New product launches & agreements are the key development strategies adopted by the leading market players to drive the global construction composites market.
The use of construction composites is becoming crucial in industrial and commercial applications due to the increase in demand for non-corrosive and light weight materials. The construction composites market is projected to reach USD 6.65 billion by 2021, growing at a CAGR of 5.80%, from 2016 to 2021.
Download PDF Brochure: https://www.marketsandmarkets.com/pdfdownload.asp?id=39360769
The key companies offering construction composites are mainly involved in new product launches and agreements to strengthen their positions in the construction composites market. The leading companies adopted these strategies to improve their distribution channels and to strengthen their presence in the developed and emerging countries, between 2011 and 2016.
From 2011 to 2016, new product launches and agreements were the key strategies adopted by industry players to maintain growth in the global construction composites market. These strategies accounted for 48% and 45%, respectively, of the strategies adopted between 2011 and 2016. The market players concentrated mainly on consolidation through agreements and new product launches with the intention of increasing their market shares and enhancing their sustainability
The major manufacturers profiled in this report are Trex Company, Inc. (U.S.), Hughes Brothers, Inc. (U.S.), Advanced Environmental Recycling Technologies, Inc. (U.S.) Strongwell Corporation (U.S.) and others. These companies have adopted various organic and inorganic growth strategies such as new product developments, agreements, and expansions to expand their global presence and increase their penetration into the construction composites market.
Trex Company, Inc. (U.S.), Advanced Environmental Recycling Technologies, Inc. (U.S.), Strongwell Corporation (U.S.) and Bedford Reinforced Plastics (U.S.) are the major companies adopting the maximum number of growth strategies between 2011 and 2016 in the construction composites market. Trex Company, Inc. is the world’s largest manufacturer of composite decking & railing products. It accounted for the largest share of all the development activities undertaken in the global construction composites market between 2011 and 2016. The company follows dynamic growth strategies with agreements, new product launches and expansions, to strengthen its geographical presence and customer base. For instance, Trex Company, Inc. in October 2013, signed an agreement with Babcock Lumber Company (U.S.) for the supply of Trex Company products in Western and Central Pennsylvania, Western New York, and West Virginia. This approach has helped the company to expand its footprint in the commercial and housing application of construction composites in the North American market.
Advanced Environmental Recycling Technologies, Inc. (AERT) is one of the leading providers of composite decking & railing for applications in commercial, industrial and housing applications in North America. The company is focused on new product launches and signing agreements with different companies to expand its distribution network. For instance, in April 2015, AERT entered into an agreement with Cedar Creek, LLC for the distribution of MoistureShield products in Colorado. It helped the company to increase its market share in the North American construction composites market.
Increase in the penetration of composites in the construction industry, rapid urbanization and economic boom in emerging countries expected to boost the growth of the construction composites market
North America is projected to be the fastest-growing region in the global construction composites market during the forecast period. The key countries in this region, namely, U.S. and Canada among others, are witnessing a high demand for construction composites for various applications. This growth is attributed to the increasing urbanization and industrialization. Also, the increasing penetration of construction composites in civil applications is leading to a growing demand for construction composites in North America. Further, the leading players in the construction composites market are considering this region for the expansion of their businesses through various strategies such as agreements and expansions.
In 2015, the U.S. led the North American construction composites market due to the growing market, as the U.S. is one of the single largest consumers of composite materials for various components on a global level. The expansion and establishment of new manufacturing industries for various consumer products is leading to an increasing demand for construction composites in the U.S.
The use of natural fiber construction composites is projected to grow due to the advent of low cost and high-performance precursors used to manufacture natural fiber construction composites. In addition to this, various advantages offered by natural fibers such as chemical inertness, high tensile strength and thermal stability, over the counterparts, have driven the demand in high strength applications such as civil, housing, and commercial. Some of the prominent companies utilizing natural fiber reinforcement in construction composites include, AERT (U.S.), UPM Biocomposites (Finland), TimberTech (U.S.), TAMKO Building Products (U.S.), and so on.
Polyester resin is expected to be the fastest-growing resin type, from 2016 to 2021, due to its growing penetration in commercial and civil applications. It does not expand with high temperature and exhibits good mechanical, electrical, and heat resistance properties. It is durable, heat resistant, and resistant against corrosion by chemicals, water, fuels, and lubricants. In addition, it is more cost-effective than epoxy resin, and is one of the economical resins used in composites. These benefits are expected to drive the growth of the polyester resin construction composites market during the forecast period.
Industrial is the largest application market of construction composites in terms of volume, as these provide more structural strength compared to the metallic alloys and are light in weight. Composites generally use glass fiber reinforced polymers and offer complete solutions against highly corrosive fluids and harsh environmental conditions at various temperatures, pressures, adverse weather, and soil conditions. Also, the industrial application is projected to be the fastest-growing application in the construction composites market during the projected period. Composites help to minimize corrosion, thereby increasing the life of the product. Further, as construction composites help to increase shelf-life, along with low maintenance requirements, their demand is also growing in commercial and civil applications.
The key players in the construction composites market have adopted agreements, new product launches and expansions strategies during the last five years. The major companies operating in this market are, Advanced Environmental Recycling Technologies, Inc. (U.S.), Bedford Reinforced Plastics (U.S.), Diversified Structural Composites (U.S.), Exel Composites Oyj (Finland), Hughes Brothers, Inc. (U.S.), Jamco Corporation (Japan), Schoeck International (Germany), Strongwell Corporation (U.S.), Trex Company, Inc. (U.S.), UPM Biocomposites (Finland), and others.
