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The global geogrid market size was USD 1.15 billion in 2020. The market is projected to grow from USD 1.19 billion in 2021 to USD 1.64 billion in 2028 at a CAGR of 4.7% during the 2021-2028 period. The COVID-19 impact has been unprecedented and staggering, with geogrid witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline of 2.6% in 2020 as compared to the average year-on-year growth during 2017-2019. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Geogrids are categorized as geosynthetics materials used to reinforce soils and similar materials. It is commonly used to reinforce retaining walls and subsoils or subbases below structures or roads. The manufacturing method involves extruding the flat plastic sheet into the desired structure, where the plastic used is HDPE. They are widely used in the construction industry mainly because of their properties, such as good tension capability and ability to distribute higher load across a huge area. These products are also used in road and railway development activities owing to reduced time, maintenance costs, and thickness of rail tracks & roads.
The increasing number of infrastructural activities worldwide due to economic recovery and rising investments are anticipated to drive the demand for the material. The increasing infrastructure spending in the U.S., Canada, China, India, the U.K., Germany, and Russia on account of the rising public infrastructure projects such as bridges, rails, roadways, airports, and harbors shall augment the market growth. However, pavement designs and construction practices require high quality materials to achieve numerous infrastructure norms. The increased government funding and supportive regulations are likely to surge the industry competitiveness and promote environmental awareness.
COVID-19 Outbreak to Take Toll on Growth by Impacting Construction Industry Severely
The COVID-19 pandemic has halted most construction development activities due to the global lockdown. Also, this has disrupted the supply chain of raw materials. COVID-19 has had an unprecedented impact on the manufacturing sector worldwide. Most of the investors are hesitant to invest in new projects or start new construction activities because of the economic turmoil.
As the number of coronavirus cases increases, its impact on the construction sector is predicted to advance over the coming months. Most countries are experiencing difficulties in the raw material supply chain, nationwide lockdown, and labor shortages in the construction business. The U.S. construction sector is dependent on the shipments of international materials such as fixtures, copper, steel, aluminum, and others from China. The Port of Los Angeles stated that around 23% Y-o-Y reduction in the shipping containers was noticed in February. Also, the shutdown of the Chinese manufacturing facilities would hinder growth.
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Sustainability in Construction Industry to Boost Market Growth
Sustainability is becoming an increasingly imperative concern in the construction industry. Sustainable buildings require the usage of eco-friendly construction materials. For example, in March 2021, a Germany-based geosynthetic manufacturer company, HUESKER Synthetic GmbH, launched Fortrac T eco PET recycled yarn geogrid is now available in the ecoLine version. The product is made according to the European Standard EN 15804, and the results of its life cycle assessment were verified in terms of the resource use, environmental impact, and usage of waste products.
For construction activities, geotechnical engineers prefer working with expensive and high-quality imported granular fill. They can reinforce the soil structure using marginal and poorly drained fills, with environmental and cost implications. Marginal fills usually have high silt or clay content, which can generate excess pore water pressure in the structural backfill when loaded. Poor drainage in the structural fill declines the available fill strength, thereby reducing the bond between the reinforcement and the fill. Thus, enough drainage must be provided in the reinforced soil structure to use marginal fill. A geocomposite combines the drainage and reinforcement into environmentally friendly and sustainable walls and slopes that can be constructed and designed.
Expansion of Construction Industry to Aid Market Growth
The construction industry's rising infrastructural development activities and expansion would accelerate the product demand due to their beneficial properties, such as high tensile strength, ease in handling, and environmental safety is likely to accelerate growth. Owing to the rapid urbanization, growing population base, and upcoming infrastructure projects, the construction business in India is flourishing. Around 8% of India’s GDP is for infrastructure services. It comprises dams, bridges, roads, and power construction. According to India Brand Equity Foundation (IBEF), the government of India plans to construct 65,000 kilometers of the national highway at a cost of USD 741.51 billion by 2022. India has the second largest road network across the world. Under the Union Budget 2020-21, about 30,000 km of the Pradhan Mantri Gram Sadak Yojana (PMGSY) roads have been built using Waste Plastic, Cold Mix Technology, and Green Technology, thereby decreasing the overall carbon footprint.
