The global gypsum board market size is projected to reach USD 79.17 billion by 2025 expanding at a CAGR of 11.4%, according to a new report by Grand View Research, Inc. Increasing consumption of the product in residential real estate sector is the key factor driving the industry growth. Economic recovery after 2012 along with increasing employment and credit rate for residential mortgages is expected to the construction sector in U.S. According to demographics of the industry, demand is expected to be driven by multifamily households rather than single-family households as student loan debt is expected to hinder sales of the latter.
Demand for improved infrastructure facilities in residential and commercial sector due to rapid industrialization, growing population, increased income levels, and improved living standards is anticipated to drive the demand further. Gypsum board production cost is highly dependent on the availability of raw materials and transportation cost. Tight supply of raw material has led to high cost of the end products; as a result, a lot of manufacturers from North America and Europe are shifting their production facilities to Asia Pacific.
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U.S. EPA has evaluated and approved the usage of Flue Gas Desulphurization (FGD) Gypsum, which is a byproduct of coal-fired power generation industry, as a replacement for mined gypsum in the manufacturing of wallboard. Almost half of the gypsum used in the production of wallboard is FGD gypsum and is expected to help lower environmental pollution levels with reduced mining for obtaining raw material.
Further Key findings from the study suggest:
- In terms of volume, the global market size is anticipated to reach 19,588 million square meters by 2025 and is projected to witness a CAGR of 6.3% over the forecast period
- In terms of revenue, India is expected to be the fastest-growing country at a CAGR of 15.6% over the forecasted period
- Increasing gypsum production in countries, such as Russia and Turkey, coupled with high demand for residential and commercial constructions is expected to augment the gypsum board market growth