The Global Cladding Market is expected to grow at a high CAGR 5.2% during the forecasting period (2022-2029).
Cladding is used to improve the appearance of buildings, to provide a high degree of thermal insulation and weather & impact resistance.
Cladding is provided to the interior as well as exterior components, walls, windows etc for the buildings to form rigidity and high strength to surfaces. The cladding system includes the components that are bonded to the primary structure of a building to avoid weather exposure from the outer environment. Cladding is insulation membranes, used to fill brackets, cavity barriers, flashing, fixings, and loopholes in the buildings. However, cladding plays a structural role in transferring wind loads, snow & impact loads, with its self-weight attached to the structural framework. Cladding is widely used for commercial, residential and industrial buildings for providing proper thermal insulation to the buildings from environmental impacting situations like rain, snowfall etc.
The global cladding market growth is driven by high demands in the construction industry for providing thermal insulation and protection against environmental impacts on buildings
Increasing demand for thermal insulation of buildings to protect from environmental impacts is expected to drive the market growth
The growing demand for thermal insulation for buildings to protect the buildings from environmental impacts drives the growth of the cladding market. According to United Nations Industrial Development Organization in 2020 report, the global thermal insulation valued at around US$65.0 billion in 2020, which is growing at a compound annual growth rate (CAGR) of 8.0% from 2015 to 2020.
Introduction of pre-engineered structures, growing demands of speedy project execution, with the surge in the infrastructure development investments
Further rising infrastructure development projects with growing government initiatives for providing safety cladding for the building and construction sector have propelled the cladding market. For instance, in April 2020, the UK government have launched Building Safety Programme for 149 of the total 456 buildings to provide aluminium composite material (ACM) cladding, with full remediation. Building Safety Programme provides cladding for 94 buildings within the scope with 30 hotels buildings, 54 student accommodation buildings and 10 publicly owned buildings. It created a massive demand for the cladding market.
COVID-19 Impact Analysis
The global cladding market has been drastically declined due to the COVID-19 pandemic, as several construction sectors have divested their investment and many countries were in the lockdown state. However, the market has gained its stake during May and June 2020 as several building and construction sites were began their works. The government has provided funding to relieve the impact of covid-19 on the cladding market. For instance, on 5th June 2020, UK Government has declared a building Safety Fund of around US$ 1.17 billion for Non-Acm Cladding Remediation. The cladding market is gaining potential demand during August 2020, this is primarily due to rising residential and commercial sector demand.
The global cladding market is divided into material, application, end-user and region.
The wood cladding segment is expected to hold the largest market share over the forecast period (2022-2029)
By material, the global cladding market is segmented into the wood cladding, stone cladding, tile cladding, ceramic cladding, glass cladding, timber cladding, aluminium cladding, curtain wall cladding, porcelain cladding, metal cladding, upvc cladding, vinyl cladding, concrete cladding and others. Among these, the wood cladding segment accounted for the largest share of the claddings market in 2019, this is primarily due to the launching of the cladding for home and commercial space for providing thermal insulation and to provide asthetic to home. For instance, on 29th Sept 2017, Notion launched cladding for home and commercial space for walls, which provides insulation and protection as well as adds an aesthetic effect to the buildings.
Similarly, stone cladding, tile cladding, ceramic cladding, glass cladding, timber cladding, aluminium cladding, curtain wall cladding, porcelain cladding, metal cladding, upvc cladding, vinyl cladding, concrete cladding segments are also growing at the fastest pace due to rising demand for the comfortable living with growing residential and commercial buildings.
Decorative Walls with cladding is in trend in developed countries
By application, the global cladding market is divided into walls, roofs, windows, doors, vents, retro fittings and others. Among this walls segment has the highest share in 2019, this is primarily due to the rising demand for cladding for walls from commercial and residential spaces.
Residential is expected to dominate the cladding demand globally
By end-user, the cladding market is segmented into hospitals, diagnostic centres, academic and research institutes, pharmaceutical and biotechnology companies, and others. Among these, the residential segment accounted for the largest market share in 2019, due to rising incidences of chronic diseases and huge patient inflow in hospitals and diagnostic centres. There The residential application segment is expected to dominate the insulation market, with sales reaching a value of over US $36.3 billion by 2024.
There is a rise in demand for slider strainers in hospitals and diagnostic laboratories to ease their workflow, enhance the performance by slide straining procedures in disease diagnostic applications. May 2018 the Department announced £400 million to fund remediation for high-rise residential buildings with unsafe ACM in the social housing sector. In May 2019 it announced that around a further £200 million would be made available for the remediation of equivalent buildings in the private sector.
Asia-Pacific region holds the largest market share global cladding market
Asia-Pacific region is dominating the global cladding market accounted for the largest market share in 2019, due to this due to rising population demand which leads to a surge in the demand for residential and commercial buildings construction. As per the UNIDO organization, the Asia-Pacific region accounted for over 40% of global revenue in 2015 for the thermal insulation market due to growing population demand. The market in this region is attributed to high insulation demand for residential, commercial buildings with high industrialization rates and increased construction spending in the emerging economies of China, India, Indonesia, Thailand, Malaysia and the Philippines for better infrastructure.
Similarly, the NorthAmerica region is also growing at the fastest pace for the growing demand for thermal insulation in residential and commercial buildings due to cold weather in this region. Further cladding market is also driven by growing awareness among consumers regarding regulatory policies to reduce greenhouse gas emissions and energy conservation are expected to have a positive impact on regional growth. Growth in the North American market is also impacted by rising government initiatives such as the Weatherization Assistance Program, which promotes thermal insulation in low-income households.
The global cladding market is moderately competitive with the presence of local as well as global companies. Some of the key players which are contributing to the growth of the market include Etex Group, Cembrit Holding A/S, Tata Steel Ltd, Boral Ltd, Alcoa Inc., James Hardie Industries Plc., Axiall Corporation, CSR Ltd., Nichiha Corporation and Saint Gobain SA and among others.
The major players are adopting several growth strategies such as product launches, acquisitions, and collaborations, which are contributing to the growth of the cladding market globally. For instance, on 12th Nov 2019, Etex and Arauco formed a joint venture with E2E to extend, develops and manufacture the complete construction solutions composed of panels, wooden interior structures and external boards as well as plasterboard and fibre cement technology with Arauco’s expertise in sustainable forest product solutions.
Overview: Saint Gobain, founded in 1665 with the headquartered based in La Défense Cedex
France and employed Approx. 179,000 people globally. Saint-Gobain is a leading manufacturer of construction materials, insulation panels with 75% sales made in the construction market including for new residential construction and renovation.
The Group provides a wide range of high-performance materials with expertise in the areas of innovation and co-development for demanding applications such as the automotive, aeronautical, health, defence, security, and food & beverage industries.
Product Portfolio: The cladding product offered by the company has unique in offering any combination of aesthetics, durability, maintenance, and affordability. The company offers a complete line of matching and coordinating accessories in both vinyl and composite to complete the entire look.
The company has a diverse product portfolio of cladding including:
Key Development: On 17th July 2020, Saint-Gobain’s subsidiary Point. P construction materials and building products have launched a specific range of bio-sourced insulation materials. The materials consist of wood fibre and hemp-based materials.
Mergers and Acquisitions: On 3rd Sept 2020, Saint-Gobain has completed the acquisition of Strikolith a leading internal finishing and exterior insulation systems provider. This acquisition enhanced the group's solution offering and is particularly offering an External Thermal Insulation Composite Systems (ETICS) and in construction chemicals in the Netherlands.
Get your free sample proposal with a single click!