Fiber Cement Siding Market - Forecast(2023 - 2028)

Overview

Fiber Cement Siding Market size is forecasted to reach $2.1 billion by 2025, after growing at a CAGR of 5.6% during the forecast period from 2020-2025. Increasing construction spending especially in new building construction and growing urbanization are the prime factors supporting the demand of fiber cement siding market. Single-family housing begins to move rapidly and fiber cement siding is the most common fiber cement product which continues to gain market share.

Fiber cement siding takes on the look of wood or masonry but has concrete toughness because it contains a mixture of water, wood pulp, fly ash or silica sand, and Portland cement consisting of calcareous, clay, and iron. Each fiber cement siding part joins together to create a product that is durable, but flexible.

Report Coverage

The report: “Fiber Cement Siding Market – Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the Fiber Cement Siding Industry.

Key Takeaways

• Europe region dominates the fiber cement market owing to increasing advancements in construction industry, new building construction, and adoption of green building norms.
• Various governments are setting target for green building construction especially in US and Europe, will further enhance the overall demand of the market.
• Replacement of wood siding with fiber cement siding due to its aesthetic appearance, high durability, low maintenance, and affordability nature, is likely to aid in the market growth of fiber cement siding.
• Increasing adoption of sustainable and environment friendly products, implementation of green building norms will increase the market demand for fiber cement siding in the near future.

Type - Segment Analysis

Shingle fiber cement siding segment is expected to be the largest type in the fiber cement siding market in 2019 due to its properties such as aesthetic appearance, easy installation, and availability in a variety of shapes and sizes.

End-User - Segment Analysis

Residential segment has been the primary market for fiber cement siding for many years and is expected to grow with a CAGR of 5.9% over the forecast period. Due to increase in the construction spending especially new residential home construction, adoption green building initiatives in many developed countries, advancements in residential construction industry, and replacement of conventional materials with fiber cement siding, the consumption of fiber cement siding has always been considerably high in residential end user in comparison to other end user. Growing public and private investments in new residential construction will boost the market for fiber cement siding in residential end user in the coming years.

Geography - Segment Analysis

Europe dominated the fiber cement siding market with a share of more than 37%, followed by North America and APAC. Stringent building regulation regarding the green building, adoption of advanced and innovative materials in construction activities, and growth in construction sector; are the prime factors contributing in the demand growth in Europe region. According to European Construction Industry Federation, construction output in Total EU was valued at $1.68 trillion in 2018 which has grown with more than 2% of CAGR from last five years. Germany and UK are the major market with the share of 25% and 14% respectively in total EU construction industry in 2018.

Drivers – Fiber Cement Siding Market

·         Growing residential and commercial construction activities

Growth in construction sector along with advancement is the primary factor boosting the demand of fiber cement siding market. APAC region offers a huge growth potential for construction sector due to presence of major developing nations, rising disposable income of middle class, and standard of living. Construction market in APAC region is growing with exponential growth rate which will further support the demand of fiber cement siding market. According to IndustryARC expert insights, APAC construction market is estimated to grow with more than 6% of CAGR in next few years due to huge investment by private and public players, growing population, rising disposable income, and standard of living.

·         Implementation of Stringent Green Building Norms

Governments globally are focusing on implementation of green building initiatives in accordance with standards; and fiber cement siding help in the reduction of heat transfer and also give aesthetic appearance. Because of its high durability and low maintenance costs compared to wood and other siding, fiber cement is gaining rapid popularity in both the commercial and residential sectors. Fiber cement helps to make buildings energy efficient because electricity consumption can be reduced by insulation.

Challenges – Fiber Cement Siding Market

·         Availability of substitutes including vinyl and wood siding

The shift towards alternative products such as vinyl and wood siding in the developed and developing nations would hamper the growth of the fiber cement siding market over the forecast timeframe. Fiber cement siding required skilled manpower to install and high installation cost as compare to wood and vinyl siding may further hamper the growth of the market.

Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the fiber cement siding market. In 2019, the market of fiber cement siding has been consolidated by the top five players accounting for xx% of the share. Major players in the Fiber Cement Siding Market are WB Construction Services Inc., Allura USA, James Hardie Industries Ltd., GAF Material Corporation, Cembrit, Equitone, Maxitile, Hekim Yapi, Nichiha USA Inc., Evonik Industries AG, among others.

Acquisitions/Technology Launches

• In 2014, Elementia, a Mexican consortium which business includes manufacturing of the fiber cement roofing and siding products, has acquired CertainTeed Corporation's fiber cement division, one of the major construction materials manufacturers in the United States.
• In 2014, Saint-Gobain has sold its US based fiber cement siding business to Plycem USA Inc., a subsidiary of Elementia SA de CV of Mexico.
• In 2016, Elementia, S.A.B. de C.V. has completed acquisition of Giant Cement Holding, Inc. from Cementos Portland Valderrivas, S.A. (“CPV”) for US$220 million.