Siding Market by End-user, Material, and Geography - Forecast and Analysis 2023-2027

Siding Market Forecast 2023-2027

The siding market is estimated to grow by USD 20.01 billion at a CAGR of 4.11% between 2022 and 2027. The booming global construction industry is fueling demand for a wide range of products and services, from building materials to equipment and machinery. Increasing disposable incomes are leading to higher consumer spending, particularly in sectors such as retail, hospitality, and entertainment, driving growth in these industries. The growth of the travel industry, fueled by rising incomes and changing consumer preferences, is also driving demand for travel-related products and services, such as accommodations, transportation, and experiences. Overall, these factors are contributing to economic growth and driving opportunities for businesses across various sectors.

It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the Market During the Forecast Period?

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Market Segmentation

This report extensively covers market segmentation by end-user (residential, commercial, and public infrastructure), material (vinyl, fiber cement, wood, and others), and geography (APAC, North America, Europe, Middle East and Africa, and South America).

Market Dynamics and Customer Landscape

Rapid urbanization has led to a surge in construction activities, particularly in the residential and commercial sectors. As a result, the demand for siding materials for renovation and remodeling projects has increased significantly. Homeowners are increasingly focused on the visual appeal and curb appeal of their properties, driving the need for durable and aesthetically pleasing siding options. Fiber cement siding has emerged as a popular choice due to its durability, aesthetic appearance, and energy-efficient properties. With a focus on sustainable and eco-friendly building practices, the siding market is witnessing a shift towards exterior materials that offer both structural integrity and reduced heat loss. 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.

Key Market Driver

The increasing disposable incomes are notably driving the market growth. Disposable income is on the rise globally, driven by factors such as increased dual-income households, rising per capita income, and a rapid growth in the employment rate. For example, in the US, disposable personal income (DPI) after income tax increased from 0.3% in May 2019 to 0.4% in June 2019, according to the Bureau of Economic Analysis. Similarly, the Organization for Economic Co-operation and Development (OECD) reports that household disposable income has increased in all developed and developing countries since 2020.

This increase in disposable income is expected to boost consumer spending and purchasing power. The growth of the tourism industry is also contributing to increased spending on new construction and renovations, particularly in the housing sector. Homeowners are more likely to invest in solutions that enhance the visual appeal and curb appeal of their properties. This trend is expected to drive growth in residential construction, non-residential construction, and infrastructure activities. Additionally, consumers are seeking durable solutions that also enhance the aesthetic appearance of their homes and buildings. With higher spending capacity, people are more likely to invest in solutions that enhance the aesthetic appeal of their homes. These factors are expected to drive market growth during the forecast period.

Significant Market Trend

The growing number of green buildings is an emerging trend in the market. The actual construction, establishment, and subsequent continuous operations of a building require a substantial amount of energy. Generating a huge quantity of energy for regular operations in a building turns out to be very expensive. Moreover, buildings are responsible for emitting the largest volume of greenhouse gases worldwide, which is more than the volume emitted by the transportation sector. Additionally, buildings continuously consume energy from the surroundings without any replenishment. This highlights the need for appropriate energy efficiency in buildings.

Green buildings are ergonomically designed to consume minimal amounts of energy. These buildings minimize energy consumption and efficiently utilize the available energy to meet all their requirements. Therefore, there will be an increase in the demand for such buildings. This growth may be attributed to the growing awareness about global warming and climate change and the frameworks that prioritize energy efficiency and ecological sustainability. As the growing demand for residential and commercial building spaces in developing countries will likely drive energy consumption, improved efficiency in the building sector may offer significant reductions in emissions. Such developments are likely to boost the adoption of energy-efficient sidings across all end-user segments during the forecast period, which would benefit the market in focus during the forecast period.

Major Market Challenge

The shortage of skilled labor is a major challenge impeding market growth.  The lack of skilled labor for the installation of sidings compels siding dealers to decline work offers. In addition, dealers are compelled to pay high wages to less skilled labor to retain the workforce to cater to the demand from customers. Such practices can affect the quality of siding installation work. Moreover, the paucity of labor has increased average labor costs. Though investments in construction activities are constantly increasing, the shortage of skilled workers can negatively impact the global market.

Shortage of skilled labor also adversely affects the bottom line of the vendors. Since the lack of skilled laborers limits the demand that vendors can meet, the cash cost of such vendors remains high as they have to pay their workers regularly. This adversely affects their bottom line. Hence, the shortage of skilled labor will be a key challenge for the global market during the forecast period.

Key Siding Market Customer Landscape

The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Siding Market Companies?

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.

Docke Extrusion LLC - The company focuses on producing vinyl siding and rain gutters under the brand Docke. The key offerings of the company include siding solutions. 

