Geogrid Market by Type (Uniaxial Geogrid, Biaxial Geogrid, and Triaxial Geogrid), Application (Road Industry, Railroad Industry, Soil Reinforcement, and Others), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028

Global Geogrid Market Analysis

The global geogrid market size is predicted to garner $35,24,980.7 thousand in the 2021–2028 timeframe, growing from $18,02,666.7 thousand in 2020, at a healthy CAGR of 9.0%.

Market Synopsis

The growing investment in rail and road infrastructure is the main factor driving the demand for the geogrid in Europe. For instance, according to OECD data, European Union, the UK, Norway, and Switzerland invested around $951 billion and $1,513 billion in developing rail and road infrastructure from 2000 to 2019.

Creep failure of the geogrid layer is expected to hinder the growth of the market. Furthermore, geogrid can break due to low tensile strength, thereby hindering the geogrid market growth over the forecast period.

According to the regional analysis, the Asia-Pacific geogrid market is anticipated to grow during the review period and generate a revenue of $14,59,342.0 thousand in 2028, with a CAGR of 9.8%. The growing importance of geogrid in soil reinforcement and road construction is the key factor driving the growth of geogrid in the region.

Geogrid Overview

Geogrids are geosynthetic materials that are used as reinforcing materials in the construction industry. They can be used in soil reinforcement, retaining walls, and more. Geogrids are geosynthetic materials composed of polymeric materials, formed by interlocking grids. They are composed mainly of polyester, high-density polyethylene, and polypropylene.

Impact Analysis of COVID-19 on the Global Geogrid Market

The spread of novel coronavirus had a devastating effect on several sectors, both directly and through necessary measures to avoid contracting the virus. Several countries imposed complete lockdowns, social distancing norms, and travel bans to contain the spread of the virus. Moreover, people are isolating themselves from public gatherings and marketplaces to prevent contracting the virus.

The impact is also being felt by the geogrid sector. The necessary measures imposed to prevent the spread of the virus had disrupted the construction industry. The implementation of social distancing norms had disrupted the availability of a skilled workforce, which led to disruption in daily activities and delayed planned/ongoing construction activities.

Due to complete lockdown, availability and movement of supply trucks were affected. Furthermore, the restricted movement of supply trucks disrupted the movement of construction products to markets and consumers, both within and across borders. Thus, the COVID 19 had significant impact on the global geogrid market.

Growing Investment in the Infrastructure Development Activities to Drive the Market Growth

Infrastructure development is the key driver for economic growth. As a result, countries such as the U.S., China, and India are investing in power, bridges, dams, roads, and urban infrastructure development to increase their connectivity with neighboring countries and the world. For instance, since 2014, infrastructure development has increased three-fold in India.

In Union Budget 2021, the Government of India has allocated $32.02 billion to boost the transport infrastructure in the country. Furthermore, the government expanded the ‘National Infrastructure Pipeline (NIP)’ to 7,400 projects. As of July 2021, through the NIP, the government invested $1.4 trillion in infrastructure development projects.

In recent years, China has increased spending on the infrastructure development. China is building roads, rails, bridges, and ports under the Belt and Road initiative, which entails strengthening connectivity and cooperation across six main economic corridors encompassing Mongolia and Russia; Eurasian countries; Central and West Asia; Pakistan; and other countries. These initiatives and investments are projected to fuel the demand for the geogrid during the forecast period.

To know more about global geogrid market drivers, get in touch with our analysts here.

Fluctuating Raw Material Price to Restrain Market Growth

Geogrid is a reinforcement material used to stabilize civil work. They are made of polyester, polyethylene, and polypropylene, among others. These raw materials are vulnerable to fluctuating crude oil prices. Crude oil prices directly influence the price of raw materials necessary for manufacturing geogrid. Therefore, the fluctuating price of crude oil is expected to hinder the market growth during the forecast period.

Growing Investment in Developing Road Infrastructure to Generate Huge Opportunities

Roads play an important role in the economic development of any country. Furthermore, sustainable & efficient transportation provides access to employment, health, and education services, thereby playing a vital role in eliminating poverty. Moreover, road infrastructure is the most important of all public assets as it opens up more areas and stimulates economic and social development.

