The Geogrid Market size is forecast to reach $1.4 billion by 2025, after growing at the CAGR of 9.2% over the forecast period from 2020-2025. The growing use of geogrids in the emerging economies such as China and India; rising infrastructure investments; and increasing road maintenance activities across the globe are the major factors anticipated to drive the global geogrid market. The ever-growing development of transportation sector is favoring the future growth and value of this market along with the infrastructure developmental activities which enriches its worth and emerging trends like adoption of natural geogrid. Unstable prices of polyester and Polypropylene, dependent upon inconsistent crude oil prices are forecasted to obstruct the product demand. Due to global lockdown with outbreak of COVID-19 many infrastructure development activities have halted. Investors have become hesitate to invest in new project or development activities due to economic turmoil across many countries of the world. This is further hindering the growth of geogrid market.
The Asia-Pacific region is expected to dominate the market for geogrids during the forecast period owing to increasing road construction activities in developing countries, such as India and China.
The demand for the geogrid market increasing due to its light weight, tensile strength, high load bearing capacity, highly versatile and low maintenance requirements.
Increasing R&D activities in terms of new product developments is further creating opportunity for geogrid.
Geogrid Market Segment Analysis – By Manufacturing Process
Based on the manufacturing process, woven geogrid segment acquired a significant share in the global geogrid market. It reduces manufacturing costs and minimizes or eliminates waste disposal problems that can cause environmentally pollution concerns. Woven geogrid provides selective separation, reinforcement and other geotechnical. It can be easily implemented on site and also reduces cost of manufacturing product. Woven geogrid become stronger after elongation. With the help of woven geogrid soils, rock and earth can be used with foundation.
Geogrid Market Segment Analysis – By Type
Biaxial Geogrid segment is expected to lead the market by type segment as it is highly demanded geogrid for the road construction. This growth can be attributed by the superior junction strength and optimum load bearing properties of the biaxial geogrid. Biaxial has tensile strength in two dimensions which use for unpaved roads and flexible pavement of reinforcement.
Geogrid Market Segment Analysis – By Material Type
PVC material type segment held a significant share in the global geogrid market in 2019. PVC is a high strength filament yarns those are aggregate of binder material, which also provides a protective material. PVC gives a structure to geogrid with desired properties such as UV resistance and chemical base resistance. Further, the easy availability of raw material (i.e. PVC) to manufacture geogrid is another factor contributing in the growth of PVC based geogrid market.
Geogrid Market Segment Analysis – By Application
Roads and highways segment dominated the geogrid market in 2019. Rising investment in road infrastructure, growing road maintenance activities, and rising adoption of geogrid in roads and highways are the major factor boosting the geogrid demand in roads and highways application segment. The various governments taking initiatives to improve the infrastructure is the primary factor boosting the geogrid demand. For instance, in April 2020, The Indian Government set a target of road construction worth $212.80 billion over the two years.
Geogrid Market Segment Analysis – Geography
The global market of geogrid is anticipated to be dominated by Asia-Pacific region due to the growth in the construction and infrastructure industry in the region. Countries like India and China where governments have invested in the region for the development of soil and road infrastructure. The Indian Government set a target for road construction worth $74.7 billion by 2020 and annually spends worth $4 billion on road construction. The market in Asia Pacific is projected to grow at the highest CAGR between 2020 and 2025, in terms of value and volume both. The increasing demand for geogrids in infrastructural activities in the region is projected to boost the geogrid market growth.
Due to COVID-19 pandemic mostly affected the global economy by financial impact on firms and financial markets. Most of the companies has gone under lockdown due to which the market is stopped, which is very hinder for the geogrid market growth.
Geogrid Market Drivers
The increasing demand of geogrid in various sector
The use of geogrid helps in reducing carbon emissions and gives an ingenious environment. It improves quality of road construction with low cost and disposal the soil of poor qualities. Many companies launched product to maintain their position in geogrid market, however variability in the price of material segments owing to fluctuation in anticipated to hinder the market growth. Asia-Pacific registered the highest growth rate in the global geogrid market owing to the rise in demand of geogrid in the construction industry. Two largest country India and China cover their economies are highly investing in transportation and building construction which increases the demand for the geogrids.
Reduces road maintenance cost
Geogrid will continue to provide reinforcement or reconstructed flexible pavements. PVC improves the properties of soil and rock for construction, during construction PVC geogrid designed with thickness of low volume for paved roads. With the cost maintenance PVC improves in strengthen and durability of the road construction. Geogrid enhanced bearing capacity and load distribution of the pavement system.
Geogrid Market Challenges
Lack of skilled workforce
The installation of geogrid requires very skilled workforce. But in some part of the globe, there are lack of skilled workforces which creates hurdle for the growth of geogrid market. Further, the construction standards need modification according geogrid market. The construction standards in the emerging economies do not incorporate geogrids as a basic component material.
Volatility in Pricing of Raw Materials
Raw materials’ price fluctuation is the major factor that affects the price of end products. Major raw materials used in the production of geogrid are PVC, polyester, polyethylene, and polypropylene. All these raw materials are derived from the crude oil. The fluctuation is acquiring majorly due to depleting reserves of crude oil is hinders for the market growth. There by, impacting the demand and growth of the geogrid market.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the geogrid market. Major players in the geogrid Market are Tensar, HUSKER, ACE geosynthetics, Maccaferri, Naue Geosynthetics, and others.
In 2019, HUSKER has developed the 100% recycled polyethylene terephthalate product based on geogrid under their “Eco LINE” product range, designed to meet the significant requirements of utilizing environment friendly solutions.