The global wood-plastic composites market is expected to achieve sustainable growth in the next five years. The rising in building and construction sectors has driven the growth of this market, especially in the regions of North America and Europe. The automotive market is further driving the market. New developments in the automotive industry are expected to directly affect the wood-plastic composite market as these composite materials are used on a large scale to reduce vehicle weight. High growth potential of emerging markets in the next five years is expected to support the growth of WPC market. Consumers have begun to use wood-plastic composites with a motive to save the environment, because they are made with recyclable materials and leave less hazardous waste. They help reduce deforestation because the wood used in wood-plastic composites is a by-product from the furniture industry.

The wood-plastic composites market is expected to reach USD 5.84 billion by 2021, and the compound annual growth rate from 2016 to 2021 is 12.4%. The key factor in the growth of the wood-plastic composite market is the increasing demand for building and construction applications.

The main applications of wood-plastic composites are buildings and construction products, followed by automotive components. Wood-plastic composites are widely used in decking, molding & sliding and fencing in building & construction application. Growing demand for high-performance, low-maintenance and low-cost construction products that are environmentally friendly and maintenance-free is expected to boost global demand for wood-plastic composites in coming years. In addition, increasing demand for recyclable and biodegradable materials for manufacturing components, as well as the excellent mechanical strength, weight reduction and fuel efficiency characteristics of wood-plastic composites are expected to increase the demand for these composite materials during the forecast period.

Depending on type, the wood-plastic composite market has been divided into polyethylene (PE), polyvinyl chloride (PVC), polypropylene (PP), and others that includes acrylonitrile butadiene styrene (ABS) and polylactide (PLA). In 2015, the polyethylene sector accounted for the largest share of the wood-plastic composites market in terms of value. Due to its molecular structure and special arrangement of the molecules, polyethylene (PE) is widely used type in wood-plastic composite for producing decking including flooring, lumber, molding strips, furniture materials, wall cladding, hollow boards, hollow filler sections and profiles.

The wood-plastic composites market in Asia Pacific is expected to grow at the highest compound annual growth rate between 2016 and 2021. The economies in China and India have witnessed growth, fuelled by the increased construction activities and investment in expansion or upgrade of manufacturing facilities. China, Japan and India are the largest economies in Asia-Pacific region and have more opportunities to promote the development of wood-plastic composites market in the near future. The initiatives taken by governments to promote growth in the manufacturing industry will further boost the growth of wood-plastic composites market in these countries.