CONSTRUCTION COMPOSITE MARKET ANALYSIS

The global construction composite market size was valued at USD 18986.54 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 5.79% from 2022 to 2030. The global construction composites market is expected to grow at a significant rate during the forecast period. This growth is driven by increasing research and development, as well as increasing construction activity. Moreover, increasing industrialization and urbanization globally have boosted the demand for infrastructure. These factors will positively affect the growth of the construction composites market.

Global Construction Composite Market: Regional Insights

The global construction composite market is geographically segmented into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa.

Among regions, Asia Pacific is expected to account for highest share in the global construction composite market over the forecast period, owing to rise in construction activities in countries such as India and China, growing government initiatives, and availability of affordable housing in these countries across the region. The government of India is focusing on large projects. The rise in individual townships are driving the market growth in the region. For instance, the Zaheerabad integrated industrial township, the Palva industrial township among various other projects involving private and public investment of total US$ 29.38 billion are driving the market growth in the region.

 Moreover, North America is also anticipated to witness significant growth in the global construction composite market during the forecast period. Growth of this region can be attributed to greater investments in constructions in countries such as the U.S. and Canada in the region. The construction industry of the U.S. is considered the world’s largest industry which was valued at US$ 1,469.15 billion in 2020. As per the U.S. Census Bureau, the spending on construction in the U.S. was estimated at annual rate of US$ 1704.4 billion during February 2022, which was 0.5% more than estimated rate of January.

Figure 1. Global Construction Composite Market Value Share (%), By Region, 2021

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Global Construction Composite Market Drivers:

The use of composites is increasing in construction applications, which is expected to propel growth of the global construction composite market over the forecast period. Due to their superior benefits over normal construction materials, composite materials are increasingly being used in construction applications. These material offer design flexibility, high performance and durability at high temperatures, which is the one of the benefits among others offered by the composite materials to construction applications. Due to their low weight and high strength, these material are attractive for construction, as they allow the structure to endure more stress per unit. Thus, the use rise in use of composite in construction is driving the market growth.

Moreover, increasing demand for environment-friendly construction around the world, is also projected to augment growth of the global construction composite market over the forecast period. The demand for sustainable construction is specifically high in the commercial sector. Composite material offer superior properties, due to which their use in building products such as doors, windows, exterior sidings, fencings, interior moldings, railings and others is increasing. Due to adherence to the green building codes, the adoption of composite materials is increasing around the world. For instance, a program called Green Building Initiative (GBI) was formed for assisting the National Association of Homebuilders (NAHB) to promote it Green Building Guidelines for Residential Structures in the U.S.

Global Construction Composite Market Opportunities:

Rise in ability of mass production of composites in construction industry is anticipated to create various growth opportunities for market players in the global construction composite market over the forecast period. Due to the increasing technological developments in production processes and abundant availability of raw materials around the world are providing manufacturers with a wider scope for development of composites on bigger scale. Thus, increasing mass production capabilities of manufacturers is to create lucrative growth environment in the market.

Growing awareness among consumers regarding use of composites in construction operations is also likely to offer growth opportunities to market players in the global construction composite market during the forecast period. The demand for composites is increasing due to rise in awareness regarding its use construction projects, due to which major market players are focusing on catering the demand for composites. The demand for composites is high in the U.S. and European region, due to industrial and commercial applications of these materials.

Global Construction Composite Market Trends:

Rise in investment in research and development activities along with increasing availability of technologically advanced tools are the major trends in the global construction composite market. Development of fiber composites for construction application is increasing due to availability of technical tools. Glass fiber reinforced polymers finds use in public infrastructure projects and it aids in designing structures with more durability and low cost. Thus, several market players offer fiber composites for constructions, such as, Owens Corning offers composite rebar, which is created from fiberglass materials. It can be used in construction of bridge, tunnel, dowel bar retrofits, marine structures and more. Thus, with availability of such technical tools, the market continues to grow.

Furthermore, civil construction segment is gaining traction in the global construction composite market during the forecast period. Civil construction includes dams, bridges, airports, roads, railway infrastructure, canals and other related structures. Thus, growing civil construction projects are driving growth of this segment. In 2021, the government of China announced major infrastructure projects. Guangxi Zhuang Autonomous Regions announced a batch of major construction projects with total US$ 29.15 billion and these projects include various sectors such as new energy, transportation, basic infrastructure and logistics.

