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Cladding systems are used to give a final finish to building exteriors. They help protect buildings from dust, rain, snow, wind, and other external factors. Moreover, cladding systems are used for building decorations and to make buildings visually appealing. The lifespan of building also increases with the application of cladding. It is not a load-bearing component; however, it contributes to diverting wind and snow loads. It also provides thermal and sound insulation, thereby increasing energy savings associated with air conditioning.

Global cladding systems market was valued at US$ 275.00 Bn in 2021 in terms of revenue, exhibiting a CAGR of  4.80% during the forecast period (2022 to 2030).

Drivers

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 a building. These layers provide weather resistance and thermal insulation and enhance the aesthetic look of the building. 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 2020, residential construction spending across the U.S. was around US$ 473,687 million that gradually increased to US$ 546,136 million by 2018. This increased 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) established a technical standard, BS 5427:2016+A1:2017 in 2020 for the usage of profiled sheets 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.

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.

Figure 1. Global Cladding Systems Market Revenue Share (%), By Region, 2021

Cladding Systems  | Coherent Market Insights

Market Restraints

Intense competition in the market due to the presence of a large number of players has led to price wars, in turn, reducing profit margin of manufacturers, which is expected to hinder the market growth of cladding system market . Cost-sensitive market such as India is expected to leads to price among providers. The high cost of implementation of an in-line pigging system based on MFL (Magnetic Flux Leakage), UT (Ultrasonic Testing), and EMAT (Electro-Magnetic Acoustic Transducer) technologies is expected to restrict the market growth of intelligent pigging. According to Coherent Market Insights analysis, the average pricing of intelligent pigging technologies such as MFL and UT is expected to increase by approximately 5-7% globally on year on year basis over the next few years.

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Cladding Systems Market Report Coverage

Report Coverage Details
Base Year: 2021 Market Size in 2021: US$ 275.00 Bn
Historical Data for: 2017-2020 Estimated Year: 2022
Forecast Period 2022 to 2030 CAGR: 4.80 % Forecast Period: 2022-2030
Geographies covered:
  • North America: U.S., Canada
  • Latin America: Brazil, Mexico, Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, and Rest of Asia Pacific
  • Middle East & Africa: Middle East and Africa
Segments covered:
  • By Material: Steel, Aluminum, Zinc, Copper, Plastic Panels, Stucco & EIFS, Terracotta, Fiber Cement, Natural Stones, and Others
  • By Application: Walls, Roofs, and Others
  • By End User: Residential Buildings and Non-residential Buildings (Industrial Buildings and Commercial Buildings)
Companies covered:

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.

Growth Drivers:
  • Growing infrastructure and construction sectors
  • Higher durability of cladding systems
Restraints & Challenges:
  • Fluctuations in raw materials pricing

Market Trends

The key players in the market are focusing on offering a wide range of colors and patterns of cladding systems which allows to match and enhance the aesthetic appearance of building facades. For instance, since September 2019, DuPont started producing Corian, an exterior cladding material, in over 21 colors.

Figure 2. Global Cladding Systems Market Value Share (%), By End User, 2021

Cladding Systems  | Coherent Market Insights

Recent Developments

  • In May 2021, Etex acquired Irish steel framing company Horizon Offsite, enabling wider growth of its industrialized construction activities in Ireland and the U.K.
  • In April 2021, Etex acquired a U.K.-based light gauge steel framing market leader Sigmat. By acquiring Sigmat, Etex’s New Ways expands its LGSF and offsite solutions footprint in the U.K.
  • In November 2020, Etex Group entered into an agreement with Knauf to acquire its plasterboard business in Australia. This enables Etex to expand its footprint in the Australian construction market which offers significant opportunities for growth.

Competitive Section

Major 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 are referred to a layer, which is attached to the exterior of a building to protect it from the adverse effects of weather. Demand for cladding systems is increasing with the growth of the infrastructure industry and increasing construction activities across the globe. Cladding systems provide thermal insulation, help create controlled environmental condition, protect buildings from external environment, and help in preventing the spread of fire.

Market Dynamics

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 from the Chartered Institute of Building (CIOB), the global construction industry was valued at US$ 10.8 trillion in 2020 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 market growth is expected to be restrained by factors such as fluctuations in the prices of raw materials and lack of knowledge among rural population about the cost, reliability, and benefits of cladding systems.

Key players are focusing on various strategies such as new product launches, in order to expand their product portfolio. For instance, in October 2020, DuPont Protection Solutions, a cladding product manufacturer, launched Corian Exterior Cladding product. This product enables lighting effects and unique patterns to the buildings and provides enhanced beauty, longevity, and durability.

Key features of the study:

  • This report provides an in-depth analysis of the cladding systems market, and provides market size (US$ Billion) and compound annual growth rate (CAGR %) for the forecast period (2022-2030), considering 2021 as the base year
  • It elucidates potential revenue opportunity across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approvals, regional outlook, and competitive strategies adopted by key players
  • It profiles key players in the global cladding systems market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered as a part of this study 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
  • Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future products launches, technology up gradation, market expansion, and marketing tactics
  • The global cladding systems market report caters to various stakeholders in this industry including investors, suppliers, cladding systems manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global cladding systems market

 Detailed Segmentation:

  • Global Cladding Systems Market, By Material :
    • Steel
    • Aluminum
    • Zinc
    • Copper
    • Plastic Panels
    • Stucco & EIFS
    • Terracotta
    • Fiber Cement
    • Natural Stones
    • Others
  • Global Cladding Systems Market, By Application :
    • Walls
    • Roofs
    • Others
  • Global Cladding Systems Market, By End User:
    • Residential Buildings
    • Non-residential Buildings
    • Industrial Buildings
    • Commercial Buildings
  • Global Cladding Systems Market, By Region:
    • North America
      • U.S. 
      • Canada
    • Europe
      • U.K.
      • Italy
      • France
      • Germany
      • Spain
      • Russia
    • Asia Pacific
      • China
      • India
      • Japan
      • ASEAN
      • Australia
      • Rest of Asia Pacific
    • Latin America
      • Brazil
      • Argentina
      • Mexico
      • Rest of Latin America
    • Middle East & Africa
      • Middle East
      • Africa
  • Company Profiles
    • Arconic Corporation *
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • 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.
    • Cold Steel Corporation

“*” marked represents similar segmentation in other categories in the respective section

Frequently Asked Questions

Global cladding systems market was valued at around US$ 275.00 Bn in 2021.
The higher durability of cladding systems is expected to drive the market growth during the forecast period. 
Development of various types of sustainable cladding solutions is estimated to offer lucrative opportunities for players in the near future. 
Fluctuations in the prices of raw materials of cladding systems acts as a restraining factor for the market. 
Major players operating in the 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.
The market is estimated to grow at around 4.80% CAGR in the forecast period (2022-2030).

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