Driven by building & construction, global wood-plastic composites market to reach US$5.39 bln by 2019

The global wood-plastic composites 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, as per Transparency Market Research. The escalating demand for these materials in the manufacture of various interior components of automobiles is anticipated to fuel demand from the market. Wood plastic composites help in reducing the overall weight of a vehicle, thereby improving its fuel efficiency. The market for wood-plastic composites is also gaining from the implementation of stringent government regulations curbing the use of 100% wood or plastic. However, the market at present is facing challenge in the form of the development of natural fiber composites such as fruit fibers, straw fibers, seed fibers, and leaf fibers. The growth trajectory exhibited by the wood plastic composites market over the last few years has been steady. Additionally, their rising use in building and construction products will further provide lucrative opportunities for enterprises operating in this market. Wood plastic composites are hybrid materials made of natural wood and plastic fiber. These materials are manufactured using wood fiber/flour and other thermoplastics such as polyethylene, polypropylene, and polyvinyl. In order to produce wood-plastic composites, finely ground wood particles are mixed with heated thermoplastic resins. The most commonly used technique enabling the molding of the wood-plastic composite mixture into desired shapes and sizes is extrusion. Among the product segments, polyethylene wood-plastic composites held the largest share in the market in 2012. Polyethylene wood-plastic composites are mostly used in the building and construction industry. However, the report expects the polyvinyl chloride segment to report the fastest growth in the market over the forecast period owing to its increased use in window and decking applications. Based on application, building and construction emerged as the largest segment, accounting for a share of 70% in the global wood-plastic composites market in 2012. Wood-plastic composites are preferred for constructing exterior buildings and construction products because they offer high resistance against fading, scratching, and staining. The automotive industry, however, is expected to emerge as the fastest growing application segment of the wood-plastic composites market over the forecast period. Regionally, North America dominated the global wood-plastic composites market in 2012 and the hierarchy is anticipated to continue through the forecast period. Enterprises operating in the market also find lucrative prospects in Asia Pacific. This regional market will exhibit a CAGR of 10.0% between 2013 and 2019.