Facade Market

Market Overview

The global facade market size was valued at USD 244.3 billion in 2022. It is estimated to reach USD 409.3 billion by 2031, growing at a CAGR of 5.9% during the forecast period (2023–2031). In the coming years, the increasing investment from different technology suppliers is expected to create opportunities for the development of media facades. These building exteriors will have a growing demand in metropolitan regions, especially in the commercial industry, which will contribute to the expansion of the global market.

A facade is the outer part of a building, such as the front wall or how the building looks from the outside. It can be made of different things, like glass, metal, construction stone, plastics, and fibers. It can also be used in many places, like homes, businesses, and factories. The construction of a building's exterior significantly impacts its aesthetic appearance, architectural style, and overall visual appeal. Therefore, there is a growing demand for facades. It can also be made to be sustainable and save energy by lowering the amount of energy used for heating, cooling, lighting, and ventilation.

Market Dynamics

Global Facade Market Drivers

Rising Construction of Commercial, Residential, and Industry Properties Globally

The government initiatives toward infrastructure development and the rise in the PPP model enhance the construction of commercial properties across the globe. This phenomenon can be linked to the expansion of architectural facades resulting from the global rise in residential, commercial, and industrial building construction. Initiatives like housing for everyone and smart cities, which the Indian government started with the goal of finishing by 2020, are driving the construction industry.

Furthermore, the growing use of shale gas across the Americas has led the government to increase spending on developing the oil and gas sector. The construction market in Europe is expected to expand at a slower pace, owing to the economic crisis restricting investments in construction. The government revised the regulation to attract investments from the private sector, which enabled Latin America to witness substantial growth. Such factors propel market growth.

Increasing Demand for Constructing Designs with Ventilated Facades

Larger projects within areas such as hospitals, schools, universities, commercial complexes, offices, apartments, and allied urban development largely demand ventilated facades. In these projects, aesthetics, sustainability, ease of use, and high quality are supreme, and thus, architects and building owners are reluctant to compromise on the design or building materials. Prime importance is assigned to the aesthetics of contemporary construction, especially in developed regions such as North America.

Stunning views and abundant natural light are hallmarks of many new construction projects worldwide, characterized by distinctive geometrical designs, transparent panes, and enormous glass panels. Energy efficiency, occupant comfort, and complexity govern the current curtain wall and facade design trends. Steel and glass facades are more in demand in museums in Europe. In contrast, the four-sided structural silicone glazed systems are actively demanded in North America as architects and owners seek more glass for their projects. Several advantages are expected to drive demand for ventilated facades, which could boost the whole market.

Global Facade Market Restraint

Design and Renovation Challenges

Fulfilling more severe performance goals while constructing complex facades has emerged as a major challenge for the facades industry. Manufacturers are challenged with creating glass and coating components that offer aesthetics, high visible light transmission, and little solar heat gain for efficiency. Simultaneously, the need to promise the designers and architects the design freedom to use complex shapes, curved glass, geometries, and other superior aesthetic qualities. A major challenge for manufacturers is their leniency in offering design freedom while being sensitive to the building footprint and longevity.

Furthermore, manufacturers are often stuck in fulfilling construction goals that demand energy-sustainable buildings and ones that aim at reducing energy consumption without affecting functionality or aesthetics. Managing productivity waste is one of the major challenges faced by industrialists. Serious productivity wastage occurs due to poor utilization of building materials, idling of labor, engineering rework, and others. All these factors hinder the growth of the facades industry.

Global Facade Market Opportunities

Advent of Media/Digital Facades

An innovative, digital skin or facade in architectural design conforms to the standards of external glazing in terms of providing solar control and restricting heat entry but allowing ample natural lighting. The rapid increase in digital lighting systems embedded into architectural structures provides opportunities for future market growth. Media facades are expected to grow considerably in the commercial sector with features such as customer or people engagement, simultaneous interaction, and competitive use for advertising and entertainment. Digital facades are primarily used in the commercial and public infrastructure for advertisement or entertainment. LEDs are reasonably priced and require minimum maintenance compared to other facade materials.

