World Siding Demand to Exceed Five Billion Square Meters in 2015

The global siding market is forecast to grow 4.8 percent per year through 2015 to over five billion square meters valued at $87 billion.  North America is projected to be by far the fastest growing regional siding market.  Demand will rise most rapidly in the United States as the US housing sector recovers from its collapse.  Led by China and India, and assisted by gains in the Japanese, South Korean, and Australian markets, the Asia/Pacific region is expected to post strong gains.  Growth in Central and South America and the Africa/Mideast region will be supported by ongoing industrial and commercial development and rising personal income levels.  These and other trends, including market share and product segmentation, are presented in World Siding (Cladding), a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.  

Masonry and concrete products will account for nearly three-quarters of sales through 2015 in volume terms.  Demand for these products is expected to grow almost five percent per year, fueled by recoveries in the housing sectors of the US and Western Europe.  Brick and tile products will enjoy above-average sales growth in China, India and the Africa/Mideast region.  Sales of vinyl siding are expected to grow rapidly because of higher levels of US demand, but vinyl siding will remain a niche product outside North America, accounting for only a small portion of demand.

Between 2010 and 2015, demand for fiber cement siding will grow the most rapidly, taking market share from competitive products.  In the decade since 2000, fiber cement siding products have enjoyed rapid growth in mature siding markets such as the US and Western Europe.  These areas will account for most of the new demand for fiber cement, which occupies a negligible share of the market in most developing areas.  Japan will continue to be the leading national market for fiber cement siding, but gains will also be boosted by strong growth in China and India.

Demand for metal siding will grow at a pace of 4.6 percent per year through 2015.  High levels of nonresidential construction activity in China and a rebound in similar activity in Japan will drive strong demand in the Asia/Pacific region.  Sales of metal siding will also benefit from increased nonresidential construction activity in industrialized countries such as the US.  Wood siding will continue to lose market share to alternative options such as fiber cement.  Products made of polypropylene and other composites are expected to increase in popularity, although sales of these products account for only a small share of the siding market.

 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.