Wood Plastic Composites (WPC) Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 5.00 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Low |
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*Disclaimer: Major Players sorted in no particular order |
Wood Plastic Composites (WPC) Market Analysis
The wood plastic composites (WPC) market is projected to register a CAGR of over 5% during the forecast period.
The sporadic outbreak of the COVID-19 pandemic in 2020 and the first half of 2021 drastically curtailed the major application sector, i.e., the global construction sector, due to imposed government bans and restrictions, thereby limiting the growth of the green building materials market.
Residential real estate was the worst hit as strict lockdown measures across major cities resulted in the suspension of home registrations and slow home loan disbursements. On the other hand, commercial construction projects were also hit due to a lack of labor and constrained financials. However, the sector has been recovering well since restrictions were lifted. An increase in house sales, new project launches, and increasing demand for new offices and commercial spaces have been leading the market recovery over the last two years.
- Over the medium term, the robust growth in the building and construction sector and the growing demand for recyclable and lightweight materials in the automotive industry are the major driving factors augmenting the growth of the market studied.
- On the flip side, technical issues such as temperature sensitivity, wearability, etc. are anticipated to restrain the growth of the target industry over the forecast period.
- Nevertheless, the rising use of recyclable plastics in various application sectors to design more sustainable end-products is likely to create lucrative growth opportunities for the global market soon.
- North America emerged as the largest market for wood plastic composites, while Asia-Pacific is expected to witness the highest CAGR during the forecast period. The dominant position enjoyed by North America is attributed to the growing demand for wood-plastic composites in decking applications in the building and construction industry as well as for building lightweight components of vehicle bodies in the automotive industry.
Wood Plastic Composites (WPC) Market Trends
This section covers the major market trends shaping the Wood Plastic Composites (WPC) Market according to our research experts:
Building & Construction Application to Dominate the Market
- Building and construction is the largest application sector for wood-plastic composites (WPC). Being moisture and rot-resistant while retaining their aesthetic quality for longer, wood plastic composites are widely used in decking, moulding and trimming, fencing, landscaping, and outdoor applications.
- Decking is one of the most important applications of WPCs. In construction, a deck is a flat or profiled (anti-slip) surface that is capable of supporting weight. A deck is similar to a floor but is typically constructed outdoors, often elevated from the ground, and usually connected to a building. Wood plastic composite decking can be used in a number of ways, such as part of garden landscaping, the extension of the living areas of houses, an alternative to stone-based features (such as patios), and in residential decks, as well as spaces for cooking, dining, and seating.
- WPCs are soon gaining pace as a vital building material in modern housing and commercial space construction methods, owing to the growing consciousness toward sustainability-driven construction practices. The global construction sector is continuously expanding. As per the World Bank, the total construction spending value is projected to reach USD 19.2 trillion over the next 12 years, which is expected to give an upward push to the studied market.
- China's demographics have triggered investments in affordable residential colonies by both the public and private sectors. As per the National Bureau of Statistics of China, housing starts in China jumped to 85 million sq m in August 2022 from 76 million sq m in July of 2022. Furthermore, China is expected to spend nearly USD 13 trillion on buildings by 2030, creating a positive outlook for WPCs.
- As per the Invest India Report, India's construction industry is heading to reach USD 1.4 trillion market size by 2025 supported by schemes pertaining to the smart city mission targeting the transformation of 100 cities and affordable housing.
- Europe is one of the major consumers of WPCs. According to Eurostat, residential construction alone contributed 7.2% to Germany's GDP in December 2021, the highest share reached in the past decade. The German Federal Statistical Office reported the stock of dwellings at 43.1 million in 2021 in the country, showing an increase of 0.7% (i.e., 280,000 dwellings) from the previous year. The total number of building permits achieved by Germany's construction sector rose consecutively for the third time in 2021, reaching 248,688 units.