Furthermore, the technology has high penetration in the U.S., China, and Japan. The growing number of success stories from the countries mentioned above is anticipated to instigate the adoption of digital facades worldwide. The technology is yet to be formally introduced in several regions and is expected to drive facade demand over the forecast period. The growing investment by technology providers such as General Electric and Schneider Electric may provide avenues for developing media facades over the next few years. These facades will witness an increasing uptake in urban areas, particularly in the commercial sector.

Regional Analysis

Asia-Pacific Dominates the Global Market

Based on region, the global facade market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific is the most significant global facade market shareholder and is estimated to grow at a CAGR of 6.8% over the forecast period. Asia-Pacific emerged as the dominant region due to growing commercialization and industrialization. This is accounted for the rising construction of new industrial and commercial buildings in India, China, and Southeast Asia. Moreover, growth will be largely fueled by changing façade design trends responsive to social elements, building usage, geography, safety, and sustainability concerns by 2028. At the same time, facade greening is growing a lot in the area. India and Japan also work hard to achieve sustainability goals using facade greening methods. Facade greening is also very important in urban areas to improve the quality of life in the face of rising heat caused by climate change and more people living in the same area. The green office idea also supports the technology for greening the outside of buildings.

North America is anticipated to exhibit a CAGR of 6.07% over the forecast period. There are a lot of big construction companies in this area, and there is a growing trend toward green building techniques. People are also becoming more concerned about the environment. The United States is the biggest market in North America. The market is growing because more people are using premade and modular building methods, the number of green buildings is growing, and more money is being put into the construction business. Moreover, facades are increasingly used in Canada because building rules and codes are getting stricter about saving energy. The North American Facade market is also expected to grow because it is easy to get raw materials, technology is improving, and there are more skilled workers.

Europe is the biggest market for facades. Countries like Germany, France, and the UK are important to the growth of this market. Some things driving the Facade market growth in the area are building taller buildings, a greater focus on energy-efficient buildings, and the development of new building technologies. In addition, eastern European countries are seeing a rise in the use of facades due to transportation and residential housing improvements. Facades are projected to see an uptick in demand in the European market due to initiatives by the European Union to encourage sustainable building techniques and reduce carbon pollution. However, the European facade market has several challenges, the most significant of which are the high materials and labor costs and the stringent construction regulations.

Segmental Analysis

The global facade market is bifurcated into product and end-user.

Based on product, the global market is bifurcated into ventilated, non-ventilated, and curtain walls.

The ventilated segment dominates the global market and is projected to exhibit a CAGR of 6.71% over the forecast period. This growth is attributed to the increased capability of ventilated facades provided over non-ventilated facades. These capabilities include Protection against wind, rain, heat, and sound — the ventilated facades shield buildings against the combined action of wind and rain. They also have the advantages of heat insulation and soundproofing. These facades also make buildings energy efficient, with air cavities significantly enhancing thermoregulation.

It also decreases energy usage by over 30% in cold and hot climates. Condensation, which can leave unsightly damp spots on walls, is eradicated by ventilated facades. Ventilated facades can be aesthetically pleasing because of the variety of styles, textures, and colors. Thus, builders and architects take this system into account for optimum solutions for the most demanding projects.

Based on end-users, the global market is bifurcated into commercial, residential, and industrial buildings.

The commercial segment owns the highest market share and is predicted to exhibit a CAGR of 6.3% over the forecast period. Building construction, maintenance, and operation consumes more than 45% of the total energy. Facades and roofs are key in reducing the energy in a building's operation and maintenance. Transparent portions of the building envelope significantly impact the building's energy consumption because of the risk of overheating and internal heat loss. The need for double-skin facades in the commercial sector is anticipated to rise during the forecast period due to the system's many advantages, including natural ventilation, acoustic insulation, and thermal insulation.

Recent Developments

• June 2023- YKK AP Inc. stated that its new center for research and development would open in Japan. This center will focus on making new technologies for building facades that save energy and are good for the environment.
• February 2023- Gartner (Permasteelisa Group) stated that EOS Framing Limited was being bought. With this purchase, Gartner can offer more products and reach new areas.