Siding demand will benefit from the projected recovery in housing completions through 2016,
with such low-cost materials as fiber cement, stucco and brick taking market share from vinyl.
US demand to reach 96.5
million squares in 2016
US demand for siding is forecast to
advance 8.4 percent per year through
2016 to 96.5 million squares, valued at
$11.4 billion. Growth will be spurred by
a rise in housing completions from a
depressed 2011 base. Although housing
completions will remain below the level
reached at their cyclical peak in 2006,
the recovery will spur above average
gains in the residential siding market.
Fiber cement, stucco,
brick to see fastest gains
Among material types, brick, stucco and
fiber cement siding are forecast to see
the fastest demand gains through 2016,
rising at double-digit paces. The South
and West regions of the US -- where
such materials are most often installed --
are forecast to see the strongest growth
in population and housing activity
through 2016. Brick and fiber cement
see wide use in the South, while stucco
is most commonly used in the West
region. Thus, as more homes are built
and remodeled to meet the needs of the
regions’ increasing populations, demand
for those siding materials will also grow.
Fiber cement siding will continue to take
market share from other materials, such
as vinyl and wood. Demand for fiber
cement siding will be fueled by its ability
to be made into siding that resembles
more costly materials, such as brick or
stone. Fiber cement siding demand will
also be supported by continuing consumer
acceptance of the material based
on its performance properties, such as
resistance to degradation caused by
insect attack and moisture.
Vinyl siding accounted for the largest
share of siding demand in 2011, with a
37 percent share of the market in area
terms. Vinyl siding will continue to lead
the market in 2016, with innovations
such as vinyl siding and products that
better resemble natural materials (e.g.,
wood, stone) aiding demand.
New housing to rebound
as largest siding market
Residential improvements and repairs
were the largest market for siding in
2011, reflecting the low level of new
housing activity in that year. Generally,
new housing is the largest market for
siding, as most siding materials are not
replaced unless they are severely worn
or damaged. The projected rebound in
housing completions through 2016 will
re-establish new housing as the largest
market for siding.
Gains for nonresidential siding will be
driven by rising building construction in
this market. The office and commercial
and lodging segments, which exhibited
the most rapid siding demand declines of
all nonresidential market segments between
2006 and 2011, will post the best
growth going forward as more retail sites
and office buildings are erected. Many of
these structures will be sided with fiber
cement and stucco, which are lower-cost
alternatives to brick, wood and stone.
Study Scope
This study analyzes the 64.5 million square US siding industry. It presents historical demand data for the years 2001, 2006 and 2011, and forecasts for 2016 and 2021 by siding material (e.g., vinyl, fiber cement, stucco, brick, wood, metal panels, concrete and stone, EIFS), market (residential, nonresidential) and US region.
The study also considers market environment factors, details industry structure, evaluates company market share and profiles 33 industry players, including James Hardie, Ply Gem and CertainTeed.
