Global Cladding Market Size Grows Steadily at a CAGR of 6.3%

Introduction

Cladding is a covering attached to the exterior of a building or other structure and can serve a practical or aesthetic purpose. It enhances the aesthetic appeal of the structure, provides insulation, and protects the underlying structure from the effects of the environment, which are all advantages. There is a vast selection of viable cladding materials, and the selection is based on factors such as durability, weather resistance, required maintenance, and architectural design. Wood, brick, vinyl, fiber cement, and composites are common cladding materials. Metals (such as aluminum or steel) are commonly used for cladding.

A typical cladding system comprises an exterior shell, an insulation layer, and structural support. The building's exterior skin is the visible layer that gives the structure its desired appearance. The insulation layer, in contrast, aids in regulating heat transmission and increases energy efficiency. The structural underpinning must support and stabilize the cladding system to fulfill its purpose.

Market Dynamics

The growth of the Construction Industry Drives the Global Market

With rising construction expenditures in developing nations and Asia-Pacific economies, the global construction market is expected to expand consistently. Strong industrial and economic growth, population expansion, and government investments in public infrastructure contributed to this growth. In the next ten years, government initiatives, foreign direct investments, and robust economic growth will likely fuel a significant expansion of the Asia-Pacific construction market.

Rapid urbanization, expanding populations, and robust economic development are anticipated to create profitable growth opportunities for the building industry in the Philippines and Malaysia. South Korea is anticipated to have the highest construction growth rate due to government and private investment in commercial and industrial developments. As a result of the government's economic development agenda, the residential construction industry in Malaysia is anticipated to expand significantly.

Population and Urbanization Increases in Emerging Economies Creates Tremendous Opportunities

A steep decline in the mortality rate, improved access to healthcare, higher levels of disposable income, and improved sanitation infrastructure are among the most significant factors that have contributed to the expansion of the world's population over the past several decades. Over the next five years, the rising population is expected to increase the demand for residential and non-residential buildings, increasing the demand for facade systems. Growing urbanization in emergent economies such as India, China, and Brazil will catalyze the market expansion of cladding systems.

Industrialization, higher income levels, a growing population of middle-class individuals, and overall economic expansion will stimulate investments in residential and non-residential construction. In addition, as urbanization continues, more people will move to cities, creating a demand for housing in these areas. Cladding systems continue to fuel the expansion of the cladding systems market.

Regional Analysis

North America is the most significant global cladding market shareholder and is estimated to exhibit a CAGR of 15.2% over the forecast period. North America's cladding market is expected to grow significantly over the forecast period due to increasing demand from the residential sector, manufacturing industries, and institutions. The US dominates the market, with the US dominating consumption. The manufacturing industry will benefit from new policy reforms, boosting industrial construction and driving cladding demand. The growing international and domestic migration rate is expected to boost housing demand, propelling residential construction. The market is expected to witness substantial growth in single-family housing, with multi-family construction expected to decline.

Additionally, the market is expected to see moderate growth in institutional construction activities. Furthermore, increasing product demand from the commercial sector, such as retail chains, shopping malls, and supermarkets, is expected to fuel market growth in the coming years.

Europe is anticipated to exhibit a CAGR of 13.4% over the forecast period. The cladding market in Europe is expected to benefit from the recovery in the residential and commercial construction sectors. The growth in construction activities and increased demand for claddings drive the market, driven by factors like the growing residential sector and the rise of the tourism industry. Factors like the growth of the tourism industry, retail trade, and business turnover in 28 EU states also drive commercial construction.

Furthermore, the cladding market has experienced weak growth due to the COVID-19 crisis but is expected to experience moderate growth in the coming years. Innovative claddings, such as anti-bacterial tiles and fiber-reinforced ceramics, are being developed for household and hospital applications. The growing geriatric population in Europe is driving investments in healthcare establishments, driving demand for ceramic wall cladding. The demand for claddings is expected to increase due to improved thermal and acoustic properties and weight reduction. Italy, Germany, and the UK are major cladding markets in Europe.

Key Highlights

• The global cladding market size valued at USD 245.07 billion in 2022. It is estimated to reach USD 71 billion by 2031, growing at a CAGR of 6.3% during the forecast period (2023–2031).
• Based on the material, the global cladding market is bifurcated into steel, aluminum, composite materials, fiber cement, terracotta, ceramic, and others. The terracotta segment dominates the global market and is predicted to exhibit a CAGR of 7.1% over the forecast period.
• Based on application, the global cladding market is bifurcated into residential, industrial, commercial, offices, and institutional. The office segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 6.8% over the forecast period.
• North America is the most significant global cladding market shareholder and is estimated to exhibit a CAGR of 15.2% over the forecast period.

Competitive Players

Competitive Players

The key players in the global cladding market are Kingspan Group, Carea Group, GB Architectural Cladding Products Ltd., Rieger Architectural Products, Omnimax International, Inc., CGL Systems Ltd., SFS Group, Cladding Corp., Centria, Trespa International B.V., Middle East Insulation LLC, Shildan, Inc., and Avenere Cladding LLC.

Recent Developments

Market News

• In May 2023, Britten Inc., a leading developer of print and design solutions, announced the advent of Tex CladcTM, which blends high-strength engineered fabrics fastened with architecture-grade metal. These elements provide a revolutionary exterior cladding system that offers a cost-effective alternative to traditional perforated metal facades and a dynamic platform for inventive architectural solutions.
• In March 2023, Cuppa Pizarras, an architectural cladding firm, developed Cupa clad, a slate cladding system designed to display the material's aesthetic beauty while boosting insulation. Cupa Pizarras coupled natural slate with a rainscreen application process in which the cladding is affixed to the outside of the building envelope with a ventilated space in between to produce the cladding system.

Segmentation

Global Cladding Market: Segmentation

By Material

• Steel
• Aluminium
• Composite Materials
• Fiber Cement
• Terracotta
• Ceramic
• Others

By Applications

• Residential
• Industrial
• Commercial
• Offices
• Institutional

By Regions

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa