Fiber Cement Siding (Cladding) to Show Fastest Global Growth Through 2022
Demand for fiber cement siding is forecast to increase 3.6 percent annually to 664 million square meters in 2022. Gains will be supported by the product’s lower cost relative to brick, stone and wood, which it can mimic in appearance, and its durability and low maintenance. The largest market gains will be posted in China and the United States. These and other trends are presented in “Global Siding (Cladding),” a new study from The Freedonia Group, a Cleveland-based industry research firm.
Fiber cement demand will also be affected by recent asbestos regulations, as the use of asbestos in fiber cement is still ongoing, especially in developing countries. The World Health Organization is working toward a worldwide asbestos ban, which, if successful, will boost demand for asbestos-free fiber cement siding. Brazil enacted a nationwide ban on asbestos in 2017. However, the effect of this ban is expected to be limited due to existing asbestos bans at the state level. Faster growth will be restricted by rising income levels in many parts of the world, which will increase demand for competing, high-end siding products such as natural stone that offer superior aesthetics.
Global demand for all types of siding is forecast to rise 2.8 percent annually through 2022 to 6.7 billion square meters valued at $78.6 billion. Going forward, demand for siding products will be driven by the following:
Growth in nonresidential building construction, especially in China.
An acceleration in the global rate of growth in new housing construction.
An increase in the share of new homes that use siding, especially in the developing countries of the Asia/Pacific and Africa/Mideast regions.
Rising personal incomes, which allow for greater spending on renovation projects such as siding replacement.
“Global Siding (Cladding)” (published 01/2019, 347 pages) is available for $6,500 from The Freedonia Group, www.freedoniagroup.com.