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This study analyzes global demand for siding. Historical demand (2009, 2014, and 2019) and forecasts for 2024 and 2029 are provided for siding demand by product (in dollars and square meters) and market (in square meters). Siding demand is also provided on a country-by-country basis (in square meters), broken out by both product and market. Demand in value terms is shown at the manufacturers’ level and excludes distributor and retailer markups.
Scope and Summary
The siding products included are:
brick and tile
concrete and stone
metal (metal panels, steel, and aluminum)
wood (engineered and shingles/shakes)
exterior insulation and finish systems (EIFS)
other products (including polypropylene and other non-vinyl plastics, wood-plastic composites, cast acrylic, spandrel glass, straw, and mud)
The residential building and nonresidential building segments are analyzed at the global, region, and country levels. Breakouts are provided for new and improvement and repair product demand for both residential buildings and nonresidential buildings at the global, regional, and country levels.
Primary loadbearing walls (of brick, concrete block, poured concrete, or stone) are excluded from the scope of this study, as is vision glass curtain wall. Secondary products such as soffit and trim are also excluded.
Global demand for siding is forecast to rise 1.9% annually through 2024 to 6.6 billion square meters valued at $80.2 billion. Weakened global building construction activity due to the COVID-19 pandemic will cause siding demand to decline in 2020, but the market is expected to rebound quickly in 2021 as case numbers fall, economies reopen, and building activity returns to normal levels. Through 2024, gains will be supported by:
growth in nonresidential building construction, the post-pandemic recovery of which is expected to be healthy
rising new home construction, especially in developing Asia/Pacific and Africa/Mideast countries where the share of homes built with siding is growing
increasing personal incomes, which allow for greater spending on renovation projects such as siding replacement
ongoing introduction of affordable fiber cement and vinyl siding products, which can be made to resemble high-end materials (e.g., wood, stone) while providing installation and performance advantages
Asia/Pacific Region, Led by China, Will Continue to Drive Global Siding Market Gains
The Asia/Pacific region is forecast to account for about half of global siding market gains through 2024, supported by continued healthy expansion in nonresidential building construction. China, the world’s largest siding market, will continue to drive regional demand growth as ongoing, if moderating, strength in nonresidential construction offsets stagnation in the number of new housing units.
However, faster increases in global demand will be restrained by market maturity and below average gains in building construction in more developed parts of the world, including the US, Japan, and several countries in Western Europe.
Faster Growth in the Nonresidential Market Will Have Varying Effects on Siding Materials
Through 2024, larger gains are expected for concrete, stone, fiber cement, and metal – all popular materials in the faster growing nonresidential siding segment – than materials such as vinyl and wood, which see more residential use. Stucco’s market position is expected to remain unchanged, supported by its popularity as a low-cost siding option in both developing and developed countries. The leading brick and tile segment is expected to continue to account for the largest share of global siding demand through 2024 due to the widespread use of these materials based on aesthetics, durability, and availability.
Design Flexibility Continues to Affect Material Competition in Developed Markets
Design flexibility is a key driver of material competition in the global siding industry. End users – particularly in developed markets such as the US and Western Europe – seek options that can be made to imitate higher value materials, such as natural stone and wood, while providing additional advantages (e.g., enhanced durability, longer lifespan, lower maintenance requirements, lower costs, easier to install). Fiber cement faces growing competition from PVC lumber in the increasingly saturated wood-look siding market, but the material is also expected to pose greater competition to costly, heavy, and harder to install materials such as natural stone and brick. Fiber cement siding that imitates these materials is increasingly being introduced to the market.