Polyvinyl chloride, commonly abbreviated as PVC, is a thermoplastic polymer derived from petrochemicals. It has a variety of applications due to its high strength, durability, versatility and ease of installation. PVC is used to make plumbing pipes and fittings, flooring, roofing, surface coatings, window frames, siding, wire cable insulation, and medical devices among others. It is highly corrosion-resistant, cost-effective and requires low maintenance. PVC pipes do not rust, rot or corrode which make them preferable over metal pipes in many applications. The global Polyvinyl Chloride (PVC) Market is estimated to be valued at US$ 55.73 Bn in 2023 and is expected to exhibit a CAGR of 3.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Wide Range of Applications
The wide range of applications of PVC due to its versatility has led to increasing demand over the years. It is used in construction, wire cable insulation, medical devices, automotive and other sectors. PVC pipes are commonly used for sewage, drainage and water supply systems due to their high strength, durability and corrosion resistance. The growth of the construction industry especially in emerging economies has augmented the demand for PVC pipes, fittings, flooring, window frames and sidings which has created lucrative opportunities for players in the PVC market.
Porter's Analysis
Threat of new entrants: Low as PVC requires high capital investments in manufacturing facilities and supply chain. Bargaining power of buyers: Moderate as PVC has many substitute products. Bargaining power of suppliers: Moderate as raw materials for PVC like chlorine gas and ethylene have many global suppliers. Threat of new substitutes: Moderate as alternate materials like Polyolefins poses threat. Competitive rivalry: High as industry has many global players competing on price and quality.
SWOT Analysis
Strengths: Wide applications, low cost, durability. Weaknesses: Environmental concerns during production and disposal. Opportunities: Growth in construction and automotive industries. Threats: Stringent regulations, substitute products.
Key Takeaways
The global PVC market is expected to witness high growth during the forecast period of 2023-2030. The Asia Pacific region dominated the global market in 2023 with a share of over 50% attributed to high demand from construction and automotive industries in China, India. Key regional markets include China, India, United States, Germany and Japan.
Key players operating in the PVC market are ChemChina, Formosa Plastics Corporation, Ineos, Inner Mongolia Junzheng Energy Chemical Group, Kem One, LG Chem, Occidental Petroleum Corporation, Orbia, SABIC, Shaanxi Coal and Chemical Industry Group Co. Ltd, Shin-Etsu Chemical Co. Ltd, Xinjiang Tianye (Group) Co. Ltd, Westlake Chemical Corporation, and Xinjiang Zhongtai Chemicals. The industry is dominated by few global players focusing on expanding production capacities, backward integration and new product development.
