Technavio Releases New Report on Global Siding Market

January 29, 2016 | By Business Wire News

LONDON

Technavio’s latest construction industry report covers the present scenario and growth prospects of the global siding market during the period 2016-2020.

In this report, Technavio’s heavy industry research experts announce their key market highlights for global siding market. Their findings include:

Revenue generated by the global siding market is expected to reach close to USD 83 billion by 2020

The global siding market is expected to maintain steady growth at a CAGR of over 5% during the forecast period. Growth factors in this market include increased global investments in construction of public infrastructure, development of residential, commercial, and hospitality structures, and an increase in the number of building projects.

Though siding materials are durable and strong, due to its exposure to extreme weather conditions, these materials require replacement. Therefore, growth in home renovation projects and increased interest in interior and exterior design are also likely to drive the growth of the market during the forecast period.

Rise in new housing construction activity in APAC and home improvement in EMEA, a positive sign for the market

There is a substantial increase in the sale and construction of housing projects across APAC countries such as China, India, and South Korea, which is fueling the growth of the construction industry in the region. APAC accounts for the largest share in the residential sector in terms of investments in residential construction. It is expected to further increase, likely retaining its position as the highest contributor for the construction industry during the forecast period. This trend is predicted to significantly augment the demand for siding materials in the region.

As the Middle East has an extremely hot and dry climate, the region exhibits a sizeable demand for siding materials that withstand extreme weather conditions. Stucco siding is increasingly preferred in Middle Eastern countries as it requires less energy to keep the interiors cool during the long hot summers. Stucco siding is cheaper than other siding materials such as wood, vinyl, and stone. It can be painted to complement any landscape. To leverage the attractive Middle East market, many vendors are likely to venture into this region in the next four years.

Africa’s economic growth over the past decade has led to the increased demand for commercial and residential real estate. The continent’s rapidly developing retail market thanks to a flourishing middle class population, has led to a rise in residential and retail construction activity in African cities such as Nairobi, Lagos, and Accra. This growth in residential and retail construction in Africa is expected to spur the demand for siding materials during the forecast period.

Vendors are innovating with new variants in siding materials

With multiple colors available for siding, building owners are expected to show growing preference for colorful sidings instead of traditional white overtones. However, sidings with darker shades are not popular with builders and developers due to issues like fading and damage caused by UV ray exposure. Hence, manufacturers have started investing in innovation and R&D to produce new types of products that can resist wear and tear after being exposed to elements.

For instance, Plygem (manufacturer of stone veneer, fence, siding, and rail), in July 2015, under its Mastic Home Exteriors brand, developed a new variant of vinyl siding that is fade and heat resistant, in all color ranges. This variant uses a technology called solar defense reflective technology. This technology enables manufacturers to provide siding in any color as required by the buyer. Revelstone (manufacturer of stone products and landscape products such as pavers and tiles), introduced of shutter cladding in October 2015, which featured a wall cladding that can be used to enhance a plastered brick. These developments are key to the future growth of the global siding material market.

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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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