Polyvinyl Chloride (PVC) Market Size, Industry Share & COVID-19 Impact Analysis, By Product Type (Rigid and Flexible), By Application (Pipe & Fittings, Profiles, Film & Sheet, Wire & Cables, Flooring, and Others), By End Use (Building & Construction, Packaging, Automotive, Electrical & Electronics, and Others), and Regional Forecast, 2023-2030

The global polyvinyl chloride market size was valued at USD 68.96 billion in 2022 and is expected to grow from USD 72.08 billion in 2023 to USD 95.88 billion by 2030, exhibiting a CAGR of 4.2% during the forecast period. Asia Pacific dominated the polyvinyl chloride [pvc] market with a market share of 56.19% in 2023.

Polyvinyl chloride is one of the most used and the third largest produced polymers in the world. Owing to its versatility, PVC is used in a wide range of industrial, engineering, and everyday applications, including construction, transportation, packaging, electrical & electronics, and healthcare. PVC is an extremely durable and long-lasting material that can be used in a variety of applications in its rigid or flexible forms. Unlike other thermoplastics, which are derived only from petroleum, PVC requires less non-renewable fossil fuels to produce than other standard plastics as it is made from two raw materials: salt and hydrocarbon feedstock. As a result, PVC is less oil-dependent than other thermoplastics.

Furthermore, it is highly durable and energy efficient, making it one of the key raw materials in various applications. PVC's compatibility with different types of additives is one of this material's many strengths and this makes it a versatile polymer. It’s less dependency on petroleum feedstock, unique properties, and versatile nature to bond with many polymers will drive the global polyvinyl chloride (PVC) market growth during the forecast period.

Polyvinyl Chloride Market Trends

Inclination Toward Bio-based Plasticizers to Drive PVC Consumption

Plasticizers are generally used to enhance the flexibility of PVC films and sheets, making them suitable for applications in packaging, where flexibility is crucial for effective wrapping and sealing. As consumers become more conscious about environmentally friendly products, the need for such green products is forcing manufacturers to align their product portfolio with the trend. In response, various manufacturers have developed bio-based plasticizers to meet the increasing demand. For instance, in October 2021, Cargill Company has developed a bio-based plasticizer made from renewable resources that meets the rigorous regulations for the PVC industry and also meets the performance or profitability of the product.

Other companies such as Roquette and DIC Corporation also offer bio-based plasticizers for the PVC industry. Bio-based plasticizers will allow manufacturers to produce flexible, durable, and environmentally sustainable products. Growing consumer expectations and initiatives from PVC raw material manufacturers address environmental concerns and expand the scope of PVC applications across diverse industries, ensuring a positive growth trajectory for the global market.

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COVID-19 IMPACT

Halted Construction Activity amid Lockdown Measures Decreased the Market Growth

The spread of COVID-19 forced almost every government to impose lockdowns to limit its impact on large populations. Amid the lockdown, almost every kind of business activity was halted, including all kinds of construction activities. Construction professionals such as civil engineers, architects, skilled workers, and laborers could not resume their work due to lockdown measures. As a result, many construction projects were halted or delayed during the pandemic. Several disruptions, such as material delivery delays and project suspensions, reduced the demand for raw materials associated with the construction industry. Similar negative impacts were reflected in the demand for PVC pipes, profiles, wires, and cables. Apart from building and construction, other industries such as packaging, automotive, and electrical also experienced significant declines during the year 2020, which further reduced the demand for PVC material. However, after the ease of lockdowns, the market rose significantly, with a double-digit year-on-year growth in 2021. The heightened demand resulted in high prices, generating high sales for players operating in the market

Polyvinyl Chloride (PVC) Market Growth Factors

Increasing Demand from the Construction Industry to Fuel Market Growth

Polyvinyl chloride materials affordability compared to alternative materials makes it an economically attractive option for construction projects, allowing for cost-efficient development of water distribution and drainage systems. Furthermore, PVC’s inherent resistance to chemical corrosion and degradation makes it a durable choice for long-lasting applications such as pipes and fittings, ensuring a reliable infrastructure. The material's versatility allows for a wide range of applications, including pipes, cables, and roofing materials, providing construction professionals with a multifaceted material that can address various needs within a project. Furthermore, in the construction of electrical systems, PVC’s insulating properties make it a preferred material for electrical cables, ensuring safety and reliability in power distribution. In addition, PVC’s resistance to various chemicals makes it suitable for use in chemical-resistant pipes and containers, enhancing its utility in industries where exposure to diverse chemical substances is a concern. These factors are expected to boost the polyvinyl chloride (PVC) market expansion over the forecast period.

