Construction Films Market - Forecast(2023 - 2028)

Construction Films Market Overview

The construction films market size is forecast to reach US$18.3 billion by 2027 after growing at a CAGR of 6.1% during 2022-2027. Increasing demand for energy-efficient buildings, due to the rising environmental effects such as global warming, and the limited availability of resources, is driving the growth of the market. Buildings utilize a significant amount of energy that ejects CO₂ into the atmosphere, therefore, the presence of stringent government regulations and rise in window tinting activities, for green & energy-efficient buildings are forecasted to drive the market growth. Scanning Electron Microscopy (SEM) is used for the characterization of polymer thin films for surface topography. Construction films have high strength, abrasion resistance, thermal insulation, high tensile strength, and the ability to adapt to varying humidity. Thus, these films are used as dust covers on construction sites, as a moisture barrier, water barrier below the concrete floor, sound barrier in stadiums, and underlying film for scaffolding.

COVID-19 Impact

The COVID-19 outbreak widely affected the construction films market over the year 2020. The manufacturing process of various goods in the end-use industry declined owing to the non-functioning of the production plants and nationwide lockdown. Economies of each sector got affected and resulted in stagnation of activities across the industries that uses construction films. For instance, according to Eurostat, as compared with March 2021, construction production decreased by 1.6% in the E.U. in April 2021. Also, in May 2021 construction in the E.U. region increased dynamically by 21.6% but has since stagnated. Thus, once the construction activities get back on track and start functioning with total capacity, the market for construction films is estimated to incline in the upcoming years.

Report Coverage

The report: “Construction Films Market – Forecast (2022 - 2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the construction films industry.

By Material Type: Polyethylene (PE) (High-Density Polyethylene (HDPE), Low-Density Polyethylene (LDPE), Linear Low-Density Polyethylene (LLDPE)), Polypropylene (PP), Polyethylene Terephthalate (PET), Polyamide, Polyvinyl Butyral (PVB), Polyvinyl Chloride (PVC), and Others

By Type: Transparent Construction Films, Translucent Construction Films, Colored Opaque Construction Films, and Others

By Application: Gas/Moisture Barrier, Vapor Barrier, Curing Blanket, UV Resistance Film, Antiglare Film, Diffusion Membranes, and Others

By End-Use Industry: Residential Construction (Independent homes, Row homes, Large apartment buildings), Non-Residential Construction (Commercial Construction, Industrial, Infrastructure), and Others

By Geography: North America (U.S.A., Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East and Africa)

Key Takeaways

• The Asia Pacific dominates the construction films market owing to the rising growth and increasing investments in the construction industry. For instance, according to the World Bank, in 2020, the building and construction industry reached about US$ 11.9 trillion, with an increase of about 4.2% from 2019.
• Rapidly rising demand for construction films in the civil engineering sector for load-bearing applications has driven the growth of the construction films market.
• The rising demand for construction films in the residential sector, due to their usage as a protective material or as a barrier to sound, moisture, water, and in other applications, has been a critical factor driving the growth of the construction films market.
• However, the environmental effects of construction plastic films can hinder the growth of the construction films market.

Figure: Asia-Pacific Construction Films Market Revenue, 2021-2027 (US$ Billion)

Construction Films Market Segment Analysis – By Material Type

The low-density polyethylene (LDPE) segment held the largest share in the construction films market in 2021. Low-density polyethylene (LDPE) is the most widely used form of PE films. LDPE films have characteristics such as higher deflate resistance, high tensile strength, resistance to sunlight & cracking, and moisture barrier. LDPE films are replacing HDPE, due to the stiffness of HDPE films. The increasing demand for LDPE films due to their flexibility is driving the market. Thus, with the growth in the demand for LDPE construction films, the market will further rise over the forecast period.

Construction Films Market Segment Analysis – By Application

The gas/moisture films segment held the largest share in the construction films market in 2021. Gas/moisture films are used in roofing, wall cladding, UV protection, window films, and others. Decorative films help preserve and extend a building's appearance lifetime by preventing building facades from fading, cracking, or corroding. These films are extensively being used in residential and commercial buildings. The rising investments in construction projects will drive market growth. For instance, according to the Government of Canada, the Government of Ontario, in 2021, announced the investment of up to US$41.8M for the construction of the new Grey Bruce Health Services Markdale Hospital. Thus, such investments will drive the demand for gas/moisture films applications and will raise the growth of the market over the forecast period.

