Polyvinyl Chloride (PVC) Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

Polyvinyl Chloride (PVC) Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The polyvinyl chloride (PVC) market was valued at USD 45,069 million in 2020, and it is expected to register a CAGR of over 4% during the forecast period (2021-2026).

The COVID-19 outbreak resulted in an economic crisis across the world. Since the growth in the demand for PVC is directly linked to the rise in GDP, this situation poses many challenges for the PVC market. Globally, the major PVC-consuming industries, like automotive, electrical and electronics, and building and construction, were severely hit by the COVID-19 pandemic. In 2019, the global electronics industry remained stagnant, and the total output of PCBs declined. Moreover, disappointing results from the systems and chips output led to a slowdown in the production of mobile phones, consumer electronics, PCs, servers, etc. At the beginning of 2020, the 5G launch was expected to drive the whole electronics market forward, which was disrupted by the pandemic.

Key Highlights

• Over the medium term, the factors driving the growth of the market studied are PVC’s dominant position in the construction industry and the increasing applications in the healthcare industry.
• Furthermore, other than the impact of the COVID-19 pandemic on the various end-user industries’ growth, the environmental and health hazards during the production, usage, and disposal of PVC are projected to hinder the growth of the market studied.
• The accelerating usage of PVC in electric vehicles is projected to act as an opportunity for the market in the future.
• PVC applications in building and construction dominated the overall end-user industry share in terms of both volume and value in 2020.
• In 2020, Asia-Pacific dominated the global PVC market during the forecast period.

Key Market TrendsIncreasing Demand from the Building and Construction Industry

• PVC is strong, lightweight, durable to weathering, rotting, chemical corrosion, and abrasion, versatile, and easy to use, as it can be cut, shaped, welded, and joined in any style. Such characteristics make it an ideal option for many applications such as pipes, windows, flooring, and roofing.
• PVC pipes have been used in building and construction for over 60 years. They offer valuable energy saving during production, low-cost distribution, and a safe and maintenance-free lifetime of service. These pipes are widely used for pipeline systems for water, waste, and drainage. They suffer no build-up, scaling, corrosion, or pitting, and they provide smooth surfaces reducing energy requirements for pumping.
• PVC flooring has benefits such as durability, freedom of aesthetic effects, ease in installation, ease in cleaning, and recyclability. Thus, PVC flooring has been used over the years. Another area in the building and construction industry where PVC is used is roofing. It is used for its low-maintenance requirements and its long-lasting nature (more than 30 years).
• The increasing infrastructure construction activities are the major driver in Asia-Pacific, the Middle East, and North America.
• The United States has one of the world’s largest construction industries, and it recorded annual revenue of USD 1,306 billion in 2019. ​Although the residential construction is expected to reduce due to COVID-19 for the financial years 2020 and 2021, which will hit the PVC market, the growth is expected to pick up after 2021 and continue during the forecast period.​
• All the aforementioned factors are expected to drive the global market during the forecast period.

Asia-Pacific Region to Dominate the Market

• China has the largest electronics production base, and it offers tough competition to the existing upstream producers, like South Korea, Singapore, and Taiwan. Electronic products, such as smartphones, OLED TVs, and tablets, witnessed the highest growth in the consumer electronics segment of the market.
• The medical device market in China is one of the fastest-growing market sectors. Private hospitals in the country are fewer, and the procurement of healthcare products is majorly driven by large public hospitals, which led to the increasing usage of medical devices in public hospitals. This factor drove the demand for polyvinyl chloride (PVC) in the sector.
• In 2019, the health expenditure was ~USD 750 billion, accounting for ~5.3% of the country’s GDP. The medical device market in China has been witnessing strong growth with a growing number of hospitals and the increasing demand for medical assistance. According to the China Association for Medical Device Industry, the medical device market was valued at around ~USD 80 billion in 2019. About 70% of the growth was majorly fueled by hospital procurement.
• China planned many infrastructural development projects, such as the Belt and Road Initiative and infrastructural project, which includes the development of airport (new Beijing airport), roads (30,000 km of highways, with bridges built or upgraded), 30,000 km of high-speed rail covering (which is expected to cover more than 80 cities), and 60% of urbanization ratio with permanent residents.
• The Government of India is taking several measures to promote the domestic electronics manufacturing industry and exports from the country. For instance, the Modified Special Incentive Package Scheme (M-SIPS) provides a 20-25% subsidy for investments in capital expenditure for setting up an electronics manufacturing facility. So far, 212 projects have been approved, with proposed investments of INR 551.82 billion. This boom in electronic products in the country is instrumental in propelling the demand for polyvinyl chloride (PVC) in the electronic industry over the forecast period.
• The aforementioned factors are expected to change the dynamics of the polyvinyl chloride (PVC) market in the region.

Competitive Landscape

The global polyvinyl chloride market is highly fragmented among the top five players. The top companies have been focusing on providing better materials for various end-user industries. Major manufacturers of PVCs are Formosa Plastics Corporation, Shin-Etsu Chemical Co. Ltd, Westlake Chemical Corporation, INEOS, and Orbia.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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