Gypsum & Drywall Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Gypsum Board, Gypsum Plaster, Gypsum Ceiling Tiles, Gypsum Blocks, Others), By Application (Residential, Commercial, Industrial, Infrastructure), By Distribution Channel (Direct Sales, Retail Sales, Wholesale Distribution), By Region & Competition, 2020-2030F

Market Overview

Global Gypsum & Drywall Market was valued at USD 47.24 Billion in 2024 and is expected to reach USD 68.19 Billion by 2030 with a CAGR of 6.15% during the forecast period.

The global Gypsum & Drywall market has witnessed significant growth due to the increasing demand for sustainable, energy-efficient, and fire-resistant building materials in the construction industry. Gypsum, as a versatile and eco-friendly material, has become a preferred choice for walls and ceilings in residential, commercial, and industrial buildings. The demand for drywall products is primarily driven by the growth of the construction sector, particularly in emerging economies where urbanization and infrastructure development are booming. Gypsum boards, plasterboards, and drywall systems offer numerous advantages, including fire resistance, sound insulation, ease of installation, and environmental benefits, making them indispensable in modern construction.

The rising trend of green and sustainable buildings further boosts the demand for gypsum and drywall products. Governments across the globe are emphasizing energy efficiency, and construction companies are increasingly opting for materials that contribute to better thermal insulation and energy-saving structures. Gypsum’s natural composition also makes it a sustainable choice, as it is abundantly available and recyclable, which aligns with global sustainability goals.

Key Market Drivers

Growing Construction and Infrastructure Development

The expanding construction and infrastructure industry is a significant driver for the global gypsum and drywall market. Urbanization, especially in emerging economies, has led to a surge in residential and commercial building projects. For instance, in 2023, approximately 75% of the global gypsum production was directed toward construction applications, particularly in housing, offices, and industrial facilities. In emerging markets like India and China, significant infrastructure development has propelled the demand for gypsum-based products due to their fire-resistant, cost-effective, and eco-friendly properties. Furthermore, as urban populations increase, governments are ramping up efforts to accommodate the growing housing demand. This boosts the use of drywall and gypsum products for creating sustainable and energy-efficient buildings. In developed regions like North America and Europe, the trend of renovating older buildings also fuels demand for gypsum-based products due to their ability to meet stringent building codes, particularly for fire safety and acoustic performance.

Rising Demand for Sustainable and Energy-Efficient Buildings

Sustainability has become a cornerstone of the modern construction sector. Increasing regulatory pressure to reduce carbon footprints and promote energy-efficient building practices is pushing the construction industry to adopt eco-friendly materials such as gypsum and drywall. Gypsum is naturally abundant and recyclable, contributing to green building certifications such as LEED (Leadership in Energy and Environmental Design). Furthermore, drywall products with better insulation properties reduce the need for additional energy consumption. The demand for energy-efficient buildings is evident in the 2023 global push for net-zero buildings, with the demand for gypsum-based materials rising by 20% in green buildings over traditional construction methods.

Technological Advancements in Drywall Products

The continuous advancements in drywall technology, such as moisture-resistant, fire-resistant, and soundproof drywall systems, are propelling market growth. Manufacturers are increasingly focusing on developing specialized drywall solutions that cater to specific market needs. For example, moisture-resistant gypsum boards have seen a 15% increase in demand over the past two years due to their high utility in wet areas like bathrooms, kitchens, and basements. Fire-resistant drywall, which can withstand high temperatures for extended periods, is also experiencing rapid growth, particularly in commercial buildings. These innovations ensure the durability and safety of gypsum products, making them an attractive option in residential, commercial, and industrial construction.

Increasing Focus on Fire Safety Standards

Fire safety is a growing concern in the construction industry, with stringent building regulations mandating the use of fire-resistant materials. Gypsum-based drywall products are considered the best solution for improving fire safety due to their non-combustible properties. The U.S. fire safety regulations, for example, require drywall systems to meet specific fire resistance standards for use in commercial buildings. In Europe, gypsum drywall systems are integral to meeting fire protection norms in both residential and commercial buildings. The rising number of fire incidents in high-rise buildings and industrial complexes further strengthens the market for gypsum products designed to withstand fire hazards. In the United States, for instance, demand for fire-resistant drywall products increased by 10% in 2023 compared to previous years, signaling a robust shift toward safer building practices.

