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Cladding Market

Cladding Market

Global Industry Analysis (2018 - 2021), Growth Trends, and Market Forecast (2022 - 2029)

Published Date: Upcoming | Format:

Industry: Chemicals & Materials | Author Name: Harshad


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Preliminary research of Fairfield Market Research indicates a promising growth outlook for global cladding market during the course of next few years.

Eco-friendly Cladding Systems to Unlock a Spectrum of Potential Opportunities in Cladding Market

To shed water and shield a building from the weather, the exterior is covered with a non-load-bearing layer known as cladding. Systems for cladding may be made up of sheets, tiles, shingles, or smaller overlapping panels in either a vertical or horizontal orientation. The cladding market growth is primarily driven by the expanding infrastructure and building industries. Cladding systems are employed in several construction projects to safeguard the building's original structure. These coverings improve the structure’s aesthetics, weather resistance, and thermal insulation. Strong materials, including steel, copper, aluminum, polymers, and fibre cement are utilized to create cladding systems. Introducing these eco-friendly cladding systems will create new growth opportunities in the anticipated timeframe. The key players in global cladding market also attempt to provide long-lasting cladding systems. The durability of the cladding panels is important in the construction industry. The debut of these new products will spur potential future growth. These hybrid cladding panels include resistance against corrosion, chemicals, and heat. James Hardie Industries Plc. purchased Fermacell GmbH in April 2018 to strengthen its business. This internal development is predicted to boost the company's fibre cement operations throughout Europe. Additionally, it broadens the global scope and brand portfolio of the company.

Pricing Fluctuation, and Inadequate Awareness Among Consumers Hampers Cladding Market Growth

Lack of knowledge regarding the advantages of cladding systems is anticipated to impede the expansion of cladding market. The materials used to make cladding systems include steel, copper, aluminum, fibre cement, natural stones, and plastic panels. However, the cost of transportation across different locations and supply and demand all affect how much these raw resources cost. The expansion of the market for cladding systems is, therefore likely to be constrained by fluctuations in the price of raw materials.  For instance, almost 66% of all Indians still live in rural areas, according to the UN World Urbanization Prospects Report of 2021. This population is largely underprivileged or unaware of the benefits of using cladding systems. Furthermore, it is anticipated that poor awareness of roofing structures for buildings and the perception of cladding as an extra, expensive aesthetic component to buildings will challenge the growth in demand for cladding systems, in turn impacting cladding market growth.

Cladding Market: COVID-19 Impact

The COVID-19 outbreak dramatically and negatively impacted the American construction sector. Government restrictions to stop the virus's spread and impacts have hampered project development and negatively impacted suppliers, equipment, materials, and personnel. The crisis impeded the building industry's expansion, limiting the cladding market. Due to the expansion of the country's construction industry, the cladding market in the United States is anticipated to rise steadily after the pandemic period. The device helps a building become more energy-efficient, reducing the energy needed for heating, ventilation, and air conditioning.

Rise in Construction Activities Has Led to Cladding Market Growth

The market growth for cladding systems is anticipated to be primarily driven by the expanding infrastructure and building industries. Cladding systems are employed in several construction projects to safeguard the building's original structure. These layers give the building weather resistance, thermal insulation, and improved aesthetics. Therefore, robust, vital elements like steel, copper, aluminum, polymers, and fibre cement are used to create cladding systems. The cladding market is anticipated to develop quickly due to a marked increase in construction and infrastructure activities worldwide. For instance, according to the US Census Bureau, the amount invested in residential buildings countrywide in 2016 and 2018 was roughly US$473.6 Bn and US$546.1 Bn, respectively. The need for cladding systems has grown due to this rising spending.

Introduction of a Wide Range of Products Accelerates Cladding Market Expansion

Introducing these eco-friendly cladding systems will create new growth opportunities in the anticipated timeframe. The key players in cladding market also attempt to provide long-lasting cladding systems. The durability of the cladding panels is important in the construction industry. The debut of these new products will spur potential future growth. These hybrid cladding panels include resistance against corrosion, chemicals, and heat. The cladding market will expand due to the cladding system's numerous expansion opportunities.

Fluctuation in Raw Material Pricing Prevails as a Key Challenge for Cladding Market

The materials used to make cladding systems include steel, copper, aluminum, fibre cement, natural stones, and plastic panels. However, the cost of transportation across different locations and supply and demand all affect how much these raw resources cost. The expansion of cladding market is thus likely to be constrained by fluctuations in the price of raw materials. For instance, at the LME, aluminum cost about US$1.85 thousand per metric tonne in 2019 compared to US$ 2.21 thousand per metric tonne in 2020. The cladding market expansion is anticipated to be hampered by the occurrence of this price disparity, which is mostly caused by production variation.

