The global polyvinyl chloride (PVC) industry experienced good growth over the last five years and is expected to continue that momentum, reaching approximately US $62.3 billion in global revenue in 2018. The industry is consolidated, and the Asia Pacific (APAC) region continues to dominate in terms of production. The construction industry is a major driver for the PVC industry.
Lucintel, a leading global Management Consulting and market research firm, has analyzed the global polyvinyl chloride industry and presents its findings in “Global PVC Industry 2013-2018: Trend, Profit, and Forecast Analysis.”
A combination of factors such as feedstock price (crude oil, naphtha, ethane), feedstock availability (sodium hydroxide), scale and technology, energy cost, energy consumption, GDP growth, distribution costs, utilization rates, inventory trends, environmental issues, and government regulations all influence the industry’s dynamics significantly.
Lucintel’s research indicates that the industry recovered with double-digit growth during 2011-2012. Construction applications demonstrated the highest growth due to increased demand for PVC pipes and profiles products.
The industry is expected to witness a capacity utilization rate that will increase strongly in 2016 due to the best long-term growth prospects for PVC pipe in water and drainage systems. North America and Northeast Asia will remain the exporters of PVC products. It is projected that robust growth will stem from emerging economies such as China and India. Growing end user sector such as construction packaging, electrical, and medical products are anticipated to boost demand. Thermal butt fusion joining technology and replacement of aluminum with ecofriendly PVC are emerging trends that may drive growth.
As indicated by the study, high demand for PVC products in end-user industries such as agriculture, wire and cable, construction, automotive, adhesives, and electronics is anticipated to boost the PVC industry. Key challenges likely to be addressed by industry players are fluctuations in crude oil and ethylene prices and regulatory standards from the European Commission to reduce carbon dioxide emissions. The report tracks five market segments for four geographic regions; thus, it tracks 20 segments of the industry.
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