Polyvinyl Chloride (PVC), on account of its durability, cost-effectiveness, and resistance to a wide range of chemical corrosion, has emerged as one of the most widely-used materials across different industries. Ranging from the electricals industries, plumbing sectors to food packaging and clothing industries, the market for PVC has recorded a steep ascension in recent years. Although PVC has come to carve out a prominent worldwide market for itself, the markets in Asia and South America have been the most flourishing thus far. When juxtaposed against the slow-paced growth of the North American and Canadian markets, there seems to be a significant shift in the PVC market trends.
PVC market: Current Statistics
- The global PVC market value currently stands at $67.16 billion and with a compounded annual growth rate of 3.8%, it is expected to reach $78.9 billion by 2022.
- PVC is long-lasting and hugely versatile. Accordingly, it has found an increasing number of end-user applications in industries such as furniture and apparel as substitutes for traditional raw materials such as wood and rubber or leather, respectively.
- Currently, the supply overrides the demand with regards to the PVC market.
- The major consumption sector of PVCs is the construction industry, specifically the plumbing sector. Approximately 42% of the market share of PVCs go into pipes and home fittings.
- North America holds greater production capacity than the other regions of the world while Asia leads the demand side of the PVC market.
Top 5 Latest Trends in PVC market
- The worldwide demand for PVCs has recorded an overall growth and is anticipated to rise steadily over the forecast period. This is primarily steered by the booming demand for PVC in the electrical and electronics industry. PVCs are largely used in wires and cables and has evolved as a key ingredient in the electronics industry. Corresponding to this is the escalation of the technological industries in countries in the Asia Pacific region. Currently, the electrical application of PVCs accounts for 9% of the total market share and is expected to rise further, especially in the Indian and Chinese markets.
- An interesting trend in the PVC market may be gleaned from the regional analysis. Nearly 13.1% of the market revenue was held by North America in 2016, but, as the economic meltdown ensued, the market share dropped significantly. This is further exacerbated by the saturation of the construction industries in North America. However, if we look at the global market trends of PVC, we realize this dent is compensated by the rising demand in the expansion of the construction industries in countries like Russia and Turkey. Further, the rise in the demand for PVCs in the burgeoning electronics markets in the Asia Pacific has ensured that the global market overview of PVCs reflects acceleration. Asia currently holds 66% of the market share of PVCs.
- The market size of PVCs is also boosted by the environment-friendly qualities of this material. The chemical composition of PVCs is such that it can be recycled easily. Consequently, several industries, especially the construction and medicine industries, are opting to use recyclable PVCs.
- Currently, the supply power of North America is the highest while the demand curve is more inclined towards Asian markets. Europe is positioned moderately on both counts.
- Unlike many other industries, the barter in PVCs predominantly takes place in the form of direct buying. The supply side is dominated by a handful of key players like OxyChem, Shin Etsu, Ineos Group Lits, Formosa Plastic Group.
PVC Market Future Improvements
- One of the most salient features of PVC materials is that they are eco-friendly and in the contemporary situation of rapid climate change, can go a long way in maintaining ecological balance. Several industries are trying to tap into recyclable properties of PVCs and come up with a more sustainable product. In Europe, PVCs are used in the production of flexible tubing and flexible containers in the healthcare industry whereas, in other parts of the world, recyclable roofing and flooring using PVCs have emerged as real drivers of the market demands for PVCs. This facet must be harnessed more for further growth in the sector.
- While the sustainability feature of PVCs promises great feats of progress for the PVC industry, there is a collateral challenge that accompanies it. PVC products often result in the excess generation of mercury. This is the reason why several pharmaceutical companies in the U.S. have forfeited the use of PVCs. Developing a mercury-free catalyst to ensure health and environmental safety can give a huge boost to the PVC markets.
- Since the biggest driver of the market demand for PVCs has emerged from the electronic and electrical markets, exploring new avenues of application of PVCs in these markets could be a potential area of improvement.
In a nutshell, for materials as diverse and multifaceted as PVCs, traditional markets cannot be the limits. Bearing in mind the environmental impacts as well as the economic signifiers, new areas and applications can be explored to perpetuate the growth even beyond the forecast period. Currently, the markets are over-supplied and so creating new products to boost demand is essential to bridge the existing gaps.