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:

• Boral Ltd.
• Etex NV
• James Hardie Industries plc
• Kaycan Ltd.
• Kingspan Group Plc
• Knauf Digital GmbH
• Koch Industries Inc.
• Koch Konstruction Inc
• LIXIL Corp.
• Louisiana Pacific Corp.
• Nichiha
• Ply Gem Residential Solutions
• Revelstone
• ROCKWOOL International AS
• The Alumasc Group plc

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

By End-User

The market share growth by the residential segment will be significant during the forecast period. Residential construction in several regions witnessed an uptick in the last five years and will likely witness positive growth during the forecast period owing to favorable government initiatives and high disposable incomes. The demand for sidings in the residential end-user segment will also be largely driven by home remodeling projects.

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The residential segment was valued at USD 49.98 billion in 2017. The rapid growth in urbanization, government funding for housing projects, low-interest rates on housing loans, and the increasing popularity of high-rise residential buildings are expected to boost the global residential construction market during the forecast period. Such factors will lead to an increase in the demand for residential buildings in urban areas. In addition, various countries are also introducing schemes that encourage people to invest in homes. Furthermore, various types of sidings have been gaining traction among residential construction and home remodeling projects. This is because many types of sidings possess properties such as water resistance, ease of cleaning, and high weather resistance. Furthermore, market vendors are constantly focusing on offering innovative products. Sidings are available in various colors, textures, shapes, and patterns, which make them ideal for home renovations. With the rapid growth in renovation and new home construction projects, the demand for sidings will remain high in this segment in the coming years. This would contribute significantly to the growth of the market in focus during the forecast period.

By Region

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APAC is estimated to contribute 58% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

The construction sector in APAC is experiencing significant growth owing to the rising demand for industrial buildings, commercial spaces, and housing units. The rising income levels of the middle-class population and rapid urbanization have increased the demand for residential and non-residential buildings in these countries, which is expected to drive the growth of the regional market in focus during the forecast period. Emerging economies such as China, the Philippines, India, Indonesia, and Thailand are expected to drive the growth of the market in the region. Favorable government policies and initiatives are attracting investments in the construction sector from both public and private organizations. For instance, in India, government initiatives such as the Smart City Mission and Housing for All are fueling the growth of the construction and infrastructure sectors. The growth in the number of construction activities in the industrial, commercial, and residential sectors is driving the need for cost-effective and quick-building solutions. Hence, the adoption of sidings is rapidly increasing in the region.

Furthermore, the number of baby boomers is increasing in countries such as China, Japan, Singapore, and Thailand. This population group prefers multigenerational trips to exotic destinations. In addition, the trend of micro trips among working professionals for a short duration is propelling the growth of the tourism industry in this region. Countries such as Singapore, Thailand, Maldives, Bali, Australia, New Zealand, and India are suitable destinations with a rich cultural heritage and history for domestic and overseas tourists. Most travel agencies offer a customized package, including staying, dining, and fun-filled activities for a short duration in these countries. This is increasing the focus of players in the hospitality industry on improving the quality and range of their offerings. As investments in hotels, restaurants, and other such establishments increase, the market in the region will witness robust growth during the forecast period.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• End-user Outlook 
  • Residential
  • Commercial
  • Public infrastructure

• Material Outlook 
  • Vinyl
  • Fiber cement
  • Wood
  • Others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Market Analyst Overview

The market is driven by factors such as architectural appeal and building aesthetics, with a wide range of materials available, including board and batten siding, bricks, and clapboard. Builders and homeowners are increasingly opting for eco-friendly siding materials due to growing concerns about environmental impact and energy-efficient building practices. Composite siding and engineered wood siding are gaining popularity for their insulating qualities and longevity. Commercial and residential sectors are adopting low-maintenance siding materials that offer resistance to rot and insects. Recycled materials and renewable resources are also being used to meet sustainability criteria.

Market Scope
Report Coverage	Details
Page number	174
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 4.11%
Market growth 2023-2027	USD 20.01 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	3.65
Regional analysis	APAC, North America, Europe, Middle East and Africa, and South America
Performing market contribution	APAC at 58%
Key countries	US, China, India, UK, and France
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Boral Ltd., Docke Extrusion LLC, Etex NV, James Hardie Industries plc, Kaycan Ltd., Kingspan Group Plc, Knauf Digital GmbH, Koch Industries Inc., Koch Konstruction Inc, LIXIL Corp., Louisiana Pacific Corp., Nichiha, Ply Gem Residential Solutions, Revelstone, ROCKWOOL International AS, The Alumasc Group plc, Valmont Industries Inc., Westlake Corp., Wienerberger AG, and Woodtone
Market dynamics	Parent market analysis, Market Forecasting, 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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