June 19, 2024
Geosynthetics Market

The Rising Demand for Geosynthetics in Road Construction and Environmental Applications is Driving the Geosynthetics Market Growth

Geosynthetics are polymeric products used with soil, rock, earth or other geotechnical-related materials as an integral part of man-made projects, structures or systems. Major applications of geosynthetics include filtration, drainage, separation, reinforcement, and containment. Geosynthetics are increasingly being used in various civil engineering projects such as road construction, environmental applications, geotechnical containment, construction of embankments over soft soils, landfill liners & covers, reservoir liners and coastal erosion control works. Geosynthetics help to increase the strength and stability of soils, provide effective drainage solutions and separate dissimilar materials, thus minimizing potential environmental damages.

The global Geosynthetics Market is estimated to be valued at US$ 14.63 Bn in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends in the geosynthetics market is the increasing use of geosynthetics in road construction activities. As per National Center for Asphalt Technology, around 80% of roads in the U.S. are deteriorating, and reconstruction of roads could incur costs between $900 billion to $1.6 trillion. Geosynthetics provide several advantages for roads such as drainage and separation functions that prevent cracking and moisture damage to road foundations, reinforcement functions that increase the structural strength of roads, and erosion control functions that protect road embankments. Another key trend is the use of geosynthetics in environmental applications such as lining of landfills, mining waste dumps, and mining areas, to prevent groundwater contamination and seepage of leachate. Stringent government regulations regarding environmental protection and sustainable waste management are also expected to boost the adoption of geosynthetics in the near future.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is low in the geosynthetics market as it requires high capital investment and infrastructure to enter the industry. Large players have adopted strategies like patents and trademarks to protect their innovations further lowering the threat.

Bargaining power of buyers: The bargaining power of buyers is moderate as geosynthetics have application across major end-use industries like construction, mining, energy, etc. However, switching costs are low due to availability of substitutes.

Bargaining power of suppliers: The bargaining power of suppliers is low given the fragmented nature of raw material suppliers. Additionally, raw materials availability is widespread lowering dependency on any single supplier.

Threat of new substitutes: The threat of new substitutes is moderate owing to the continuous development and availability of alternative construction materials. However, geosynthetics have distinct performance advantages that create high switching costs.

Competitive rivalry: The competitive rivalry is high among the top players operating globally. Players compete based on product innovation, pricing, and customer relationships.

Key Takeaways

The Global Geosynthetics market Demand is expected to witness high growth over the forecast period supported by its increasing use in the construction and infrastructure industries. The global Geosynthetics Market is estimated to be valued at US$ 14.63 Bn in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023 to 2030.

Regional analysis: Asia Pacific dominates the global geosynthetics market and is expected to grow at the fastest pace during the forecast period. China and India offer immense growth opportunities attributed to ongoing infrastructure projects. Meanwhile, North America and Europe are also major regional markets driven by demand from construction and mining industries.

Key players: Key players operating in the geosynthetics market are Nippon Paper Industries Co., Ltd., Mondi Plc, Metsa Board Oyj, WestRock, and Oji Holdings Corporation. Players focus on expanding production capacities, new product developments catering to specific applications to gain market share.

*Note:
1.      Source: Coherent Market Insights, Public sources, Desk research
2.      We have leveraged AI tools to mine information and compile it