Increased Focus on Aesthetic and Acoustic Performance

The growing demand for aesthetically pleasing and acoustically efficient buildings has significantly driven the gypsum and drywall market. Gypsum products are widely used in both residential and commercial construction for their ability to provide smooth, durable, and visually appealing surfaces. Additionally, drywall systems with enhanced acoustic properties are increasingly sought after in office spaces, theaters, and residential buildings to reduce noise transmission. In 2023, the demand for soundproof drywall systems in office and residential buildings rose by 18%, as architects and interior designers are prioritizing noise control. Furthermore, advanced finishing technologies and custom drywall solutions are allowing for more intricate designs in commercial and high-end residential spaces, driving growth in the gypsum product segment.

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Key Market Challenges

Volatility in Raw Material Prices

The gypsum and drywall industry is significantly influenced by fluctuations in the cost and availability of raw materials such as natural gypsum, synthetic gypsum (from industrial byproducts), and additives used in board manufacturing. These price variations are often driven by global supply-demand imbalances, trade restrictions, and mining regulations. In 2023, the price of natural gypsum rose by approximately 12% globally, largely due to increased energy costs and supply chain disruptions. These cost surges directly impact manufacturers' profit margins and can hinder production scalability.

Additionally, the extraction and transportation of gypsum involve energy-intensive processes, which means price swings in oil and gas markets often translate into increased production costs. For example, in regions reliant on imported gypsum, like Southeast Asia, any supply chain bottleneck or port congestion can delay deliveries and increase costs. The situation worsens when energy prices spike, impacting both the cost of mining and processing gypsum.

Manufacturers often struggle to pass these cost increases onto customers due to high competition in the market, which keeps pricing pressure intense. Consequently, companies either absorb the cost increases, affecting profitability, or reduce investments in R&D and innovation. Long-term planning becomes challenging, making companies more risk-averse to expansion. Therefore, managing raw material price volatility is a persistent challenge that affects the entire supply chain of the gypsum and drywall market.

Environmental Regulations and Disposal Issues

Gypsum is widely considered an eco-friendly material due to its recyclability, but the manufacturing process still presents significant environmental challenges. The production of drywall involves processes that emit carbon dioxide (CO₂), and improper disposal of gypsum waste can lead to hydrogen sulfide (H₂S) emissions—a toxic gas that poses risks to both human health and the environment.

Stringent environmental regulations, especially in Europe and North America, require manufacturers to invest heavily in emission-control systems and recycling infrastructure. Compliance with these regulations often increases operational costs and limits the ability of smaller manufacturers to compete effectively. In 2023, regulatory fines and compliance costs in the European market led to an average 8% increase in overhead for small-to-medium manufacturers, reducing their competitiveness.

Moreover, drywall disposal presents a growing issue. Construction and demolition sites generate massive amounts of gypsum waste, much of which ends up in landfills. Landfill bans on gypsum waste in some regions, such as Germany and parts of the United States, further complicate disposal, requiring specialized recycling solutions that are costly and logistically complex.

Despite efforts to promote gypsum recycling, the adoption of closed-loop systems remains low due to high capital investment requirements. This adds another layer of complexity for market players aiming to align with sustainability targets while maintaining profitability. Thus, environmental concerns and regulatory compliance are substantial barriers to long-term market expansion.

Competition from Alternative Materials

The gypsum and drywall market faces stiff competition from alternative construction materials such as fiber cement boards, wood panels, magnesium oxide boards, and modular construction systems. These materials often provide superior durability, moisture resistance, or fire performance in specific applications, making them attractive substitutes, especially in commercial and industrial projects.

For instance, magnesium oxide boards are gaining popularity in areas prone to humidity or extreme temperature variations due to their mold and fire resistance. In 2023, the global market for magnesium oxide boards grew by 14%, highlighting the rising competition faced by gypsum-based products. Additionally, the growing trend of modular construction, which often uses prefabricated panels, reduces the need for conventional drywall systems.

Alternative materials are also supported by innovation and aggressive marketing, especially from startups and niche players targeting eco-conscious builders. The lower installation time and reduced maintenance of some alternatives appeal to project developers under tight budgets and schedules. In regions like the Middle East and Southeast Asia, fiber cement boards are being widely adopted for exterior and wet area applications, gradually eating into the market share of gypsum.

As these substitutes gain market trust and regulatory acceptance, the challenge for gypsum and drywall manufacturers is to differentiate through value-added products, cost efficiency, or sustainability. Failing to innovate or educate end-users about gypsum's advantages may result in market stagnation in competitive segments.

Labor Shortages and Installation Complexity

While gypsum drywall systems are widely used, they still require skilled labor for proper installation. Incorrect installation can lead to issues such as cracks, weak joints, or poor acoustic performance, affecting both aesthetics and functionality. The global shortage of skilled construction labor is particularly acute in regions like North America, Western Europe, and Japan, where the aging workforce and declining interest in vocational trades present significant hurdles.

