Construction Composite Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Construction Composite Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Construction Composite Market is estimated at around USD 20,420 million in 2022 and is expected to register a CAGR of over 5.5% during the forecast period (2022-2027).

The market was negatively impacted by COVID-19 in 2020 as the pandemic severely affected international trade and hampered several industries, including manufacturing, building, and construction.

• Over the medium term, the factors driving the growth of the market studied are the increasing usage of composites in construction applications and the rehabilitation of old concrete structures.
• On the other hand, the high initial production and installation costs of composites, are hindering the growth of the market studied.
• Increasing the ability to mass produce composites in the construction sector will likely create opportunities for the market in the coming years.
• North America is expected to dominate the market. The Asia-Pacific region is likely to witness the highest CAGR during the forecast period.

• Civil construction comprises the construction of bridges, dams, roads, airports, canals, railway infrastructure, and related structures.
• Toward the end of 2021, several Chinese provinces announced major infrastructure projects. South China's Guangxi Zhuang Autonomous Region unveiled a batch of major construction projects, with a total investment of CNY 185.9 billion (USD 29.15 billion). Those projects cover a wide range of sectors, including transportation, new energy, logistics, and basic infrastructure.
• Furthermore, China plans to expand its railway network, which is the second-largest in the world, by one-third in the next 15 years, as part of a long-term plan to propel urbanization and stimulate local economies. According to a plan issued by the state-owned China State Railway Group, China aims to have about 200,000 km (124,274 miles) of railway tracks by the end of 2035, including about 70,000 km of high-speed railways.
• In Germany, the Ministry of Transport and Digital Infrastructure plans to invest EUR 300 million in future technologies, such as electric mobility or automated and networked driving for electric vehicle charging infrastructure. Also, the country has started working on the A49 highway project connecting Schwalmstadt and the Ohmtal interchange in Central Hesse. This, in turn, is expected to increase the consumption of composite materials.​
• The Schwalmstadt-Ohmtal project is based on a public-private partnership model with an investment of EUR 700 million. The construction, which comprises 93 km of road, is expected to be completed in the third quarter of 2024. These massive railway and road construction projects may drive the demand for construction composites during the forecast period.​
• In Canada, as part of the "Investing in Canada" plan, the government announced plans to invest nearly USD 140 billion in major infrastructure developments in the country by 2028.
• All such factors are likely to influence the civil construction sector. Therefore, this sector is expected to dominate the market.

• In North America, due to the growing construction sector in countries such as United States, Canada, and Mexico, the utilization of construction composites is increasing in the region.
• The North American region is one of the largest consumption markets for construction composites. United States has one of the world’s largest construction industries. In the full year 2021, construction spending amounted to USD 1,590.37 billion, 8.2% above USD 1,469.2 billion in 2020, thereby increasing the consumption of construction composites from various construction applications.
• According to the US Census Bureau, during February 2022, the construction spending in the country was estimated at a seasonally adjusted annual rate of USD 1704.4 billion, 0.5% more than the revised January estimate of USD 1,695.5 billion. Moreover, the February 2022 estimation is 11.2% more than the February 2021 estimate of USD 1,533.3 billion. During the first two months of 2022, construction spending amounted to USD 237.8 billion, 10.4% percent above USD 215.4 billion for the same period in 2021.
• In Canada, the residential and commercial sectors have been witnessing steady growth in the recent past. There has been a boom in the construction of skyscrapers in Canada (more specifically in Toronto) in recent times. Over 30 high-rise buildings are expected to be completed by 2025, and another 50 such buildings are in the proposal and planning phases in Toronto.
• Moreover, as part of the ‘‘Investing in Canada Plan’’, the government has announced plans to invest nearly USD 140 billion in infrastructure developments in the country by 2028.
• The aforementioned factors, coupled with governmental support, may drive North America as the largest consumer of construction composites.

The global construction composite market is fragmented in nature. Some of the major players in the market (in no particular order) include Hexcel Corporation, Owens Corning and Nippon Electric Glass Co. Ltd., Toray Industries Inc., and Gurit.

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