Synthetic Gypsum Market Size, Share & Trends Analysis Report By Product Type (Flue Gas Desulfurization (FGD) Gypsum, Fluorogypsum, Phosphogypsum), By Application (Drywall, Cement, Soil Amendments), By Region, And Segment Forecasts, 2024 - 2030

Synthetic Gypsum Market Size & Trends

The global synthetic gypsum market size was estimated at USD 2.01 billion in 2023 and is projected to grow at a CAGR of 3.9% from 2024 to 2030. The market growth is expected to be driven by exponential growth in construction activities across the globe on account of improving financial conditions and rapid industrialization. In addition, governments of various developing as well as developed countries are emphasizing developing infrastructure, which is further driving the product demand. Synthetic gypsum is used in the construction sector for various applications, including plasters, cement, and drywall. The limited resources and reserves in various countries to obtain natural gypsum are propelling synthetic gypsum production to meet growing demand.

Synthetic gypsum is also known as artificial gypsum, which is obtained by different by-products of industrial processing. It is made of calcium sulfate dihydrate and possesses the same characteristics as natural gypsum. In addition, rising emphasis on the construction of green and energy-efficient buildings is boosting market growth. Synthetic gypsum is an energy-efficient product that is used to insulate buildings and lessen the energy usage of overall structures.

Furthermore, it is ideal for thermal insulation on account of its superior ability to absorb noise and sound. The benefits of product usage in the agriculture sector are expected to offer new growth opportunities to market players. With a richness of sulfur, the product is an ideal source for plant nutrition. Moreover, it is used to enhance the soil structure and aggregation and reduce dispersion in soil.

Market Concentration & Characteristics

The market growth stage is low, and the pace of its growth is accelerating. The industry is fragmented on account of the involvement of many large- and small-scale players with significant production capacities and distribution networks. The market players compete on the basis of product quality, services, and regional presence.

The industry is characterized by a high degree of innovation in terms of technology, production process, and use of raw materials. The manufacturers in the market are exploring different materials and technologies to produce synthetic gypsum to further reduce the negative impact on the environment. This is expected to offer new growth opportunities for the industry players.

There are several product substitutes, such as natural gypsum, recycled gypsum, limestone, silica fume, and several other industrial byproducts. These products can be used in place of synthetic gypsum in some applications. For instance, limestone can be used in soil amendment and waste management applications of synthetic gypsum. However, with a growing emphasis on sustainability, the adoption of synthetic gypsum in various applications is expected to increase.

Product Type Insights

The flue-gas desulfurization (FGD) gypsum product type segment led the market with a revenue share of 36.7% in 2023 and is expected to grow at a significant CAGR from 2024 to 2030. The FGD product type is considered ideal for the production of several construction materials, such as cement and plasters. It is also gaining attraction in the agriculture sector to be used as fertilizer for the improvement of crop yields. In addition, low production costs coupled with easy production processes are further boosting its demand.

The phosphogypsum product type segment accounted for the second-largest market share in 2023 and is expected to grow at a significant CAGR of 3.7% from 2024 to 2030. This growth can be attributed to the rising production in agriculture, which is leading to the demand for phosphogypsum, which is a fertilizer production byproduct. In addition, rising environmental awareness has propelled the manufacturers to develop new production techniques for manufacturing phosphogypsum to reduce the negative impact on the environment, therefore making it an ideal solution in place of natural gypsum.

Application Insights

The drywall end-use application segment dominated the market with a revenue share of 47.3% in 2023 and is expected to grow at a CAGR of 3.6% from 2024 to 2030. This growth can be attributed to the adoption of drywall in commercial and residential sectors, as it is considered to be a cost-effective solution compared to plasters and bricks. Furthermore, drywall is highly preferred for interior ceiling and wall applications. Rising construction activities across the globe due to rapid urbanization in developing economies are further increasing the demand for drywall, leading to market growth. In addition, the fire resistance property of drywall makes it an ideal option for institutional and commercial structures.

Therefore, rising demand for drywall is anticipated to fuel product demand. The soil amendments application segment is anticipated to grow at the fastest CAGR of 4.5% from 2024 to 2030. The product application in soil amendments is expected to grow as the agriculture industry is seeking new and innovative ways to support sustainability and utilize the by products of industries. Furthermore, synthetic gypsum offers versatile, sustainable, and cost-effective solutions for the application, which helps increase plant growth and soil fertility. This is expected to positively impact the product demand.

Regional Insights

The synthetic gypsum market in North America accounted for the maximum revenue share of 27.6% in 2023 and is projected to expand further at the fastest CAGR of 4.7% from 2024 to 2030. Increasing population and rapid urbanization in North America are boosting the demand for residential, commercial, and industrial structures, leading to increased product demand.

