Wood-Plastic Composites Market Growth Analysis | 2022-2028

Market Insights

The wood-plastic composites market was estimated at USD 5.8 billion in 2021 and is likely to grow at a CAGR of 11.28% during 2022-2028 to reach USD 12.33 billion in 2028.

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Increasing use of wood-plastic composites in interior applications in the growing automotive industry, recovery in building and construction activities, and a high focus on the use of green materials are some of the major drivers of the wood-plastic composites market.

COVID-19 IMPACT

There was a partial or entire shutdown of manufacturing of non-essential products during the global pandemic in the year 2020. Restrictions on trades and lockdowns across the globe have negatively impacted the market and led to a decline in demand and sales of the wood-plastic composites market.

Segments Analysis

By End-Use Industry Type

Building & Construction segment is expected to remain the growth engine of the market during the forecast period. Recovering North American housing starts, high residential activities in the Asia-Pacific and Middle East regions, and a focus on the use of green materials are likely to drive the market segment during the forecast period. Decking, siding, and fencing are the major applications of wood-plastic composites in the building & construction industry, together accounting for more than 90% of the wood-plastic composites market in the building & construction industry in 2021.

The automotive segment is expected to experience the highest growth over the next five years. The automakers’ push to build lightweight vehicles for achieving the government’s stringent regulations, such as CAFÉ standards and EU Carbon emissions, and demand for recycled materials are likely to drive the demand for WPC in the automotive industry. WPCs are mainly used in interior applications, such as rear shelves and trims for trunks and spare wheels, and interior trims for vehicle doors. The wood-plastic composite stakeholders are continuously working on the development of new wood-plastic composite applications in the automotive industry.

By Resin Type

Polyethylene is expected to remain the largest resin type during the forecast period because of its overall higher performance than other resin-based wood-plastic composites.  Polyethylene is widely preferred for manufacturing decking, fencing, furniture, wall cladding, hollow boards, and profiles.

By Manufacturing Process Type

The extrusion process is expected to remain the most dominant process type in the market during the forecast period. Building & Construction, the largest end-user industry of the market is heavily relied on the extrusion process to manufacture key applications, such as decking, siding, and fencing. The injection molding process is likely to exhibit the fastest growth for the same period driven by the automotive and consumer goods segments. Wood-plastic composites are increasingly used to produce furniture, consumer goods, and household electronics using the injection molding process. WPC granulates for injection molding are now produced by global players and are becoming more attractive for clients that manufacture consumer goods, automotive, and other parts.

Regional Insights

North America is expected to remain the largest market in terms of region, over the next five years. More than 60% of the WPC manufacturers are located in the North American region, serving primarily construction and consumer goods industries. Asia-Pacific is likely to witness the fastest growth rate during the same period driven by growing economies, mainly China and India. Europe is the largest market for the automotive industry.

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Market Segmentation

This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The market is segmented in the following ways-

By Resin Type

• Polyethylene
• Polyvinylchloride
• Polypropylene
• Others

By End-Use Industry Type

• Building and Construction
• Automotive
• Consumer Goods
• Others

By Manufacturing Process Type

• Extrusion Process
• Compression Molding Process
• Injection Molding Process

By Region

• North America (Country Analysis: USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, UK, Italy, Russia, and the Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, and the Rest of the Asia-Pacific)
• Rest of the World (Country Analysis: Middle East and Latin America)

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Key Players

The supply chain of this market comprises raw material suppliers, WPC manufacturers, part manufacturers, distributors, and OEMs. The key WPC manufacturers are-

• TAMKO Building Product,
• Trex Company, Inc.,
• Advanced Environmental Recycling Technologies, Inc.,
• Universal Forest Products, Inc.,
• Fiberon, LLC,
• TimberTech,
• Beologic N.V.,
• CertainTeed.

Process optimization, new product development, and new application development are the major strategies adopted by the key players to gain a competitive edge in the market.

Research Methodology

For calculating the market size, our analysts follow either Top-Bottom or Bottom-Top approach or both, depending upon the complexity or availability of the data points. Our reports offer high-quality insights and are the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders and validation and triangulation with Stratview Research’s internal database and statistical tools.

We leverage a multitude of authenticated secondary sources, such as company annual reports, government sources, trade associations, journals, investor presentations, white papers, and articles to gather the data.

More than 10 detailed primary interviews with the market players across the value chain in all four regions and industry experts are usually executed to obtain both qualitative and quantitative insights.

Report Features

This report, from Stratview Research, studies the wood-plastic composites market over the period 2017 to 2028. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

What Deliverables Will You Get in this Report?

Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3)
• SWOT analysis of key players (up to 3)

Regional Segmentation

• Current market segmentation of extrusion process-based WPC market by end-use industry type.

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.