U.S. Rainscreen Cladding Market Size, Share & Trends Report

U.S. Rainscreen Cladding Market Size, Share & Trends Analysis Report By Raw Material (Composite Material, Terracotta), By Application (Residential, Commercial, Office), And Segment Forecasts, 2019 - 2025

  • Published Date: Jan, 2019
  • Base Year for Estimate: 2017
  • Report ID: GVR-3-68038-007-1
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 100

Industry Insights

The U.S. rainscreen cladding market size was estimated at USD 25.8 billion in 2017 and is expected to register a CAGR of 6.5% over the forecast period. Increasing product penetration in the U.S. construction industry owing to ease of availability, durability, energy efficiency, and aesthetic appeal is expected to fuel market growth.

The market is driven by factors such as increasing demand for enhanced moisture management solutions and ease of product replacement. Industry growth can also be attributed to increasing trend of protecting exterior walls, coupled with surge in construction of non-residential buildings such as offices and institutions.

U.S. rainscreen cladding market

Increasing awareness regarding sustainable construction is expected to boost demand for rainscreen cladding over the forecast period. The product aids in increasing energy efficiency of a structure, leading to decrease in energy requirement for heating, ventilation, and air conditioning (HVAC). This has resulted in the development of innovative wall panels, which are produced using high-tech materials.

The industry is characterized by the presence of a number of local players engaged in manufacturing standard components, leading to high competition. Multinational companies are integrated across the value chain to reduce overall process costs, making it difficult for small players to sustain in the competitive environment with limited profit margins.

Vented systems, drained and vented systems, and pressure equalized systems are some of the widely preferred rainscreen cladding systems, as they offer multiple moisture shedding pathways to the structure. Aluminum panels are commonly used in these systems on account of their durability and uncompromising aesthetics. However, increasing prices of aluminum may affect their demand.

Occurrence of multiple fire incidences caused by flammable claddings could negatively impact market growth. The Grenfell Tower fire in U.K. and Jecheon fire in South Korea are recent examples of incidences that pose a threat to product demand. However, on a positive note, these incidents have encouraged industry players to develop fire-resistant rainscreen cladding, which is expected to provide opportunities in the market.

New policy reforms by the current U.S. government pertaining to trade, labor, and immigration, could result in uncertainties in the overall construction sector, thereby hampering demand for rainscreen cladding materials.

Raw Material Insights

Composite material accounted for the largest market share in 2017 in terms of volume, and is expected to reach 68,648.9 thousand square meters by 2025. This is owing to its high durability, low maintenance cost, and weatherproof and fireproof properties. These materials are gaining popularity owing to their flexibility, which allows the product to be molded into complex shapes.

Demand for fiber cement-based claddings is likely to gain momentum over the forecast period, on account of their cost-effectiveness, durability, and low maintenance cost. In addition, excellent characteristics of the aforementioned product, including resistance to high-pressure wind and rainwater, has led to an increase in product acceptance.

Surging demand for aluminum rainscreen cladding in the construction industry, owing to its beneficial properties such as recyclability, lightweight, resistance to algae and fungi, and easy installation is anticipated to drive the segment over the forecast period. These panels are widely utilized for fire resistance, sound and thermal insulation, and improvement in aesthetic appeal of buildings.

The U.S. rainscreen cladding market is expected to witness growth in demand for high pressure laminates, on account of their superior impact resistance, low maintenance, custom designs, and availability in attractive colors and textures. In addition, its properties including resistance to dirt and scratches, are presumed to aid its demand in the market.

Application Insights

The office construction segment accounted for the largest share in the market and is expected to exhibit a CAGR of 6.8% in terms of revenue from 2018 to 2025. This is owing to increase in spending on refurbishment of old office buildings. In addition, rising employment rate, coupled with growth in office startups, is expected to drive the industry.

Commercial construction is also expected to witness significant growth owing to the rebound in the retail sector. Healthcare construction is expected to remain stable in the near future amid uncertainties regarding healthcare policies by the current U.S. government. This is expected to result in a rise in healthcare construction, leading to increased demand for rainscreen cladding.

U.S. rainscreen cladding market share

The residential application segment is expected to witness sustained growth over the forecast period owing to increased demand for single-family housing. Soaring population, strong economic growth, increase in household formation, and low mortgage rates are expected to be key factors aiding residential construction.

Demand for multi-family housing is expected to decline over the forecast period, which may moderately impact residential construction. Moreover, low land availability, low housing inventory, and rise construction cost are expected to have a negative impact on residential construction materials, thereby hampering market growth in U.S.

U.S. Rainscreen Cladding Market Share Insights

The industry is characterized by the presence of large established players with a strong financial base. Material users usually opt for reliable suppliers operating with high goodwill, making it difficult for new players to enter the market. Moreover, high initial cost required to set up the facility is likely to act as a barrier to new entrants.

Fluctuation of raw material prices is one of the major challenges faced by competitors. Hence, a high degree of backward and forward integration is likely to be observed among major players. This is further likely to intensify competition, rendering it difficult for emerging players to sustain in the market.

Report Scope

Attribute

Details

Base year for estimation

2017

Actual estimates/Historical data

2014 - 2016

Forecast period

2018 - 2025

Market representation

Volume in Thousand Square Meters, Revenue in USD Million and CAGR from 2018 to 2025

Country scope

U.S.

Report coverage

Volume forecast, revenue forecast, competitive landscape, growth factors and trends

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Segments Covered in the Report

This report forecasts revenue growth at a country level and provides an analysis on 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 U.S. rainscreen cladding market report on the basis of raw material and application:

  • Raw Material Outlook (Volume, Thousand Square Meters; Revenue, USD Million, 2014 - 2025)

    • Fiber Cement

    • Composite Material

    • Metal

    • High Pressure Laminates

    • Terracotta

    • Ceramics

    • Others

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

    • Residential

    • Commercial

    • Office

    • Institutional

    • Industrial

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