Residential construction development propel fibre cement market outlook
Rapidly increasing urbanization across the world has led to increased construction and infrastructure development activities.
This has subsequently instigated the demand for efficient and durable construction materials such as fibre cement, which is in huge demand for residential projects. The burgeoning product demand is expected to augment the growth of fibre cement market in the upcoming years.
According to a recent report by Global Market Insights, Inc., fibre cement market size is projected to surpass USD 13 billion by 2027.
Increasing renovation and re-modelling activities of buildings across various countries, especially in the U.S. on account of growing concerns of rotting of siding in residential buildings is fuelling the demand for fibre cement in the building sector. In addition, increasing demand from the architects for building innovating cladding systems is further impelling the application of fibre cement.
Besides its mounting application in residential constructions, fibre cement is also witnessing a considerable demand from non-residential sector. This can be credited to increasing investments in industrial and commercial establishments across the globe. In addition, advantages offered by fibre cement such as excellent characteristics and lower cost of switching are fostering its adoption further.
The product adoption is being further stimulated by increasing number of new construction projects. According to the credible reports, expenditure on the U.S. construction projects increased by 1.7% in January 2021 on account of rising new home construction in the country. Considering these factors, new construction segment is expected to register substantial gains over the forthcoming years. For the records, the segment holds a sizeable share of 30% in the market.
Apart from new construction activities, the industry is registering notable growth from improvements and repair projects. According to a report by the Office for National Statistics, UK, monthly construction output in the country increased by 5.8% in March 2021 wherein, repair and maintenance activities accounted for 4.4%.
Speaking of the U.S., the remodelling market in the country was initially affected at the beginning of the global COVID-19 crisis. However, it was counterbalanced by rising DIY activities and increasing number of small construction projects in the country. Such trends are supporting the business expansion significantly.
Fibre cement finds important usage in applications like roofing, siding and others. The other applications include flooring, facades, etc. that are largely supporting the industry growth over the past few years. The industry is anticipated to register an appreciable CAGR of around 3.5% through 2027. This growth can be attributed to the elevating consumer demand for the development of visually appealing commercial buildings. The trend is encouraging manufacturers to develop new and improved products. For instance, in 2019, Swisspearl announced the expansion of its existing façade range by the addition of Vintago façade made of fibre cement which apparently offers a natural authentic and lively look.
As mentioned before, the U.S. is recording a notable rise in construction of new buildings as well as replacement of older buildings and structures. The country is also increasingly adopting eco-friendly construction materials. These factors are enhancing the industry landscape in North America. Reportedly, North America fibre cement market is estimated to record a substantial valuation of over USD 3 billion by 2027.