FIBER CEMENT MARKET ANALYSIS

The global fiber cement market size was valued at 33346.93 Kilo ton in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 4.23% from 2022 to 2030. The fiber cement market is witnessing strong growth on the account of growing residential construction worldwide. Growing usage of fiber cement in timber-framed houses is again fostering market growth. Moreover, increasing use of fiber cement in cladding application due to their high strength and durability will further favor the market growth.

Global Fiber Cement Market: Regional Insights

North America is expected to dominate the global fiber cement market over the forecast period and this is attributed to the strong presence of construction industry in the region. The United States has one of the world’s largest construction industries, and it was valued at USD 1,469.15 billion in 2020, which was USD 1,391.04 billion in 2019. According to the US Census Bureau, the annual value of residential construction put in place in the United States was valued at USD 6, 38,088 million in 2020, registering a growth rate of about 13% compared to USD 5,53,442 million in 2019. Moreover, the annual value of non-residential construction put in place in the country was valued at USD 8, 31,065 million in 2020, compared to USD 8, 37,597 million in 2019.

Europe is also projected to gain fastest growth in the near future due to growing construction activities in the region. According to Statistisches Bundesamt (Destatis), the total buildings and construction work permits in 2020 in the country were around 232 thousand units which have increased by around 4.3% compared to 2019. Moreover, the completion of the construction of new houses was estimated at 306,376 units in 2020 as compared to an increase from the previous number of 293,002.000 units for 2019.

Figure 1. Global Fiber Cement Market Value Share (%), By Region, 2021

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Global Fiber Cement Market Drivers:

Rise in residential construction is likely to drive growth of the fiber cement market. It is widely used for both internal and external applications such as partition walls, windowsills, ceilings and floors, flat sheets as base, flat sheets for wind shields, wall copings, soffits, corrugated sheets, slates, and planks. Increasing population, growing urbanization, and middle-class income are other major factors propelling market growth.

Advantages such as versatile nature, durable, and resistant to harsh weather condition are again driving market growth. It can be manufactured into a variety of designs, such as panels, boards, or shingles. Moreover, they are also are compatible with paints and all properties make them more sustainable and desirable.

Global Fiber Cement Market Opportunities:

Use of fiber cement in timber-framed houses is escalating in the European region. The market share of houses manufactured with timber frames is the highest in the Nordic countries, followed by Germany, the United Kingdom, and France. This is creating potential opportunity for fiber cement in timber frame house. For instance, the coalition parties of Germany have pledged 400,000 new housing units every year, 100,000 of which are to be publicly subsidized.

Increasing replacement of low-end plywood with fiber cement in India is projected to offer significant growth opportunities over the forecast period. Fiber cement products are cheaper by nearly 40%, are more durable, and provide a life span of 15 to 20 years compared to 5 to 10 years to plywood products. According to the Coherent Market Insights analysis, in India, the fiber cement roofing market was valued at approximately INR 12,000 crores and has opportunities from kutcha and semi-pucca houses. The fiber cement roofing market is an oligopoly market, with top-six players controlling 70% of capacity and 80% sales market in India.

Global Fiber Cement Market Trends:

Key players are focusing on adopting partnership and agreement to expand their global presence in the market. For instance, in August 2020, Hatch, the messaging platform for home improvement companies, announced a partnership with James Hardie Building Products Inc., the marketer in fiber cement siding and backerboard.

Advent of augmented reality, virtual reality, and machine learning in architectural industry is a growing trend in the market. Moreover, increasing investment in middle-class housing by local residents is again contributing market growth.

Global Fiber Cement Market Restraints:

Presence of alternative such as wood, metal, and vinyl is expected to restrict the market growth.

Negative impact of Covid-19 on construction industry which had disrupted the industrial investments and activities at present is again expected to hamper the market growth. For instance, according to JLL India, the housing sales in the top 7 cities in the country decreased from 143,923 in 2019 to 74,451 in 2020, thereby negatively affecting the market studied.

Figure 2. Global Fiber Cement Market Value Share (%), By End-user Industry, 2021

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Global Fiber Cement Market Segmentation:

The global fiber cement market report is segmented into applications, end-user industry, and geography

Based on applications, the market is segmented into siding, roofing, cladding, molding and trimming, and other applications. Out of which, Roofing is expected to dominate the global market over the forecast period and this is attributed to the increasing use of fiber cement for various roofing products across residential and commercial sectors. They are available in various options such as sheet, slates, and others.

Cladding segment is also expected to witness significant growth in the near future owing to its various purpose such as creating a controlled internal environment, preventing the transmission of sound, creating external façade, providing thermal insulation, protecting the building from external conditions, preventing spread of fire, providing openings for access, improving appearance of buildings, daylight and ventilation, among others.

Based on end-user industry, the market is segmented into Residential and Non-residential. Out of which, Residential is expected to dominate the global market over the forecast period and this is attributed to its excellent UV resistant, wear and tear resistance to concrete, fire resistant, pest and algae resistant, corrosion-free, aesthetically appealing, and properties.

In Non-residential, they are used to decorate commercial buildings’ exteriors. Additionally, these building materials are also contributing to LEED credits, as these products are low-emitting materials.

Global Fiber Cement Market: Key Developments

1. In June 2019, The Cembrit Holding A/S launched Cembrtit Patina Rough fiber cement cladding, a new through-colored cladding board with a sandblasted surface that gives the board an attractive, stone-effect finish.
2. In MAY 2019, The Everest Industries Limited launched a 100% eco-friendly fiber cement board made from 40% recycled material. These boards act as a great substitute for wood and wood-based panels.

Global Fiber Cement Market: Key Companies Insights

The global fiber cement market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global fiber cement market are Etex group, Elementia Materials, Everest Industries Limited, James Hardie Industries PLC, Johns Manville, Knauf Gips KG, Saint-Gobain, BetonWood Srl, Cembrit Holding A/S, HIL Limited, GAF, and NICHIHA Co. Ltd

*Definition: Fiber cement cladding has over a century of proven performance. Its advantages include affordability, aesthetics, and durability. Fiber cement cladding is produced using a dry process, which provides a high degree of design flexibility. It is also fire and insect proof, making it a sustainable choice for homes.