composites market demand. Additionally, the growing population, increasing urbanization, rising nuclear family systems are immensely increasing the building & construction industries and in turn positively impacting the Wood Plastic composites market growth. Further, stringent regulations imposed by several nations on the use of chemicals in building materials are also contributing to driving the market. Despite such strong growth factors, the rising cost of raw materials and issues related to mechanical strength are posing certain challenges in the growth of the Wood Plastic composites industry. However, the growing implementation of biodegradable raw materials is projected to create growth opportunities in the market.
The unique insights provided by this report also include the following:
Based on product, polyethylene product type accounted for the dominant share in the Wood Plastic composites market owing to the features offered by the product
Based on product, the global Wood Plastic composites market is segmented as polypropylene, polyethylene, polyvinylchloride, and others. Among these, polyethylene product type accounted for the dominant share in the Wood Plastic composites market. Polyethylene has the unique ability and properties to adapt to several fabrication techniques which makes it stand out as an indispensable material for a variety of applications. In addition, polypropylene offers added advantages as it can function as both a fiber as well as a plastic material. It also can be manufactured via different methods and into different applications giving it an edge over other old alternative materials, particularly in the fiber, injection molding, and packaging industries. All these benefits offered are expected to increase the product demand and are thereby driving the Wood Plastic composites market across the globe.
Based on application, the building & construction sector held the largest share in the Wood Plastic composites industry in the year 2020, due to the high application of the product in molding & sliding, decking, and fencing
Based on application, the global Wood Plastic composites market is fragmented as building and construction, consumer and industrial goods, automotive components, and others. The building & construction sector held the largest share in the Wood Plastic composites market in the year 2020, followed by the automotive components sector. Wood Plastic composites are widely used in moulding & sliding, decking, and fencing and therefore experiences high demand from building & construction application. They have high application for producing decking including lumber, flooring, moulding strips, wall cladding, furniture materials, hollow boards, and hollow filler profiles. Therefore, rising construction activities across the globe are expected to provide lucrative growth opportunities in the Wood Plastic composites market. Additionally, the rising need for low-maintenance, low-cost, and high-performance building materials which are environment friendly is pegged to garner significant product demand over the forecast period.
Based on region, Asia-Pacific is projected to be the fastest-growing segment in the Wood Plastic composites market owing to the growing construction industry in the region
Based on region, the Wood Plastic composites industry is divided into Asia-Pacific, North America, Latin America, the Middle East and Africa, and Europe. Among these, the Asia-Pacific region is projected to be the fastest-growing segment in the Wood Plastic composites market. This growing share is majorly due to growing environmental waste and the rising usage of recycled plastic materials in the construction industry. Also, various schemes implemented by the government for boosting remodelling and construction activities are expected to offer substantial growth opportunities in the Wood Plastic composites market. For instance, green building schemes like LEED and BREEAM, encourage the practice of building structures using methods that are environmentally friendly are also expected to surge the Wood Plastic composites industry demand.
The report also provides an in-depth analysis of the market dynamics such as drivers, restraints opportunities, and challenges
Note: Challenges along with in-depth market dynamics analysis is mentioned in the report.
The Covid-19 pandemic outbreak has had a major influence on the growth of the Wood Plastic composites industry on a global level. The outbreak has resulted in the imposition of lockdowns across several major economies to curb the spread of disease. These lockdowns have led to disruption in the supply chain and delayed the deliveries of wood composites and other raw materials from yards. In addition, many major end-use industries of the market, such as automotive and construction have also taken a major hit by the pandemic. This is owing to the decreased disposable income of consumers and shifting their focus on essential goods. According to OICA, the production of vehicles worldwide in Q3 2020 was around 50 million, which was significantly less when compared to the production in Q4 2019, which is approximately 65 million. In addition, according to American Road & Transportation Builder Association, infrastructure projects of over USD 9.6 billion have either been cancelled or delayed due to pandemics. All these factors collectively are hindering the Wood Plastic composites market.
The report also provides an in-depth analysis of key trends in the Wood Plastic composites market
The report also provides an in-depth analysis of recent news developments and investments in the market
Company Profiles and Competitive Intelligence
The key players operating in the Wood Plastic composites industry are:
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.