There is sustainable growth throughout the construction sector, mainly in home improvement projects and private development of single-family homes. The U.S. construction market is the largest economic contributor. As per the U.S. Census Bureau, construction spending in June 2020 was approximately USD 1.35 trillion. The increasing expansion of metropolitan cities with the rising demand for commercial construction projects may augment growth. The engineering & construction (E&C) industry is poised to benefit from opportunities in the U.S. infrastructure and transportation upgrade initiatives and expansion of smart city mega-projects.
Grids are readily available to construct reinforced bridge abutments, retaining walls, foundations, roadway bases, and steep slopes. It is used in pavement systems as it reduces the cost by lowering the thickness of the pavement structure and by increasing its life. Companies emphasize saving project costs, time and lowering carbon emissions. For example, Tensar offers TriAx geogrid with 3600 triangular apertures and tensile stiffness to lock the aggregates and create a stabilized layer under traffic loading. This product reduces the unbound aggregate layer thickness, construction sites, long-term costs, and excavation.
Lack of Skilled Engineers and Improper Installation Training to Restrict Growth
The public and private sectors have used Geogrids reinforcements to establish stable subgrade foundations for infrastructures over both hard and soft soil types. It is a newly developed material that has been recently employed in actual infrastructures. A systematic product installation process would sustain the heavy pressure, load and maintain the durability of the infrastructure to avoid defects and accidents. The lack of skilled laborers and civil engineers that can conduct proper product installation techniques may act as a restraining factor for growth.
Polyester Segment to Account for Largest Market Share Owing to its Increasing Applications in Mining, Tunnels, and Other Sectors
On the basis of material, the market is categorized into HDPE, polypropylene, and polyester. The polyester segment dominated the market in 2019 as it is a geosynthetic material made from high modulus polyester yarns. It is lightweight, saves costs, increases life span and elasticity. It has excellent heat resistance to long-term degradation and has good rutting resistance performance under high temperatures.
Polyester is used in mining, tunnels, construction of retaining walls & reinforced earth structures, landslide stabilization, erosion prevention, reinforcement of upper layers of subgrades under railroads and roads & lower subgrades layers, and anti-snow barriers. Strata is a prominent provider of geotechnical solutions and soil reinforcement technology in India. The company offers StrataGrid, manufactured using high tenacity and high molecular weight polyester yarn.
HDPE is designed to be used in geotechnical structures where soil particles need support for a longer period. They are commonly used on steep slopes due to their high durability and strength. They are resistant to chemical substances and do not easily deteriorate when exposed to acid, alkaline agents, microbes, or salt solutions as they are non-polar.
Few manufacturing companies offer high tensile strength and chemically engineered HDPE to withstand extreme pH conditions. For example, Tensar offers uniaxial products made of HDPE and are perfect in coastal areas with exposure to saltwater environments, light rail transit systems, and cold weather climates.
Uniaxial Segment Dominated the Market Owing to its Higher Usage in Reinforced Soils
Based on product, the market is segmented into uniaxial, biaxial, and multiaxial. Uniaxial is manufactured by punching and drawing a homogenous polymer sheet to make an even product. In grade separation application, they help the soil stand virtually at any desired angle from 0 to 90 degrees.
Biaxial provides a simple & cost-effective solution for road paving, soil reinforcement, and improving roadways in areas with heavy traffic. They provide the structural reinforcement of parking areas, roads with superior interlocking capabilities, hardness, and higher performance. A designed and engineered solution like biaxial can be installed in unfavorable conditions such as weak subgrades, polluted soils, hefty loads, high granular expenses, and shallow-buried utilities.
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Road Construction Segment to Hold Major Share Fueled by Rising Usage in Construction of Airports
This market by application is segmented into road construction, railroad, soil reinforcement, and others. The road industry segment is the leading segment as the products are extensively used to construct port areas, airports, and heavy load-bearing roads. Also, they improve road safety, reduce maintenance costs, and improve surface quality & load-bearing capacity.
Soil reinforcement geogrid solutions are used in the base application to stabilize and reinforce weak soils and ensure important soil stability. They improve the embankment stability on soft soils and increase its shear strength. It is used in soft soil reinforcement, retaining walls, and steep slopes due to its high-temperature stability, high tensile strength, abrasion stability, and excellent UV resistance properties.
