The incessantly growing construction activities across the world along with the rising demand for a myriad of wood applications such as furniture, decking, timber treatment, railroad ties, and shipbuilding are the prime factors for the growth of the wood preservative market. In the aforementioned applications, wood preservatives are widely used for protecting the wood from decaying, decomposition, and other natural hazards like fire. Wood preservatives such as copper wood preservatives, green wood preservatives, exterior wood preservatives, and synthetic wood preservatives enhance the lifespan of the wood by restricting the attacks from insects, bacteria, and fungus. Among various applications, wood preservatives have gained significant importance in the railway industry owing to its wide application in the wood-based structures used in railroads. The high safety concerns in the railway sector are continually demanding improvement, maintenance, and repair activities across the railroads, which, in turn, is presumed to complement the wood preservative market. Moreover, as a great deal of wood preservatives are used on each railway tie, the perpetual growth in the global railway industry is considered to have a positive impact on the wood preservative market. For instance, in India, the railway infrastructure investments are anticipated to increase from $59 billion in 2013-17 to $124 billion in 2018-22. This is an attenuated representation of the growth of railway construction activities across the world.
As of 2018, the wood preservative market was valued at $1.51 billion. Moreover, the demand for the wood preservatives is poised to propel at a CAGR of 5.2% during the forecast period 2019-2025.
North America Domineering the Global Wood Preservative Market—
Geographically, North America is considered to be the most lucrative wood preservative marketplace during the forecast period and was responsible for 35% of the total revenues generated in 2018. On the back of rapid technological advancements, there is an increase in consumer awareness towards environment protection, which further propelled the demand for biodegradable coatings and preservatives in this area. Additionally, the upsurge in single-family house structure in the developed countries such as the USA, Canada, and Mexico is providing a prime impetus for the growth of the residential constructions in North America. Consequently, it is increasing the demand for wood for applications such as building material, furniture, and interior decoration. This, in turn, is driving the regional wood preservative market. Moreover, the market players in this region are adopting technological advancements and strategic initiatives, which is further aiding the market growth. For instance, in recent years, Troy Corporation in the U.S., developed and wet-state wood preservatives, Mergal GLT25 & GLT50, that offer wide spectrum protection from bacteria and fungi in aqueous systems. These factors have rendered North America with the maximum market share.
Rising Residential Construction Activities Abetting the Wood Preservative Market Growth—
On the basis of application, the residential segment is anticipated to prosper at the highest growth rate during the forecast period. The growth of this segment is attributed to the burgeoning residential construction activities across the world. For instance, in the U.S., the private residences authorized by building permits in August 2019 were estimated to be around 1,419,000, an increase of 12% from August 2018. Wood plays a prominent role in residential construction and finds its use in structural, decking, fencing, landscaping, decoration, and furniture applications. Wherein, the wood preservatives are used in conjunction with the wooden structures to increase the lifespan of the wood. Therefore, the key application segment is anticipated to propel at a CAGR of 4.9% through to 2025.
Major Wood Preservative Market Companies’ Strategies—
Key companies that are striving to gain significant footprint in the wood preservative market are BASF Wolman GmbH, Lonza Group, LANXESS, KMG Chemicals Inc., Troy Corporation, Viance, LLC, Koppers Inc., Remmers Ltd., Huntsman Corporation, Nisus Corporation, Rio Tinto Group, Stella-Jones Incorporated, and Wykamol Group Ltd. These companies are continuously adopting intelligent business strategies such as new product innovations, mergers, acquisitions, partnerships, and collaborations, to strengthen their position in the global market.