July 21, 2024

Wood Preservatives Market driven by Increasing Construction and Infrastructure Spending

Wood preservatives are chemical formulations that are applied to wood and wood products to protect them from biological degradation by insects, fungi, and marine borers. Wood treated with preservatives can last much longer when exposed to harsh weather conditions and varying moisture levels. With their ability to prevent rot and degradation, wood preservatives allow the wood to maintain structural integrity for extended periods of time. They find widespread application in industrial and civil construction applications where wood is exposed to the elements like fencing, decking, utility poles and marine pilings.

The global Wood Preservatives Market is estimated to be valued at US$ 1,377.8 Mn in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends driving growth in the wood preservatives market is the increasing construction and infrastructure sector globally. Wood is widely used in construction for applications such as framing, flooring, roofing etc. Rapid urbanization and growth in residential and commercial construction in emerging economies has raised the demand for wood and wood products. Furthermore, rising expenditure on public infrastructure such as bridges, railroads and utility poles stimulates the wood preservatives market. Governments across regions are investing heavily in upgrading and building transportation networks and other civic infrastructure which bodes well for sustained demand for wood preservatives over the forecast period.

Porter’s Analysis

  • Threat of new entrants: The wood preservatives market requires huge capital investments for R&D and production facilities. In addition, established brands have strong brand loyalty which creates barriers for new entrants.
  • Bargaining power of buyers: The global wood preservatives market has numerous global buyers. However, their bargaining power is moderate as there are no close substitutes for wood preservatives available.
  • Bargaining power of suppliers: The key raw materials used in wood preservatives include creosote oil, pentachlorophenol, and copper-based compounds. The availability of these raw materials with a few major suppliers gives them moderate bargaining power.
  • Threat of new substitutes: Although plastic and concrete are used as alternatives to wood in some applications, there are limited direct substitutes for wood as a construction and furniture material. This reduces the threat from substitutes.
  • Competitive rivalry: The global wood preservatives market comprises numerous global and local players. However, the market is dominated by large players like BASF and LANXESS leading to high competition.

Key Takeaways

The global wood preservatives market is expected to witness high growth over the forecast period. The growing construction industry and increasing spending on infrastructure development are fueling the demand for wood preservatives. The global Wood Preservatives Market is estimated to be valued at US$ 1,377.8 Mn in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030.

Regional analysis: Asia Pacific dominates the global wood preservatives market and is expected to witness the fastest growth over the forecast period. With developing economies like China and India rapidly investing in construction, the demand for wood preservatives is surging in the region. The market is also witnessing significant growth in Europe and North America.

Key players: Key players operating in the wood preservatives market are LANXESS AG, Cabot Microelectronics, BASF Wolman GmbH, Borax Inc., KMG Chemicals Inc., Kop-Coat Inc., Koppers Inc., Kurt Obermeier GmbH & Co. KG, Arxada, Remmers AG. Major players are focused on expanding their production capacities and geographical footprint through acquisitions and greenfield projects to tap the growing market potential.