CLADDING SYSTEMS MARKET ANALYSIS

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

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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.

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

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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.