Europe has more than 5.5 million kilometers of road network at an estimated value of $9,000 - $11,000 billion. Nevertheless, owing to continuous use and time, these roads are aging. As a result, it requires maintenance, renewal, and modernization. Furthermore, to strengthen connectivity in linking regions and countries, in 2013 a regulation on trans-European transport network (TEN-T) was adopted. As part of the Trans-European Transport Network (TEN-T) policy, a Europe-wide network of railway lines, roads, railroad terminals, inland waterways, airports, and ports, is being developed.

The ultimate objective is to close gaps, eliminate barriers, and facilitate trade. To assist and help Member States in developing their part of the TEN-T, from 2007 to 2020, the EU allocated approximately $78 - $85 billion for roads, of which around $38- $42 billion went to TEN-T roads. Such initiatives are projected to provide growth opportunities for the geogrid market.

To know more about global geogrid market opportunities, get in touch with our analysts here.

Source: Research Dive Analysis

The biaxial geogrid sub-type is anticipated to have a dominant market share and generate a revenue of $17,05,354.3 thousand by 2028, growing from $8,44,228.5 thousand in 2020. The biaxial geogrid has high tensile strength. It can stretch in longitudinal and transverse directions owing to which stress is equally distributed in both directions. Furthermore, biaxial geogrid material is made through the process of extruding, sheet forming, punching, and stretching, therefore, they have good bearing capacity. Moreover, owing to the high tensile strength, biaxial geogrid is widely used in civil construction. Growing investment in infrastructure development is the main factor driving the biaxial geogrid market.

Source: Research Dive Analysis

The road sub-segment is anticipated to have a dominant market share and generate a revenue of $12,15,511.3 thousand by 2028, growing from $6,26,673.6 thousand in 2020. The roads play a crucial role in bridging gap between producer and market, facilitating the social and economic development of the country. To enhance connectivity within and the neighboring region, countries such as India, China, the U.S., and European Union are investing billions of dollars for construction, repair, maintenance, and modernization of roads. These factors are driving the demand for geogrid in road construction.

Source: Research Dive Analysis

The Market for Geogrid in Asia-Pacific to be the Most Dominant

The Asia-Pacific geogrid market accounted for highest market share in 2020 and it is estimated to show the fastest growth during the forecast period. Asia-Pacific was the highest revenue contributor, accounting for $7,04,842.7 thousand in 2020, and is estimated to reach $14,59,342.0 thousand by 2028, with a CAGR of 9.8%. The demand for geogrid in Asia-Pacific is driven by high demand for biaxial geogrid in soil reinforcement and road construction industry. Furthermore, supportive government initiatives for developing roads, railroad, dams, and bridges will further boost the demand for geogrid in the region.

Competitive Scenario in the Global Geogrid Market

Acquisition and investment are common strategies followed by major market players.

Source: Research Dive Analysis

Some of the leading geogrid market players are GSE Environmental, Maccaferri Spa, Naue GmbH & Co. KG, Propex Operating Company, LLC, Low & Bonar, TENAX SPA, Carthage Mills, Inc., Tensar, HUESKER International, and Wrekin Products Ltd.

Porter’s Five Forces Analysis for the Global Geogrid Market:

• Bargaining Power of Suppliers: The majority of the companies operating in the geogrid industry buy various raw materials such as polyethylene, polypropylene, and others from various suppliers. However, presence of large number of suppliers reduces their profits as the buyer can switch from one supplier to another based on the basis of cost factor and demand.
  Thus, the bargaining power of suppliers is low.
• Bargaining Power of Buyers: There are significant number of suppliers in the market. Buyers can easily switch from one supplier to another.
  Thus, buyer’s bargaining power will be high.
• Threat of New Entrants: Specialized knowledge is not required to manufacturer geogrid. Furthermore, production and labor costs are relatively low in China and India. However, companies that are in the geogrid market are much more globalized.
  Thus, the threat of the new entrants is moderate.
• Threat of Substitutes: Geotextiles made of slit-film are stronger and offer an efficient and cost-effective alternative to rigid, punched-and-drawn geogrids.
  Thus, the threat of substitutes is moderate.
• Competitive Rivalry in the Market: The companies operating in this market are focusing on bringing innovative technologies in geogrid which increases the industry competition.
  Therefore, competitive rivalry in the market is high.