Australia Drywall Market Size, Share and Forecast Trends - Growth Analysis and Outlook Report (2026-2035)

Key Market Trends and Insights

• The drywall market in Australian Capital Territory is expected to grow at a CAGR of 6.4% over the forecast period.
• The Queensland drywall market accounted for 19.1% of the total market share in 2025.
• By product, the pre-decorated board category is expected to record a CAGR of 6.9% over the forecast period.
• By application, pre-engineered building materials are projected to grow at a CAGR of 7.8% during the forecast period.

Market Size and Forecast

• Market Size in 2025: AUD 954.15 million
• Projected Market Size in 2035: AUD 1692.69 million
• CAGR from 2026 to 2035: 5.90%
• Dominant Regional Market: Western Australia

Development of multi-residential units in Sydney and Melbourne is one factor that is increasing the demand for fire-rated partition systems, boosting the overall Australia drywall market growth. In addition, hospital and transport projects supported by the government are increasing the demand for high-impact-resistant drywall solutions which are meant for a long lifecycle performance. Moreover, tighter building codes and higher sustainability requirements are leading drywall manufacturers to produce low-VOC boards, and recyclable gypsum cores. Project tracking through digital means, the integration of BIM, and contractor training programs are turning into competitive differentiators.

In August 2024, CSR Limited revealed plans to upgrade the capacity of its Gyprock plasterboard factory in New South Wales, which would also involve the integration of lower-carbon manufacturing processes and automated board handling systems. The decision coincided with the rebound in the country’s residential construction. According to the Australia drywall market analysis, total dwelling approvals for 2025 reached 195,731, a 12.8% increase from 172,457 approvals in 2024, indicating a continued pipeline activity even in the face of cost pressures. Companies are increasingly focused on helping commercial contractors achieve faster project turnaround times and greater product consistency. This shift reflects growing demand for lightweight, high-strength interior systems that deliver measurable sustainability benefits.

The Australia drywall market is witnessing a change in strategy where the focus is no longer on typical partition solutions but rather on the use of engineered wall systems that are expected to deliver energy performance, acoustic control, and prefabrication efficiency. Manufacturers who are leading the way are working on drywall products that are both moisture resistant and fire-rated, specifically for healthcare, education, and high-rise residential industries. New research from CSIRO, Australia's national science agency, has revealed new Australian homes are up to 50% more airtight than those tested in 2015. Moreover, companies are working on optimizing their supply chain networks to shorten the delivery times in Queensland and Victoria, where the infrastructure and mixed-use developments are present.

Recent Developments

September 2025 – Fastmount Introduced SLX Range for Commercial Panel Mounting

Fastmount launched its SLX mounting system, simplifying drywall and plywood panel installation across commercial interiors with concealed, precision-fit fastening technology. Such developments in the Australia drywall market show how hardware innovation is reducing rework and labor time, allowing suppliers to partner with fit-out specialists targeting premium commercial refurbishments.

September 2025 – Knauf Rolled Out High-Performance Plasterboard Portfolio

Knauf introduced advanced plasterboards engineered for fire, impact, and moisture resistance, strengthening specification appeal in institutional and high-traffic commercial projects. Such trends in the Australia drywall market signal opportunities for competitors to invest in compliance-driven product upgrades and secure long-term supply agreements within healthcare and education infrastructure pipelines.

July 2025 – Knauf Launched Permarock Exterior System in Australia

Knauf unveiled the Permarock exterior wall system, integrating insulation and reinforced basecoats for improved façade durability and thermal efficiency. This expansion highlights growth avenues for drywall market players to diversify into exterior cladding systems, capturing value from energy-efficient building envelope solutions.

November 2024 – Control4 Project Showcased Integrated Smart Interior Systems in Melbourne

Control4 Vibrant enhanced a Melbourne residential project with advanced lighting and automation integration, elevating interior wall and ceiling system coordination. Such integrations create opportunity for manufacturers to align with smart-building integrators, developing adaptable wall systems, booting the overall Australia drywall market growth.

Key Drivers and Trends

Advanced Fire-Rated and Compliance-Driven Systems

Fire performance is a major factor in drywall innovation as a result of the stricter enforcement of the National Construction Code. The producers are coming up with multilayer plasterboard assemblies that can hold 120-minute fire resistance without thick walls. Companies like Boral Limited have broadened their fire-rated board range of products for high-rise residential towers where developers are facing pressure in complying with the new regulations. The suppliers are teaming up with regulatory authorities so that they can get approval quicker, which, in turn, lowers the risk of the projects for the contractors. This Australia drywall market trend toward tested and certified wall systems enables Tier-1 builders to strengthen long-term supply agreements. In June 2025, CSR Gyprock rolled out its Class 4 vapor-permeable Glasroc X exterior sheathing board, offering up to six months of weather protection and high fire, mold, and weathertight performance for commercial and multi-residential facades.

