Geosynthetics Demand to Exceed $3 Billion in 2015

Demand for geosynthetics in the US is projected to advance 6.8 percent annually to 1.3 billion square yards in 2015, valued at $3.1 billion.  This growth rate is a healthy rebound over the decrease posted between 2005 and 2010, when sales of geosynthetics were restrained by the recession that occurred in the latter half of that period.  Gains will be driven by a projected recovery in construction spending and by increased spending on transportation infrastructure.  These and other trends, including market share and product segmentation, are presented in US Geosynthetics, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

In 2010, geotextiles accounted for 71 percent of area demand, as their versatility makes them appropriate for a wide range of applications.  Growth prospects for geotextiles remain bright, as they are the most frequently used geosynthetic in both the construction and transportation infrastructure markets -- the two markets in which demand for geosynthetics is forecast to advance most rapidly.  Geonets, which are primarily used as components of drainage systems, are expected to achieve the fastest gains in area demand, albeit from a reduced 2010 base.  In value terms, geomembranes, which are significantly more expensive per square yard than other types of geosynthetics, accounted for the greatest share of the market, comprising nearly half in 2010.  Geomembranes will continue to hold the leading share of value demand in 2015.  However, nonwoven geotextiles will experience the most rapid value gains through 2015.   

The transportation infrastructure market was the largest market for geosynthetics in 2010, accounting for one-third of total area demand.  Historically, construction has been the largest market for geosynthetics; however, the effects of the 2007-2009 recession were particularly strong in the construction market.  Going forward, demand for geosynthetics will grow most rapidly in the rebounding construction market.  In value terms, the landfill market accounted for the largest share of geosynthetics demand in 2010 due to the frequent use of high-cost geomembranes in landfills.  Value demand will advance most rapidly in the construction market, due mostly to volume growth resulting from the sharp increase in construction spending. 

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.