The global market for building products like drywall and plaster is projected to reach a value of $49 billion by the end of 2025, up from an estimated $33.16 billion in 2017, according to a new report by business insights firm Persistence Market Research.
Researchers referred to the growth of the market during the forecast period as “moderate,” as the compound annual growth rate (CAGR) is expected to reach 5.2% through 2025. Of the various product segments, polymer sub building products are anticipated to reach the highest CAGR during the period at 7.3%, with gypsum and cement coming in second and third in terms of growth.
“The global market is positively influenced by aspects such as recovering construction activities post historical stagnation, residential growth due to mortgage credit expansion, non-residential sector witnessing growth in certain areas such as Mexico and Chile driving growth in these areas,” Persistence said, as well as “rising construction activities in developed economies such as Europe as well as in emerging economies such as Asia Pacific and rising investment in construction projects across several countries.”
The fastest growing end use segment during the period is forecasted to be residential projects. Regionally, Asia-Pacific (APAC) is expected to lead the market, growing at a CAGR of 6.2% to an estimated value of $25 billion.
“The significant growth and dominance can be attributed to the growing construction sector in developing countries such as China and India. In addition, the telecom, urban infrastructure, oil and gas and railway industries contribute to this robust growth by generating a large share of construction activities and this trend is expected to grow even further in the coming years,” Persistence Market Research wrote on Asia-Pacific’s role in the market during the period.
North America’s building materials market is forecasted to hit $12.4 billion, growing at a CAGR of 4.4%. Researchers said lack of building materials production capabilities in the Middle East and Africa (MEA) regions limit growth in those areas.