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The facades market size is forecast to increase by USD 133.9 million at a CAGR of 8.1% between 2023 and 2028. The market's growth is influenced by various factors, including the uptick in residential building construction, advancements in technology, and the surge in eco-friendly facade development. These factors collectively drive market expansion, reflecting a shift towards sustainable and energy-efficient building practices. The increased construction of residential buildings indicates a rising demand for facades that offer both aesthetic appeal and energy efficiency. Moreover, technological advances play a crucial role in enhancing the performance and sustainability of facades, meeting the evolving needs of modern architecture. Additionally, the growing emphasis on eco-friendly solutions underscores the market's response to environmental concerns, driving innovation in facade design and materials. As these trends continue, the market is poised for significant growth, driven by the demand for sustainable building solutions. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasted market scenario.
Market Forecast 2024-2028
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The market is experiencing challenges like project delays and labor shortages, prompting a focus on energy efficiency and external beautification. Solar facade installations and innovations like Solar Brick are gaining traction, especially in commercial projects and residential projects. Vertical gardens and energy-saving facade materials are popular for their aesthetic and sustainable appeal. With modernization and urbanization driving construction activities, there's a growing demand for metal composite materials and waterproofing solutions. Facades also play a crucial role in protecting buildings from external elements like snow, rain, wind, and sun, highlighting the importance of materials like Exterior Insulation and Finish Systems (EIFS). Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing construction of residential buildings is notably driving the market growth. The number of infrastructural projects related to residential buildings is increasing globally at a significant rate, owing to population growth and the regulatory support from various government bodies for construction projects. With the increase in population, the need for residential spaces is rising, which, in turn, is boosting the number of construction projects. The number of residential buildings is rapidly increasing in developing countries such as the UAE, Saudi Arabia, and China, which is expected to propel the demand for facade systems during the forecast period.
Some countries like China, India, the US, Germany, Australia, the UK, Russia, etc, have increased their construction spending to meet the growing need of people for residential space. In addition, economic developments in countries such as India, Vietnam, Malaysia, China, and Qatar have led to a rise in the disposable income of consumers. Increased income levels have led to a rise in purchasing power. An increase in the GDP is expected to increase the purchasing power of people during the forecast period, which in turn is expected to drive the spending on residential infrastructure, including facades. The rising number of residential construction projects globally is fueling the demand for facade systems, which, in turn, is expected to drive the growth of the global market during the forecast period.
Increasing technological advances in facades are the major trend driving the market growth. Due to increasing research and development investments, the market has experienced several technological advances and changes, especially in terms of resistance to extreme weather conditions, durability, water resistance, and adding natural light to the building.
In the architecture and construction industry, great research and development efforts are also being made to develop sustainable and environmentally friendly facades that absorb solar energy and create a new source of energy for residential and commercial buildings. These eco-friendly facades are expected to lead the market in the coming years due to the growing demand from potential consumers, especially in the US, UK, Germany, and Japan. Thus, the increasing technological advances, which include the introduction of eco-friendly facades, advance facades will drive the market growth during the forecast period.
Increasing prices of raw materials used in the manufacturing facade is the major challenge impeding market growth. The prices of raw materials used in the manufacturing of facade systems, such as metals, natural stone, wood, tiles, and glass, have been on the rise, primarily due to a demand-supply imbalance. The US, which is a major exporter of lumber that is used for wood products, fails to cater to the increased demand for wood in markets such as China and Southeast Asian countries.
In addition, trade disputes between the US and Canada over lumber imports have also contributed to a surge in lumber prices. The rise in prices of lumber has, in turn, increased related expenses such as transport and labor costs. The prices of glass and metals have increased due to the tight supply of key raw materials used for manufacturing these products. With the growth of the construction industry and the increasing demand for facade systems, the imbalance in supply and demand is expected to continue to increase during the forecast years. Thus, the increase in prices of raw materials of facades are expected to pose a major challenge for the market in focus during the forecast period.