- In July 2022, the German government announced its plans to spend EUR 13-14 billion (USD 14.08-15.17 billion) annually in providing subsidies for the renovation of buildings to make them more sustainable.
- Considering all the above factors, the usage and demand of WPCs for building & construction applications are expected to drive up in the forecast period.
North America Region Dominates the Market
- North America accounts for the largest market share of the wood plastic composites (WPCs) market, driven primarily owing to the growing residential and commercial projects in the region.
- The United States flaunts a colossal construction industry. As per the statistics generated by the US Census Bureau, the value of residential construction put in place in the United States was valued at USD 802,933 million in 2021, compared to USD 644,257 million in 2020. Further, the value of total construction put in place till August 2022 surpassed the 2021 figures reaching USD 912,913 million.
- The United States is going massive on home renovations. With the growing population of migrants in the country, the need for renovation has become increasingly important. Also, the growing awareness toward sustainability and high-efficiency structures has created a spur in the restoration trend. The availability of several loans by the government also supports home remodeling in the country.
- There has been a boom in the construction of skyscrapers in Canada (more specifically in Toronto) with over 30 high-rise buildings expected to be completed by 2025. In April 2022, the Canadian government announced its target to double housing construction over the next decade with assistance from the Housing Accelerator Fund of CAD 4 billion (USD 2.99 billion) launched under Budget 2022, which aims to build 100,000 new housing units in the next five years.
- Furthermore, the growth in automotive production and sales in North American countries provides favorable opportunities to the wood plastic composites market. The United States is the second largest automotive manufacturing country in the globe falling only behind China. According to OICA, the automotive production in 2021 accounted for 9,167,214 units, an increase of 4% in comparison to the production in 2020, which was reported to be 8,822,399 units.
- The rising demand for electric vehicles in Canada has propelled the investment in production activities by key automotive manufacturers in the country. In 2021, Ford announced its aim to produce 400,000 electric cars and trucks by 2030 including two to three new battery plants. Ontario and federal governments offered CAD 295 million (USD 219.26 million) to support new EV production at Ford Motor's plant in Oakville, Ontario.
Wood Plastic Composites (WPC) Industry Overview
The wood plastic composites (WPC) market is moderately fragmented as the market share is divided among many players. Some of the major players in the market (in no particular order) include FKuR, Biologic., The Azek Company Inc., Fiberon, and Oldcastle APG, a CRH Company, among others.
Wood Plastic Composites (WPC) Market Leaders
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FKUR
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Beologic
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The Azek Company Inc.
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Fiberon
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Oldcastle APG a CRH Company
*Disclaimer: Major Players sorted in no particular order
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Wood Plastic Composites (WPC) Market News
- December 2022: The AZEK Company Inc. and ThreadUP, an online resale player for apparel, shoes, and accessories, established a recycling partnership for transforming ThredUP's Clean Out Kit plastic films into TimberTech Composite Decking line of products representing low-maintenance and highly durable outdoor living products.
- February 2022: MoistureShield, a division of Oldcastle APG, a CRH Company, rolled out an innovative wood plastic composite, MoistureShield Cladding, which exhibits a durable and low-maintenance finish and adds an aesthetic appeal to the exteriors. The product is manufactured with 95% recycled content, thus promising the eligibility to earn LEED green building credit.