U.S. Synthetic Gypsum Market Trends

The U.S. synthetic gypsum market dominated the North America regional market in 2023. The construction industry in the U.S. is witnessing growth on account of the rising construction of new residential units as well as commercial spaces, which is expected to drive product demand in the country.

The synthetic gypsum market in Mexico is expected to grow at a significant CAGR from 2024 to 2030 on account of the exponential growth witnessed by the country’s construction sector. This can be attributed to the increasing population and rapid urbanization in the country. The growing population is creating a high demand for residential and commercial spaces, in turn, driving the product demand.

Asia Pacific Synthetic Gypsum Market Trends

The Asia Pacific synthetic gypsum market is expected to grow at the second-fastest CAGR of 4.2% from 2024 to 2030. The region has many developing as well as developed economies, such as India, China, Japan, and Bangladesh. Countries in the region are witnessing growth in infrastructural development, which is driving the product demand.

The synthetic gypsum market in China accounted for the largest revenue share in the Asia Pacific synthetic gypsum market for the year 2023. The country has emerged as one of the promising markets in Asia Pacific due to the presence of favorable government policies that promote investments in the construction sector.

The India synthetic gypsum market being a developing country, witnesses large projects for infrastructure developments to further boost economic growth. In addition, increasing per capita income of consumers, rising population, and growing urbanization are boosting the demand for commercial and residential buildings. Therefore, this is expected to increase the product demand.

Europe Synthetic Gypsum Market Trends

The synthetic gypsum market in Europe is anticipated to grow at a CAGR of 3.8% from 2024 to 2030. The region comprises many developed economies, such as Germany, the UK, Russia, Italy, and France, with well-established construction sectors, which are expected to boost product demand.

The Germany synthetic gypsum market is witnessing rapid growth on account of increasing investments in the sector. The factors driving investments include favorable government incentives and resource efficiency in terms of raw materials, along with the presence of a circular economy. This is expected to fuel market growth.

Middle East & Africa Synthetic Gypsum Market Trends

The synthetic gypsum market in Middle East & Africa is expected to grow at a significant rate over the forecast years owing to the growing construction industry as a result of rapid urbanization and increased investment in the region.

The Saudi Arabia Synthetic gypsum market is expected to witness high product demand on account of increasing public and private investment in the construction sector, such as the Neom City and Red Sea projects.

Central & South America Synthetic Gypsum Market Trends

The synthetic gypsum market in Central & South America is witnessing rapid urbanization and growth in population in emerging economies, such as Argentina, Brazil, and Peru. This is augmenting the growth of the regional construction sector, thereby, propelling product demand.

The Brazil synthetic gypsum market is anticipated to grow due to the expanding construction industry on account of the rapid urbanization and increasing purchasing power of individuals.

Key Synthetic Gypsum Company Insights

Some of the key players operating in market are USG Corporation and Knauf Gips KG.

• USG Corporation is a U.S.-based company involved in manufacturing roofing, sheathing, flooring, walls, and ceiling products for the construction sector. It operates 49 manufacturing units with 6,900 employees across North America

• Knauf Gips KG is a Germany-based company that manufactures systems for facades, plaster, flooring, and drywalls. Its products offer protection for ceilings, walls, and floors

American Gypsum Company, LLC and Georgia-Pacific Gypsum LLC are some of the emerging participants in the market.

• American Gypsum Company, LLC is a U.S.-based company that is involved in the production and distribution of gypsum wallboard products. The company's products are categorized in the pointers as regular/non-fire-rated, fire-rated, mold & moisture-resistant, and factory-built housing

• Georgia-Pacific Gypsum LLC manufactures sustainable and durable building materials for roofs, ceilings, walls, and exterior sheathing. The company operates through various brands, which are divided into gypsum and wood categories. Furthermore, its gypsum products find application in interior and exterior ceilings & walls and commercial roofs

Recent Developments

• In October 2023, Valmet was assigned an order to design and supply FGD gypsum for the application of petroleum refinery in India. The product is expected to help the purchases reduce sulfur oxide emissions, thereby leading to lower air pollution

• In July 2020, Dolina Nidy Sp.z.o.o expanded its production capacity for flue gas desulphurization (FGD) gypsum with a flash dryer system

Synthetic Gypsum Market Report Scope

Global Synthetic Gypsum Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the synthetic gypsum market report based on product type, application, and region:

• Product Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Flue Gas Desulfurization (FGD) Gypsum

  • Fluorogypsum

  • Phosphogypsum

  • Citrogypsum

  • Others

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Drywall

  • Cement

  • Soil Amendments

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia