Synthetic Gypsum Market

Synthetic Gypsum Market

The global synthetic gypsum market is valued at USD 1.4 billion in 2024 and is projected to reach USD 1.8 billion by 2030, growing at 4.3% cagr from 2024 to 2030. The global construction industry is experiencing significant growth, consists both commercial infrastructure and residential. This rise in construction activities is one of the major drivers of the increased demand for synthetic gypsum. Synthetic gypsum, an artificial variant of gypsum which is primarily obtained from flue-gas desulfurization at coal-fired power plants and other industrial processes. It is used interchangeably with natural gypsum in applications such as cement, fertilizer, plaster, gypsum board, and building materials. Additionally, it is also used in molds for dinnerware and dental impressions, as well as in road construction. In the cement industry, it used as a retarder to control setting time.

The global demand for synthetic gypsum is set to increase during the forecast period due to its cost-effectiveness, environmental benefits and versatility in various applications. As industries seek sustainable alternatives, the use of synthetic gypsum in construction, cement, agriculture, and manufacturing is expected to propel. Additionally, advancements in production methods and stricter environmental regulations on waste management are driving its adoption. This growth is further supported by the expanding construction industry and increasing use of synthetic gypsum in emerging markets, particularly in Asia Pacific, South America, and Middle East & Africa.

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Synthetic Gypsum Market Dynamics

Driver: Strong demand from construction industry

The building & construction industry encompasses a wide range of activities, including the alteration and repair of commercial, residential, non-residential, and infrastructural constructions. This industry is poised for significant growth during the forecast period. Developing economies are witnessing an increase in urban population due to the migration of people from rural to urban areas, necessitating the construction of new buildings and infrastructure. The United Nations projects that India’s population will reach 1.64 billion by 2047, with an estimated 51% living in urban centers. It is anticipated that by 2050, India, China, and Nigeria will account for 35% of the projected growth of the world’s urban population, adding 416 million, 255 million, and 189 million urban dwellers, respectively. In particular, the construction industry in India is expected to reach USD 1.4 trillion by 2025, as forecast by Invest India. China and India are projected to witness the highest demand for synthetic gypsum in the construction industry in the next few years. The rapid industrialization in these countries has led to a sharp increase in the demand for factories, manufacturing plants, stadiums, and offices. The demand for industrial construction is also projected to rise in other developing countries within the Asia Pacific region.

The synthetic gypsum market's positive outlook is underpinned by the high growth in the construction industry. Rising per capita income and the increasing trend toward safe and sustainable construction practices are accelerating the demand for building materials that are standard, fire-resistant, impact-resistant, sound-resistant, and moisture-resistant. Consumer preferences in emerging economies such as China, India, Brazil, and South Africa are gradually shifting from traditional building structures to innovative infrastructures. This shift, combined with the growing urban population and the demand for new constructions, is set to drive the synthetic gypsum market significantly.

Restraints: Restrictions on use of Phosphogypsum

Phosphogypsum (PG) is a by-product of the phosphate fertilizer industry. Phosphogypsum presents significant health and environmental concerns primarily due to its slightly radioactive nature. For every ton of phosphoric acid produced, about approximately 5 tons of PG is  generated. The U.S. Environmental Protection Agency (EPA) has imposed stringent strict regulations on its use because of the radium content in phosphogypsum, which can pose health risks if used in construction or agriculture. Expressly, the EPA only permits the utilization of PG when the radium concentration is below 10 pCi/g, which limits its application in various industries that typically utilize gypsum products. However, PG with higher radium concentrations can be reused safely under certain conditions.

Phosphogypsum can also pollute the environment through its phosphorus content, leading to eutrophication, its toxic heavy metal content, and its radioactivity. Phosphogypsum releases radon which is a noble gas that is heavier than air and can also accumulate indoors if used as a construction material, posing a potential hazard to workers in open-air storage areas. Radon is considered to be the second leading cause of lung cancer after smoking, as it tends to gather in poorly ventilated underground spaces such as cellars and mines.

Opportunity: Investments in R&D activities

The growing environmental concerns have increased demand for sustainable and eco-friendly alternatives in various industries. This trend is particularly evident in the synthetic gypsum sector, where manufacturers increasingly focus on the sustainable use of synthetic gypsum as a substitute for natural gypsum. This shift aims to reduce the reliance on natural resource extraction and minimize environmental impact, all while maintaining or enhancing the performance characteristics of the product.

Manufacturers are channeling significant investments into research and development (R&D) to address this demand and stay competitive. These investments are directed toward innovating and refining synthetic gypsum materials to ensure they are both environmentally friendly and cost-effective. The emphasis is on developing sustainable materials that exceed or meet the properties of traditional gypsum, thereby offering a viable alternative that aligns with environmental goals.

This focus on R&D presents substantial lucarative opportunities for the synthetic gypsum market over the next 5 years. As manufacturers continue to enhance the sustainability and efficiency of synthetic gypsum, they are expected to gain a competitive edge and capture a larger market share. The ongoing advancements in technology and material science are expected to further drive demand for synthetic gypsum, making it a key player in the transition toward more environmentally responsible industrial practices.

Challenges: Shift of power generation industry from coal to natural gas

FGD gypsum is a by-product of coal combustion formed during the desulfurization process. The transition from coal-based power generation to natural gas is driven by environmental, economic, and policy factors. This shift is crucial for decarbonization, as natural gas emits significantly less carbon dioxide than coal. European energy policies aiming for a carbon-free region have imposed restrictions on coal power plants due to their associated air pollution associated air pollution and carbon emissions.

