Easy availability of non-utilized plastic and wood wastes and increase in demand from building & construction applications boost the growth of the North America wood plastic composites market.
The North America wood plastic composites was valued at $736 million in 2016, and is projected to reach at $1,876 million by 2023, registering a CAGR of 12.4% from 2017 to 2023.
WPCs are composed of wood or wood flour, plastics, and additives. The source of the materials can be either virgin or recycled material. The demand for materials based on renewable raw materials has been on an increase in the recent years. Furthermore, increase in interest from governments about climate protection and sustainability result in the expansion of market size of natural-based materials, such as wood plastic composites (WPC).
Increase in availability of non-utilized plastic and wood wastes, demand from building & construction applications, and stringent regulations on the use of chemicals in building materials majorly boost the growth of the North America wood plastic composites market. However, surge in cost of raw materials and issues with respect to mechanical strength and/or weight hamper the market growth.
The building & construction segment accounted for more than three-fourths share of the North America market in 2016, in terms of volume, and is expected to maintain its dominance during the forecast period, owing to its improved performance and appearance characteristics. However, automotive components are expected to grow with a high rate due to rise in demand for recyclable and lightweight materials.
Based on country, the market is analyzed across U.S., Canada, and rest of North America. The U.S. generated the highest revenue in 2016, accounting for $517 million, owing to increased automotive production in the country.
Key Findings of the North America Wood Plastic Composites Market:
- U.S. is expected to continue to lead the market throughout 2016 to 2023, followed by Canada.
- Canada is projected to register the highest growth rate from 2017 to 2023.
- The PE-based composites segment contributed approximately 70% share of the market revenue in 2016.
- The building & construction segment is projected to dominate the North America wood composites market.
- Automotive components segment is projected to register the highest growth rate from 2016 to 2023.
(From: Allied Market Research)