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Increasing construction spending in emerging markets such as Brazil, China and India is expected to fuel the “polyvinyl chloride (PVC) market” growth over the forecast period.

Global polyvinyl chloride (PVC) market is expected to register considerable growth owing to increasing demand for rigid PVC in applications such as tubes, pipes and fittings. Increasing construction spending in emerging markets such as Brazil, China and India is expected to fuel the market growth over the forecast period. Increasing application of PVC in automotive and medical devices may positively impact the market over the next six years. PVC is widely used to manufacture pipes, wires, sheets, films, cables and bottles which find application in various end-use industries such as building & construction, electrical & electronics, transportation and packaging.

Over the last few years, the market has witnessed downturn in demand owing global recession of 2009 which impacted the growth of critical industries such as construction, transportation and electronics. Furthermore, the global recession had an impact on the prices of PVC which faltered due to low demand in major markets such as North America and Europe. Recovery of end-use industries in North America and Europe is expected have a positive impact on the market. Civil unrest in Middle East has hindered the crude oil prices which adversely affected feedstock prices. Fluctuating raw material prices have resulted in volatility in PVC prices. Rising environmental concerns regarding presence of phthalate plasticizers and low degradation rate of PVC pose threat to the market. However, increasing R&D for development of bio-based PVC is expected to hold opportunities for market participants.

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Application Insights

Application segments analyzed in the report include construction, packaging, electrical & electronics, consumer goods and transportation. Increasing use of PVC by car manufacturers to produce car interiors and vinyl flooring is expected to drive its demand in automotive applications. PVC has been widely used in pipes, tubes, cables & wires and fittings. Construction was the largest application segment for PVC market and accounted for over 55% of the market volume in 2013. Growth of infrastructure sector in emerging markets and Middle East has been a major driving factor for the rise demand for rigid PVC in construction applications.

Low cost and superior water resistance of PVC compared to leather and rubber make it an ideal material to be used in consumer goods such as clothes and footwear. Consumer segment accounted for 12.6% of the total market share in 2013 to emerge as the second largest application segment. The growth in demand for consumer applications can be attributed to rising disposable income in emerging markets of Asia and South America. Electrical & electronics is expected to be the fastest growing application at an CAGR of 5.4% from 2014 to 2020. Growing electronics industry in South Korea, Taiwan and China is expected to fuel the market growth over the forecast period.

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Regional Insights

Asia Pacific was the largest regional market for PVC and accounted for over 55% of the total market volume in 2013. Rising demand for PVC in the region can be attributed to increasing construction spending in China and India. Apart from being the leading electronics producer, China is also one of the largest electronics consumers. Growth of electronics industry in China along with South Korea and Taiwan is expected to fuel the market growth in Asia Pacific over the forecast period. Middle East & Africa is anticipated to witness significant growth rate over the forecast period. Increasing construction spending in Middle Eastern markets such as Qatar, UAE, Saudi Arabia and Oman is expected to drive the demand for PVC in the region.

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Hexa Research is a market research and consulting organization, offering industry reports, custom research and consulting services to a host of key industries across the globe. We offer comprehensive business intelligence in the form of industry reports which help our clients obtain clarity about their business environment and enable them to undertake strategic growth initiatives.

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