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The global geocomposites market size was USD 383.5 million in 2020. The market is projected to grow from USD 401.1 million in 2021 to USD 608.7 million in 2028 at a CAGR of 6.1% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with geocomposites witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 1.12% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Geocomposites are used for functions of roadways such as drainage, separation, reinforcement, and filtration. They can increase the stability and strength of underlying soil in a roadway. Increasing construction activities such as roads, highways, railways, and others due to high tensile strength, easy installation, cost-effectiveness, and durability properties shall drive the global geocomposites market growth.
Lowering Production Capacity and Cancellation of Construction Projects due to COVID-19
The outbreak of COVID-19, and the accompanying economic slowdown, had a detrimental effect on several industries, including the construction and infrastructure industries. During the initial phase of the pandemic, the construction material supply chain was severely disrupted owing to the lockdown restrictions imposed by governments across the world. This factor also includes geosynthetic materials, frequently employed in the construction industry for separation, reinforcement, filtration, drainage, and containment. Manufacturers worldwide have reported lowering their production capacity and temporarily shutting down production facilities due to the lockdown and reduced order intake. The global supply chain disruption caused by the pandemic was further intensified by trade restrictions, raw material and workforce shortages, freight container shortages, and logistical challenges. Numerous construction projects are postponed, canceled, or operating at a slower pace during the pandemic, resulting in a decline in demand from the construction industry.
During the early stages of the pandemic, construction activity in the U.S., which is one of the largest consumers of geocomposites, dropped significantly. The construction industry in the U.S. is an important contributor to the economy. The slowdown in construction activity was reflected in the country's real GDP, which fell by 32.9% in Q2 of 2020. The impact of this slowdown was felt across the construction industry's supply chain, which includes construction material manufacturers such as geosynthetic producers. According to Eurostat, construction production output in the EU dropped by an unprecedented -25.4% during the first wave of COVID-19. The construction sector has recovered significantly after the first hit, although growth remains stagnant and lower than pre-pandemic levels. Economic uncertainties persist due to new, more contagious delta variants, resulting in reduced economic activity, affecting the demand for commercial construction and dampening investment in the long term.
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Biodegradation of Sustainable Nonwovens Used in Water Absorbing Geocomposites (WAG) To Drive Market Growth
The rise in awareness and need to reduce the environmental impact of geotextiles have driven the usage of natural fibers and materials. WAG technology is used to achieve energy sustainability, which gradually replaces non-renewable fossil fuels and is considered to be environment-friendly. This technology supports water management and help in plant growth. It captures water in the soil and retains it inside in a gel form. The application of WAG improves the erosion control by enhancing the development of the root systems of bushes and grass and improves soil shear strength on the embankment.
Growth in Construction Industry to Drive Market Growth
The rising demand from the construction sector across various parts of the world is anticipated to drive market growth. The global construction industry has been expanding moderately over the past few decades and is anticipated to continue its rising trend during the forecast period. During the forecast period, emerging economies such as China and India and other Southeast Asian countries, are expected to invest significantly and undergo massive infrastructure transformation. Over 60% of the world's population lives in the Asia Pacific region, and people's purchasing power and living standards have improved substantially in recent decades. Consumers’ rising purchasing power is anticipated to result in a significant increase in demand for new residential and commercial construction, highways and railroads, and other infrastructure projects. Geocomposites are extensively employed in the construction industry due to their diverse functionality. As a result, the expansion of the construction industry is likely to benefit and fuel the industry growth.
Additionally, developed countries such as the U.S. have announced that they will invest substantially in rebuilding and upgrading their country's existing infrastructure. This factor covers initiatives such as the development of residential buildings and the modernization of transportation infrastructure such as highways, roads, and bridges, among other things. Rising government investments in infrastructure upgrades in developed countries is projected to enhance demand for construction materials, including geosynthetic products.