Construction Films Market Segment Analysis – By End-Use Industry

The non - residential construction segment held the largest share in the construction films market in 2021 and is estimated to grow at a CAGR of 6.6% during 2022-2027. Construction films are majorly used as barrier films, UV resistance film, antiglare film, diffusion membranes, and other applications. In non - residential construction sectors, construction films can be used in manufacturing plants, hospitals, retail stores, showrooms, and others.  The rising investments in non - residential construction, will drive the market growth. For instance, Larsen & Toubro, in India, in 2019, won contracts for building hospitals, commercial complexes, and manufacturing capacity, amounting between 2,500 crores (US$ 336.6 million) to 5000 crores (US$ 673.2 million), falling under the large category. Thus, such investments will drive the demand for non - residential construction segment and will increase the growth of the construction films market over the forecast period.

Construction Films Market Segment Analysis – By Geography

Asia-Pacific region dominated the construction films market with a share of 42% in the year 2021. The Asia Pacific region is predicted to continue its dominance in the market during the forecast period due to the increasing requirement for construction films in developing countries such as China, Japan, India, and South Korea. China is expected to continue its dominance in the construction films market during the forecast period. This is due to the growth of the construction industries in the country. For instance, according to International Trade Administration, in China, construction industry revenue was reported to increase from US$ 968 billion in 2019 to US$ 1.1 trillion in 2021. India and Taiwan are also predicted to grow their construction films market during the forecast period, with increased investments by the government in the construction industry. Thus, the rising usage of construction films will drive market growth in the forecast period. 

Construction Films Market Drivers

• Growth of Civil Engineering Industry is Driving the Construction Films Market Growth

Civil engineering is a growing sector in terms of value and volume. This growth is supported by the rapidly rising construction of roads, highways, and developing infrastructure. Construction films are used in construction materials and urban infrastructure, specifically for bearing loads such as roads and highways. Construction films possess mechanical characteristics, such as dynamic stability, compressive and tensile strength, accelerated weathering, and thermal insulation. Globally, the government in various countries are focusing on increasing the investments for road connectivity. For instance, according to the Indian Brand Equity Foundation, in July 2021, the Ministry of Road Transport & Highways allocated Rs. 165 crore (US$ 22 million) under the Economic Importance and Inter-State Connectivity Scheme (EIC&ISC) for the year 2022. Thus, with the growth of the civil engineering sector, the market for construction films is anticipated to propel over the forecast period. 

• The Surge in Demand for Residential Construction is Driving the Market Growth

The residential construction segment is growing by increasing investments and funding in residential construction. Construction films are a thin layer of continuous polymeric material, that is utilized in the residential construction industry as a protective material or as a barrier to sound, moisture, water, and in other applications. Scanning Electron Microscopy (SEM) is used for the characterization of polymer thin films for surface topography. Globally, the rise in housing projects launched by the governments and the rise in per capita income is growing the residential construction segment. For instance, according to the government of Canada, in 2021, the governments of Canada and Alberta invested more than US$31.9 million in over 360 projects to upgrade housing for seniors and families in 95 communities. Thus, with the increasing investments in the residential construction sector, the market for construction films is anticipated to propel over the forecast period. 

Construction Films Market Challenges

• Environmental Effects of Construction Films Will Hamper the Market Growth

The most widely used plastic films in the construction sector are high-density polyethylene (HDPE), low-density polyethylene (LDPE), and polyvinyl chloride (PVC). Construction plastic films are utilized for different applications such as moisture barrier, vapor barrier, curing blanket, and other applications. The main challenge of construction plastic films is the segregation, reuse, and recycling of plastic waste. Construction plastic film materials take up to 1,000 years to degrade in a landfill, creating land and water pollution. Additionally, plastic films are degraded under direct sunlight which decreases their mechanical strength, also, thermoplastic creep and softens at moderate temperatures. Thus, the environmental effects of construction plastic films will hamper market growth. 

Construction Films Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies players adopt in the construction films markets. Major players in the construction films market are:

1. Saint-Gobain
2. Mitsubishi Chemical
3. E.I. du Pont de Nemours
4. Toray
5. Berry Global
6. Eastman Chemical
7. Mondi
8. RKW SE
9. Raven Industries
10. Deku and Others

Recent Developments

In January 2020, Raven Industries expanded its engineered films division fabrication operations by opening up a facility on the east coast of the US in Waynesboro, to provide quick product delivery and excellent service to the customers of its construction markets.

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