In 2024, construction companies in the U.S. reported a 30% shortfall in qualified drywall installers, delaying project timelines and increasing labor costs. This shortage not only reduces the adoption rate of gypsum-based products but also compels contractors to choose alternatives that are easier and faster to install, even if they are more expensive.

Furthermore, specialized drywall types—such as soundproof or fire-rated boards—require higher precision and expertise during installation. This complexity often discourages adoption in markets with low-skilled labor availability. As construction technology advances, the need for multi-skilled workers capable of integrating drywall systems with modern building designs also increases.

While some manufacturers are introducing pre-finished boards or modular solutions to ease installation, these innovations are yet to achieve mass adoption due to cost and compatibility concerns. Therefore, the lack of skilled labor remains a bottleneck in ensuring the quality and growth of drywall applications, especially in mid-tier and rural construction markets.

Geopolitical Uncertainty and Trade Barriers

Global gypsum and drywall trade is vulnerable to geopolitical tensions, trade disputes, and export restrictions, especially since raw gypsum and finished boards are traded across borders extensively. Major exporters such as Oman, Iran, and Thailand have witnessed export disruptions due to diplomatic conflicts or shifting trade policies.

For instance, in 2022–2023, temporary export bans and rising freight rates from Southeast Asian gypsum exporters affected supply chains in India and parts of Africa. These interruptions caused a 9% delay in project completion rates in India’s affordable housing sector. Similarly, U.S.-China trade tensions have impacted the import of Chinese-manufactured drywall components, forcing U.S. buyers to seek alternative—and often more expensive—sources.

Additionally, countries introducing protectionist policies to promote domestic manufacturing often impose import tariffs or modify quality standards, creating non-tariff barriers for foreign suppliers. This reduces market accessibility and raises operational uncertainty for global players.

Geopolitical instability in sourcing nations also affects long-term agreements and pricing structures, pushing companies to maintain larger inventories or diversify their supplier base, both of which increase costs. As a result, geopolitical and trade-related disruptions remain a critical external challenge, especially for manufacturers and distributors operating in multiple regions with varying regulatory landscapes.

Key Market Trends

Rising Integration of Digital Construction Technologies

The global gypsum and drywall market is witnessing a trend toward digital transformation with the adoption of Building Information Modeling (BIM), digital twins, and other advanced construction technologies. These innovations enable better design planning, materials optimization, and construction accuracy—essential aspects in large-scale commercial and infrastructure projects.

BIM, in particular, is being used extensively in developed regions like Europe and North America, where 80% of public projects mandate its implementation. The integration of gypsum drywall specifications into BIM systems allows for better visualization, cost estimation, and coordination across project teams. It also improves the lifecycle management of buildings by accurately documenting wall components and their maintenance schedules.

Digital solutions are also aiding manufacturers in customizing drywall products tailored to specific projects. For instance, the use of AI and IoT in drywall manufacturing is enhancing the consistency and performance of products. In 2024, more than 25% of top gypsum and drywall companies have started using digital manufacturing platforms for better quality control and inventory management.

This trend is not just limited to high-income countries. Middle-income nations such as India and Brazil are adopting digital construction methods at a growing pace, driven by the dual need for speed and quality. With digital construction becoming the norm, gypsum and drywall systems are becoming more data-driven and performance-optimized than ever before.

Surge in Renovation and Retrofit Activities

Renovation and retrofitting of old buildings are significantly fueling the demand for gypsum and drywall products globally. Aging infrastructure in developed nations and increasing urban densification are driving the need to modernize existing structures. Gypsum drywall is ideal for these applications due to its quick installation, aesthetic appeal, and thermal/acoustic performance benefits.

In the United States and Europe, renovation activities account for nearly 50% of construction spending. The shift toward energy-efficient buildings is further propelling the adoption of new drywall systems with better insulation properties. Products such as gypsum-based soundproof and fire-resistant boards are preferred in projects seeking to meet updated regulatory codes and green certifications.

Developers are using drywall systems to modernize interiors, reduce noise levels, and improve fire safety in older homes, offices, and commercial establishments. In 2023 alone, there was a 15% year-over-year increase in the demand for gypsum wallboards in the European refurbishment market.

The trend is also visible in emerging markets where urban centers are transforming older industrial zones into mixed-use developments. Retrofitting with modern drywall solutions not only improves structural aesthetics but also ensures compliance with new urban planning norms. As the renovation wave continues globally, especially in urban areas, it is likely to remain a key growth vector for the gypsum and drywall market.

