The global fencing market size was valued at USD 28.0 billion in 2019 and is expected to register a CAGR of 5.2% from 2020 to 2027. Factors such as new housing construction, improvement, and remodeling activities are expected to drive market growth over the forecast period. Moreover, due to low maintenance costs and high-reliability attributes, fencing is widely used in housing constructions. The rise in safety and security concerns and increased expenditure for rebounding offices, transportation, and commercial constructions are further expected to drive the market for fencing.
Fencing products are expected to witness a rise in demand due to the growing need for improving the appearance and value of the property. Increased spending on institutional construction is anticipated to drive the market. Increased government spending on enhancing parks, public places, and government premises is further estimated to drive the demand for fencing products. Factors such as cost, quality, design, and aesthetic value are among the major buying criteria.
The surge in real estate development across the globe is expected to contribute to market growth. In addition, growing industrialization is anticipated to drive the demand for fencing products over the forecast period. Emergence of cost-effective fencing materials, coupled with the growing construction sector in emerging countries, such as China and India, is driving the market. Moreover, rising incidents of security breaches are driving the need for safety and security, subsequently driving the demand for fencing.
Owing to increasing environmental awareness, eco-friendly fencing materials are expected to gain popularity. However, these eco-friendly fences require high maintenance, due to which there is a shift toward low maintenance fences such as vinyl. In addition, plastic fences have a comparatively lower cost, are lightweight, and can be easily installed without any professional assistance.
Farmers are increasingly focusing on safeguarding their property and livestock and are hence investing in fencing. The development of new materials that reduce the cost and improve durability would contribute to product profitability over the forecast period. However, unlicensed contractors that use inferior products may act as a challenge for market growth. The rise in the price of materials used, such as iron, aluminum, and wood, would restrict the market growth over the forecast period.
Based on material, the market has been segmented into metal, wood, plastic and composite, and concrete. The metal segment is anticipated to dominate the market through the forecast period. This can be attributed to the increasing use of fences in public places and government organizations. Chain link and ornamental fences may further drive the growth of the metal fencing segment.
Wood fencing is a popular choice for residential applications owing to its natural appearance. Wood may witness stiff competition from plastic and composite over the forecast period owing to lower costs. Lower durability and high maintenance costs are further expected to hinder the growth of wooden fencing. Factors such as low cost, durability, and low maintenance are expected to drive the demand for plastic and composite fencing over the forecast period.
Based on the distribution channel, the fencing market has been segmented into online and retail. The retail distribution channel segment dominated the market in 2019, as it remains the most preferred distribution channel for customers. Retail stores provide customers with instant access to the products offered by key vendors. Furthermore, retail distribution channel helps vendors reduce their company’s marketing budget.
The online distribution channel segment is expected to register the highest growth over the forecast period. Setting up an online distribution channel comes with notably lower startup costs than a retail store. Furthermore, the growing awareness about the advantages offered by online channels encourages vendors to opt for the online distribution channel.
Based on the installation, the market has been segmented into Do-It-Yourself and contractor. The contractor segment dominated the market in 2019. Numerous contractors offer experience-based placement of gates and other products as well as style suggestions.
On the other hand, there are numerous Do-It-Yourself (DIY) kits available in stores. In most cases, the fences offered in DIY installation kits are vinyl, since it is the easiest type to install. However, as installing a sturdy fence may be a very lengthy process and requires several tools, customers prefer consulting with professional contractors.
Based on the application, the fencing market has been segmented into residential, agricultural, and industrial. Residential is anticipated to be the key application segment through the forecast period. Increasing construction and remodeling activities are expected to drive the segment growth over the forecast period. Furthermore, increasing consumer focus toward home improvement activities, coupled with rising disposable income, is anticipated to drive the demand for fencing for residential applications over the forecast period.
The growing need to safeguard farm animals, crops, and farm areas from wild animals and thieves is anticipated to drive the product demand in the agricultural sector. Furthermore, a rise in intrusion activities such as invading a farm’s chemical stores and theft of expensive pesticides drives the demand for fencing in agricultural applications. Fences that are used in agricultural applications are designed and manufactured according to customer requirements by using quality raw materials. The industrial segment is expected to witness growth owing to an increased demand for fences for manufacturing units and industrial premises.
