|The global geotextiles market (for application in roads, erosion prevention, drainage) is expected to reach US$8.24 bln by 2020, from US$4.1 bln in 2013, growing at a CAGR of 10.5%. Increased focus on geotextiles and its applications in roadways and erosion prevention is expected to be a key driver for the growth of the market, as per a report by Grand View Research, Inc. In addition, growing regulatory support in emerging countries including India, China, UAE and Brazil is also expected to augment the demand for geotextiles over the forecast period. Road construction and erosion control were the largest applications of geotextiles together accounting for over 60% of global demand in 2013. Increasing infrastructure spending in Asia Pacific, Middle East and Latin America are expected to act as key factors for driving geotextile demand for this application. Road construction is also expected to be the fastest growing segment over the forecast period, at an estimated CAGR of over 9% from 2014 to 2020. Further key findings from the study suggest:
- The global geotextiles demand is expected to reach 4,323 mln square meters by 2020 growing at a CAGR of 8.9% from 2014 to 2020.
- Asia Pacific was the largest geotextile consumer and is also expected to be the fastest growing regional market over the forecast period, at an estimated CAGR of 9.1% from 2014 to 2020.
North America is also expected to witness significant growth on account of repair and maintenance for the vast road network of the region.
European geotextile market revenue is expected to reach US$ 1.97 bln by 2020, growing at a CAGR of 9.6% from 2014 to 2020.
- Non woven geotextiles were the most commonly used geotextiles in 2013, at an estimated consumption of 1,561 mln square meters. Low cost and wide application scope make non-wovens the most preferred among other geotextiles products. Knitted geotextile demand is expected to reach 279.8 mln square meters by 2020, growing at a CAGR of 7.1% from 2014 to 2020.
- The global geotextiles market is fragmented with the top 6 companies catering to about 40% of global demand in 2013. Key players in the market include Royal Tencate, NAUE, Low and Bonar and Propex among others.
WORLD GEOSYNTHETIC DEMAND (million square meters)
As per Freedonia, global demand for geosynthetics is expected to rise 8.9% pa to 5.2 bln square meters in 2017. Developing regions will be the fastest growing markets, with the Asia/Pacific region remaining the largest. Construction will be the largest and fastest growing application, especially in the key China and US markets. These gains will result from “a much improved environment for the construction of structures and roads. Additional growth will be driven by increased market penetration, stimulated by growing concerns regarding environmental protection and greater awareness of the performance advantages of these products in a variety of applications”. In addition to being the largest, this [construction] market is projected to register the fastest gains through 2017. The construction market accounted for approximately one-third of worldwide geosynthetics sales in 2012. In addition to being the largest, this market is projected to register the fastest gains through 2017. Growth was aided by continued expansion in building construction activity worldwide and improved spending in developed areas as the global recession of 2009 and subsequent slow recovery limited the market in the 2007-2012 period. Use of geosynthetics will rise as a means of preventing sedimentary runoff from construction sites, as well as reducing the need for other erosion controls in a growing list of countries. The transportation infrastructure market will provide opportunities for a number of geosynthetics, benefiting from the maintenance of the existing extensive roadway networks in developed countries. Rising market penetration and the ongoing extension of paved roads and railways will boost sales in developing countries. Gains in the landfill market will benefit from a growing number of countries adopting modern landfill design and operations that typically incorporate geosynthetic liners and caps. As per Freedonia analyst Pam Safarak, “In 2012, the Asia/Pacific region surpassed North America to become the largest regional market for geosynthetics, with 35% of the global total. Advances in the region will be propelled by the rapidly developing Chinese market, which will account for roughly three-quarters of the regional sales in 2017 and over half of additional global volume demand through 2017. China's vast stretches of available land, its ongoing development of largescale infrastructure projects, and its need for erosion control will provide opportunities for geosynthetics going forward. Similar to China, India is also expected to post double-digit annual growth through 2017, although from a much smaller base. In many of the least developed countries, however, growth for geosynthetics will be more limited due to inadequate government funding, a lack of regulations that require their use, and the presence of lower-cost alternatives such as natural fiber geotextiles and aggregates.” In 2012, North America was the second-largest regional geosynthetics market, accounting for 28% of global sales. The U.S. is the world’s largest national market, alone accounting for 23% of global demand in 2012. The position of the U.S. market reflects the immense size and advanced nature of the country’s economy. In addition to its huge construction sector and extensive transportation infrastructure, the U.S. has relatively strict environmental control regulations regarding containment of waste and chemicals, all of these will continue to provide significant opportunities for geosynthetics through 2017.
In addition to having a huge construction sector and an extensive transportation infrastructure, the US has relatively strict environmental control regulations regarding containment issues, all of which will continue to provide significant opportunities for geosynthetics through 2017.