Cement Board Market

Market Overview

The Total Addressable Market (TAM) for cement board was valued at 570.06 million square meters in 2022. It is projected to reach 908.09 million square meters by 2031, growing at a CAGR of 5.32% during the forecast period (2023-2031).

When cement is combined with different organic or mineral fibers in predetermined ratios, a building material known as Cement Board (CB) is created. Numerous benefits, including greater flexibility and crack resistance, are brought about by adding fiber to cement. Additionally, the incorporation of the product guarantees the creation of high-quality, long-lasting furniture that is highly resistant to termites, fire, and water. Sidings, flooring, ceilings, roofing materials, soffit and trims, and a tile backing board are a few of the primary uses for fiber cement board. Due to qualities including exceptional durability and water resistance, as well as its waterproof nature, the product is increasingly being used for siding applications in bathrooms and kitchens. Rising construction spending, particularly for new dwellings, is anticipated to increase product demand.

Market Dynamics

Global Cement Board Market Drivers

Desirable Properties of Impact Resistance and Durability

Due to its advantages over conventional building materials, cement boards are in higher demand in construction. Cement boards offer high levels of durability and impact resistance. These boards are also eco-friendly and resistant to pests, fungus, water, fire, and vermin. Cement board construction also cuts down on building time and square footage. Cement boards are versatile building materials that may be crafted from various textiles and organic components. Wool, bonded particles, wood strands, and wood fibers are all examples of such substances. Fiber cement boards are often used in building applications because of their long lifespan. These boards provide exceptional resistance against weather, fire, and strong winds.

Due to their fire resistance, termite and vermin resistance, acoustic performance, ease of handling, and installation process in construction applications, these boards are utilized extensively. These boards are becoming more and more common in construction applications due to their heat resistance and portability. High bending strength and elasticity, improved durability and impact resistance, ease of handling, low cost, and resistance to fire, moisture, fungus, vermin, and freeze-thaw are all characteristics of wood strand cement boards. These boards are frequently used for partition walls, underlay and tile backing, roofing, flooring, and other applications.

Global Cement Board Market Restraint

High Initial Cost in Comparison to its Traditional Counterparts

Vinyl, wood, metal, and composite materials are the conventional siding materials utilized in the building sector. Cement boards have a cost advantage over the sidings mentioned above since they are made of various raw materials with multiple price ranges. Wood pulp, silica sand or ash, Portland cement, and water are raw ingredients. The price of labor, processed raw materials, and specialized production processes all impact the overall cost of various cement boards. The size of the building project, the need for specialized equipment and workforce, the type of trim, the texture, the color of the boards, the project location, and others all impact the cement boards' cost. Additionally, trade in Portland cement, silica sand, reinforcements, and other raw materials for cement boards has been fluctuating on the global market. Different duty structures on various commodities affect the cost of cement boards.

Global Cement Board Market Opportunities

Rising Residential Construction across the World

In the residential sector, cement boards are used for interior and exterior purposes. They are utilized for internal claddings such as tile backer boards, partition walls, windowsills, ceilings, and floors. They are used for exterior claddings such as slates, planks, corrugated sheets, wall copings, flat sheets for windshields, and soffits. Cement Boards can be used for roofing as well. North America, Asia-Pacific, and Europe have seen increased residential development in recent years. India, China, Indonesia, Singapore, and Vietnam are just a few nations in the Asia-Pacific region where residential development is rising. At the same time, residential development is expanding in North America and Europe, mainly due to the rising demand for residential homes.

The market for cement boards is anticipated to increase as single-family houses become more prevalent in North America and Europe. According to a report by the US Census Bureau, privately owned residential properties are becoming more popular in the United States. The largest construction market in the world, Asia-Pacific, is expanding at a healthy rate due to urbanization, rising middle-class income, and population growth. Large-scale growth in the residential and commercial construction sectors, supported by the expanding economy, are the main drivers of the investigated market in China. The Hong Kong housing authority initiated several initiatives in China to jump-start affordable housing development. By 2030, the authorities hope to have 301,000 public housing units available.

Regional Analysis

The global cement board market is divided into four regions: North America, Europe, Asia-Pacific, and LAMEA. 

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 5.88% during the forecast period. The growth in residential development in China is anticipated to be fueled by the country's demographics. Demand for the country's residential construction industry is expected to continue to increase as family income levels rise and more people move from rural to urban areas. The public and private sectors' increased focus on affordable housing will propel the residential construction industry's expansion. With a target rate of 70% by 2030, China is encouraging and undertaking a continuous urbanization process. The need for more living space in urban areas as a result of urbanization and middle-class urban dwellers' desire to improve their living conditions may have a significant impact on the housing market and, as a result, increase residential construction throughout the nation, which will benefit the country's Cement Board market.