RESTRAINING FACTORS

Environmental Concerns, Release of Toxic Additives, and Challenges in Recycling Processes to Impede Market Growth

Chlorine content plays a pivotal role in the polyvinyl chloride industry, influencing its properties and environmental impact. Higher chlorine content enhances PVC’s flame resistance and chemical stability, making it suitable for diverse applications. However, the environmental drawbacks, such as the release of hazardous chlorine-based byproducts during production, have led to increased scrutiny. Regulatory pressure and growing environmental awareness are driving a shift toward alternative materials, impacting the market dynamics and pushing for more sustainable PVC formulations with reduced chlorine content. In addition, PVC often contains additives, such as plasticizers and stabilizers, which can leach into the environment during the product's lifecycle. These toxic substances, including phthalates and heavy metals, can contaminate soil and water, posing risks to ecosystems and human health.

The Toxic‑Free Future organization mentions in its report that thousands of pounds of carcinogenic vinyl chloride is released during PVC production alone in the U.S. The aforementioned facts may impede the rate of market growth over the analysis period.

Polyvinyl Chloride Market Segmentation Analysis

By Product Type Analysis

Rigid PVC Exhibits High Demand in Automotive Sector Owing to High Strength and Excellent Resistivity

Based on product type, the market is segmented into rigid and flexible.

Rigid PVC finds a wide range of applications in the PVC market. The segment accounted for a major global polyvinyl chloride (PVC) market share in 2022. Rigid PVC pipes are extensively used for water supply, drainage, and irrigation due to their durability, corrosion resistance, and low maintenance. Furthermore, it is employed in the automotive sector for applications such as interior trims, door panels, and instrument panels due to its scratch and chemical resistivity.

By Application Analysis

Major Share of Pipe & Fittings Application Owing to Increased Adoption of PVC Products

Based on application, the market for polyvinyl chloride is segmented into pipe & fittings, profiles, film & sheet, wire & cables, flooring, and others.

Pipe & fittings segment is set to dominate the market during the forecast period. PVC’s unique set of properties, such as the ability to preserve water’s quality, durability, and sustainability, has made it an ideal choice for the transportation of drinking water. The high degree of inertness, corrosion resistance, and freedom from bio-film contamination make it safe for use across various piping applications, making it the largest consumer in the global market. With a lifespan of 100 years or more, PVC is highly utilized in underground pipes. Its lower failure rate than non-plastic materials is set to favor its dominance in piping applications over the assessment period.

In addition, PVC profiles are widely used in window frames, shop interiors, cable duct systems, and ventilation systems, which will drive their demand. Owing to its durability and lightweight properties, it is widely used in the above mentioned building and construction applications.

PVC film & sheets are utilized in various applications such as automotive, arts & crafts, furnishings, and various kinds of packaging, which will assist in market growth.

Other application segments such as wire & cables, flooring, and others will exhibit moderate growth rate in the market during the forecast period.

By End Use Analysis

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Building & Construction Industry Accounts for the Largest Share Owing to Plethora of Applications

Based on end use, the market is segmented into building & construction, packaging, automotive, electrical & electronics, and others.

PVC is a widely used plastic material in the building and construction sector. Owing to its wide array of applications in building and construction, this segment accounts for the major share. The huge demand is attributed to the utilization of PVC in various product forms such as pipes, profiles, cables, flooring, roofing, and accessories. For instance, around half of the new and renovated windows in Europe are made from PVC. This has been observed as windows made from this polymer type are affordable, 100% recyclable, and energy efficient compared to other materials.

Apart from building and construction, PVC is an essential material in the packaging industry. Owing to its excellent flexibility and organoleptic properties, it has emerged as a preferable choice over other packaging materials such as metal and glass. As a result, the packaging segment is expected to grow at moderate growth rate during the forecast period. In addition, PVC finds application in various other industries, including but not limited to automotive, electrical & electronics, and others, which will drive its demand during the forecast period.