Wood Plastic Composites (WPC) Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Drivers
4.1.1 Increasing Demand From the Building & Construction Sector
4.1.2 Rising Demand for Recyclable and Lightweight materials in the Automotive Industry
4.2 Restraints
4.2.1 Technical Issues Like Temperature Sensitivity, Wearability, etc
4.2.2 Other Restraints
4.3 Industry Value-Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Volume)
5.1 Plastic Material
5.1.1 Polyethylene (PE)
5.1.2 Polypropylene (PP)
5.1.3 Polystyrene (PS)
5.1.4 Polyvinyl chloride (PVC)
5.1.5 Other Plastic Materials
5.2 Application
5.2.1 Building & Construction Products
5.2.1.1 Decking
5.2.1.2 Molding & Trimming
5.2.1.3 Fencing
5.2.1.4 Landscaping & Outdoor
5.2.2 Automotive Parts
5.2.3 Industrial
5.2.4 Consumer Goods
5.2.5 Furniture
5.2.6 Other Applications
5.3 Geography
5.3.1 Asia-Pacific
5.3.1.1 China
5.3.1.2 India
5.3.1.3 Japan
5.3.1.4 South Korea
5.3.1.5 Rest of Asia-Pacific
5.3.2 North America
5.3.2.1 United States
5.3.2.2 Canada
5.3.2.3 Mexico
5.3.3 Europe
5.3.3.1 Germany
5.3.3.2 France
5.3.3.3 United Kingdom
5.3.3.4 Italy
5.3.3.5 Rest of Europe
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle-East and Africa
5.3.5.1 Saudi Arabia
5.3.5.2 South Africa
5.3.5.3 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%)**/ Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 AXION STRUCTURAL INNOVATIONS LLC
6.4.2 The Azek Company Inc.
6.4.3 Beologic
6.4.4 CERTAINTEED
6.4.5 Fiberon
6.4.6 FKuR
6.4.7 Geolam, Inc.
6.4.8 JELU-WERK J. Ehrler GmbH & Co. KG
6.4.9 Oldcastle APG a CRH Company
6.4.10 PolyPlank AB
6.4.11 Resysta International
6.4.12 Trex Company Inc.
6.4.13 UFP Industries, Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Growing Use of Recycled Plastics
Wood Plastic Composites (WPC) Industry Segmentation
Wood plastic composite is a lumber or panel product made from the amalgamation of wood fiber/shavings/flour and thermoplastic fibers. These composites exhibit improved thermal, mechanical, thermal, and processing characteristics compared to conventional plastic, treated lumber, and steel components, allowing them to extend their applications in highly contoured parts of building products, automotive, furniture, and other consumer products. Wood plastic composites are recognized as sustainable materials as they are often made using reused plastic and wood wastes.
The wood plastic composites (WPC) market is segmented by plastic type, application, and geography. By plastic type, the market is segmented into polyethylene, polypropylene, polystyrene, polyvinyl chloride, and other plastic materials. By application, the market is segmented into building & construction, automotive parts, industrial, consumer goods, furniture, and other applications. By geography, the market is segmented into Asia-Pacific, North America, Europe, South America, and Middle-East & Africa.
The report also covers the size and forecasts for the wood plastic composites (WPC) market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done based on volume (Metric Tons).
| Plastic Material | |
| Polyethylene (PE) | |
| Polypropylene (PP) | |
| Polystyrene (PS) | |
| Polyvinyl chloride (PVC) | |
| Other Plastic Materials |
| Application | ||||||
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| Automotive Parts | ||||||
| Industrial | ||||||
| Consumer Goods | ||||||
| Furniture | ||||||
| Other Applications |
| Geography | |||||||
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Wood Plastic Composites (WPC) Market Research FAQs
What is the current Wood Plastic Composites (WPC) Market size?
The Wood Plastic Composites (WPC) Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)
Who are the key players in Wood Plastic Composites (WPC) Market?
FKUR, Beologic , The Azek Company Inc., Fiberon and Oldcastle APG a CRH Company are the major companies operating in the Wood Plastic Composites (WPC) Market.
Which is the fastest growing region in Wood Plastic Composites (WPC) Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Wood Plastic Composites (WPC) Market?
In 2024, the North America accounts for the largest market share in Wood Plastic Composites (WPC) Market.
What years does this Wood Plastic Composites (WPC) Market cover?
The report covers the Wood Plastic Composites (WPC) Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Wood Plastic Composites (WPC) Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Wood Plastic Composites Industry Report
Statistics for the 2024 Wood Plastic Composites market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Wood Plastic Composites analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Wood Plastic Composites Market Report Snapshots
