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The cladding market size is forecast to increase by USD 131.95 billion, at a CAGR of 7.68% between 2023 and 2028. The market growth analysis depends on several factors such as the growing construction and infrastructure development activities, the changing climate conditions, and the rapid growth potential in emerging economies. Our report examines historical data from 2018-2022, besides analyzing the current and forecasted market scenario.
The increasing construction and infrastructure development activities and the surge in industrial activities are expected to drive the regional cladding market. Moreover, the focus on energy conservation and energy efficiency in the region has increased the demand for energy-efficient buildings. Additionally, Arconic Corp. offers cladding products such as Reynobond composite, AS3000B 3mm bonded, and pre painted aluminum. Also, CGL Facades. offers cladding products such as rainscreen cladding and CAREA interlocking facing panels.
Market Forecast 2024-2028
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Our researchers studied the market research and growth data for years, with 2023 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The number of new construction is on the rise after the prolonged depression in the construction market. Further, the recovery in the global economy has created optimism among home buyers. Several private players in the construction industry are also undertaking new commercial mega-projects, of which many are already in the construction phase.
Furthermore, the rising focus on infrastructural and real estate development, as well as the construction of new residences and offices, is expected to increase the demand for construction cladding. In addition to new construction, the rising demand for construction is complemented by the increase in the number of renovation and modification projects globally during the forecast period. Thus, the growth of the construction industry will drive the growth of the market during the forecast period.
Acquisitions help the market players to gain market share, achieve product feature improvisation, and expand their geographic reach and product portfolios. Additionally, market players are also acquiring other market players to widen their product offerings and increase the distribution of product lines across the globe. Furthermore, the market is also witnessing acquisition so that companies can enhance their product reach.
For instance, in January 2022, SKF announced the acquisition of Laser Cladding Venture n.v., an additive manufacturing company based in Belgium. The increase in acquisition activities is resulting in a rise in investments and innovations in the global cladding market, which is subsequently supporting the growth of the market during the forecast period.
Instability in raw material prices affects the cost of production. Accordingly, many key cladding services providers enter into long-term contracts with suppliers to reduce the impact of fluctuation in the prices of raw materials on their businesses. Stainless steel, iron, and plastic, among others, are the major raw materials. Fluctuating prices directly affect contracts for market players, and such volatility in the service cost affects new contracts and impacts overall fabrication costs.
Moreover, the factors that influence the cost of raw materials include inflation, supply and demand, and availability. For instance, benchmark steel prices were down about 17% in March 2022 compared to 2021. However, US hot-rolled coil prices have since climbed back up to over USD 650 in December. Thus, such volatility is likely to impede the growth of the market during the forecast period.
The steel segment will account for a major share of the market's growth during the forecast period.? The industrial steels are more prone to corrosion. Carbon steel, in most cases, is not a good choice for working with corrosive fluids, high temperatures, and internal pressures. Cladding steel is used for various applications, including chemical processing, oil refining, offshore oil production and exploration, and power generation units, among others, where there are high temperatures and stress corrosion.
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The steel segment was valued at USD 87.79 billion in 2018. Additionally, there is growing investment in steel pipes in the above-mentioned industries. For instance, in February 2021, the government granted new fiscal support worth USD 3.5 billion to strengthen the oil company's finances. Similarly, Pemex is carrying out various oil projects during the forecast period. Thus, such factors are expected to drive the growth of the steel segment of the market during the forecast period.
Based on end-user, the market has been segmented into residential, industrial, commercial, offices, and institutional. The residential segment will account for the largest share of this segment.? Cladding is commonly used in modern kitchens, bathrooms, and rooms, along with internal and exterior walls. There is growing investment in the residential segment owing to increasing urbanization globally. Growing urbanization is driving the demand for new residential units globally. Furthermore, the demand for thermal insulation in homes and faster house construction duration is the reason behind the demand for modular construction from residential buildings. Thus, such factors are expected to drive the residential segment of the market during the forecast period.
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APAC is estimated to contribute 37% to the growth by 2027. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The increasing construction and renovation activities due to economic development, rising income levels, growing urbanization, and rising living standards are expected to drive the market in APAC. The rising commitment among the construction industry stakeholders toward green construction, energy efficiency, and the use of advanced materials for building construction is also a major selling point for the cladding market in the region during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
ArcelorMittal SA, CA Group Ltd., Carea Ltd., Coverworld UK Ltd., CSR Ltd., Dumaplast, Etex NV, GB Architectural Cladding Products Ltd., James Hardie Industries plc, Kingspan Group Plc, Louisiana Pacific Corp., Middle East Insulation LLC, Nichiha Corp., ROCKWOOL International AS, Swisspearl Group AG, Tata Sons Pvt. Ltd., and Trespa International B.V
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market analysis and report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Cladding Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.68% |
Market growth 2024-2028 |
USD 131.95 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.08 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 37% |
Key countries |
US, China, India, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ArcelorMittal SA, Arconic Corp., CA Group Ltd., Carea Ltd., CGL Facades., Compagnie de Saint Gobain, Coverworld UK Ltd., CSR Ltd., Dumaplast, Etex NV, GB Architectural Cladding Products Ltd., James Hardie Industries plc, Kingspan Group Plc, Louisiana Pacific Corp., Middle East Insulation LLC, Nichiha Corp., ROCKWOOL International AS, Swisspearl Group AG, Tata Sons Pvt. Ltd., and Trespa International B.V |
Market dynamics |
Parent market report, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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