Terracotta Products Dominant in Cladding Market Owing to their High Durability

In 2021, the terracotta product segment dominated the market and contributed more than 35% of total revenue. The growth can be attributed to its robustness, recyclable nature, resistance to ultraviolet radiation, weather- and fire-resistant construction, and quick and simple installation attributes. These panels enhance the thermal performance of a structure by offering continuous insulation outside the main wall. Due to its excellent durability, cost-effectiveness, and low maintenance requirements, the cladding made of fibre cement is predicted to increase significantly. Cement, water, cellulose fibre, and ground limestone are used in its production. Due to their waterproof nature and ability to easily withstand strong winds and rain, these panels are becoming increasingly popular in the cladding market. There is an increasing need for aluminum cladding in the construction business, owing to its positive qualities such as lightweight, recyclability, resistance to fungi and algae, and easy installation.

Rise in Office Construction Activities Boost Cladding Market Revenue

In 2021, the market's largest revenue share belonged to the office construction segment, which dominated over 33.8% of the total. The sector covers all types of offices, including public and private ones. In these structures, claddings are employed to improve the building's visual appeal, weather protection, fire resistance, and thermal insulation. The need for cladding in the residential construction industry is anticipated to rise dramatically due to expanding awareness of energy-efficient buildings, the necessity to renovate older structures, an increase in over-cladding operations, and regulatory mandates for green buildings. According to projections, the industrial construction sector will develop thanks to rising government and private sector investment and rapid industrial expansion. International corporations' business expansion and newly constructed manufacturing plants and processing facilities fuelled the need for industrial buildings. It is anticipated that these factors will increase demand for industrial claddings. The commercial construction market includes structures for shopping malls, hospitals, restaurants, hotels, resorts, supermarkets, department shops, hypermarkets, and other businesses. The cladding market is anticipated to be driven by rising urbanization and government investments in tourism and commercial building.

Asia Pacific Dominant in Cladding Market with Rise in Per-capita Income

Due to its dominance in the market and 34% worldwide revenue in 2021, Asia Pacific’s sizeable share in cladding is anticipated to develop more throughout the projection period. Due to rising disposable incomes and rising consumer living standards, there is a significant demand for cladding in developing nations like China, and India. The improved accessibility of cheap raw materials and labour is also projected to fuel industry expansion. Additionally, it is anticipated that the quickening pace of technical development will fuel industry expansion. Furthermore, the market expansion in the anticipated period will be supported by the rising need for residential, commercial, and industrial infrastructure. The North American cladding market is estimated to grow significantly over the forecast period due to rising residential demand and government initiatives to develop social infrastructure in the US, and Canada. Additionally, rising consumer knowledge of the advantages of weather protection for buildings will help the industry expand. Commercial construction activity is anticipated to increase demand for claddings in Europe over the projected period. The demand for the product is also anticipated to increase throughout the projected period due to the use of cladding to improve a structure's visual appeal.

Cladding Market: Competitive Landscape

In December 2020, Glen-Grey Corporation developed terraced, a first-of-its-kind ceramic façade cladding system, having both cutting-edge problem-solving applications in mind. The new cladding system is adaptable in arrangement, low maintenance, and fire resistance, making it suitable for various architectural design types. Bannipal Steel Limited (BNPL), a wholly-owned subsidiary of Tata Steel Limited, purchased Bhushan Steel Limited in May 2018. (India) It is anticipated that this acquisition will increase Tata Steel Group's overall steel capacity.

A few of the players in the cladding market include Compagnie De Saint-Gobain S.A., Dow Inc., Tata Steel Limited, Arconic, Westlake Chemical, Etex Group, James Hardie Industries Plc, CSR Limited, Boral Limited, Cembrit Holding, Nichiha Corporation, Louisiana Pacific Corporation, Kingspan Plc, Coverworld Uk, CA Group Limited, Arcelormittal, Westman Steel, Carea, TIMCO, Middle East Insulation Llc, Trespa International B.V., Dumaplast, And Accord Floors.

Cladding Market is Segmented as Below:

By Material

  • Ceramic
  • Brick & Stone
  • Metal
  • Wood
  • Vinyl
  • Stucco & EIFS
  • Fibre Cement
  • Others (concrete and weatherboard)

By Use

  • Walls
  • Roofs
  • Others (vents and gutters)

By Application

  • Residential
  • Non-residential

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • France
    • Germany
    • Russia
    • Rest of Europe
  • Asia Pacific
    • Japan
    • South Korea
    • India
    • China
    • Rest of Asia-Pacific
  • LAMEA
    • Latin America
    • Middle East
    • Africa

Key Elements Included In The Study: Global Cladding Market

  • Cladding Market by Product/Technology/Grade, Application/End-user, and Region
  • Executive Summary (Opportunity Analysis and Key Trends)
  • Historical Market Size and Estimates, Value, 2018 - 2021
  • Market Value at Regional and Country Level, 2022 - 2029
  • Market Dynamics and Economic Overview
  • Market Size in Value, Growth Rates, and Forecast Figures, 2022 - 2029
  • Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
  • Regional and Product/Grade/Application/End-user Price Trends Analysis
  • Value Chain and Five Force’s Analysis
  • Regional/Sub-region/Country Market Size and Trend Analysis
  • Company Market Share Analysis and Key Player Profiles

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Disclaimer:

  • The segmentation/company profiles/countries depicted above may vary in the actual report.

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