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The global geogrid market size was USD 6.15 billion in 2019 and is projected to reach USD 10.66 billion by 2027, exhibiting a CAGR of 7.2% during the forecast period.
Geogrids are categorized as geosynthetic materials that are 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 the extrusion of a plastic flat 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 the 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 likely to drive the demand for geogrids. 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 a Toll on Growth by Impacting Construction Industry Severely
The coronavirus outbreak has halted most of the construction development activities due to 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 on account of the economic turmoil.
As the number of coronavirus cases is increasing, its impact on the construction sector is predicted to advance over the coming months. Most of the countries are experiencing difficulties in the raw material supply chain, facing 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 Chinese manufacturing facilities would hinder growth.
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Sustainability in the Construction Industry is a Crucial Trend
Sustainability is becoming an increasingly imperative concern in the construction industry. Sustainable buildings require the usage of eco-friendly construction materials.
Geotechnical engineers prefer working with expensive and high-quality imported granular fill for construction activities. They can reinforce the soil structure using marginal and poorly drained fills having both environmental and cost implications. Marginal fills usually have high silt or clay content which, when loaded, have the potential to generate excess pore water pressure in the structural backfill. Poor drainage in the structural fill declines the available fill strength, thereby reducing the bond between the reinforcement and the fill. Thus, to use marginal fill, enough drainage must be provided in the reinforced soil structure. A geocomposite combines the drainage and reinforcement into environmentally friendly and sustainable walls and slopes that can be constructed and designed.
Expansion of the Construction Industry to Aid in Market Growth
The rising infrastructural development activities and expansion of the construction industry 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 rate. 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, the 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 the expansion of smart city mega-projects.
Geogrid is readily available for the construction of 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 are emphasizing saving project costs, time, and lowering carbon emissions.
Lack of Skilled Engineers and Improper Installation Training to Restrict Growth
Geogrids reinforcements have been used by the public and private sector 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 geo-grid installation process would be able to sustain the heavy pressure, load, and maintain the durability of the infrastructure to avoid defects and accidents. Special training and knowledge must be provided to laborers. 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 Accounted for the Largest Share in the Global Market
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 the geotechnical structures where soil particles need support for a longer period of time. They are commonly used in the construction of 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 in nature.
Few of the manufacturing companies are offering high tensile strength and chemically engineered HDPE to withstand the extreme pH conditions. For example, Tensar offers uniaxial geogrids that are made of HDPE and are perfect in coastal areas with exposure to the saltwater environment, light rail transit systems, and cold weather climates.
Uniaxial Segment Dominated the Market Owing to its Higher Usage in Reinforced Soils
Based on the product, the market is segmented into uniaxial, biaxial, and multiaxial. Uniaxial is manufactured by punching and drawing a homogeneous polymer sheet to make an even product. In grade separation application, they are used to help the soil stand virtually into 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. In unfavorable conditions such as weak subgrades, polluted soils, hefty loads, high granular expenses, and shallow-buried utilities, a designed and engineered solution like biaxial can be installed.
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Road Construction Segment to Hold Major Share Fueled by Rising Usage in Construction of Airports
On the basis of application, the market is segmented into road construction, railroad, soil reinforcement, and others. The road industry segment is the leading segment as the products are extensively used in the construction of port areas, airports, and heavy load-bearing roads. Also, they improve road safety, reduce maintenance costs, and improve surface quality & load-bearing capacity.
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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, 2019 (USD Billion)
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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, namely, 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 geogrid market growth in this region. The product adoption in road constructions and railroad stabilization shall also drive the regional market.
Moreover, according to the European Environment Agency, there has been a significant increase in soil erosion due to dry and hot weather. The EU Soil Thematic Strategy is an action, adopted by the European Commission, specifying 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 undertaken to prevent soil erosion and aid soil reinforcement are positively driving 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, which is used for geo-grid production. The easy and ample availability of raw material is anticipated to further drive the market. Additionally, the labor cost in 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 market growth in Asia Pacific.
Lain America has been experiencing rapid growth in economy 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 are resulting in excessive mining which has substantially increased the product demand that is used in the reinforcement of soil.
The Middle East and Africa is one of the rapidly developing regions. Increasing investments by governments in developing public infrastructures such as roadways has boosted the market growth. For instance, recently, The Roads and Transport Authority (RTA) in Dubai 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 Launches 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 are aiming to develop innovative strategies to facilitate product enhancement in order 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 their cost and enhancing their offerings.
An Infographic Representation of Geogrid Market
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The market research report provides detailed market analysis and focuses on crucial aspects such as company profile, application, and products. Also, it offers insights into geogrid 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.)
Fortune Business Insights says that the global geogrid market size was USD 6.15 billion in 2019 and is projected to reach USD 10.66 billion by 2027.
In 2019, the market value stood at USD 6.15 billion.
Registering a CAGR of 7.2%, the market will exhibit steady growth in the forecast period (2020-2027).
The road construction segment is expected to lead under application 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 of the leading players in the global market.
The rising construction industry owing to the growing infrastructure development activities shall drive the product demand.
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