In the coming years, the Indian government will promote significant initiatives in the residential sector. By 2022, the government's "Housing for All" plan hopes to have constructed more than 20 million low-cost dwellings for poor urban people. Residential construction, the market's largest segment, will experience a significant boost. As a result, it will contribute more than a third of the industry's overall value by 2023. In India's building hubs, the penetration of fiber cement board (FCB) is relatively low. Currently, only metro areas and government projects use FCB, although tier 2-3 cities may have a significant demand if performed correctly.

Europe is expected to grow at a CAGR of 5.21% during the forecast period. The government of Germany's Social Democrats is paying close attention to the nation's housing crisis. To oversee its housing plans, the government is establishing a brand-new ministry. From 2022, the government promises to build more than 400,000 new homes annually, 100,000 of which will be financed by the government. This is anticipated to increase the residential sector's demand for cement boards in Germany. The building industry provides approximately 6% of the nation's GDP. As part of the National Productivity Investment Fund, the government planned to devote between 1% and 2% of its GDP to infrastructure between 2020 and 2050 to improve infrastructure for the country's people (NPIF). Over the next five years, the government intends to invest GBP 23 billion under the NPIF in housing, science and innovation, transportation, and a 5G network. The budget for building new dwellings is about GBP 7.2 billion. Cement boards used in construction will likely increase demand due to the government's investment of GBP 100 billion in large-scale housing and regeneration projects with necessary social infrastructures, including schools, hospitals, and prisons.

North America is expected to grow significantly over the forecast period. A survey of American homeowners showed a high demand for home exterior renovations and distinct demographic trend lines. The likelihood of inclement weather impacted the renovation plans of the vast majority (76%) of homes. Since cement board is noncombustible and provides excellent home protection from extreme weather, such as flooding, wind, and fire, such features are anticipated to increase demand for it. The furniture industry in the United States is the biggest in the world, with more than 39,644 local and foreign companies.

Additionally, more people could buy new home furnishings rather than easily accessible used items thanks to the increased disposable income. Some prominent businesses with manufacturing facilities in the nation include Herman Miller, Ashley Furniture Industries, Ikea Williams-Sonoma Inc., and HNI Corporation. The market potential for cement boards is being created by the shift toward smart homes and the increased interest in and attractiveness of high-end furniture, which is a key trend moving forward. Due to the substantial commercial and residential development expansion, Canada's second-largest construction industry in North America is predicted to expand at a respectable rate. Growing government efforts and more immigration into the nation are the main drivers of this expansion.

Due to the inconsistent internal policy framework, decreased commodity prices, weak foreign demand, and the depreciation of the ARS, Argentina has been suffering lackluster economic activity during the past few years (Argentine peso). However, due to the new liberalization agenda, trade and investment-friendly policies are anticipated to boost the Argentine economy in the medium and long term. Argentina, at the moment, has a significant structural housing shortfall. 25% of Argentine families, according to the Department of Urban Development and Housing, require better housing. Therefore, it is anticipated that this will boost demand for the market under investigation. Due to corruption scandals, Columbia's construction industry deals with specific difficulties. The licensing of construction and environmental licenses has been the subject of scandals, which have slowed the sector's expansion. One of the main factors promoting Colombia's building industry is the growing cooperation between public and private investment, combined with the implementation of public housing plans.

Segmental Analysis

The global cement board market is segmented by product type, application, and end-user industry.

Based on product type, the global cement board market is bifurcated into fiber cement board (FCB), wood wool cement board (WWCB), wood strand cement board (WSCB), and cement bonded particle board (CBPB). 

The fiber cement board (FCB) segment is the highest contributor to the market and is estimated to grow at a CAGR of 5.77% during the forecast period. Fiber Cement Boards (FCB) are panel boards that use cement-reinforced fibers to increase the strength of the fiber-cement composite. Developing robust and long-lasting construction materials is made feasible by fiber cement when combined with a thoroughly thought-out production method. Fiber cement is a physically suitable substance for building products like cladding and roofing. It is primarily because of its purpose, effectiveness, and economic worth. Some typical uses are shown in the list below.

Roofing and cladding applications have widespread use in various industries, including industrial, agricultural, domestic, and residential buildings, particularly for new construction and renovation projects. A floor built of fiber cement can bear significant pressure in regions with heavy foot traffic. The cement fiberboard is also used as a base for tiling walls and floors. It makes a good base for tiling because of its toughness and water resistance. Due to expanding output rates, FCB panel boards are the fastest-growing type of panel board globally. As awareness grows among builders and other input suppliers, the market expands and is expected to remain stable over the forecast period.

