Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Geocells are also known as geogrids and is a subset of geosynthetics. They resemble a honeycomb structure and are generally made up of high-density polyethylene and polyester. Geocells are used across the construction industry especially for slope protection, earth reinforcement, channel protection, tree root protection, and load support.
The global geocells market is estimated to account for US$ 1,486.9 Mn in terms of value in 2020 and is estimated to grow at CAGR of 8.8% by 2027.
Growing demand for geocells from environmental applications is projected to foster market growth. As per the European Commission, around 115 million hectares of land in Europe are affected by water erosion, while 42 million hectares are affected by wind erosion. Increasing soil erosion due to various environmental factors which also includes a change in climatic conditions such as intense rainfall and steep topography is propelling the market growth of the geocells. In addition, increasing demand for geocell from flexible pavements application is expected to propel the market growth. Reinforced flexible pavements enhance the lifespan of a pavement by approximately two to four times when compared to unreinforced pavements. Also, there is a high demand for geocells in China due to increasing support from the Chinese government. Moreover, the Chinese government, under its 12th Five Year Plan, emphasized on expansion of rail routes in the country which in turn is expected to boost the demand for geocells in China.
Asia Pacific region dominated the global geocells market in 2020, accounting for 34.0% share in terms of value, followed by North America, respectively.
Figure 1. Global Geocells Market Revenue Share (%), By Region, 2020
The availability of cheap substitutes such as geogrids which are efficient and also has bearing capacity by offering passive resistance. Hence, the availability of alternatives in the market is projected to restrict the market growth. In addition, low awareness regarding the benefits of geocells among manufacturers of the construction industry across developing regions is expected to affect the demand for the products. This factor is projected to restrict the market growth of geocell.
Increasing road construction across developing countries is projected to offer potential market opportunities over the forecast period. According to the India Brand Equity Foundation, in April 2020, the Government set a target of constructing roads worth Rs 15 lakh crore (US$ 212.80 billion) in the next two years. Also, in 2019, the infrastructure sector witnessed seven mergers and acquisition (M&A) deals worth US$ 1,461 million. Thus growth in the infrastructure industry is projected to propel the market growth. Moreover, the growing adoption of HDPE in cold climatic conditions is projected to bring profitable opportunities to the market in near future. HDPE-based geocells can withstand temperatures ranging from –70° C to +110° C. For instance, regions such as Russia and Alaska have been witnessing extreme cold conditions as compared to previous years. As a result, infrastructure developers in these regions are increasingly preferring HDPE geocells as a sustainable solution for the long term.
Geocells Market Report Coverage
||Market Size in 2020:
||US$ 1,486.9 Mn
|Historical Data for:
||2017 and 2019
||2021 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||US$ 2,715.9 Mn
- North America: U.S., Canada
- Asia Pacific: China, India, Japan, South Korea, ASEAN, Australia, Rest of Asia Pacific
- Western Europe
- Eastern Europe
- Latin America: Brazil, Argentina, Mexico, Rest of Latin America
- Middle East & Africa: Middle East and Africa
- By Material Type: HDPE, PP, Polyester, and Others
Presto Geosystems, Polymer Group Inc., Strata Systems Inc., Armtec Infrastructure Inc., Maccaferri SPA, PRS Mediterranean Ltd., and Tensar International Ltd
- Growing demand for geocells from environmental applications is projected to foster market growth
- Increasing demand for geocell from flexible pavements application
|Restraints & Challenges:
- The availability of cheap substitutes such as geogrids
Figure 2. Global Geocells Market – Opportunity Analysis
By Product Type, HDPE dominated the global geocells market by 66% market share in 2020 in terms of value.
Figure 3. Global Geocells Market Revenue Share (%), By Material Type, 2020
Growing soil conservation programmes across North America is one of the emerging trends and growing such initiatives by the government will favor the market growth of the geocells. For instance, around 66% of soil erosion in North America has been caused by industrialization in the region. Various states in the U.S have implemented regulations to prevent soil erosion. Geocells are an ideal product in the conservation of soil erosion and they also offer long-term stability of slopes. Additionally, continuous product innovation by key players to cater to rising demand around the globe is one of the current trends in the industry. For instance, in July 2019, HUESKER launched the world’s first geogrid made from 100% recycled polyethylene terephthalate (PET). It is an environmentally friendly solutions that conserve natural resources during production and offer the same quality as their conventional counterparts. Thus, continuous product innovation by ley manufacturers will favor the market growth.
Global Geocells Market - Impact of Coronavirus (COVID-19) Pandemic
The outbreak of coronavirus has impacted the global economy and led to shutting down of major economic sectors. The first case of COVID-19 was reported in China in December 2019. The coronavirus pandemic has caused global economic disruptions in trade. The pandemic has impacted the global supply chain industry globally. Additionally, pandemic has affected the construction and industrial sector. This has somehow, negatively impacted geocells market a bit.
Key players operating in the global geocells market include Presto Geosystems, Polymer Group Inc., Strata Systems Inc., Armtec Infrastructure Inc., Maccaferri SPA, PRS Mediterranean Ltd., and Tensar International Ltd.