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
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.
| 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 |
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| Segments covered: |
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| 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. |
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| Restraints & Challenges: |
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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
Recent Developments
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:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective section
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