Plastics and composites will maintain growth trajectory through 2020 despite COVID-19, report says
Despite the impact of the COVID-19 pandemic across industries, the demand for modular building materials and advanced admixtures will propel the construction chemicals segment, according to a new report from Frost & Sullivan.
The market for coatings, adhesives, sealants, and elastomers (CASE), plastics and composites, and construction chemicals will be driven by new supply chain optimization concepts, digital transformation, and circularity in products, processes, and packaging, a new study finds.
According to Frost & Sullivan’s recent analysis, “Global Outlook for Chemicals in the Plastics and Composites, CASE, and Construction Industries, 2020,” the global chemicals and materials market is expected to reach US$3,716.5 billion by the end of 2020 under the conditions of the COVID-19 pandemic.
“Despite the impact of the COVID-19 pandemic across industries, the demand for modular building materials and advanced admixtures will propel the construction chemicals segment,” said Christeena Thomas, chemicals, materials and nutrition industry analyst at Frost & Sullivan, in a prepared statement. “Additionally, increasing demand for lightweighting of parts, especially in the automotive and transportation industry, will trigger growth in the plastics and composites segment, whereas sustainability and bio-based chemicals and materials will strongly boost the need for research and development in the CASE industry.”
Thomas also noted that with increasing urbanization, large population, and a drive for local production by governments, Asia Pacific is likely to become a growth engine for the global chemicals and materials industry. “Further, India will register the highest growth due to rising investments in building and construction, infrastructure, and healthcare sector,” she said.
According to report findings, manufacturers are expected to focus more on products and services that reflect consumer demand trends. For North America and Europe, uncertainties related to international trade, downturns in manufacturing and economic stability will result in slower growth.
To discover opportunities exposed by the global chemicals and materials industry during COVID-19, Frost & Sullivan predicts growth prospects such as:
- Manufacturers and suppliers in the plastics and composites, CASE, and construction chemicals industries should invest in Big Data analytics, artificial intelligence (AI), and natural language processing as this will lower costs and enhance productivity, ensuring quality.
- Building materials will witness a rise in the development and commercialization of bio-based or sustainable products due to which market participants in the chemicals and materials industry should focus on producing recyclable materials.
- Digital transformation will allow chemicals-as-a-service offerings to customers.
- The trade war between the U.S and China is encouraging companies to strengthen their footprint in India and ASEAN countries as this will help them hedge their risks associated with trade involving China.
The study is available at this link.