The military and defense end use segment dominated the market in 2019. Increasing need for border control and safety is expected to drive the segment growth over the forecast period. Energy and power is estimated to emerge as the fastest-growing segment over the forecast period. High-security fencing is used to protect the critical infrastructure of the power grid. The energy and power sector requires anti-cut and anti-climb perimeter fencing and partitioning owing to high-security concerns.
Increasing demand for fencing in the petroleum and chemical sector is expected to drive the market growth over the forecast period. Petroleum and chemical facilities require the most stringent protection to prevent the possibilities of explosions and accidents. In the petroleum sector, the risk of potential toxins, explosive chemicals, and caustic gases is very high, leading to an increased establishment of fencing across its boundaries. Numerous industries are selecting fencing with physical deterrence and those that have a visually appealing design.
North America and Europe are anticipated to be the key regional markets over the forecast period. Increasing construction activities and demand for decorative home products are estimated to contribute to the regional market growth. The North American market accounted for a share of over 35.0% of the overall market in 2019. More than 70.0% of the global consumption is expected from the spending of the middle-class population in Europe and North America.
Rising income levels across all sections is anticipated to lead to an increased per capita income level globally with more spending on house safety products, which would positively impact the global market. The Asia Pacific market is also anticipated to gain traction over the forecast period owing to the evolving agricultural sector of emerging economies such as India and China. Growing urbanization and increased expenditure on institutional construction in India is expected to drive the regional market over the forecast period.
Key vendors in the market include CertainTeed Corporation; Bekaert; Ameristar Fence Products Incorporated; Allied Tube & Conduit; and Ply Gem Holdings Inc. The market is highly competitive with a high degree of fragmentation and is dominated by a large number of local manufacturers catering to the needs of the customers of a particular region. Innovation and developments related to technology and designs are expected to be crucial success factors for market players. Companies accounting for a significant market share include CertainTeed Corporation, Betafence, and Allied Tube & Conduit.
Existing players are extensively adopting various inorganic growth strategies including mergers and acquisitions to consolidate their market position. They primarily focus on acquiring local players as they have a dedicated customer base. Players are also adopting innovative methods to reach out to consumers and establish a brand presence. Furthermore, vendors are focusing on increasing their product penetration by leveraging the breadth of their product offerings and broad geographical footprint to serve customers across the globe and by pursuing cross-selling opportunities.
Base year for estimation
Actual estimates/Historical data
2016 - 2018
2020 - 2027
Revenue in USD Million and CAGR from 2020 to 2027
North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
U.S., Canada, U.K., Germany, France, Italy, Belgium, Poland, China, India, Japan, Brazil, Mexico, Saudi Arabia, and UAE
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global fencing market report on the basis of material, distribution channel, installation, application, end use, and region:
Material Outlook (Revenue, USD Million, 2016 - 2027)
Plastic & Composite
Distribution Channel Outlook (Revenue, USD Million, 2016 - 2027)
Installation Outlook (Revenue, USD Million, 2016 - 2027)
Application Outlook (Revenue, USD Million, 2016 - 2027)
End-Use Outlook (Revenue, USD Million, 2016 - 2027)
Petroleum & Chemicals
Military & Defense
Energy & Power
Regional Outlook (Revenue, USD Million, 2016 - 2027)
Middle East & Africa
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The global construction industry, once thriving with increased investments, has been severely affected by the suspension of the construction activities in the wake of the ongoing pandemic. Shortage of labors coupled with potential supply chain bottlenecks of materials and equipment is expected to cause project delays in the ongoing funded projects and may lead to reduced spending in the upcoming projects. Uncertainty around the actual duration of the prevailing lockdown makes it hard to anticipate how a recovery in the construction industry will unfold. On similar lines, the HVAC industry has been adversely affected by the COVID-19 outbreak due to the shutting down of several component manufacturing facilities across China, European countries, Japan, and the U.S. This has consequently led to a significant slowdown in the production of HVAC equipment. Lockdowns imposed by the governments in the wake of the Covid-19 outbreak has not only affected manufacturing but also pegged back the consumer demand for HVAC equipment. The report will account for Covid19 as a key market contributor.