Moisture-Resistant Boards for Healthcare and Education

Public infrastructure development in hospitals and schools is leading to an increased demand for specialized drywall solutions that are both antimicrobial and mold-resistant. Fletcher Building offers moisture-control plasterboards with superior performance characteristics, particularly suitable for wet area applications and locations with high humidity. The state government funding for health care renovations, especially in New South Wales, is enabling a steady demand for interior linings that require less maintenance, reshaping the entire Australia drywall market dynamics. In October 2025, Knauf Gypsum introduced SHEETROCK PLUS, ImpactStop, MultiStop ONE and MultiStop ONE HI plasterboards, simplifying selection and boosting compliance performance for diverse Australian construction needs.

Prefabricated and Modular Wall Panel Adoption

Manufacturers are teaming up with modular constructors to deliver pre-cut and pre-assembled wall panels that reduce labor hours onsite. Companies like James Hardie Industries are unveiling a range of lightweight interior systems that can be easily combined with prefabricated housing formats. The labor shortage problem remains within the whole construction industry, but a modular working model can make project completion cycles even more rapid, accelerating the Australia drywall market value. In September 2025, the New South Wales Government showcased its first modular housing exhibition promoting the System 600 “kit-of-parts” approach, aiming for 80% standardized components to accelerate quality housing delivery.

Digital Integration and Contractor Support Platforms

Besides product development, drywall vendors are shifting their focus to digital interaction. Features like BIM-compatible product catalogs, installation training videos, and real-time order tracking are being rolled out at a rapid pace. USG Boral has continued to ramp up its contractor advisory services to be able to handle the increasingly complicated commercial buildings, accelerating demand in the Australia drywall market. With transport corridors and data center projects booming, contractors require the most accurate specification documentation. Firms that fuse digital tools and technical assistance are enhancing their brand reputation to an even greater extent, especially among medium-sized commercial builders who face complex compliance requirements. In December 2025, ARKANCE announced the AI-powered BIMLOGIQ extension for Autodesk Revit, automating annotations and BIM workflows to accelerate design and reduce manual tasks.

Low-Carbon and Recycled Gypsum Integration

Sustainability is now influencing procurement decisions at scale. Companies are increasing recycled gypsum content in selected product lines while optimizing kiln efficiency to reduce emissions intensity. The federal government’s Safeguard Mechanism reforms are encouraging industrial manufacturers to lower carbon output, indirectly reshaping drywall production strategies. Developers seeking Green Star ratings are prioritizing Environmental Product Declarations in tender documentation, in order to accelerate the Australia drywall market penetration. As a result, suppliers that provide verified lifecycle data are seeing stronger specification rates across commercial office developments. In April 2025, Etex, via Siniat, introduced RECYPLAC, a patent-pending plasterboard made entirely from recycled gypsum while matching conventional board performance.

Australia Drywall Market Share

By product, wallboard accounts for the largest market share due to high residential demand

Wallboards continue to be the main product in the Australia drywall market, typically used for large-scale residential projects and mixed-use developments where time and cost are the main concerns. Builders like to use standard and fire-rated wallboard systems because those products go well with steel framing and insulation assemblies. Suppliers are constantly innovating to increase core density and improve edge profiles so that joint strength gets better. Besides that, lightweight versions are also helping contractors to lessen the time of handling high-rise projects. In January 2026, Turnkey Sheetrock unveiled bespoke Archwall systems for residential and commercial projects, enhancing design flexibility and installation efficiency across specialized interior applications.

Pre-decorated boards are becoming more popular as developers demand faster interior fits, with fewer finishing stages. These boards are factory-laminated with surface films that are durable, which eliminates the need for painting and on-site labor. Commercial offices and modular housing projects are turning to these systems to compress their construction timelines. Manufacturers are rolling out scratch-resistant and antibacterial finishes that are ideal for healthcare and hospitality projects. This trend in the Australia drywall market towards controlled manufacturing environments is gradually making pre-decorated boards the fastest-growing subsegment.

Residential applications secure the dominant share of the market driven by urban housing projects

Drywall systems continue to be most extensively used in residential construction, which, is the primary market for such systems in Australia. Multi-unit apartments and detached housing developments depend on plasterboard walls, mainly to achieve both quick turnaround and cost savings, leading the Australia drywall market growth. To satisfy the comfort requirements of occupants in dense living environments, developers are putting more focus on internal walls with acoustic-rated performance. In addition, the use of lightweight boards helps to lessen the structural load in high-rise buildings, thus leading to more efficient overall building performance. Besides, the renovation work is quite intense, especially in the suburban areas, where the preference for drywall over traditional masonry continues to increase, as interior alterations are made. For example, Studco Systems offers its SlimWall battened wall solution that reduces thermal transfer and enhances energy compliance for interior wall framing across varied construction substrates.

