According to a report,“U.S. Rainscreen Cladding Market Size, Share & Trends Analysis Report By Raw Material (Composite Material, Terracotta), By Application (Residential, Commercial, Office), And Segment Forecasts, 2019 – 2025”, published by Grand View Research, Inc., U.S. rainscreen cladding market size is expected to reach USD 42.6 billion by 2025, according to a new report by Grand View Research, Inc., registering a 6.5% CAGR during the forecast period. Increase in residential and non-residential renovations, coupled with rise in construction activities, is expected to boost industry growth over the forecast period.
The industry is characterized by ongoing developments in technology to produce advanced products used in construction and other industrial applications. Manufacturers of rainscreen cladding focus on procurement of high-quality raw materials and are involved in the production of innovative products with designs and structures that are easier to assemble.
Fluctuating raw material prices result in variation in production cost of cladding components, thus affecting profit margins of companies across the value chain. Manufacturers in the industry resort to mass production in order to minimize the impact of dynamic price changes in the economy.
U.S. industry is highly competitive on account of intensive product and price differentiation. Players try to expand their consumer base by improving the durability, aesthetics, and energy efficiency of the product. The industry is expected to witness an upward trend of mergers and acquisitions of players to strengthen their position in the domestic and international market.
Key Takeaways from the report:
-
Based on raw material, terracotta dominates the U.S. rainscreen cladding industry in terms of revenue, accounting for 35.0% of the total volume in 2017. This can be attributed to increasing product penetration on account of its superior fireproof and waterproof properties
-
By application, office construction accounted for the largest share, exhibiting a CAGR of 6.1% in terms of volume from 2018 to 2025. This is due to increasing investments in working spaces to improve aesthetic appeal and provide safety against harsh weather conditions
-
Single family construction application is estimated to expand at a CAGR of 7.1% in terms of revenue from 2018 to 2025. This is on account of rising awareness regarding product benefits in terms of energy efficiency and safety
-
The industry exhibits extensive integration across the value chain to achieve optimum business growth. Industry players have been adhering to standards set by regulatory bodies and governments for manufacturing rainscreen cladding components in order to sustain the competition.
Browse More Reports in Green Building Materials Industry:
- Southeast Asia Asphalt Shingles Market – Asphalt shingles are estimated to witness healthy growth in demand in Southeast Asian countries in the residential and non-residential sectors over the forecast period.
- Soft Covering Flooring Market – Rising demand for carpet tiles on account of availability in a range of colors, patters, and textures is expected to drive the growth.
Application Insights
The office construction segment accounted for the largest share in the market and is expected to exhibit a CAGR of 6.8% in terms of revenue from 2018 to 2025. This is owing to increase in spending on refurbishment of old office buildings. In addition, rising employment rate, coupled with growth in office startups, is expected to drive the industry.
Commercial construction is also expected to witness significant growth owing to the rebound in the retail sector. Healthcare construction is expected to remain stable in the near future amid uncertainties regarding healthcare policies by the current U.S. government. This is expected to result in a rise in healthcare construction, leading to increased demand for rainscreen cladding.
The residential application segment is expected to witness sustained growth over the forecast period owing to increased demand for single-family housing. Soaring population, strong economic growth, increase in household formation, and low mortgage rates are expected to be key factors aiding residential construction.
Demand for multi-family housing is expected to decline over the forecast period, which may moderately impact residential construction. Moreover, low land availability, low housing inventory, and rise construction cost are expected to have a negative impact on residential construction materials, thereby hampering market growth in U.S.
U.S. Rainscreen Cladding Market Share Insights
The industry is characterized by the presence of large established players with a strong financial base. Material users usually opt for reliable suppliers operating with high goodwill, making it difficult for new players to enter the market. Moreover, high initial cost required to set up the facility is likely to act as a barrier to new entrants.
Fluctuation of raw material prices is one of the major challenges faced by competitors. Hence, a high degree of backward and forward integration is likely to be observed among major players. This is further likely to intensify competition, rendering it difficult for emerging players to sustain in the market.
Explore the BI enabled intuitive market research database, Navigate with Grand View Compass, by Grand View Research, Inc.
About Grad View Research, Inc.
Grand View Research provides syndicated as well as customized research reports and consulting services on 46 industries across 25 major countries worldwide. This U.S.-based market research and consulting company is registered in California and headquartered in San Francisco. Comprising over 425 analysts and consultants, the company adds 1200+ market research reports to its extensive database each year. Supported by an interactive market intelligence platform, the team at Grand View Research guides Fortune 500 companies and prominent academic institutes in comprehending the global and regional business environment and carefully identifying future opportunities.
For more information: www.grandviewresearch.com
Media Contact
Company Name: Grand View Research, Inc.
Contact Person: Sherry James, Corporate Sales Specialist – U.S.A.
Email: Send Email
Phone: 1-415-349-0058, Toll Free: 1-888-202-9519
Address:201, Spear Street, 1100
City: San Francisco
State: California
Country: United States
Website: www.grandviewresearch.com/industry-analysis/us-rainscreen-cladding-market