Siding Market Analysis APAC, North America, Europe, Middle East and Africa, South America - China, US, India, UK, France - Size and Forecast 2024-2028

Siding Market Size 2024-2028

The siding market is estimated to grow by USD 19.3 billion at a CAGR of 3.85% between 2023 and 2028. The market 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.

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

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Market Dynamics and Customer Landscape

The market is witnessing significant growth due to the increasing demand for energy-efficient and low-maintenance housing solutions. However, the market faces several challenges that hinder workflow and productivity. These challenges include compatibility issues between different software, performance problems due to bugs and glitches, and file corruption during data synchronization and processing. To address these challenges, the industry is shifting towards cloud-based solutions, which offer real-time data access, seamless collaboration, and automatic software updates. Cloud-based Excel documents and web apps enable users to work on spreadsheets and datasets from anywhere, ensuring uninterrupted workflow. Moreover, software companies are focusing on improving software version compatibility and providing regular patches to address performance issues and bugs. The use of web apps and cloud-based solutions also eliminates the need for file copying and manual data processing, reducing the risk of errors and data corruption. In conclusion, the siding market is gaining momentum, driven by the demand for energy-efficient and low-maintenance housing solutions. To ensure productivity and efficiency, it is crucial for industry players to address software compatibility issues, performance problems, and data synchronization challenges by adopting cloud-based solutions and focusing on continuous software updates. Our researchers analyzed the data with 2023 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 companies. Since the lack of skilled laborers limits the demand that companies can meet, the cash cost of such companies 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.

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.

Market Customer Landscape

Who are the Major 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 companies, 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 companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies 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 51.90 billion in 2018. 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 companies 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 53% 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. 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 market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments

• 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

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Market Analyst Overview

The siding marketing involves utilizing software solutions to manage and optimize various aspects of siding business operations. These software tools aim to enhance workflow, productivity, and efficiency while minimizing stress and frustration. Key challenges in siding marketing include compatibility issues, performance problems, file corruption, and data synchronization. Cloud-based Excel documents and web apps have emerged as popular solutions, offering the convenience of internet connectivity and real-time data processing. Software bugs and glitches can hinder productivity and cause frustration, particularly in time-sensitive projects. Regular software updates, patches, and process improvements are essential to maintain software performance and address compatibility issues.

Moreover, siding marketing software should be compatible with various file structures, including Excel spreadsheets, and support file copying, data sets, formulas, and formatting. The market landscape depends on the Guide, Network connectivity, Data copying, Processes, File structure, PC, Smartphone, Windows, Android, iOS, Microsoft Store, Google Play Store, Apple Store, Data validation. Embedded objects and complex data processing tasks can also pose challenges, requiring robust software solutions. Users rely on critical information, such as customer data and project details, to make informed decisions. Data loss can be catastrophic, emphasizing the importance of reliable software and backup systems. In conclusion, effective marketing software guides businesses in managing their workflow, enhancing productivity, and ensuring data accuracy. By addressing common challenges like compatibility issues, performance problems, and data loss, marketing software enables businesses to focus on their core operations and drive momentum in the industry.

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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 2028
• 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 companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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