The wood plastic composite market is projected to grow from US$ 2579.90 mln in 2014 to US$4601.7 mln by 2019, at a CAGR of 12.2% between 2014 and 2019, as per RnRMarketResearch.com. Polyethylene is the single-largest segment, holding 56.6% share of the global wood plastic composite (WPC) market in 2014 and is projected to grow at a CAGR of 12% between 2014 and 2019. North America was the largest market of polyethylene and Asia was the second largest in 2014.
The WPC market onsists of four applications: building and construction products, automotive components, industrial & consumer goods and others. The demand for building and construction segment accounted for the largest share in 2014, at US$2579.9 mln, and it is projected to reach US$4601.7 mln by 2019. North America was the largest consumer of building and construction products in 2014, followed by the Asian region. Partnerships, agreements, expansions, joint ventures, and acquisitions are some of the main strategies adopted by the market players to achieve growth in the wood-plastic composites market. Partnerships, agreements and collaborations accounted for 39% of all the growth strategies adopted by the players during the review period of 2009 to 2014.
WPC are manufactured with major five processes across the globe which includes extrusion, injection, co-extrusion, foaming and roto moulding. Leading companies in this industry are continuously seeking new technologies for manufacturing WPC with high efficiency.
According to Transparency Market Research, the global WPC market was valued at US$2.64 bln in 2012 and is anticipated to reach US$5.39 bln in 2019, expanding at a CAGR of 10.8% between 2013 and 2019. Increasing demand for WPC in the manufacture of building & construction products is estimated to boost the overall market over the next few years. Additionally, rising demand for WPC to manufacture several interior components of automobiles is projected to fuel market growth. WPC help in reduction of the overall weight of the vehicle and in turn enhance its fuel efficiency. Furthermore, implementation of stringent environmental regulations restricting the use of 100% plastic or wood is expected to boost demand. However, the development of other natural fiber composites such as straw fiber, fruit fiber, leaf fiber and seed fiber is likely to hamper the overall growth of WPC market in the near future.
Polyethylene WPC dominated the global wood-plastic composites market in 2012. The major application of polyethylene WPC is in building & construction industry. Polyvinyl chloride WPC is expected to be the fastest growing product segment of the market during the forecast period owing to its growing application in window and decking applications. Building & construction was the largest application segment of the WPC and accounted for over 70% of the total volume demand in 2012. Exterior building & construction products manufactured using WPC offer high resistance to staining, fading and scratching. Additionally, automotives is expected to be the fastest growing application of the market owing to the increasing substitution of conventional materials such as metals by WPC.
North America was the largest market for WPC in 2012 and the trend is expected to continue - the region is likely to remain the undisputed market leader in the forthcoming years as well. However, Asia Pacific is anticipated to witness the fastest growth in the market over the forecast period. The Asia Pacific WPC market is expected to grow at a CAGR of over 10% between 2013 and 2019. China plays a key role in driving Asia Pacific market due to huge production capacities for WPC products.
The global WPC market is highly fragmented in nature. Major players in the wood-plastic composites market include Trex Company Inc., Fiberon LLC., CPG International, Advanced Environmental Recycling Technologies (AERT) and Fineko. Entry of new players, especially in Asia Pacific, is likely to boost the overall market growth. WPC exhibits physical qualities and the appearance of the rarest of wood species, and offers a non-destructive and eco-friendly alternative to actual woods. With rapid expansion of the construction and automobile industries in conjunction with a favorable regulatory environment, WPC have been an instant success in the market.