- Ceramic segment is estimated to lead the cladding systems market.
- Wall cladding segment is projected to grow at the highest CAGR.
- Asia Pacific region is projected to account for the largest share in the cladding systems market.
The cladding systems market is projected to grow from $224.4 billion in 2018 to $292.5 billion by 2023, at a CAGR of 5.44% from 2018 to 2023. Demand for cladding solutions market can be credited to the high growth of construction industry across the globe. Factors such as increasing residential and non-residential construction and infrastructure activities, its high durability, and ability to enhance the aesthetic appearance of the buildings drives the demand for cladding systems.
Cladding systems can be made from various types of materials which include stone, brick, wood, stucco, vinyl, metal, fiber cement, and others. The choice of cladding material determines the environmental performance of a building. Cladding systems market is expected to grow in accordance to the growth of construction industry across the globe. Cladding offers several benefits such as insulation, fire resistance, pollution prevention, and provides aesthetic appeal to a building. . Cladding can be installed over wall, roof, windows, doors, or any other component of a building which is exposed to external environmental forces.
Factors such as increase in the residential and commercial construction and infrastructure activities, along with the demand for durability of cladding systems with the ability to withstand various weathering actions and resist chemical attacks & deterioration are expected to support market
- In April 2018, James Hardie Industries Plc. (Ireland) acquired a European building material business- Fermacell GmbH (Germany), with an aim to strengthen its business. This strategic initiative is expected to spur the growth of its fiber cement business across Europe. Furthermore, it will also strengthen its geographical footprint, and product portfolio.
- In May 2018, Tata Steel Limited’s wholly-owned subsidiary Bamnipal Steel Limited (BNPL) (India) acquired Bhushan Steel Limited (BSL) (India). This acquisition is expected to increase the steel capacity of the Tata Steel Group as a whole.
- In October 2017, Kingspan (UK) acquired Isoeste Construtivos Isotérmicos S.A. (Isoeste) with an aim to expand its business in South America. Isoeste is a manufacturer of insulated panels. Kingspan has acquired 51% shares in Isoeste.
The residential sector is estimated to account for the majority of the market share, considering the fact that the builders and contractors have realized the importance of cladding systems, as it protects the building from external environmental forces and also enhances the appearance of the building; these are the attributes that home owners demand. Also, the growing trend of developing the green building in order to combat global warming and increasing energy cost provides huge opportunities for the growth of the cladding system market. Most favorable materials for residential cladding systems include fiber cement, vinyl, bricks, and timber wood. The spending in residential construction is estimated to witness a surge, particularly in the emerging Asia Pacific and South American regions; there is a trend of urbanization observed in these regions, resulting in a higher growth rate for the residential construction market, as compared to developed markets.