Global Geogrid Market Anticipated to Generate a Revenue of $35,24,980.7 Thousand, Growing at a CAGR of 9.0% from 2021 to 2028Download Sample Reports Overview
The global geogrid market is estimated to be valued at $35,24,980.70 thousand by 2028, surging from $18,02,666.70 thousand in 2020, at a noteworthy CAGR of 9.0%.
Impact Analysis of COVID-19 on the Geogrid Market
The spread of novel coronavirus had a devastating impact across all the industrial sectors, similarly, the global geogrid market experienced a low growth due to necessary measures taken by the governing bodies to contain the spread of the virus. During the pandemic, transportation and import & export activities were restricted, owing to which raw materials were not available for manufacturing geogrid. Additionally, the low growth is the result of disruptions in the demand for geogrid, due to the decline in construction activities, and the non-availability of migrant laborers. In addition to this, transportation disruptions had a significant impact on the supply chain, affecting the growth of the geogrid market. Moreover, the government has strictly issued lockdown guidelines that have affected manufacturing activities and supply chains.
Global Geogrid Market Analysis
Growing investment in roads, railroads, bridges, and dams is the main factor driving the demand for the geogrid market. For instance, on July 28, 2021, the White House and Bipartisan Group agreed to invest $550 billion in new federal investment in America’s infrastructure.
Furthermore, 173,000-mile roads and 45,000 bridges are in poor condition. The Bipartisan Infrastructure Deal will invest $110 billion of new funds for roads, bridges, and major projects, and reauthorize the surface transportation program for the next five years. Such investments are projected to drive the geogrid market.
Innovative products are being developed to stabilize soil for civil construction activities. In this sense, woven slit-film geotextiles are stronger and offer a highly efficient and cost-effective alternative to rigid, punched-and-drawn polypropylene geogrids. In addition to superior strength and lower cost, woven slit-film geotextiles offer an additional advantage over all other geogrids. This factor is projected to hinder the growth of the geogrid market.
Road and railroads play a crucial role in the economic development of the country. As a result, most countries are investing in developing rail and road infrastructure. Besides, many rail and roads in the developed countries are aging, thereby they either require maintenance or refurbishment. Such activities are expected to provide growth opportunities for the growth of the geogrid market.
Global Geogrid Market, Segmentation
The global geogrid market is segmented based on type, application, and region.
The type segment is further classified into uniaxial geogrid, biaxial geogrid, and triaxial geogrid. Among these, the biaxial geogrid type sub-segment is anticipated to have the fastest growth as well as dominant share and surpass $17,05,354.30 thousand by 2028, with an increase from $8,44,228.50 thousand in 2020. The biaxial polymer sheet can stretch in both transverse and longitudinal direction, as a result they are used in reinforcement and separation. The market growth can be attributed to increasing demand for biaxial geogrid in soil reinforcement and road construction.
The application segment is further divided into road, railroad, soil reinforcement, and others. The road sub-segment is anticipated to be the dominating sub-segment in the global market and register a revenue of $12,15,511.30 thousand during the analysis timeframe. Roads play an important role for economic growth of country. As a result, countries are investing billions of dollars for constructing roads. For instance, Invest India, the government of India has forecasted an investment of $350 billion towards road infrastructure in the North-East region of India during 2020-2025. These factors are expected to drive the demand for geogrid in road construction market during the forecast period.
The geogrid market for the Asia-Pacific region is projected to witness dominant share. This market generated a revenue of $7,04,842.70 thousand in 2020 and is further projected to reach up to $14,59,342.0 thousand by 2028.
The massive infrastructure investments by China may usher in a new era of trade and growth for economies in Asia and beyond. For instance, as of 2020, the China invested around $47 billion in 138 countries under Belt and Road Initiative. These factors are expected to fuel the demand for geogrid in the region.
Key Players in the Global Geogrid Market
- GSE Environmental
- Maccaferri Spa
- Naue GmbH & Co. KG
- Propex Operating Company, LLC
- Low & Bonar
- TENAX SPA
- Carthage Mills, Inc.
- HUESKER International
- Wrekin Products Ltd
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Geogrid Market
- Bargaining Power of Suppliers: The suppliers involved in the market are extensive in number. Thus, manufacturers and companies have several options and alternatives to handle expensive supplies.
Thus, the bargaining power of the suppliers is low.
- Bargaining Power of Buyers: High power of buyer as they can switch from one vendor to another.
Hence, the bargaining power of buyers is high.
- Threat of New Entrants: The geogrid market is far more globalized than other markets. In addition, labor costs are relatively low in China and India. However, most companies in the geogrid market require very little specialized knowledge.
Thus, the threat of the new entrants is moderate.
- Threat of Substitutes: Slit-film geotextiles are stronger and can provide an efficient and cost-effective alternative to rigid, punched-and-drawn geogrids.
Therefore, the threat of substitutes is moderate.
- Competitive Rivalry in the Market: The ventures operating in the global geogrid are opting for various businesses deployment strategies to hold their position in the market. Several companies are launching innovating products in the international market and strengthening the footprint worldwide.
Therefore, competitive rivalry in the market is high.