Demand for geosynthetics in the US is expected to increase 7.7 percent annually to $2.9 billion in 2015. This rate is an acceleration over the gains posted from 2005 to 2010 given that sales of certain types of geosynthetics were sharply restrained during the recession that occurred in the latter half of that period. Funds made available through the American Recovery and Reinvestment Act, however, helped mitigate the recessionary effects and spurred sales in 2010.
Construction spending, environmental regulations to help drive demand
Going forward, growth will be driven by a projected recovery in construction spending and transportation infrastructure expenditures through 2015. Gains will also be boosted by strengthened regulations regarding landfill containment and stormwater runoff from agricultural, construction and industrial sites. The continued development of time- and costsaving applications for geosynthetics, as well as the increasing availability of more durable and effective geosynthetics, will also contribute to value gains.
Landfills use more high value geosynthetics
Geosynthetics in the landfill market made up 34 percent of value demand in 2010. This position is primarily because of regulations that result in landfills using high value geomembranes more frequently than many other markets. Geomembranes help prevent contamination of the surrounding land and groundwater with leachate. In area terms, transportation infrastructure, which benefited most strongly from the stimulus funds, was the largest market for geosynthetics in 2010, with one third of demand (but only 20 percent of value demand). The most commonly used geosynthetics in this market are geotextiles, which are relatively low cost products compared to other geosynthetics.
Construction to be fastest growing market
Through 2015, geosynthetics used in the construction market are expected to post the fastest annual growth rate in both value and area terms, although from reduced 2010 bases, as construction spending activity recovers. Additionally, increasingly strict stormwater runoff regulations will boost sales of geosynthetics used on construction sites. The small but growing market for geosynthetics in residential landscaping and decorative applications will also contribute to demand gains.
Geonets to achieve fastest gains from small base
In value terms, geomembranes made up the greatest share of the geosynthetics market, with 50 percent of demand in 2010. However, geotextiles was the largest segment in area terms in 2010, representing 72 percent of demand. Through 2015, geonets, a relatively niche product, are expected to achieve the fastest gains, employed in drainage applications due to stricter government regulation requiring their use.
Study coverage
This new industry study, Geosynthetics, presents historical demand data (2000, 2005 and 2010) plus forecasts for 2015 and 2020 by product (e.g., geotextiles, geomembranes, geogrids, geonets, clay liners), market (e.g., construction, transportation infrastructure, landfills, liquid containment) and US region. The study also considers key market environment factors, evaluates company market share and profiles 40 US industry competitors, including AMCOL International, GSE Lining Technology, and Leggett & Platt.
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Construction and Building Industry: Geosynthetics Market
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