Geosynthetics Market - Growth Drivers and Challenges
Growth Drivers
- Industrial expansion in emerging economies: The growing industrial infrastructure in emerging economies contributes positively to the sales revenues of disconnect switches used in control centers for motors, turbines, and pumps. The Asian Development Bank (ADB) suggests in its 2023 Asian Economic Integration Report that Asia's manufacturing value added will grow at a CAGR of 5.5% (2024-2029), offset by the population and GDP growth of India, Vietnam, and Indonesia. Disconnect switches are relevant to motor control centers, as disconnects isolate the machinery or equipment and ensure safety compliance in operations such as oil and gas, chemicals, cement, and mining. The expansion of industrial parks, with government "Make in Country" manufacturing incentives - for example, India's PLI scheme, which recently allocated $27 billion - means there will continue to be demand for disconnect switches at both regional and global levels.
Grid modernization and smart infrastructure: Expanding grid modernization projects are a significant driver of the disconnect switch market. As a point of reference, the U.S. Department of Energy (DOE) plans to allocate USD 14 billion from 2023-2026 through the Grid Resilience and Innovation Partnerships (GRIP) program to upgrade the transmission and distribution system. The European Union (EU) also invested heavily in grid modernization in conjunction with its EU Green Deal - targeted development €1.1 trillion in green and sustainable investment by 2030- and China's continued smart grid expansion are co-drivers of demand and utilization for disconnect switches that can be integrated into digital monitoring and automation systems that enhance safety, operational flexibility, and rapid fault isolation for improved energy reliability.
1. Emerging Trade Dynamics & Future Market Prospects
Geosynthetics Trade Data (2019-2024)
Global Trade Value (USD Billion)
|
Year |
Export Value |
Import Value |
|
2019 |
2.9 |
2.8 |
|
2020 |
2.6 (-10.8%) |
2.5 (-11.2%) |
|
2021 |
3.2 (+25%) |
3.1 (+26%) |
|
2022 |
3.6 (+12.8%) |
3.5 (+13.4%) |
|
2023 |
3.7 (+2.9%) |
3.6 (+3.1%) |
Top Exporters (2023)
|
Country |
Export Value (USD Bn) |
Key Destinations |
|
USA |
0.86 |
Canada, Mexico, Asia |
|
Germany |
0.73 |
France, Poland, USA |
|
China |
0.69 |
India, Japan, ASEAN |
|
Japan |
0.46 |
South Korea, Vietnam |
Top Importers (2023)
|
Country |
Import Value (USD Bn) |
Key Origins |
|
India |
0.63 |
China, Germany |
|
Canada |
0.59 |
USA, Germany |
|
France |
0.51 |
Germany, Belgium |
Key Trade Routes
Japan-to-Asia Geosynthetics Trade (2023)
|
Destination |
Shipment Value (USD Mn) |
% Growth (2020-2023) |
|
China |
121 |
+8.6% |
|
South Korea |
96 |
+12.2% |
|
Vietnam |
81 |
+22.5% |
2. Geosynthetics Market Overview
Geosynthetics Price History (2019–2023)
|
Year |
Avg. Price (USD/ton) |
Unit Sales (Million tons) |
North America ($/ton) |
Europe ($/ton) |
|
2019 |
1,451 |
8.3 |
1,501 |
1,481 |
|
2020 |
1,481 |
8.1 |
1,521 |
1,501 |
|
2021 |
1,521 |
8.6 |
1,561 |
1,531 |
|
2022 |
1,601 |
9.2 |
1,651 |
1,581 |
|
2023 |
1,681 |
9.9 |
1,721 |
1,641 |
Raw Material Costs
|
Factor |
Impact (Timeframe) |
|
Polypropylene price increase |
+23% (2020–2023) |
|
Polyester (PTA) cost increase |
+16% (2021–2023) |
Geopolitical Events
|
Factor |
Impact (Timeframe) |
|
Russia-Ukraine war (polymer supply disruption) |
-31% European supply (2022) |
|
U.S. tariffs on Chinese geotextiles |
+13% price increase (2019–2023) |
Environmental Regulations
|
Factor |
Impact (Timeframe) |
|
EU Circular Economy Action Plan (recycled demand) |
+19% demand (2020–2023) |
|
U.S. EPA landfill liner rules (HDPE demand) |
+26% demand (2018–2023) |
Challenge
- Increasing mining activities worldwide: The unstable price of polypropylene, polyester, and polyethylene has a serious effect on the production costs of geosynthetics. For those that utilize U.S. Bureau of Labor Statistics (2024) composite indexes, cases have shown that the price of polypropylene resin, for example, has increased nearly 13% year-over-year (or YoY), which can be attributed to supply chain disruptions and the price of crude oil varying. The price volatility limits profit margins for manufacturers and makes it difficult to introduce geosynthetics in emerging markets with cost benefits at all. The management of raw material buying becomes critically important in terms of sustainability–raw material sourcing becomes impotent and helps focus on the customers, for geosynthetics market sustainability, because the dominating demand is for price-sensitive infrastructure projects in the Asia Pacific and Africa. Rapid urbanization and population growth: Indoor trained professionals perform the effective geosynthetics installation necessary to ensure the structure's performance. Some researchers (International Geosynthetics Society [IGS], 2023) suggest that improper installation accounts for up to 36% of geosynthetics failures in project sites globally, which only increases expenses and leads to wrong/poor work. Emerging economies suffer from a skill shortage and the lack of proper training, processing mainly delays infrastructure projects now, when demand for new roadway, mining, waste management, and many other applicable markets want geosynthetics increasingly. Even in these developing areas, the geosynthetics market will surge because of demand. However, with limited skills, specialists, and training, it will only hold back the market growth process.
Geosynthetics Market Size and Forecast:
|
Base Year |
2024 |
|
Forecast Year |
2025-2034 |
|
CAGR |
6.5% |
|
Base Year Market Size (2024) |
USD 15.9 billion |
|
Forecast Year Market Size (2034) |
USD 29.8 billion |
|
Regional Scope |
|