Institutional projects, in particular hospitals and school buildings, have been identified as a high-growth market for drywalls. Besides the impact-resistant feature, hygienic drywall systems are needed for these facilities as they should be able to comply with the stringent building standards. Acoustic insulation has become a significant concern in the classroom as well as in the patients' rooms, redefining the Australia drywall market trends. There is also a significant necessity for fire-rated constructions to serve as a means of compliance in public infrastructure. The redevelopments that are government-funded are pushing for the durability of the interiors thus, the specification of those systems that reduce the frequency of maintenance is preferable by the developers.

Australia Drywall Market Regional Analysis

Western Australia registers the leading share of the market due to mining-linked infrastructure expansion

Dominance of the Western Australia drywall market is due to sustained infrastructure and mining-related commercial developments. Resource-driven town expansions and logistics facilities require scalable interior partition systems. Contractors favor drywall for its speed in remote project locations where labor availability is limited. The region’s commercial developments also include offices and accommodation units tied to industrial hubs. Suppliers are strengthening regional distribution centers to support timely deliveries across dispersed project sites. High demand for durable and fire-rated wall assemblies further reinforces Western Australia’s dominant position. In February 2026, Kava Equity completed its acquisition of The Berg Group, expanding its construction services footprint and enhancing drywall installation capabilities.

Queensland is witnessing rapid growth in the Australia drywall market driven by residential communities and tourism-linked developments. Coastal housing expansions and resort construction are increasing demand for moisture-resistant drywall products. Urban centers such as Brisbane are seeing mixed-use developments that require acoustic partition systems. Builders are adopting prefabricated wall solutions to manage labor shortages and tight timelines. Infrastructure upgrades connected to population inflow are further supporting drywall consumption. As private and public projects continue to rise, Queensland is positioning itself as the fastest-growing regional segment.

Competitive Landscape

Australia drywall market players are focusing on developing integrated, performance-led solutions while offering sustainability, prefabrication and technical services. Manufacturers are investing in high-performance exterior and fire-rated systems such as Glasroc X to be able to attract multi-residential specifications markets, whereas premium interior ranges give contractors a choice for treatments that are impact, moisture and acoustic resistant. Momentum in offsite construction driven by initiatives like System 600 and federal/state prefab funding is unlocking huge potential for pre-cut, factory-finished wall panels and board-plus-frame assemblies to significantly cut down on onsite labor and rework.

Digital integration including BIM libraries, EPDs, specification support, and contractor training programs are emerging as commercial essentials. Australia drywall companies offering technical advisory, rapid regional distribution and downstream installation partnerships are securing long-term institutional and multi-residential contracts. Opportunities lie in vertically integrated processing, circular-product lines, prefab-ready systems, and platform-based contractor services that shorten timelines and lower whole-of-life costs.

Key Players

Etex Group

Established in 1905 and based in Brussels, Belgium, Etex Group is a global player in the field of lightweight construction materials. The company has its main products in high-performance plasterboard systems specially designed for fire safety and acoustic optimization. In Australia, it is offering advanced drywall solutions for commercial and healthcare buildings.

Knauf Group

Founded in 1932 and having its main office in Iphofen, Germany, Knauf Group is one of the significant drywall manufacturers catering to both residential and commercial markets globally. The company has made it a point to get gypsum sustainably and use the latest formulations for their boards. Knauf offers fire-rated, moisture-resistant, and acoustic boards for large-scale infrastructure projects, to serve the Australia drywall market.

Compagnie de Saint-Gobain S.A. (CSR Gyprock)

Originally a 1665-founded company with its main office in Courbevoie, France, Saint-Gobain via CSR Gyprock is its operating brand in Australia. The brand is quite popular for interior lining systems that are in compliance with the local building codes. CSR Gyprock concentrates mainly on fire-rated and impact-resistant boards for residential towers and healthcare facilities.

Winstone Wallboards Limited

Winstone Wallboards Limited, which was established in 1927 and is located in Auckland, New Zealand, distributes plasterboard products throughout Australasia. This company develops lightweight wall and ceiling systems mainly for residential and commercial construction. It also demonstrates a high level of commitment to supply chain management and product quality consistency.

Other key players in the market include BGC Plasterboard Trade Centre Bayswater, and Boral Limited, among others.

Key Highlights of the Australia Drywall Market Report

• Detailed assessment of advanced fire-rated and modular wall systems.
• Evaluation of sustainability-focused gypsum innovations and recycling models.
• Competitive benchmarking of leading multinational and regional players.
• Regional insights highlighting mining and tourism-linked demand clusters.
• Strategic outlook focusing on institutional and prefabricated construction growth.

Why Rely on Expert Market Research?

• Industry-backed intelligence combining primary contractor interviews and supply chain analysis.
• Clear insights into compliance trends shaping drywall specifications.
• Customized advisory solutions supporting procurement and expansion decisions.
• Forward-looking evaluation of innovation pathways and competitive strategies.

Call to Action

Explore the latest trends shaping the Australia drywall market 2026-2035 with our in-depth report. Gain strategic insights, future forecasts, and key market developments that can help you stay competitive. Download a free sample report or contact our team for customized consultation on Australia drywall market trends 2026.