The rising construction activities in North America is anticipated to open up new avenues for the Cladding Systems Market
Cladding Systems Market
Naufan Cmi
Market Overview:
Cladding systems are used as an exterior finish in construction activities. They provide protection from weather elements and improve aesthetics of buildings. Various cladding materials include bricks, wood, tiles, concrete, and metals. Their installation involves covering the walls or roofs of buildings with these materials. They are extensively used in commercial, industrial and residential construction sectors.
The Cladding Systems Market is estimated to be valued at US$ 302.03 Bn in 2023 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growth of the cladding systems market is driven by increasing construction of commercial buildings globally. Rapid urbanization has propelled the demand for office spaces, shops, malls and other commercial constructions which utilise cladding materials extensively. According to survey, commercial construction spending in the United States is projected to grow around 4.2% in 2023.
Another major driver is rising spending on infrastructure development activities. Governments across nations are focusing on road, rail and airport construction which triggers the demand for cladding systems. For instance, Indian government allocated around INR 5.35 lakh crore for infrastructure development in Union Budget 2023-24. Such investments drive the adoption of cladding for beautification purposes in infrastructure projects.
Segment Analysis
The Cladding Systems Market Demand is segmented by material type into ceramic, wood, stucco & EIFS, brick & stone veneer and metal. The metal segment holds the largest market share currently as it is more durable and sustainable compared to other materials. It is predominantly used in commercial constructions to provide architectural appeal and protection from harsh weather conditions.
PEST Analysis
Political: The government policies and regulations supporting green buildings and sustainable infrastructure development are driving the market growth. Subsidies for eco-friendly materials and tax benefits on their production will boost demand.
Economic: Investments in commercial real estate and infrastructure are increasing globally due to rapid urbanization and industrialization. Rising disposable incomes are also fueling home improvement and remodeling activities.
Social: Growing environmental awareness among consumers is propelling the preference for sustainable cladding solutions with lesser maintenance needs. Appearance and curb appeal are important social considerations for residential cladding.
Technological: Digitalization, BIM, and advanced fabrication techniques enable precise designs and installation processes. Self-cleaning, anti-scratch and insulated cladding materials with longer lifespans are gaining popularity.
Key Takeaways
The global cladding systems market is expected to witness high growth, exhibiting CAGR of 4.8% over the forecast period, due to increasing investments in commercial real estate and infrastructure development projects across emerging economies.
Regionally, Asia Pacific dominates currently led by China, India and other Southeast Asian countries. This trend is expected to continue owing to the massive infrastructure push and urbanization drive in the region. Government initiatives for smart city developments and increasing disposable incomes are fueling high demand.
Key players operating in the cladding systems market are 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. These players are investing in innovations, product expansions and partnerships to consolidate their market shares.
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About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc.
