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Industry Trends
Fiber Cement Market size exceeded USD 9.75 billion in 2020 and is projected to grow at a CAGR of over 4.5% from 2021 to 2027. The growing need for curbing the overall carbon emission from the building & construction sector is expected to drive the product usage.
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The global construction output is estimated to witness more than 30% growth rate till 2030, which can be mainly contributed to rising construction activities in the U.S., China, and European countries. The U.S. recorded a significant increase in average annual growth rate of new building permit, housing starts, and housing completion units in April 2021. Further, the country has reported moderate increase in private and public spending on construction activities in the same year.
Report Coverage | Details |
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Base Year: | 2020 |
Market Size in 2020: | 9,745.6 Million (USD) |
Forecast Period: | 2021 to 2027 |
Forecast Period 2021 to 2027 CAGR: | 4.7% |
2027 Value Projection: | 13,153.5 Million (USD) |
Historical Data for: | 2017 to 2020 |
No. of Pages: | 160 |
Tables, Charts & Figures: | 251 |
Segments covered: | Application, Sector, End-user, Region |
Growth Drivers: |
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Pitfalls & Challenges: |
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Fiber cement boards are becoming a popular choice of homeowners owing to their superior characteristics of excellent inflammability, high durability, and better aesthetics. This product offers protection against moisture, thermal, and acoustic insulation, enhancing its usage in the industry. However, the installation cost of the product exceeds significantly as compared to vinyl or wood siding, which may reduce its popularity in the developing countries.
Ongoing coronavirus pandemic has substantially dropped construction activities around the globe impacting the overall fiber cement market volume in 2020. The building material sector has seen a huge drop in terms of trade led by government restrictions over international movement of commodities across major parts of the world. This has significantly reduced the consumption level of this product in North America and Europe. Since China holds the largest share in world’s portland cement production, the fiber cement demand has been affected in the countries relying on imports of building materials. Moreover, the market is likely to recover post 2021 due to increase in construction activities and reestablishment of trade movement between countries.
The siding application segment is poised to hold above 70% of the fiber cement market share by 2027 on account of the increasing replacement of asbestos cladding in the U.S. over past few years. The U.S. government has implemented ban on the usage of asbestos between 1970 and 1980, driving the market demand. fiber cement is cost-effective and possesses better thickness as compared to vinyl siding, fueling market revenue.
New construction is anticipated to register around 5% CAGR through 2027. The key advantage of using fiber cement in new construction is attributed to their lesser susceptibility to rotting and excellent protection against humidity levels & moisture. These products can be installed in the form of siding, facades, condo complexes, government buildings, etc., which will further boost the fiber cement industry development.
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In 2020, the residential segment generated over USD 7 billion revenue and will observe strong growth from 2021 to 2027. Rising number of construction projects across major parts of the world is slated to spur the segment demand. Beijing Municipal Commission of Development and Reforms have announced to construct approximately 300 new projects for enhancing building infrastructure in the region. Similarly, the U.S. reported nearly 5% increase in construction value put in place in 2020.
Institutional sector is forecast to see steady growth till 2027. Fiber cement products offer better aesthetics and is cost effective solution for exterior and interior cladding applications. Increasing product adoption in public infrastructure such as, hospitals, schools, educational institutions, etc. will influence segment penetration.
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Asia Pacific fiber cement market is set to account for over 45% share by 2027 propelled by rising construction of buildings in major parts of the region. Growing population along with increasing disposable income of people in the emerging countries has been fueling the sales of real estate in the past few years. Major countries, including Thailand, the Philippines, Indonesia, Vietnam, Australia, etc., are experiencing tremendous growth in terms of construction output in the region.
In 2018, the Philippines recorded more than 170,000 construction establishments, 13.9% higher than the previous year impelled by the growing need for enhancing the poorly built local infrastructure along with rising trends toward outsourcing engineering services construction projects from foreign markets. The growing demand for new construction in this country will accelerate product usage in the regional market by 2027.
The product manufacturers amend their competitiveness by utilizing a variety of strategic initiatives including acquisitions, product launches, capacity expansion, etc. The key fiber cement market players include James Hardie Building Products, Nichiha USA, Cembrit, Allura USA, CertainTeed, Wehrhan GmbH, etc. The product manufacturers rely heavily on raw material suppliers of portland cement, cellulose fibers, silica, chemical additives, etc.
Market, By Application
Market, By Sector
Market, By End-User
The above information is provided on a regional and country basis for the following: