U.S. Rainscreen Cladding Industry Overview
U.S. rainscreen cladding market size is expected to reach USD 42.6 billion by 2025, according to a new report by Grand View Research, Inc., registering a 6.5% CAGR during the forecast period. Increase in residential and non-residential renovations, coupled with rise in construction activities, is expected to boost industry growth over the forecast period.
U.S. Rainscreen Cladding Market Segmentation
Grand View Research has segmented the U.S. rainscreen cladding market on the basis of raw material and application:
Based on the Raw Material Insights, the market is segmented into Fiber Cement, Composite Material, Metal, High Pressure Laminates, Terracotta, Ceramics and Others.
- 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.
- Demand for fiber cement-based cladding is likely to gain momentum over the forecast period, on account of their cost-effectiveness, durability, and low maintenance cost.
- Surging demand for aluminum rain-screen 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.
- The U.S. rain-screen 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.
Based on the Application Insights, the market is segmented into Residential, Commercial, Office, Institutional and Industrial.
- 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 an increase in spending on the refurbishment of old office buildings. Besides, the 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 soon 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 rain-screen cladding.
- 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 harm residential construction materials, thereby hampering market growth in the U.S.
Key Companies Profile & 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, the high initial cost required to set up the facility is likely to act as a barrier to new entrants.
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