REGIONAL INSIGHTS

By region, the market for polyvinyl chloride has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

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Asia Pacific accounted for the major share in the global market and stood at USD 38.75 billion in 2022. Sales in the Asia Pacific region are primarily driven by the presence of many end use industries where PVC is utilized in huge quantities. The ongoing industrialization and urbanization in countries such as China, India, and Southeast Asian nations have spurred the demand for PVC in construction, infrastructure development, and manufacturing sectors. PVC’s versatility in applications such as pipes, cables, and building materials aligns with the region's expanding infrastructure needs. As the region is experiencing a surge in construction activities due to increasing residential and commercial projects, the demand for PVC continues to rise.

China accounted for the largest share in the Asia Pacific region and globally in 2022. In addition, it is projected to maintain its dominance throughout the assessment period. The growth is mainly attributed to the ongoing infrastructure developments in the country, which will fuel the demand for PVC products.

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The growth in construction activities is set to drive the North American PVC market. PVC is widely used in the construction sector for applications such as pipes, pipe fittings, and profiles due to its excellent properties and cost-effectiveness. Ongoing infrastructure projects, including residential, commercial, and public work constructions, have fueled the demand for PVC. In addition, the manufacturing of consumer goods such as electrical appliances and other household items play a significant role in propelling the PVC market in this region. In addition, PVC is used in chemical processing industries for corrosion-resistant piping systems, contributing to its demand in this region. The above mentioned driving factors will drive the North America market at a significant CAGR in the forecast period.

The European market is projected to grow moderately over the forecast period. In the European region, nearly three-fourths of the PVC is utilized in building and construction activities. The trend of light weight components in the automotive industry is set to create an additional demand for PVC. In addition, the growth of the electrical and electronics sector drives the demand for PVC in wire and cable insulation in this region.

Latin America and the Middle East & Africa markets are projected to grow moderately over the assessment period. Moderate growth in industries such as building & construction, automotive and chemical will mainly drive the demand in these regions.

List of Key Companies in Polyvinyl Chloride Market

Capacity Expansion to Remain a Key Strategy among Market Giants

Formosa Plastics Corporation, Hanwha Group, Ineos, KEM ONE, Occidental Petroleum Corporation, Orbia and Shin-Etsu Chemical Co., Ltd. are identified as key manufacturers in the study of the global polyvinyl chloride (PVC) market. Market leaders such as Shin-Etsu Chemical Co., Ltd., Formosa Plastic Corporation, Orbia, and Westlake Corporation have invested in exploring new market opportunities to drive sales over the coming years. In addition, companies are investing in products made from bio-based raw materials to meet the growing demand for green products.

LIST OF KEY COMPANIES PROFILED:

• Ercros (Spain)


• Formosa Plastics Corporation (Taiwan)


• Hanwha Group (South Korea)


• Ineos (U.K.)


• KEM ONE (France)


• Occidental Petroleum Corporation (U.S.)


• Orbia (Mexico)


• Shin-Etsu Chemical Co., Ltd. (Japan)


• Vynova (Belgium)


• Westlake Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• December 2023 – INEOS launched a new rage of PVC product that has 37% lower carbon footprint than the average carbon footprint of suspension PVC produced in the European Industry.


• July 2023 - Chemplast Sanmar Ltd. shared plans to invest USD 120 million to expand its production capacities of the Specialty Paste PVC unit at Cuddalore and the Custom Manufactured Chemicals Division’s (CMCD) unit at Berigai.


• May 2023 - Iran's Arvand Petrochemical announced the initiation of its second polyvinyl chloride (PVC) production plant in Mahshahr, Khuzestan Province, with a total PVC production capacity of 320,000 tons/year.


• August 2021 – Formosa Plastic Corporation announced the start of the production of PVC at its expanded plant located in Baton Rouge, Louisiana, on the fourth of 2022.


• January 2021 - Shin-Etsu Chemical Co., Ltd. completed its production capacity expansion for vinyl chloride monomer (VCM), polyvinyl chloride (PVC), and caustic soda at its plant located in Plaquemine, Louisiana. The company started this expansion project in 2018 with a total investment of USD 1.25 billion.

REPORT COVERAGE

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The research report provides a detailed market analysis and focuses on crucial aspects such as leading companies, product types, application and end use. Further, it provides quantitative data regarding volume and value, market analysis, research methodology for market data, and insights into market trends and highlights vital industry developments and competitive landscape. In addition to the above-mentioned factors, the report encompasses various factors contributing to the market growth in recent years.

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