The global geomembrane market is expected to grow from USD 2.1 billion in 2020 to USD 3.2 billion in 2025, at a compound annual growth rate (CAGR) of 8.3% over the forecast period. This high growth is due to increased mining activities in Asia Pacific and South America, increasing focus on waste and water management activities, and increasing spending on infrastructure development.
Geomembranes Market Dynamics
Driver: Increased mining activities in APAC and South America
Rapid industrialization and urbanization in key countries such as China and India have spurred the demand for metals and minerals in the past few years. Other countries in APAC that have attracted significant mining investments include Australia, New Zealand, Japan, South Korea, Singapore, Mongolia, and Indonesia. South America is also a high-growth region for the mining industry. It has become a preferred destination for mining investments by major global mining companies. Key countries such as Brazil, Peru, and Chile have large mining capacities and have witnessed increased investments from foreign companies over the past five years. The mining industry is one of the major consumers of geomembranes. Geomembranes are used to help recapture and recycle the harmful chemicals being used in solution to treat ponds and secondary containment applications. This is expected to drive the geomembranes market during the forecast period.
Restrain: Fluctuating raw material prices on account of volatility in crude oil prices
Volatility in crude oil prices is one of the major restraining factor for geomembranes manufacturers. Most raw materials for geomembranes are petroleum-based and are vulnerable to fluctuations in crude oil prices. The rise or fall in crude oil prices directly impacts the price of the raw materials required for geomembranes. Manufacturers have to cope with high and volatile raw material costs, which reduce their profit margins. This scenario has compelled market players to enhance the efficiency and productivity of their operations to sustain growth and retain market share.
Increasing spending on infrastructure development Infrastructure development includes creating water supply and treatment plants, roads, tunnels, dams, railways, airports, bridges, telecommunication networks, schools, and hospitals. According to the Confederation of International Contractors' Associations (CICA), the output for residential and non-residential (including commercial, industrial, and others) infrastructures will grow by 85%, in terms of volume, to reach USD 15.5 trillion by 2030. There are a multitude of applications for geomembranes within construction sector.. The long shelf-life along with good physical & mechanical properties of geomembranes will work in favor of the market. Thus, growing infrastructural developments, are expected to create growth opprutunities for the geomembranes market during the forecast period.
HDPE geomembranes is the fastest-growing type in the coming five years. They are the most affordable type of geomembranes. They are known for their dense configuration (>0.94 g/cm3) in comparison to all other polyethylene types. They also have long-term durability with excellent chemical & UV resistance. These properties are driving there market at the highest pace.
HDPE geomembranes are the largest and fastest-growing segment in terms of value. These membranes have excellent properties such as chemical resistance, high durability, high stability, ultraviolet protection, inherent flexibility, and aging resistance from powerful stresses of weather. HDPE geomembranes are commonly used for applications that demand excellent chemical & UV resistance and overall endurance properties at an affordable cost.