North America Steel Roofing Market Size, Share & Trends Analysis Report By Application (Residential, Commercial, Industrial), By Country (U.S., Canada, Mexico), And Segment Forecasts, 2020 - 2025

Industry Insights 

The North America steel roofing market size was estimated at USD 2.58 billion in 2019 and is expected to register a CAGR of 4.5% over the forecast period. Increasing awareness regarding green building products in the construction industry is anticipated to positively impact growth.

Steel roofs are long-lasting and durable building materials that provide significant energy saving to end-use applications. In addition, they are made from a high percentage of recycled steel, which, in turn, plays a significant role in attaining sustainable roofing. Increased consumption of flexible, lightweight, and recyclable roofing materials is expected to fuel the demand for steel roofs in North America.

The increased growth rate of the industrial sector in the U.S. is likely to augment the demand for steel roofs over the forecast period. Furthermore, the product demand is expected to witness rapid growth owing to the rising focus on improving energy efficiency in the residential and commercial sectors.

Increasing GDP coupled with the trend of single-family houses in North American countries is expected to propel construction activities, thus, positively influencing the demand for steel roofing. Rising demand for high-tech office buildings and sophisticated housing systems is expected to drive renovation activities in Canada, thereby, impacting the product demand significantly.

North America's construction industry is anticipated to witness rapid growth on account of the rising number of people migrating from developing regions to North America. In addition, increasing construction spending in Mexico owing to population expansion and strong economic and industrial developments is expected to boost the product demand in North America.

The factors hampering market growth include fluctuating steel prices globally as well as the susceptibility of structures to corrosion and low thermal resistivity. Furthermore, the unavailability of skilled labor and advanced technologies are projected to restrict market growth over the forecast period.

North America Steel Roofing Market Trends

The demand for steel roofing is anticipated to get augmented by the growth of the building and construction industry on account of its increasing penetration in the industry. The attributes of steel roofs, including high durability, low maintenance, fire-resistant, energy efficient, and fast installation are expected to further boost market growth.

Construction industry in U.S., Canada, and Mexico is expected to witness growth over the forecast period due to increasing construction spending led by population expansion and strong economic & industrial development. For instance, the residential sector in Canada is projected to witness stable growth driven by strong population growth, with a 1.1% increase registered per year over the past decade.

In addition, residential construction sector in the U.S. witnessed a boom in the last few years with single-family dwellings being the key growth contributor. According to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, the country had 1,263,000 building permits, 1,228,000 housing starts, and close to 1,111,000 housing completions in 2018.

Furthermore, steel obtained in North America contains 25% of recycled steel, which aids in contributing positively to sustainable construction and green buildings. Favorable government regulations regarding the construction of green buildings coupled with the environment-friendly nature of steel are anticipated to augment the product demand in the North American region.
In the U.S., as per the Federal Energy Policy Act 2005, a tax credit of up to USD 2,000 is provided to builders of new energy-efficient homes that are constructed as per the standards laid down by Federal Manufactured Homes Construction and Safety Standards. Site-built homes qualify for the credit if they are certified to reduce energy consumption during heating and cooling by 50%, relative to the International Energy Conservation Code (IECC), 2006, and meet minimum efficiency standards set by the Department of Energy.

However, fluctuating steel prices is anticipated to hamper the growth of the steel roofing market in the region. Moreover, the unavailability of skilled labor is projected to restrict market growth over the forecast period.

Application Insights

The demand for steel roofing in North America is anticipated to witness significant growth in the industrial construction sector on account of the high strength of the product. In addition, an increasing number of manufacturing facilities in Mexico is expected to boost product demand in the forthcoming years.

Recovering residential construction industry is likely to support new residential roofing projects and re-roofing activities, thus, boosting the regional product demand. The residential construction segment is anticipated to witness high product penetration owing to increasing awareness of energy-efficient construction, government regulations for green building materials, and the requirement for the renovation of old buildings.

Commercial constructions require a large number of roofing products for thermal insulation and to enhance the aesthetic appeal of the building. These buildings require durable materials to tackle extreme weather conditions, and hence, steel roofing is extensively used owing to its properties such as lightweight, durability, and flexibility.

The growing e-commerce industry has resulted in an increased demand for storage, which has resulted in boosting the number of warehouses in the region. This, in turn, is expected to augment the product demand for industrial buildings at a CAGR of 4.3% in terms of revenue from 2019 to 2025.

Regional Insights

The U.S. dominated the North American steel roofing market and accounted for the largest revenue share of 83.9% in 2018. The country is anticipated to continue its dominance over the forecast period. The growth can be attributed to increasing population and life expectancy. Furthermore, the U.S. construction industry is experiencing growth on account of increasing residential and non-residential renovation and new construction activities.

The U.S. construction industry was valued at USD 788.33 billion in 2011 and reached USD 1,293.98 billion in 2018. Residential structures are anticipated to witness significant growth on account of rising trend of nuclear families coupled with declining prices of new housing structures in the U.S. In addition, non-residential structures in the country witnessed growth post the recession in 2008-09 owing to increasing penetration of retail stores such as supermarkets in the country.

Canada accounted for a revenue share of 9.9% in 2018 and is expected to grow significantly across the forecast period. The growth in the Canadian steel roofing market can be attributed to increased construction activity. The major reasons for the growth in the construction industry include urbanization, rising population, and increasing immigration rate.
Moreover, the country is in a phase of transition from a natural resources-based economy to a high-tech, service-based economy. This, in turn, is projected to drive commercial construction activities in the key markets of Toronto, Montréal, and Vancouver. Increasing investments in new manufacturing facilities to reach peak capacity utilization are projected to drive steel roofing demand from the industrial application segment in Canada.

Key Companies & Market Share Insights

The market is characterized by the presence of small- and large-scale vendors, resulting in a moderate level of concentration. The companies tend to offer products using innovative and advanced methods to cope up with the demands from residential, commercial, and industrial building applications.

New entrants or emerging players such as Sunlast Metal, Worthouse, and Ideal Roofing are likely to gain opportunities for acquiring market share by implementing differentiation strategies, wherein they offer a wide range of innovative steel roofing products such as exposed fastened panels with acrylic coated galvalume surface finish and stone coated steel roofs.

Major steel roofing manufacturers in North America include CertainTeed; American Building Co.; ATAS International, Inc.; and BlueScope. These companies are continuously engaged in R&D activities and use novel technologies and designs to manufacture the product using different grades and specifications of steel to serve various application demands from end-users.

North America Steel Roofing Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the North America steel roofing market report on the basis of application and country:

• Application Outlook (Volume, Million Square Meters; Revenue, USD Million; 2014 - 2025)

  • Residential

  • Commercial

  • Industrial

• Regional Outlook (Volume, Million Square Meters; Revenue, USD Million; 2014 - 2025)

  • North America

    • The U.S.

    • Canada

    • Mexico