The North America synthetic gypsum market is expected to grow from US$ 603.05 million in 2020 to US$ 790.97 million by 2027; it is estimated to grow at a CAGR of 4.0% from 2020 to 2027. Synthetic gypsum generates as a byproduct of industrial processing. Synthetic gypsum mostly contains hydrated calcium sulfate. Synthetic gypsum has similar properties as natural gypsum. Synthetic gypsum is manufactured from the waste generated in the fossil-fueled power plants, which makes it an economical alternative to natural gypsum; moreover, it does not have any harmful effects on the environment. In the North American market, synthetic gypsum is mostly used in construction and agricultural industries. Over the past few years, regional economies such as the US and Canada have experienced massive growth in infrastructural development, which has maximized the synthetic gypsum demand in the region. Additionally, the high per capita income of people in the region is driving widespread infrastructural constructions and upgrades in the North American region. The growth of the construction and paints and coatings industry in North America is mainly observed in the residential and commercial sectors. In the construction industry, synthetic gypsum is mostly used to manufacture drywall, cement, and plaster of Paris. Plaster of Paris is used for making structures, sculptures, and decorative panels in the construction industry. The North American synthetic gypsum market benefits from the comparatively lower interest rates and the high per capita disposable income, which offers an accommodative environment for the construction activities in these regions. An increase in construction activities will lead to an increased demand for synthetic gypsum.
In case of COVID-19, North America, especially the US, witnessed an unprecedented rise in number of coronavirus cases, which led to the discontinuation of synthetic gypsum manufacturing activities. Downfall in other chemical and materials manufacturing sector has subsequently impacted the demand for synthetic gypsum during the early months of 2020. Moreover, decline in the overall construction and agricultural materials manufacturing activities has led to the discontinuation of synthetic gypsum manufacturing projects, thereby reducing the demand for synthetic gypsum. Similar trend was witnessed in other North American countries such as Mexico, Canada, Panama, and Costa Rica. However, the countries are likely to overcome this drop in demand with the economic activities regaining their pace, especially in the beginning of 2021.
Based on type, the FGD gypsum segment led the North America synthetic gypsum market in 2019. FGD gypsum is obtained from flue gas desulfurization systems. Sulfur is mostly removed from the flue gas, which can be done with the help of lime in the flue gas desulfurization system. The FGD gypsum mostly has the same chemical identity as that of a natural gypsum and is considered as a gypsum of greater purity. The use of FGD gypsum is considered as ecologically beneficial. FGD gypsum has agricultural applications, and it can be used in soil and hydrogeologic conditions for the purpose of soil conservation and industrial material recycling. The process through which FGD Gypsum is manufactured is eco-friendly and provides an ecological source of pure gypsum. FGD Gypsum has various applications in segments such as cement production, water treatment, glass making, mining applications, gypsum panel products, highway construction, and agriculture. It can also be used as a source of nutrition for crops.
The overall North America synthetic gypsum market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the North America synthetic gypsum market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the North America synthetic gypsum market. The major companies operating in the market include Drax Group Plc.; American Gypsum; USG Corporation; Larargeholcim Ltd.; Knauf Gips KG and Steag GmbH.