Fluctuating Raw Material Prices to Restrict Market Growth
Geocomposites are manufactured by combining different geosynthetics into configurations according to the desired functionality and application. Geosynthetics can be manufactured using synthetic materials and naturally derived materials like jute and coir. The majority of composites manufactured worldwide are produced from synthetic polymers sourced from crude oil, including polyester, polyethylene, and polypropylene among others. The cost of these raw materials is strongly influenced by the volatile nature of crude oil prices. For example, during the peak of the COVID-19 pandemic, crude oil prices plummeted to historical lows, leading to a significant drop in the pricing of thermoplastics used in the production. The price and availability of raw materials are two of the most important factors influencing the demand for geocomposites. Therefore, fluctuating crude oil prices, which have been demonstrated to substantially affect raw material costs, are expected to restrict the market growth.
Geotextile-Geonet Composites Segment to Dominate Market due to its Drainage Properties
Based on product, the market is segmented into geotextile - geonet composites, geotextile - geomembrane composites, geomembrane - geogrid composites, geotextile - geogrid composites, and others.
The geotextile-geonet composites segment is expected to dominate the market in the forthcoming years. The geotextile - geonet composites outperform geotextile alone in terms of drainage capabilities. Whether geotextile is employed over or beneath a geonet, or whether geotextile-geonet- geotextile is sandwiched, the separation and filtering capabilities are always met. These types of products provide excellent drains to upwardly flowing water in a capillary zone where frost heave or salt migration is a concern if installed horizontally. When water enters the sandwich, it flows horizontally across the geonet, away from the area where it tends to cause harm. These are also utilized in landfills to trap and transport leachate and channel vapor or water beneath various types of pond liners.
Geotextile – geogrid composites are multifunctional and primarily designed to reinforce unstable subgrades. The nonwoven geotextile offers separation and filtration while the geogrid provides soil reinforcement. Nonwoven geotextile’s high elongation capacity ensures that the composite geogrid's interlocking ability with the fill material is not compromised, and stress is distributed evenly to the geogrid. These are extensively employed in the construction of roads and railways, landfills, airports, and hydraulic engineering as well as for crack prevention and road pavement reinforcement
Drainage Segment to Hold Largest Market Share due to its Wide Usage in Road, Railways, and Landfills Applications
Based on function, the geocomposites market is segmented into separation, drainage, reinforcement, and others.
Drainage emerged as the dominant segment in 2020. These composites offer a large capacity for in-plane drainage, making them ideal as drainage components. The filter-net-filter composites are used for general area drainage and are easy-to-install alternatives to stone. The filter-net-membrane composites are employed as a cut-off drain, draining from one side alone and preventing the other. Both types can be used in a vertical or horizontal configuration. Composites are used extensively in drainage applications for landfills, roads, railways, retaining walls, and other structures.
Geocomposites are placed between different materials so that the integrity and functionality of both materials remain intact and even improve during the life cycle of the construction. Contamination of the aggregate base course with the underlying soft subgrade soil is one of the most common causes of pavement and roadway construction failure over soft foundations. The intermixing of the two layers results in localized bearing failures in the roads, increasing maintenance costs and shortening the life cycle. It is used to accomplish the separation function between the subgrade and the aggregate base layer. The geotextile inhibits aggregate intrusion into the subgrade and fines migration into the base. Thus, composites improve pavement performance by retaining the integrity of both layers.
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Road & Highway Segment to Hold Major Share Over Forecast Period as it Increases the Service Life of Roads, Bridges, and Others.
On the basis of application, the market is segmented into water & wastewater management, road & highway, landfill & mining, soil reinforcement, and others.
Road & highway segment accounted for the highest market share in 2020 and is expected to continue its dominance during the forecast period. Geocomposites are primarily utilized for soil reinforcement in road construction. A Few of the specific road and highway construction applications include subgrade separation and stabilization, base reinforcement, overlay stress absorption, and overlay reinforcement. It improves soil stability and prevents erosion while allowing water to drain off. Composites offer a separation function, maintaining the integrity and functionality of distinct layers in the road, thereby improving the performance and lifespan of the road infrastructure.
The product offers an effective impermeable barrier that prevents any liquid from migrating, enabling flow control and a wide range of water and wastewater management applications. Geosynthetics are widely used in water containment end-uses such as potable water & wastewater treatment facilities. Typical examples are lined structures in treatment lagoons, sedimentation basins, and digestion ponds. For instance, a geomembrane-based geocomposite is employed as a low-permeability barrier between the contained water or wastewater and the subgrade. The product may be used as a protective layer within concrete structures and in grit chambers and vertical flow control baffles. The product type has also proven to be a cost-effective way to repair older concrete, clay, or steel-lined structures that have started to develop cracks and leakages over time.
