(MENAFN- EIN Presswire) EINPresswire/ -- The global gypsum market is witnessing steady expansion, driven by growing demand for sustainable and cost-efficient construction materials. The market is projected to reach USD 68.6 billion by 2035, up from an estimated USD 36.2 billion in 2025, registering a CAGR of 6.6% over the forecast period.

This growth is propelled by the surging adoption of gypsum-based materials in construction, agriculture, and industrial manufacturing. As sustainability, circular economy initiatives, and green building codes gain momentum, gypsum's recyclability, fire resistance, and thermal efficiency are positioning it as a vital component of modern infrastructure systems.

Construction Sector Remains Core Growth Driver

Gypsum's versatility-ranging from plasterboard and ceiling systems to soil conditioning and cement blending-continues to reinforce its market position. The construction and building materials segment holds over 60% of total demand, supported by large-scale urbanization projects across developing economies.

In 2025, gypsum board and plaster applications dominate consumption, driven by growing use in residential and commercial interiors. Rapid construction activities in Asia Pacific and Middle Eastern regions are expected to further accelerate market adoption. Meanwhile, growing awareness of lightweight, energy-efficient walling solutions is pushing both traditional and synthetic gypsum products into the spotlight.

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Regional Analysis: Market Growth Across Key Economies

Asia-Pacific (APAC)

The APAC region remains the largest and fastest-growing gypsum market, expected to capture over 40% of global demand by 2035.
China, India, and Vietnam continue to drive production and consumption, supported by high construction output, population growth, and infrastructure modernization.
India's booming residential sector, supported by government-led housing initiatives, is projected to witness a CAGR exceeding 7.4%, while China's industrial construction and renovation projects continue to absorb massive gypsum volumes for drywall and cement production.

Additionally, environmental regulations in APAC are promoting synthetic gypsum production, derived from flue gas desulfurization (FGD) processes, reducing dependency on natural gypsum mining and aligning with regional sustainability mandates.

Europe

In Europe, the gypsum market is characterized by advanced recycling infrastructure, strong circular economy initiatives, and stringent sustainability standards.
Countries such as Germany, France, and the UK are leading innovation in low-carbon gypsum board manufacturing, while the European Union's push toward net-zero construction is stimulating demand for recycled and synthetic gypsum variants.
Europe's gypsum consumption is forecast to expand at a steady CAGR of 3.8% through 2035, with continued focus on reducing CO2 emissions in building materials and promoting energy-efficient retrofitting projects.

United States

The United States gypsum market is poised for significant growth, supported by the country's dynamic housing market and increased investment in commercial renovation.
With infrastructure renewal programs gaining momentum and the adoption of modern drywall systems increasing, the U.S. is projected to account for approximately 20% of global gypsum demand by 2035.
The nation's gypsum production capacity is bolstered by advanced quarrying and synthetic gypsum recovery technologies, particularly in the Midwest and Southern regions.
Rising construction of green-certified buildings, coupled with rising preference for eco-labeled gypsum boards, continues to shape product innovation in the country.

Saudi Arabia & GCC Region

Saudi Arabia is emerging as a vital growth hub for gypsum due to massive investments under Vision 2030, which prioritizes infrastructure diversification beyond oil.
The nation's construction sector-particularly large-scale housing, commercial, and industrial developments-is driving increased consumption of gypsum boards and plasters.
The Middle East gypsum market is expected to expand at a CAGR of X.X%, supported by rising demand in the UAE and Qatar as well.
Local production capacities are expanding, with several gypsum manufacturers investing in energy-efficient kilns and advanced calcination systems to meet both domestic and export demand.

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Market Segmentation: Type, Application, and End-Use

By Type:

- Natural Gypsum: Continues to dominate due to abundant availability and cost-effectiveness, representing over 60% of total market share in 2025.
- Synthetic Gypsum: Gaining traction in developed markets as an eco-friendly alternative, expected to grow at a CAGR of X.X% through 2035.

By Application:

- Wallboard and Plaster: Account for more than 50% of the total market, driven by lightweight construction demand.
- Cement Production: Represents another major use, with gypsum acting as a key regulator in cement hydration.
- Agriculture: Increasing adoption as a soil conditioner to improve nutrient absorption and water infiltration.

By End Use:

- Residential and Commercial Construction remain the dominant end-use segments.
- Industrial and Infrastructure Projects are seeing rising demand, particularly in fast-urbanizing nations.

Key Market Dynamics

Growth Drivers:

- Urbanization and infrastructure expansion in emerging economies.
- Increasing emphasis on sustainable and recyclable materials.
- Rising investments in housing and commercial developments.

Challenges:

- Price volatility of raw materials.
- Environmental regulations affecting mining operations.
- Energy costs in gypsum processing and calcination.

Opportunities:

- Expansion of synthetic gypsum derived from industrial by-products.
- Growing demand for energy-efficient walling systems.
- Technological innovations in lightweight gypsum composites and prefabricated solutions.

Technological Advancements and Industry Innovations

Automation, digital manufacturing, and the integration of smart production technologies are reshaping the gypsum market.
From AI-enabled process control systems in calcination to closed-loop recycling in gypsum board production, modern manufacturing is becoming more resource-efficient and sustainable.
Advances in gypsum-polymer composites, self-healing plasters, and water-resistant panels are further enhancing product performance for both interior and exterior applications.

Manufacturers are also investing in carbon capture and utilization (CCU) systems, aligning with international environmental commitments while improving profitability through waste minimization.

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