North America Geogrid Market Size, 2020 (USD Million)
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North America holds the largest global geogrid market share. The concentration of manufacturers in the U.S. is likely to drive the local market. The presence of manufacturers such as Tensar, GSE Environmental, Strata system, Propex Operating Company, and Carthage make North America the largest market. There has been substantial growth in the infrastructural development attributed to the increased government investments in construction projects. For instance, the Trump Administration declared its infrastructural plan worth USD 1.5 trillion to enhance the roads, ports, bridges, clean energies, schools, and other public facilities. The stringent rules imposed by the Environmental Protection Agency (EPA) on the use of non-degradable polymers and plastic have boosted the use of recyclable polymers, such as HDPE.
Europe is one of the prominent markets attributed to the rapid industrial and infrastructural development in countries such as Germany, Italy, Greece, the U.K., and France. The development of the public infrastructure to support the tourism sector is augmenting the construction sector, thereby contributing to the overall market growth in this region. The product adoption in road construction and rail road stabilization will also drive the regional market.
Moreover, according to the European Environment Agency, there has been a significant increase in soil erosion due to the dry and hot weather. The EU Soils Thematic Strategy, adopted by the European Commission, specified the rapid soil erosion in European countries as a major threat. In 2016, 80% of the area in the EU-27 was estimated as moderately or severely affected by soil erosion. Various actions to prevent soil erosion and aid soil reinforcement positively drive the European market.
Asia Pacific is rapidly growing on account of the industrial and economic development in emerging countries such as India, China, and South Korea. China is one of the leading producers of polypropylene. The easy and ample availability of raw material is anticipated to drive the market. Additionally, the labor cost in the Asian countries is relatively cheaper, which shall also serve as an opportunity for producers to set up their manufacturing facilities. Numerous infrastructural projects in India, such as the Delhi Mumbai Industrial Corridor and the Dedicated Freight Corridor of the railway development and construction, would surge the demand for road paving, bed stabilizing, and soil reinforcing materials. These factors are likely to foster the geogrid market growth in Asia Pacific.
Lain America has been experiencing rapid economic growth and industrialization attributed to certain geographical and political factors. Mining is one of the major GDP contributing sectors of the region. High reserves of minerals and metals result in excessive mining, which has substantially increased the product demand used to reinforce the soil.
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Middle East and Africa is one of the rapidly developing regions. Increasing government investment in developing public infrastructure like roadways has boosted the market growth. For instance, recently, The Roads and Transport Authority (RTA) in Dubai has granted the Road improvement project to facilitate traffic flow and future construction for Expo 2020. This is expected to boost the regional market growth.
Some of the Leading Companies Are Engaging in New Product Launch to Improve Their Offerings
The global market size is moderately fragmented with the presence of key players, namely, HUESKER, Tensar International Corporation, Strata Systems, Maccaferri Inc., GSE Environmental, TenCate Geosynthetics Europe, TENAX Corporation, and others. Most of the market players aim to develop innovative strategies to facilitate product enhancement to gain a competitive edge in the market. They are also engaging in new product launches and joint ventures to capture the market in the value chain and surge product penetration by reducing its cost and enhancing its offerings.
An Infographic Representation of Geogrid Market
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The geogrid market research report provides a detailed analysis of the market and focuses on crucial aspects such as company profile, application, and products. Also, it offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market over recent years.
Value (USD Billion); Volume (Mn Sq. Mtrs.)
Material; Product; Application; and Region
Fortune Business Insights says that the global market size was USD 1.15 billion in 2020 and is projected to reach USD 1.64 billion by 2028.
In 2020, North America stood at USD 456.1 million.
Registering a CAGR of 4.7%, the market will exhibit steady growth in the forecast period (2021-2028).
Road construction is expected to be the leading segment under the application segment during the forecast period.
The growing construction industry is the key factor driving the market.
Huesker, Tensar International Corporation, TenCate Geosynthetics Europe, and Strata Systems Inc. are a few leading players in the global market.
North America dominated the global market in terms of share in 2019.
Due to the growing infrastructure development activities, the rising construction industry shall drive the product demand.
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