Siding Demand to Exceed 100 Million Squares in 2014

Demand for siding in the US is forecast to grow 6.5 percent per year through 2014 to more than 100 million squares, valued at $11.1 billion.  Advances will be driven by a rebound in housing completions from the depressed levels in 2009, reflecting the sharp declines in housing completions between 2007 and 2009.  Although housing completions will remain below the level reached at their cyclical peak in 2006, the recovery will fuel above-average gains in the residential siding market through 2014. These and other trends, including market share and product segmentation, are presented in US Siding, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Among material types, fiber cement, stucco and brick siding are forecast to see the most rapid advances through 2014.  Fiber cement siding demand will be promoted by its durability and ability to be made into siding that resembles more expensive materials, such as wood or brick.  Stucco siding demand will be derived from its low cost, ease of installation, durability and minimal maintenance requirements.  Homeowners will continue to desire brick siding due to its aesthetic properties, durability and fire resistance. 

Vinyl siding is the largest product segment in the siding industry, accounting for about 40 percent of demand in area terms in 2009.  Vinyl siding’s popularity will continue to be supported by its low cost, ease of installation and durability.  Efforts by manufacturers to broaden the range of available colors and textures will promote gains going forward.  However, more rapid advances will be checked by rising competition from fiber cement and stucco siding, which offer enhanced long-term durability and require less maintenance.

Wood siding accounted for the second largest share of siding demand in area terms in 2009.  However, continuing a long-term trend, wood siding will account for a smaller share of the market going forward, as fiber cement and stucco siding will be used more frequently.  Wood siding demand has been negatively affected by concerns about its durability and resistance to degradation caused by exposure to the elements.  These issues will continue to affect demand going forward.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.