Growing Popularity of Multi-Functional Drywall Solutions

Another evolving trend is the increasing demand for multi-functional drywall products that offer features such as fire resistance, moisture resistance, soundproofing, and impact resistance—all in one board. These value-added solutions are gaining traction in complex construction projects like hospitals, schools, data centers, and hospitality sectors, where performance criteria are high.

In 2024, the adoption rate of multi-functional drywall has increased by 20% compared to 2021, with demand strongest in institutional and healthcare construction. For example, gypsum boards integrated with antimicrobial coatings are being used extensively in healthcare and laboratory settings to meet hygiene standards. Similarly, sound-insulated and vibration-absorbing boards are finding favor in schools, hotels, and luxury apartments.

Manufacturers are investing in R&D to develop these hybrid drywall boards, often blending gypsum with fiberglass or specialty polymers. These innovations enable contractors to meet multiple design specifications with fewer materials, streamlining construction while enhancing overall performance.

As building designs become more complex and specialized, the need for multi-functional wall systems will grow. This trend is set to redefine market dynamics, shifting focus from commodity drywall products to high-performance, differentiated offerings that align with modern building codes and occupant comfort requirements.

Increasing Use of Recycled Gypsum and Circular Economy Practices

Sustainability and circular economy practices are shaping the direction of the gypsum and drywall industry. As environmental regulations tighten and the construction sector moves toward low-carbon solutions, recycled gypsum is gaining prominence. Leading manufacturers are now integrating recycled content into drywall boards, reducing dependence on virgin raw materials and lowering CO₂ emissions.

Currently, about 15-20% of global gypsum board production uses recycled gypsum, and this figure is expected to rise as collection and processing technologies improve. In Europe, for instance, regulations mandate gypsum waste from construction and demolition to be recycled rather than landfilled, driving innovation in recycling systems.

Some companies have introduced take-back programs, where used drywall is collected, processed, and reintroduced into the production cycle. These practices not only help manufacturers meet sustainability targets but also reduce raw material costs. Governments and green building certifications are also encouraging this shift by rewarding recycled content in materials with tax incentives or LEED points.

The trend is particularly strong in North America and Europe, with growing interest in Asia-Pacific markets as well. As awareness of environmental responsibility spreads across stakeholders—from builders and designers to end users—the integration of recycled gypsum will become a mainstream requirement in the global drywall supply chain.

Segmental Insights

Product Type Insights

Gypsum Plaster segment dominated in the Global Gypsum & Drywall market in 2024 due to its superior performance, ease of application, and growing preference in modern construction practices. Gypsum plaster has gained widespread adoption as a more efficient and high-quality alternative to traditional cement plaster, especially in residential and commercial projects that demand smooth finishes and faster turnaround times.

One of the key factors driving this dominance is the significant time savings gypsum plaster offers. Unlike cement plaster, which requires days to cure before painting or further construction work, gypsum plaster dries within hours and allows for immediate finishing. This has led to its increased use in fast-track projects, particularly in urban settings where construction deadlines are tight and labor costs are high.

The growing trend toward green building materials is another major reason for gypsum plaster's dominance. It is a low-emission, non-toxic material that contributes to indoor air quality and thermal insulation, making it popular among developers aiming for LEED or other sustainability certifications. Additionally, gypsum plaster is more fire-resistant and provides better acoustic performance than traditional alternatives, which is particularly important in high-density housing and office environments.

In India and the Middle East, where rapid urbanization is pushing demand for quick and efficient building materials, gypsum plaster adoption has grown by over 30% in the past two years. Construction companies and contractors increasingly prefer ready-to-use gypsum plaster because it reduces on-site waste, minimizes material handling, and improves project cost efficiency.

Manufacturers are also offering pre-mixed formulations and value-added plasters with enhanced workability, bonding strength, and setting time customization, further expanding the product’s appeal. Given its multi-faceted benefits, the gypsum plaster segment is expected to maintain its leadership position as the material of choice for interior wall and ceiling finishing across global markets.

Application Insights

Commercial segment dominated in the Global Gypsum & Drywall market in 2024 due to the surge in large-scale infrastructure and commercial construction projects worldwide. Increasing demand for office spaces, retail outlets, hotels, hospitals, and educational institutions is fueling the use of drywall and gypsum products for efficient interior finishing. These materials offer superior sound insulation, fire resistance, and faster installation, making them ideal for commercial settings. Additionally, rising emphasis on sustainable and modular construction in the commercial sector has driven the adoption of drywall systems, which reduce labor costs and construction time while enhancing overall building performance.

