North America Polyvinyl Chloride Market was valued at USD 4,688 million in 2020 and is expected to grow at a CAGR of 4. 90% during the forecast period. The market was negatively affected by COVID-19 in 2020.
New York, Oct. 22, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "North America Polyvinyl Chloride (PVC) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06177330/?utm_source=GNW
Owing to the pandemic scenario, the countries in the region went into lockdown to curb the spreading of the virus, which negatively impacted the market. Various end-user industries such as building and construction, electrical and electronics, automotive, and others were badly affected due to supply chain disruption, work stoppages, and labor shortages. However, the condition is expected to recover in 2021, which is likely to restore the growth trajectory of the market studied during the forecast period.
Over the medium term, major factors driving the market studied are the increasing use of plastics in the construction industry and increasing applications in the healthcare industry.
On the flip side, hazardous impacts on humans and the environment and the negative impact of the COVID-19 pandemic are expected to hinder the growth of the market studied majorly.
Polyvinyl chloride recycling is likely to act as an opportunity in the future.
Key Market Trends
Growing Demand from the Construction Industry
PVC pipes have been used in building and construction for over 60 years, as they offer valuable energy saving during production, low-cost distribution, and a safe, maintenance-free lifetime of service. These pipes are widely used for pipeline systems for water, waste, and drainage as these pipes suffer no build-up, scaling, corrosion, or pitting, and they provide smooth surfaces reducing energy requirements for pumping.
PVC flooring has several benefits, such as durability, freedom of aesthetic effects, ease in installation, ease to clean, recyclability, etc. Thus, its flooring is used over the years. Another area in the building and construction industry where PVC is used is in roofing; it is used mainly due to its low maintenance requirements and as it lasts more than 30 years.
In the North American region, the construction industry is expected to witness moderate growth, supported by single-family roads and bridges, and institutional construction expected in the coming years. In the United States, Southern and Western regions are the key regions for growth, with Nevada, Texas, and New Mexico leading the growth prospects. In Canada, the overall construction industry is expected to resume its growth in the forecast period, supported by a rebound in non-building construction.
Canada’s Construction industry was undergoing high growth over the past decade, with about 50 skyscrapers being built in major cities, including Toronto, Vancouver, and Calgary. However, it has seen a decline in the recent past, with the total value of residential permits decreased by about 13.1% to reach a total of CAD 4.6 billion (~USD 3.27 billion) revenue in March 2020.
However, the Canadian government is in a positive view to tackle the COVID-19 outbreak and maintain its economy in a stable manner by making necessary fiscal adjustments in the fastest possible way. Various government projects, such as New Building Canada Plan (NBCP) and Affordable Housing Initiative (AHI), are supporting the sector’s growth. The construction industry in Canada is expected to recover by 2021 and is estimated to post moderate growth over the forecast period, which, in turn, will influence the demand in the market studied over the forecast period.
Furthermore, the Mexican government announced a huge investment plan of almost 42 billion to boost the growth of the construction sector and economy over the period of 2020-2024.
All the aforementioned factors are expected to increase the demand for polyvinyl chloride over the forecast period.
United States to Dominate the Market Growth
The United States is one of the world’s largest and most powerful economies. The economy’s growth rate was 2.3% in 2017, which increased to 3% in 2018. Further, in 2019, the GDP growth was about 2.2%, i.e., 0.8% lower than 2018.
However, GDP of the country declined to -3.5% in 2020, severely impacted by the COVID-19 pandemic. The drastic outbreak of COVID-19 in the country has led to a downfall in the economic growth, owing to a fall in consumer spending and business shutdowns. According to IMF forecasts, country’s GDP is expected to grow to 6.4% in 2021 as the country recover from the pandemic situation.
According to the US Census Bureau, the total residential housing units authorized by building permits in March 2020 were at a seasonally adjusted annual rate of 1,353,000, representing 5% growth over the March 2019 rate of 1,288,000. The total number of privately?owned housing starts in March 2020 was at a seasonally adjusted annual rate of 1,216,000, representing 1.4% growth over the March 2019 rate of 1,199,000.
The United States is the second-largest automotive manufacturer after China, producing 10.89 million vehicles in 2019. The sector’s production has registered a growth of 3.8% in 2015. The growth slowed down to 0.8% in 2016 due to excess inventory and low demand for passenger cars. Furthermore, automotive production decreased by 8.13% in 2017 but witnessed a 1.1% growth in 2018. However, the production tanked again in 2019, witnessing a decline of about 3.7%.
The country produced 8.82 million vehicles in 2020, which declined by 19% from 10.89 million vehicles produced in 2019. Furthermore, the production of vehicles in the country was 47,32,820 units in the first half of 2021, which increased by 36% compared to H1 2020. The production of automotive in H1 2021 was much lower compared to H1 2019 by around 17%. The automotive production is far from the pre-covid levels and is likely to impact the market studied during the forecast period.
However, the United States is the second-largest market for electric vehicles. Electric Vehicles sales rose by 80% in the United States in 2018, mainly driven by the market launch of the standard version of the Tesla Model 3. However, this growth slowed in 2019 owing to several factors. One of the reasons is the gradual phaseout of the federal fiscal tax credit in January and July 2019. The US sales for the year 2021 declined by 7% or 12,400 units.
All the above-mentioned factors, in turn, are expected to show a significant impact on the market studied during the forecast period.
The North American polyvinyl chloride market is consolidated among the top five players. The top companies have been focusing on providing better materials for various end-user industries. Major manufacturers of North America PVCs are Formosa Plastics Corporation, Shin-Etsu Chemical Co., Ltd., Westlake Chemical Corporation, Occidental Petroleum Corporation, and Orbia (Mexichem SAB de CV).
The market estimate (ME) sheet in Excel format
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