North America Geocomposites Market Size, 2020 (USD Million)
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Even after the short-term impacts of the pandemic, the long-term growth trajectory of the construction sector in North America appears to be quite optimistic. The region's construction sector is anticipated to expand substantially during the forecast period owing to the rising government and private sector investment. For example, the Biden administration announced its USD 2.3 trillion infrastructure plan in April 2021, to rebuild and upgrade the U.S. infrastructure. A major portion of these investments is earmarked for developing residential buildings and modernizing transportation infrastructure such as highways, roads, and bridges, among other things. Rising investments like these are expected to boost the regional construction sector, thus expanding the industry growth.
The market in Asia Pacific is anticipated to witness rapid growth, owing to rising demand from the construction and infrastructure development industry. Emerging economies, such as China and India, and other Southeast Asian countries are expected to invest heavily and undergo massive infrastructure transformation during the forecast period. Asia Pacific is currently home to over 60% of the world's population, and people's purchasing power and living standards have improved substantially over the last few decades. This trend is expected to continue during the forecast period, resulting in a significant increase in demand for new residential and commercial buildings, highways and railways, and other infrastructure projects. Geosynthetic materials are expected to benefit from their broad use in the construction sector, and the market will likely expand at pace with the region's rapidly expanding construction sector.
The Europe market is expected to expand consistently due to rising demand from the construction sector. The construction industry is vital to the EU's economy. The industry employs around 18 million people directly and accounts for nearly 9% of the EU's GDP. Following the initial setback caused by COVID-19 restrictions, the region's construction sector has recovered. However, high prices and building material shortages limit the growth pace. The EU has supported the region's construction sector through its policies and economic stimulus programme. With government support, the construction sector is anticipated to swiftly recover and return to pre-pandemic levels, resulting in a rise in demand for construction materials.
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The Latin America market is expected to witness a moderate growth, owing to the region's underdeveloped construction sector. Markets in the Middle East & Africa are expected to witness substantial growth due to an increase in the number of complex construction and infrastructure projects undertaken in the region. For example, China has been investing heavily in developing infrastructure in African countries. The rising construction activities are likely to benefit and expand the regional market.
Companies Engage in Product Innovations to Enhance Market Entry Stratagem
The global market share is competitive, with key market players operating in the industry are TenCate, Thrace Group, GSE Environmental, HUESKER, Terram, and others. Companies are mostly involved in product supply and distribution to small & medium scale businesses to build up the market competition.
For instance, in March 2019, Tenax introduced a new product, GRAVEL LOCK, a geocomposite made up of a cuspated, rolled HDPE geogrid coupled with a polypropylene (PP) nonwoven fabric. The fabric is suitable for producing draining & stable gravel floors for pedestrian and vehicular passage.
An Infographic Representation of Geocomposites Market
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The market report offers an in-depth analysis of the market and focuses on key aspects, including major players, functions, products, and applications. Also, the report offers insights into market trends and highlights the major industry advances. This report includes historical data & forecasts revenue growth at global, regional, and country levels and analyzes the industry's latest market dynamics and opportunities. In addition to the key attributes mentioned above, the report incorporates various factors contributing to the market's growth in recent years.
Value (USD Million), Volume (Million Square Meters)
Product, Function, Application, and By Region
Fortune Business Insights says that the global market size was USD 383.5 million in 2020 and is projected to reach USD 608.7 million by 2028.
In 2020, North America stood at USD 138.7 million.
The market will grow at a CAGR of 6.1% during the forecast period (2021-2028).
The road & highway segment is expected to be the leading segment in this market during the forecast period.
Growth in the construction industry is expected to drive the market's growth.
GSE Environmental, Terram, SKAPS Industries, Thrace Group, and TenCate are the major players in the global market.
North America dominated the market share in 2020.
Increase in government spending on infrastructure projects such as rail, road, and highway is expected to drive the product adoption.
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