The market share growth by the residential segment will be significant during the forecast period. The residential segment of the market was mainly driven by the real estate sector, including residential housing and investment in real estate done by foreign investors. However, investments in the residential segment have witnessed considerable volatility in 2022 due to the rising costs of operations, raw material sourcing challenges, excess construction capacity, and political uncertainties. The residential sector is revolutionizing the concepts of design and architecture through the construction of buildings.
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The residential segment was valued at USD 156.10 million in 2018. The growth of the population and shortage of land has increased the construction volume of residential buildings. Therefore, the demand for residential buildings is expected to increase during the forecast period, which are expected to drive the growth of the segment during the forecast period.
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APAC is estimated to contribute 39% to the growth by 2028. 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 emerging economies in APAC, such as China, the Philippines, India, Indonesia, and Thailand, are expected to drive the growth of the regional facade market during the forecast period. In addition, the construction market in India is estimated to become the third-largest market globally by 2030. Furthermore, the Government of India has decided to come up with a single-window clearance facility to ensure the speedy approval of construction projects, which is expected to drive the growth of the construction industry in the country.
In addition, the Government of China is planning to invest more than USD 1 trillion in urban infrastructure projects by 2030. The rising income levels of the middle-class population and rapid urbanization have increased the demand for residential and non-residential buildings in the region. Furthermore, countries such as Indonesia, Thailand, and the Philippines have been experiencing a surge in residential and non-residential construction in the past decade. Thus, such factors are expected to drive the growth of the regional facades market 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.
Alania Building Systems Pty Ltd. - The company offers a facade cladding system to achieve outstanding thermal behavior and to reduce humidity. They manufacture performance building cladding systems, facade cladding, column cladding, corporate ID and signage, canopies, ceilings, and related building systems.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Alania Building Systems Pty Ltd., Architectural Glass and Aluminum, Asahi India Glass Ltd., Compagnie de Saint Gobain, DANPAL, Etex NV, Everite Building Products Pty Ltd., First African, James Hardie Europe GmbH, Kingspan Group, Knauf Insulation, Nichiha Corp., Nippon Sheet Glass Co. Ltd., RPM International Inc., SHERA Public Co. Ltd., Sika AG, Sto SE and Co. KGaA, Terraco Holdings Ltd., USG Boral, and Vietnam building material
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 research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is evolving to meet changing consumer perceptions and demands, with a focus on aesthetic appearance and environmentally responsible practices. There's a growing demand for green buildings, driven by factors like climate change and stringent emission regulations. Building power and energy-saving facade materials are gaining popularity for their efficiency and eco-friendliness. Facades play a crucial role in building longevity and resistance to extreme climates, contributing to higher resale value. With the rise of smart facade systems and innovative composite materials, the market is witnessing advancements in design and construction practices, catering to a wide range of commercial and residential buildings.
Furthermore, the market is experiencing significant growth due to factors such as building densification, changing consumer perceptions, and the demand for eco-friendly and energy-efficient solutions. There is a rising interest in classic designs and the use of composite materials for the construction of colleges, construction of factories, construction of manufacturing plants, construction of hotels, construction of public facilities, construction of offices, and Construction related activities. The market caters to a wide range of buildings, including Commercial and residential projects, community centers, schools, and shopping centers. Facades play a crucial role in enhancing the aesthetic appeal of buildings, Fabrication while providing functionality and durability. With increasing regulatory scrutiny and the need for sustainable construction practices, the facades market is expected to continue evolving to meet the demands of modern construction projects.
Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.1% |
Market growth 2024-2028 |
USD 133.9 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.32 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 39% |
Key countries |
US, China, France, India, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alania Building Systems Pty Ltd., Architectural Glass and Aluminum, Asahi India Glass Ltd., Compagnie de Saint Gobain, DANPAL, Etex NV, Everite Building Products Pty Ltd., First African, James Hardie Europe GmbH, Kingspan Group, Knauf Insulation, Nichiha Corp., Nippon Sheet Glass Co. Ltd., RPM International Inc., SHERA Public Co. Ltd., Sika AG, Sto SE and Co. KGaA, Terraco Holdings Ltd., USG Boral, and Vietnam building material |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market 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 End-user
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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