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Regional Insights

Largest Region

North America dominated the Global Gypsum & Drywall market in 2024 primarily due to its robust construction industry, technological advancements, and increasing renovation activities. The region, particularly the United States, has witnessed steady growth in both residential and non-residential construction, including commercial offices, healthcare facilities, and institutional buildings. This sustained development fuels the demand for efficient, cost-effective, and aesthetically flexible building materials such as gypsum boards and drywall systems.

The region’s mature infrastructure and aging buildings have led to a rise in renovation and remodeling projects, especially in urban and suburban areas. Drywall is widely used in these renovations because it offers ease of installation, fire resistance, and sound insulation. Additionally, the do-it-yourself (DIY) culture in North America significantly contributes to the market dominance, with a high uptake of easy-to-install drywall systems by homeowners and hobbyists.

North America also benefits from the presence of leading global manufacturers like USG Corporation, Georgia-Pacific, and National Gypsum, who continuously innovate in product offerings such as moisture-resistant, soundproof, and lightweight gypsum boards. These advancements align with evolving building codes and energy efficiency standards, promoting market growth.

Furthermore, strict regulatory standards in the U.S. and Canada regarding building materials emphasize fire safety, sustainability, and thermal performance. Drywall systems, especially those using gypsum plaster and eco-friendly components, are preferred for meeting these standards. There is also a growing trend towards green building certifications, such as LEED, which encourage the use of recyclable and low-emission construction materials.

With ongoing infrastructure investments under government stimulus programs, coupled with the region’s focus on energy-efficient and sustainable construction practices, North America is well-positioned to maintain its leading role in the global gypsum and drywall market in the foreseeable future.

Emerging Region

Europe was the emerging region in the Global Gypsum & Drywall market in the coming period due to increasing investments in energy-efficient buildings and sustainable construction practices. Governments across the region are promoting green building codes and renovation programs to reduce carbon emissions, which is driving demand for lightweight, fire-resistant, and recyclable materials like gypsum and drywall. Additionally, the growth of the residential and commercial real estate sectors, especially in Eastern Europe, combined with EU directives on building sustainability, supports market expansion. Innovations in drywall solutions and rising adoption of prefabricated construction methods further strengthen Europe’s position as a growing player in this market.

Recent Developments

• In October 2024, Knauf India has become one of the first companies to comply with new government regulations requiring gypsum-based building materials to meet stringent Indian Standards Institution (ISI) norms. Known for its innovative drywall systems, plasterboards, and gypsum ceilings, Knauf continues to lead the industry by adhering to these enhanced quality standards, reinforcing its commitment to delivering superior construction solutions in India.
• In December 2023, Saint-Gobain Gyproc launched a new range of products, including 'Habito Standard' gypsum wallboard for heavy loading applications, 'Rigiroc' moisture-resistant boards, and 'Glasroc X' wallboards for exterior use, alongside a new ceiling tile product. This product expansion aims to meet diverse market needs while enhancing the company’s portfolio with advanced, high-performance building materials designed for residential and commercial applications.
• In April 2024, Maxxon Corporation has entered into a strategic collaboration with Empire Mining Co., LLC, a premier gypsum mine and underlayment provider in the Western United States. This partnership boosts Maxxon's production capabilities, especially for its flagship Gyp-Crete gypsum floor underlayment line. The collaboration marks a significant milestone in strengthening production and market supply for underlayment solutions.

Key Market Players

• USG Corporation
• Knauf Group
• Saint-Gobain
• National Gypsum Company
• Georgia-Pacific LLC
• Etex Group
• LafargeHolcim
• Boral Limited
• Siniat (Etex Group)
• Beijing New Building Material (BNBM)

Report Scope:

In this report, the Global Gypsum & Drywall Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Gypsum & Drywall Market, By Product Type:

o   Gypsum Board

o   Gypsum Plaster

o   Gypsum Ceiling Tiles

o   Gypsum Blocks

o   Others

• Gypsum & Drywall Market, By Application:

o   Residential

o   Commercial

o   Industrial

o   Infrastructure

• Gypsum & Drywall Market, By Distribution Channel:

o   Direct Sales

o   Retail Sales

o   Wholesale Distribution

• Gypsum & Drywall Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  Germany

§  France

§  United Kingdom

§  Italy

§  Spain

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Asia-Pacific

§  China

§  India

§  Japan

§  South Korea

§  Australia

o   Middle East & Africa

§  Saudi Arabia

§  UAE

§  South Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Gypsum & Drywall Market.

Available Customizations:

Global Gypsum & Drywall Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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