Cladding systems are used to give a final finish to the building exteriors. They help to protect the building from dust, rain, snow, wind, and other external factors. Moreover, cladding systems are used for building decorations and make buildings visually appealing. The lifespan of building also increases on application of cladding. Though it is not a load bearing component, it contributes in diverting wind and snow loads. It also provides thermal and sound insulation, thereby increasing energy savings associated with air conditioning.
The global cladding systems market is estimated to surpass US$ 311.18 Bn by the end of 2027 in terms of revenue, exhibiting a CAGR of 5.0% during the forecast period (2020-2027).
The growing infrastructure and construction sectors is expected to drive the market growth of the cladding systems. Cladding systems are used in several construction activities for providing a protective layer to the original structure of the building. These layers provide weather resistance, thermal insulation, and enhance the aesthetic look of the building. Therefore, cladding systems are made up of strong materials such as steel, copper, aluminum, plastics, and fiber cement. Since there has been a substantial rise in the number of construction and infrastructure activities across the globe, the demand for cladding systems is expected to increase rapidly. For instance, according to the U.S. Census Bureau, in 2016, the residential construction spending across the U.S. was around US$ 473,687 million that gradually increased to US$ 546,136 million by 2018. This increasing spending has fueled demand for cladding systems.
Moreover, numerous government regulations are imposed across the globe, which govern the cladding systems market. For instance, the United Nations’ national standard body named BSI (British Standard Institution) has established a technical standard, BS 5427:2016+A1:2017 in 2016 for the usage of profiled sheet for wall and roof cladding on buildings. This standard also provides recommendations for the construction and design of external cladding assemblies for various buildings across the U.K.
Among regions, Asia Pacific held a dominant position in the global cladding systems market in 2019, accounting for 42.6% market share in terms of revenue, followed by North America and Europe.
Figure 1. Global Cladding Systems Market Revenue Share (%), By Region, 2019
Cladding systems are majorly manufactured from raw materials such as steel, copper, aluminum, fiber cement, natural stones, and plastic panels. However, prices of these raw materials depend on several factors such as supply, demand, and cost of transportation across various regions. Thus, fluctuations in the prices of raw materials is expected to hamper growth of the cladding systems market. For instance, aluminum was priced around US$ 1.85 Thousand/MT in 2019, as compared to US$ 2.21 Thousand/MT in 2020 at the LME (London Metal Exchange). The occurrence of this price difference, owing to production variation is majorly responsible for the price fluctuations, which is expected to hinder the market growth.
|Base Year:||2019||Market Size in 2019:||US$ 233.61 Bn|
|Historical Data for:||2017 and 2018||Forecast Period:||2020 to 2027|
|Forecast Period 2020 to 2027 CAGR:||5.0%||2027 Value Projection:||US$ 311.18 Bn|
Arconic Corporation, Boral Limited, CSR Limited, Compagnie de Saint-Gobain S.A., Etex Group, DuPont, Hindalco Industries Limited, Nichiha Corporation, Tata Steel Limited, Glen-Gery Corporation, Kajaria Ceramics Limited, Glittek Granites, FunderMax, Greenlam Industries Ltd., and Cold Steel Corporation.
|Restraints & Challenges:||
The key players in the market are focusing on offering a wide range of colors and patterns of cladding systems, so that they can match and enhance the aesthetic appearance of the building facades. For instance, since September 2014, DuPont started producing Corian, an exterior cladding material, in over 21 colors.
Figure 2. Global Cladding Systems Market – Opportunity Analysis
On the basis of end-use, in 2019, non-residential buildings segment accounted for 70.6% of the revenue share. A rise in demand for commercial spaces for offices, restaurants, hotels, and banks coupled with a surge in the number of industrial buildings are expected to fuel the segment growth. For instance, according to the American Institute of Architects 2019 survey, a modest growth of 1.5% was predicted in the demand for non-residential buildings in the near future.
Figure 3. Global Cladding Systems Market Revenue Share (%), By End User, 2019
Global Cladding Systems Market - Impact of Coronavirus (Covid-19) Pandemic
COVID-19 has significantly disrupted the global construction and infrastructure development industry. This can be attributed to several factors such as lack of availability of skilled laborers, nationwide lockdown, sealed international borders, and shortage of funds for infrastructure development due to shifting priority towards the healthcare sector. Furthermore, fluctuating prices of crude oil and petroleum due to economic and political instability have severely impacted the supply chain for cladding systems across the globe.
Key players operating in the global cladding systems market include Arconic Corporation, Boral Limited, CSR Limited, Compagnie de Saint-Gobain S.A., Etex Group, DuPont, Hindalco Industries Limited, Nichiha Corporation, Tata Steel Limited, Glen-Gery Corporation, Kajaria Ceramics Limited, Glittek Granites, FunderMax, Greenlam Industries Ltd., and Cold Steel Corporation.
Cladding systems is referred to a layer, which is attached to the exterior of a building to protect it from the adverse effects of weather. The demand of cladding systems is increasing with the growth of infrastructure industry and increasing construction activities across the globe. The cladding systems provides thermal insulation, helps to create controlled environment condition, protect the building from external environment, and helps in preventing the spread of fire.
High performance characteristics of the cladding system, coupled with rising construction activities around the world are expected to boost the market growth over the forecast period. For instance, according to the data by the Chartered Institute of Building (CIOB) stated that the global construction industry was valued at US$ 10.8 trillion in 2017 and is expected to reach US$ 17.5 trillion by 2030 with a growth rate of 3.9%, annually. Thus, rising investments across the construction sector, coupled with the need for protection of building frames from external forces such as extreme weather conditions are expected to augment the demand for cladding systems across the globe. However, the growth of the market is expected to be restrained by factors such as fluctuations in the prices of raw materials and lack of knowledge among rural population about cost, reliability, and benefits of cladding systems are expected to hinder the market growth for cladding systems.
Moreover, key players are focusing on various strategies such as new product launches, in order to expand their product portfolio. For instance, in October 2017, DuPont Protection Solutions, a cladding products manufacturer, launched Corian Exterior Cladding product. This product enables lighting effects and unique patterns, to the buildings along with enhanced beauty, longevity, and durability.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.