Global demand for geosynthetics is projected to increase 8.3 percent annually to 4.5 billion square meters in 2015. This growth rate is an acceleration from the gains of the 2005-2010 period, reflecting in part the reduced bases of the developed countries in 2010. Advances will be driven by increasing use of geosynthetics and the large-scale construction plans in place in many developing countries. In 2010 the construction market accounted for the largest share of geosynthetics sales (34 percent). These and other trends, including market share and product segmentation, are presented in World Geosynthetics, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
In 2010, North America was the largest regional market, accounting for 31 percent of global sales. The US is the world’s largest market, with one-quarter of total sales in 2010. Growth in North America will benefit from the massive size of the US construction sector, which is expected to rebound through 2015 from a low 2010 base, as well as the need to maintain its large transportation infrastructure.
The Asia/Pacific region was only slightly smaller, accounting for 30 percent of global geosynthetics sales in 2010. However, this region is projected to achieve the fastest growth rate through 2015, primarily driven by China, where sales are expected to more than double by 2015. China is expected to account for nearly half of new global demand generated between 2010 and 2015, primarily due to its amount of available land, its ongoing development of large-scale infrastructure projects, and its need for erosion control. For similar reasons, India is also expected to post double-digit annual growth through the forecast period, with sales nearly doubling by 2015, although from a much smaller base.
Western Europe and Japan are fairly comparable to the US in terms of the level of maturity of their respective geosynthetics markets, as well as the type of regulatory environment. Demand in both of these areas is expected to rebound from a reduced 2010 base, benefiting from improved construction activity and the high level of concern in the region for environmental protection. However, gains are expected to be the slowest among all regions through 2015, indicative of Western Europe and Japan’s relative maturity in terms of geosynthetics market penetration as well as the markets in which they are used. Nevertheless, the relative affluence of these countries allows them to use advanced geosynthetic technologies to improve construction and environmental protection practices despite their larger upfront costs.
The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.