Wood wool (excelsior) and cement are combined to create the versatile building material known as wood wool cement board (WWCB). The fact that WWCB is widely used demonstrates its application flexibility and endurance in any climate. Wood wool cement boards also accept traditional rendering, plastering, decorative materials, and mastics in their grandeur. Acoustic ceilings can be painted with a spray gun or a roller without losing their acoustic qualities. Standard WWCB, fine-fiber acoustic and ornamental WWCB, composite WWCB (sandwich boards with a core sheet of styrofoam, PU foam, Rockwool, or other insulating material), and reinforced roofing WWCB are some of the most popular types of wood wool cement boards. Because WSCB has wood fibers that are 25cm (10") long rather than the present cement-bonded (short) fiberboards on the market, it has significantly better structural strength than wood wool cement board (WWCBs) with higher densities.

Based on application, the global cement board market is bifurcated into flooring, exterior and partition walls, roofing, columns and beams, facades, weatherboard, cladding, and acoustic and thermal insulation. 

The exterior and partition walls segment owns the highest market share and is estimated to grow at a CAGR of 6.51% during the forecast period. A wall partition system is the best option for offices that need to be mobile and flexible in their layout. Cement boards are a great and practical substitute for building a long-lasting brick-and-mortar wall. Concerning exterior wall and wall partition solutions, cement boards have several benefits. Cement board wall partitions are becoming more common in commercial and residential settings. They handle issues like giving space organization and order and have many use cases. They are also the most effective way to divide a room for uses like creating pantries, cubicles, or conference rooms. Fiber cement boards are a flexible option well respected in the building sector for their many benefits. The aesthetic standards of a fiber cement sheet cannot be met by conventional brick-and-mortar construction. Adding windows, doors, electrical circuitry, and wires into the design is simple.

The smooth, crack-free surface of fiber cement sheets also enhances the appearance of paint and wallpaper. Extensive profiles with a homogeneous surface, muscular impact strength, and dimensional stability are the most common sizes for fiber cement boards. They are, therefore, perfect for exterior home applications. It serves as a base upon which various finishes can be applied, such as glossy finishes, paint finishes, varnishes on veneers, wallpaper, laminate, etc. Another variety, WWCB, can also be used for fascia boards, partition walls, outside walls, and ceilings. Wood wool cement boards can be used with concrete to create well-insulated walls that can take the place of ceramic bricks.

The FCB Planks are already a well-liked option for use as building facades. Architects and designers have used FCB in a variety of ways in place of conventional and modern building facades because of its flexibility and diversity. Fiber cement boards have developed as a low-maintenance substitute for wood and wood-based cladding solutions because they may mimic the appearance of natural timber when dried on rough substrates. Any plain, plastered, or painted building elevation can benefit from the tactility and accent provided by untreated FCB's cement-like look. Additionally, compared to wood, stone, tile, or stucco, installing, replacing, and repairing FCB is far more manageable. It's simple to operate with FCBs. They are preferred for cladding, weatherboard, and facades since they may be tacked or screwed on as required.

Based on the end-user industry, the global cement board market is bifurcated into residential, commercial, industrial, and institutional. 

The residential segment is the highest contributor to the market and is estimated to grow at a CAGR of 5.49% during the forecast period. Cement board is a new material becoming more popular in various home uses, including furniture, flooring, and roofing. Due to growing health awareness and rising prices for wood and wood products, it is becoming increasingly popular. Over the projected period, the global furniture market is anticipated to be driven by the rising demand for residential projects across the globe. There has been a major undersupply globally to fulfill the demand for housing. This provided a significant opportunity for investors and developers to adopt alternative construction techniques and new collaborations to advance development. In India, it is anticipated that by 2024, there will be a 70% increase in affordable homes. Another significant game-changer for the business is the Indian government's "Housing for All by 2022" initiative. By 2022, this plan hopes to construct more than 20 million low-cost dwellings for urban dwellers.

The commercial sector of the cement board market is essential. Additionally, the office sector is one of the critical markets for cement boards in the retail industry. Cement boards are in high demand in this market due to the expanding commercial activities around the globe. In recent years, the Asia-Pacific area has been a booming office market and is one of the biggest markets for the retail building industry. In both China and India, there is a growing demand for office space. The need for office space is significantly increasing due to demand from technology, e-commerce businesses, and banking and financial services, which is driving the construction of additional offices in the area.

Recent Developments

• August 2022- James Hardie Announced The Magnolia Home | James Hardie Collection, Curated by Joanna Gaines.
• September 2022- Etex went beyond sustainable lightweight construction and committed to 2030 circularity and decarbonization targets.