Global Construction Composite Market Restraints:

High cost of initial production and installation of composites is a major restraining factor in the global construction composite market. Fibers and resins are major components used for producing composite materials. The production cost is affected due to the initial procurement phase of these materials along with technologies used and intensive labor process in the production. The cost of making fiber composites accounts for large share of the retail cost of composites. The cost of resin also changes often, which adversely impacts the market growth.

Furthermore, lack of skilled man force is also anticipated to hamper growth of the global construction composite market over the forecast period. The construction industry faces a major challenge of lack of skilled labor. Skilled labor is an important factor for improving construction time, performance and other factors. Due to shortage of skilled labor, development firms rely on designers, architects and planners from other countries, which then increases the overall cost. Thus, lack of skilled labor is hindering the market growth.

Figure 2. Global Construction Composite Market Value Share (%), By Resin Type, 2021

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Global Construction Composite Market Segmentation:

The global construction composite market report is segmented into Resin Type, Fiber Type, End-Use Sector and Geography.

Based on Resin Type, the market is segmented into Polyester Resin, Vinyl Ester, Polyethylene, Polypropylene, Epoxy Resin, and Other Resin Types. Out of which, Polyester Resin is expected to dominate the global market over the forecast period and this is attributed to the rise in demand for polyester resin in various applications in construction industry. This resin has high heat and thermal stability, good mechanical strength and low shrinkage compared to glass fiber due to which, its demand is high in construction industry.

Vinyl Ester segment is also expected to witness significant growth in the near future and this is owing to the growing use of vinyl ester in construction composites. Vinyl ester resin is known to be a mixture of epoxy and polyester resins, due to which it offers characteristics of both the resins in terms of properties, handling, and cost. Thus, the demand for this resin continues to grow in construction applications.

Based on Fiber Type, the market is segmented into Carbon Fibers, Glass Fibers, Natural Fibers, and Other Fiber Types. Out of which, Carbon Fibers segment is expected to dominate the global market over the forecast period and this is attributed to the lucrative properties of carbon fiber such as low thermal expansion, high tensile strength, high temperature tolerance, high stiffness, high chemical resistance, and lightweight among others leading to high adoption.

Glass Fibers segment is also expected to witness significant growth in the near future and this is owing to the increasing demand for glass fibers. Glass fiber composites offer significant thermal insulation, fire hardness, structural integrity and UV-radiation stability as well as resistance to chemicals and corrosive materials. Thus, increasing corrosion is leading to rise in global warming. And this in turn increases the demand for glass fiber.

Based on End-Use sector, the market is segmented into Industrial, Commercial Housing, and Civil. Out of which, Industrial segment is expected to dominate the global market over the forecast period and this is attributed to the growing use of composites in application such as walkways, stairways, gratings, trash gates and ladders in the industrial segment, due to its properties such as moisture-proof and anti-corrosion.

Commercial Housing segment is also expected to witness significant growth in the near future and this is owing to the rise in number of residential construction activities in developing countries such as South Korea, India, Brazil, China, Russia and others.

Global Construction Composite Market: Key Developments

In October 2021, Excel Composite and the Kineco Group (Bardez, Goa, India) announced a joint venture and formed a new company named Kineco Excel Composites India for design, engineering, and production of composites.

In January 2020, Mitsubishi Chemical Advanced Materials announced the acquisition of c-m-p GmbH through its German subsidiary Mitsubishi Chemical Advanced Materials GmbH. With this acquisition, the company is likely to gain capability of prepreg material production in Europe, Asia and the U.S.A.

Global Construction Composite Market: Key Companies Insights

The global construction composite market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global construction composite market are Aegion Corporation, Exel composites, Gurit, Hexcel Corporation, Kordsa Teknik Tekstil AÅž, TORAY INDUSTRIES INC., Mitsubishi Chemical Corporation, Nippon Electric Glass Co. Ltd., Owens Corning, SGL Carbon, and Teijin Limited.

*Definition:

Composite construction involves using two materials to build structures. Often, these materials are made from the same material, like concrete and steel, and they act as one unit to resist pressure and stress. A common example is a steel beam supporting a concrete slab. While the slab is designed to transfer weight to the beam, it also contributes to the load-bearing capacity of the beam.