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The global gypsum board market size was valued at USD 39.91 billion in 2018 and is projected to reach USD 53.68 billion by 2026, exhibiting a CAGR of 3.82% during the forecast period.
This is one of the most consumed gypsum products in the world. It is predominantly used for ceiling and partition wall applications in the construction industry. Several types of these boards are available in the market including regular gypsum board, moisture resistance board, fire resistance boards, mobile board, pre-decorated board, and others, Which is the most commonly used type in the global market.
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Recycling Trend is Likely to Reshape the Market
Recycling of the gypsum board is taking the market in a new direction. Only a small quantity of gypsum and board products are recycled today, primarily for use in the production of new products. Rising environmental concerns are attracting a lot of negative attention from the consumers which certainly is bad for this business. In order to avoid loss in business and retain the faith of consumers, key players are turning towards recycling. Most of the recycling projects are completed in developed economies of Europe and North America and many are scheduled to begin in the upcoming years. For instance, in Norway New West Gypsum Recycling (NWGR), a gypsum recycling firm was approached by Gyproc (Saint-Gobain) and Norgips (Knauf) in 2016 for setting up of new recycling facilities in Norway. Today, Holmestrand plant operated by New West Gips Gjenvinning (50:50 JV of NWGR and Norsk Gjenvinning) supplies recycled gypsum to both Gyproc and Norgips.
Versatility and Ease in Operations Offered by Gypsum Board is Driving its Growth
Gypsum board is prominently used in the building & construction industry for various end-uses including decorations, ceiling designs, partitioning walls, acoustic insulation, and numerous others. The versatile nature and ease in work with these boards facilitate its adoption in these numerous end-uses in the building & construction industry. The light-weight nature is one of the major reasons that have led to wider adoption of the product across the world. The usage of this board also makes a significant reduction in cost and adds extra savings to the consumer’s pocket.
Moreover, the consumer has the choice and flexibility to choose the design as per application and comfort. Designs can also be customized by consumers as key players provide the facility of customization along with several pre-sample designs. Further, players such as Gyproc (Saint-Gobain) also provide online visualization tools to ease and enhance the customer experience and choose the design of their choice.
Growth of Building And Construction Industry Especially In Emerging Economies Is Driving The Market Growth
The building and construction industry is experiencing healthy growth in emerging economies around the world on the back of rapid industrial and economic developments. This, in turn, is supporting the growth of the middle class and rise in income of families which spends a handsome amount on building and construction activities, if not new construction activities. Designing a home interior at a low cost is a matter of priority for most middle-class buckets. This is where the gypsum board comes into the picture, helping consumers to fulfill their home interior dreams.
Moreover, multinationals are expanding their footprint in emerging economies which is supporting the growth of this type of board in commercial buildings and activities. Further, maximization of space is an important factor for commercial businesses and this can be effectively achieved by the use of gypsum board in partition wall applications.
Rising Environmental Concerns and Implementation Of Stringent Norms To Hinder The Market Growth
Gypsum board waste, when dumped into landfills, converts the sulfate in the gypsum to toxic hydrogen sulfide, owing to moist, airless and carbon-containing conditions. This toxic gas is released in up to one-fourth of the gypsum or gypsum board weight into the environment. Moreover, paper in the plasterboard after decomposition converts to methane gas, which is a harmful greenhouse gas. This scenario is raising major environmental concerns around the globe and has compelled lawmakers to reinforce stringent norms and implement them. As a result, manufacturers are turning towards recycling to reduce the harmful effects of gypsum dumping. Further, the rising cost of flue gas desulphurization of gypsum has raised an alarm for gypsum and board manufacturers, forcing them to gets a hand on wallboard waste.
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Regular Gypsum Board to Continue Its Dominance Over The Forecast Period
Regular gypsum board or standard board is the most prominently used due to its usage as drywall or in decorations. It accounts for a lion’s share in the market and is expected to continue its dominance over the forecast period due to its healthy consumption. Besides, it is cheaper than other gypsum board products, which makes it a primary choice for general applications. Type X gypsum board includes moisture-resistance board, fire resistance board, and various other types of drywall boards. Other gypsum board products such as pre-decorated and mobile home boards account for a single-digit share in the global market but are expected to rapidly expand their presence over the forecast years.
Rework & Remodel Activities to Lead The Market Growth
The applications of this remain the same in different parts of the world but vary greatly in consumption patterns from region to region. For instance, in developed regions such as North America and Europe, new construction activities (commercial and housing) account for slightly less than half of the total consumption in the region whereas in developing regions, new construction activities account for way higher than half of the total consumption. However, on a global level, rework and remodel activities manage to account for a prominent share in the market and is expected to lead the market throughout the forecast period.
North America Gypsum Board Market Size, 2018 (USD Billion)
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This market in North America stood at USD 16.21 billion in 2018 with the United States accounting for over two-thirds of the market. The resurgent construction industry in the region is expected to boost the market in the upcoming years. North America's market is relatively mature and rework and remodeling activities greatly drive the demand in the region. Moreover, with environmental norms getting tighter in the region, key players are keen on reducing their overall carbon footprint and shifting to more sustainable ways. For instance, Saint-Gobain announced its partnership with Blooming Grove Wind Farm for a supply of 120 MW wind power for 12 years. This is expected to reduce the company’s carbon footprint in the US by around 21%.
Asia Pacific dominates the gypsum board market in terms of volume. Emerging economies such as China, India, Taiwan, Thailand, and others are expected to provide lucrative growth opportunities to the market over the foreseeable period. The construction industry is witnessing relatively healthy growth in Asia Pacific as compared to other parts of the world. Further, commercial investment and activities is rapidly increasing in the region, which is likely to support market growth. Europe leads the market in terms of recycling trends. High environmental sensitivity amongst the consumers in the region coupled with politics will support the growth of gypsum recycling activities in the region.
Western European countries such as Germany, France, UK, Spain, and Italy dominate the market. Recycling rates of gypsum waste is far high in European countries as compared to recycling rates in emerging economies such as China, where it is less than 1%. Latin America and Middle East & Africa are small markets with both combined accounting for a single-digit share in the global market. Continuous social and political conflicts coupled with economic instability hinder the market growth in these regions.
Key Players Are Turning Towards Recycling, A Crucial Step Towards Sustainability and Regulatory Compliance
The competitive landscape of this market is fragmented in nature. However, a few players such as USG, Saint-Gobain, Knauf, and others account for major market share. There are some of the regional players who dominate the market in particular countries. For example, Yoshino Gypsum Co., Ltd leads the market in Japan with around 80% of the share.
However, multinational titans like Saint-Gobain and Knauf are investing in recycling and other similar projects which will help them achieve their sustainability goals in the long run. For instance, Saint-Gobain has pledged to cut its carbon footprint to zero by 2050 and has taken a number of steps including, a recycled gypsum project in Norway, 120MW wind power supply agreement in the US, and other similar initiatives to achieve its target. Moreover, key players are also expanding their production capacity for gypsum wallboard products in different parts of the world to meet the rising demand.
An Infographic Representation of Gypsum Board Market
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The gypsum board market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.
Value (USD Billion) and Volume (Mn sq m)
Fortune Business Insights says that the global market size was USD 39.91 billion in 2018 and is projected to reach USD 53.68 billion by 2026.
In 2018, the market value stood at USD 39.91 billion.
Growing at a CAGR of 3.82%, the market will exhibit steady growth in the forecast period (2019-2026).
Regular or standard board is expected to be the leading segment in this market during the forecast period.
Versatility and Ease in Operations is one of the factors driving this market.
North America held the highest market share in 2018.
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