Increasing Demand in Road Construction to Bolster Growth of the Geogrids Market
Increasing use of geogrids in construction of roads and other infrastructure continues to remain instrumental in driving growth of the geogrids market. Geogrids facilitate transference of forces to large soil area owing to their strong tensile strength. They are widely used in road constructions as they offer significant reduction in rutting damage and enhanced distribution of traffic loads in the foundation layers of pavements. This results in improved resilient modulus of the base which in turn stabilizes the sub grade layer. In addition, use of geogrids translates into low maintenance for infrastructures along with high sustainability that increases the service life. That said, functional properties of geogrids such as high tensile modulus with minimal elongation make them an apt choice as a reinforcement material. This aspect continues to influence their demand in road construction, in turn paving new opportunities of growth of the geogrids market.
As per industry reports, the global geogrids market is expected to soar at a noteworthy rate exceeding 5% crossing its initial valuation of US$700 Mn in 2016. The market is estimated to touch a valuation of around US$1 Bn in 2022 and is expected to further increase at a stable pace.
Biaxial Counterparts to Reinforce Valuation of the Geogrids Market on the Global Front
The use of biaxial geogrids is expected to increase from a volume standpoint in the years to follow. In the backdrop, they are likely to account for a major share in the geogrids market on the global front. Biaxial geogrids are largely used in construction of roads as re-enforcement material. Moreover, advantages of biaxial geogrids such as superior load-bearing capacity and optimum junction strength, superior tensile strength, higher resistance to chemical attack and superior performance have expanded their usability. Biaxial geogrids, apart from road reinforcement, are also used in soil stabilization, foundation engineering, sub base reinforcement and in bridge and flyovers. That said, their enhanced stretch resistance and durability have fuelled the demand of biaxial geogrids as compared to their uniaxial and triaxial counterparts, in turn contributing towards valuation of the geogrids market.
Asia Pacific to Emerge as Potentially Beneficial Revenue Pocket for Geogrids Market
Emerging economies in the Asia Pacific region are likely to showcase high potential for growth of the geogrids market. With growing road constructions across developing economies such as India and China the adoption of geogrids is increasing. Government bodies have been focusing on reinstating stability of their economies and are taking initiatives to achieve their economic targets. One of the initiatives is infrastructure development that becomes a crucial factor in determining strength of an economy. For instance, according to MOFOCOM (Chinese Ministry of Commerce), around US$ 20.3 billion were invested by Chinese enterprises in BRI (Belt and Road Initiative). In addition, 560 new projects were signed in 2021with a valuation of more than US$100 million.
Likewise, in the same year, MoRTH (Ministry of Road Transport and Highways) of India planned a huge investment of INR 7 trillion for infrastructure projects. This investment opportunity is across several assets such as multimodal logistics parks, highways, warehousing zones and wayside amenities. Off this total investment, around INR 6 trillion would be invested in highways by 2024. Advantages of geogrids such as reduced construction costs, high sustainability, ease of installation, high flexibility and structural durability and high resistance to soil erosion has boosted their demand in infrastructure and road development activities. This is expected to pave huge pathways of growth for the geogrids market in Asia Pacific.
Geogrids Market: Competitive Landscape
Players in the geogrids market are leveraging various strategies such as acquisitions and new product launches to establish and strengthen their position in the market. For instance, in August 2021, Tensar International launched next generation of geosynthetic solutions in its portfolio – the InterAx geogrids. InterAx geogrids is integrated with advanced technology that facilitates better performance, optimized geometry, higher compaction through use of advanced material science, accommodation of a variety fill material and restriction of movements of granular materials in order to maintain stiffness. In December 2021, Tensar International was acquired by Commercial Metals Co for US$ 550 million. This acquisition will work towards strategy of Commercial Metals Co to expand leadership in infrastructure and construction reinforcement using value added products which complement its existing offering.
Few of the major players in the geogrids market include NAUE GmbH & Co. Kg, TENAX SPA, Techfab India, Colbond Inc., Tensar International Corporation, Strata Systems Inc., Hueskar Inc., Officine Maccaferri Spa and TenCate Geosynthetics Asia Sdn Bhd.
Global Geogrids Market is Segmented as Below:
Key Elements Included In The Study: Global Geogrids Market
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