According to the August 2022 update of GEM’s Global Gas Plant Tracker, about 89.6 GW, or 13%, of the 692.5 GW of global gas-fired capacity in development are coal-to-gas conversions or replacements. The regions with the most significant coal-to-gas conversions or replacements in development are East Asia, Europe, and North America. Germany's climate protection plan, as highlighted in the 2017 Global Gypsum Review, targets the elimination of coal power generation by 2050, alongside phasing out nuclear energy by 2022.

The International Energy Agency's (IEA) 34.7°F net-zero pathway indicates that to achieve net-zero emissions by 2050, unabated gas-fired generation must peak by 2030. Data from the U.S. Energy Information Administration (EIA) reports that between 2011 and 2019, 121 U.S. coal-fired power plants were repurposed to burn other types of fuels, with 103 of these being converted to or replaced by natural gas-fired plants. Natural gas has a much lower combustion rate compared to coal or oil, emitting 50 to 60% less CO2. This transition from coal to natural gas as a fuel source helps slow global warming by reducing carbon pollution. Since coal is the primary source for manufacturing FGD gypsum, the power generation industry's shift from coal to natural gas is expected to challenge the FGD gypsum manufacturing process, thereby impacting the synthetic gypsum market.

Synthetic Gypsum Market: ECOSYSTEM

The FGD Gypsum type is projected to be the fastest growing segment in the Synthetic gypsum market.

FGD gypsum is projected to be the fastest-growing type in the synthetic gypsum market. This rapid growth is driven by the increasing adoption of flue gas desulfurization (FGD) technology in coal-fired power plants to reduce sulfur dioxide emissions, coupled with the rising demand for sustainable and eco-friendly construction materials. As a byproduct of the flue gas desulfurization process, FGD gypsum is increasingly being utilized in the production of gypsum board, cement, and other building materials, making it an important component in the construction industry. The emphasis on environmental regulations and the push for greener building practices boost the demand for FGD gypsum, establishing it as a key growth driver in the synthetic gypsum market.

Cement is the fastest growing segment by production process in the Synthetic gypsum market.

Cement is projected to be the fastest-growing application in the synthetic gypsum market. This growth is driven by the increasing use of synthetic gypsum in cement production as a cost- effective and readily available substitute for natural gypsum. As the construction industry expands in developing countries, the demand for cement surges, fueled by government infrastructure initiatives. Synthetic gypsum, with properties comparable to natural gypsum, supports cement manufacturers in meeting this demand while conserving natural resources and reducing mining activities. This shift addresses cost concerns and aligns with sustainable practices in the cement industry.

Asia Pacific is estimated to be the fastest growing region in the Synthetic gypsum.

Asia Pacific is projected to be the fastest-growing region in the synthetic gypsum market. The high growth in Asia Pacific can be attributed to the increasing demand for synthetic gypsum in the construction sector due to its wide range of application areas. Synthetic gypsum is used as a durable and lightweight concrete material, which has excellent setting properties. It is also used in agriculture as a fertilizer that helps increase the soil fertility. The growth of the Asia Pacific market is supported by the improving economic conditions, continuous improvement in government budgets, and positive demographic outlook such as the increasing population and rising per capita income. In these emerging markets, there is a strong demand for infrastructural projects, which, in turn, generates the demand for synthetic gypsum materials.

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Synthetic Gypsum Market Players

The leading players in the Synthetic gypsum market are Knauf Group (Germany), Holcim Group (Switzerland), Saint-Gobain SA (France), Georgia-Pacific Gypsum LLC (US), Etex Group (Belgium), National Company Gypsum Services (US), James Hardie Industries Plc. (Ireland), Synthetic Materials (US), Yoshino Gypsum Co., Ltd. (Japan), and American Gypsum Company, LLC (US) and others are the top manufacturers covered in the synthetic gypsum market. Expansions, mergers & acquisitions, new product launches and deals were some of the major strategies adopted by these key players to enhance their positions in the synthetic gypsum market. A major focus was given to the expansions and deals.

Synthetic Gypsum Market Scope

This research report categorizes the synthetic gypsum market based on material type, end-use industry,  application, and region.

Synthetic Gypsum Market, By Type

• FGD Gypsum
• Phosphogypsum
• Citrogypsum
• Fluorogypsum
• Other Types

Synthetic Gypsum Market, By Applications

• Cement
• Building Materials
• Gypsum Board
• Soil Amendments
• Dental
• Other Applications

Synthetic Gypsum Market By Region

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa

Recent Developments

• In February 2023, Knauf España expanded its range of oversized gypsum wallboard systems with the introduction of its new Maxiboard boards. The company stated that the 900 mm thickness of these boards enables a 30% reduction in the need for studs, screws, and joint treatments during installation. Maxiboard boards are ideal for use in large spaces such as shopping centers, cinemas, and data centers.
• In June 2023, Knauf Group, signed an agreement with the government of the Zhambyl region in Kazakhstan to build a gypsum wallboard and dry-building mixtures plant.
• In June 2022, Knauf agreed to acquire a new plasterboard manufacturing plant in Newport, South Wales, from Gypfor. This investment is expected to boost Knauf’s UK gypsum-based building materials production by 20%. This plant is located at the Associated British Ports port of Newport.
• gypsum plant with USD 1.1 million in new recycling technology. This upgrade is expected to boost recycled content in wallboard products by 18,000 tons annually and cut carbon dioxide emissions by 2,260 tons per year.

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