The global timber decking market will be highly driven by the building and construction industry until 2020. As per Technavio, the global timber decking market is expected to reach US$8.88 bln by 2020, growing at a CAGR of almost 5%.. Timber decking market is highly driven by the residential, non-residential, public and private construction activities, and by consumer wealth and increased spending. The global housing market has recovered from the global economic recession, which can be observed with the recovery of the house price index since 2013. For instance, in China, although the overall prices have been declining since 2014 but it was mainly due to an oversupply of units. The overall construction market for both the residential and non-residential sectors in the EU was stagnant, but post-2013, it has picked up strongly in the UK, the Netherlands, and Spain. With an increase in new housing unit projects across the world, the timber decking market will see sustainable growth due to investment in the decking projects as part of the housing project as 50% of housing projects in the North America have wooden decks. Analysts categorize the timber decking market into three major segments by materials. They are:
The WPC decking segment in the timber decking market was valued at US$2.33 bln in 2015 and will grow at a CAGR of over 8% during the forecast period. WPC is manufactured using reclaimed wood fiber and scrap polyethylene. The major suppliers of reclaimed wood are cabinet and flooring suppliers and the waste of sawing process. Reclaimed wood is actually the by-product of the manufacturing process of other timber to lumber-producing activities like getting sawn wood, flooring, and more. The polyethylene is obtained from different sources. Firms, such as Trex, obtain polyethylene from scrap plastic films and plastic bags.
According to Sunil Kumar Singh, a lead embedded systems research analyst from Technavio, “In WPC decking, capped composites are the premium products, but they come at a higher price than regular decking. The WPC decking market is also affected by the oil market. Although polyethylene used in WPC is not extracted directly from petroleum but from natural gas, the price movement of natural gas follows the oil prices in the secondary market.”