Fencing Market Size, Share & Trends Analysis Report By Material (Metal, Wood, Plastic & Composite, Concrete), By Distribution Channel (Online, Retail), By Installation (Do-It-Yourself, Contractor), By Application (Residential, Agricultural, Industrial), By End Use (Government, Petroleum & Chemicals, Military & Defence, Mining, Energy & Power, Transport, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global fencing market size was valued at USD 26.86 billion in 2021 and is predicted to reach at USD 43.19 billion by 2030, increasing at a CAGR of 5.42% from 2022 to 2030. The rising use of electric fences is opening new opportunities in the market.

Fencing is the technique of enclosing a property to ensure its safety and security against unauthorized individuals or activities. Commercial, agricultural, and residential structures all rely on fences for security. Commercial wire fences and agricultural wire fences are the two most common types of fences. Commercial wires fencing is utilized in parks, residential structures, and many other places, whereas agriculture wires fencing is used to protect cattle.

A significant upsurge has been observed in the global fencing market as a result of growing economies and middle-class populations, a rise in demand for security and protection, and an increase in consumer interest in home remodelling and home décor. Some of the factors giving sufficient potential prospects for the global fencing market during the forecast period include the advent of innovative and appealing fences, expanding worldwide recognition of synthetic alternatives, plus rising demand of residential fences.

Market Dynamics

Market Drivers

As The World's Population Grows, So Does Demand for Real Estate

The need for diverse facilities such as schools, buildings, factories, government buildings, and offices has expanded over the past few years as a result of population growth around the world. Furthermore, people and businesses from a wide range of industries are putting a lot of effort into making their homes more attractive and safer. In recent years, there seems to be an upsurge in the desire for independent homes and novel construction technologies.

Since its inception, the construction business has been one of the world's most profitable industries. New building techniques and a rise in the number of people seeking their own homes are two recent developments. Many people are attempting to build their own homes sooner rather than later because of the fast-rising costs of buying and building new homes, as well as the materials used in the process. The need for fencing for new projects is expected to rise in the coming years as a result of an increase in the number of new structures.

A New Wave of Inventions Is Acting as A Key Driver

Every industry is being impacted by technological advancements. Traditional agricultural fence methods necessitate a lot of time and attention. Traditional methods, on the other hand, have been shown to be as effective as modern ones. Virtual fence, for example, is a recent innovation in the fencing industry. An animal's neck band is attached to a GPS tracker and when the animal tries to leave the designated area, the neck band emits a stimulus that causes it to be reined in by a GPS receiver. An auditory warning is emitted at the virtual boundary in order to keep the animal within the confines of the enclosure. Virtual fences are designed to ensure the safety and well-being of animals. Additionally, the global fencing industry will be influenced by this trend.

Market Restraints

High Costs Associated with Upkeep

The enormous cost associated with upgrading and maintaining the traditional electric fence that is being replaced is one of the factors that is preventing the business from expanding. The necessity to erect barriers across international lines and to undertake periodic inspections to guarantee that they are being utilized to their full potential is the primary driver of the high cost of maintenance. Because of the high cost of upkeep, end-users are looking at other options, such as unmanned systems. This could slow the expansion of the market for fencing, but it could also be beneficial.

Installing a more advanced and expensive fencing system at a location or facility is a common practice when individuals want to increase the level of safety at that location or facility. The rising need for fencing that is friendly to the environment is a prominent aspect that is influencing the market.

Market Key Opportunities

Rising Use of Electric Fence Is Opening New Opportunities

Growing the agricultural sector by increasing the usage of electric fencing as a border sealer and for agricultural growth goals. The usage of electric fence by armed forces around the world to prevent incursions at international borders is becoming increasingly common. Armed forces in China's Ladakh region place spiked electric lines along the disputed boundary with India. An electric fence was erected by the Russian military along the China-Russia border to keep out intruders. As a consequence, market development is projected to be boosted by the increased emphasis on national security. Because it prevents animals from coming without authorization, an electric fence has a greater impact on farm safety. Electric fences are projected to gain in popularity as more farmers use them to keep wild animals out of their fields.

Regional Analysis

The Global Fencing Market is segmented by geography into North America, Europe, Asia-Pacific (APAC), Latin America, and Middle East & Africa (MEA).

In 2021, North America held a share of the revenue of more than 40% of the global fencing market, making it the region's clear leader. The unchecked expansion of building and construction work across North America enables the region to maintain its preeminent position in the international market. In the United States (The US) only, you will find more than 50,000 different fence contractors. The provision of products and services can be found all around the world thanks to these contractors.

Over the course of the forthcoming time period, the region's market is also anticipated to experience significant expansion. It is projected that the development of the market in the North American area will be driven by the increasing demands for home decoration items from households across the region.

Over the course of the projected period, it is anticipated that the regional market in Asia and the Pacific would make progress. It is anticipated that the initiatives being followed by numerous different governments across the region to build and develop public infrastructure will contribute to the regional market growth.

Additionally, the significant concerns over security among consumers are estimated to contribute towards the region's market growth. It is projected that the expansion of the regional market will be driven by the continuation of urbanization as well as the significant focus that farmers are placing on the protection of their property and assets. The fact that India is devoting more resources to the building of public institutions is another positive sign for the expansion of the region's market.

Segmental Analysis

The Global Fencing Market is divided into different segments according to the Material, Distribution Channel, Installation, Application, End Use, and Region (Geography).

By Material, the Global Market is segmented into Metal, Wood, Plastic & Composite, and Concrete. In 2021, the metal segment had a revenue share of more than 55%. A lot of public sites and government agencies employ metal fencing. Growth in this market is predicted to be driven by a rising demand for chain-link and ornamental fences. Metal fencing's growing popularity might also be attributed to the increasing demand for a more secure fence.

In semi-urban and rural locations, specifically, wood fence is a popular option for residential applications because of its distinct aesthetic appeal and the abundant availability of wood at reasonable prices. Wooden fencing, on the other hand, is expected to face fierce competition from plastic and composite fencing because of its cheaper cost and lower maintenance requirements. As a result, the plastics and composites market is expected to increase at a rapid pace during the next few years.

By Distribution Channel, the Global Market is segmented into Online and Retail Channels. More than 72% of the market in 2021 was occupied by the retail sector. Direct access to important vendors' products is made possible through retail distribution. Customized fences are best purchased at retail locations. Customers may easily buy fences at retail stores because personalized solutions are rarely offered on prominent online marketplaces.

Over the projected period, the online sector is anticipated to develop at the fastest rate. Using online distribution platforms has numerous advantages. In addition, clients can view all of the products available and compare them side by side in real time via internet channels. Vendors are increasingly turning to online channels due to a growing understanding of the advantages they offer, which is fueling the market's expansion.

By Installation, the Global Market is segmented into Do-It-Yourself and Contractor. In 2021, the contractor sector accounted for more than 71% of total revenue. In the market, there are various contractors who have sufficient experience erecting fences according to the aesthetic preferences of their customers. Fences can also be installed quickly and efficiently by contractors who have the necessary expertise. As a result, clients choose to hire professionals to erect their fences. All these elements are united to make the contractor segment the market leader.

Customized fences are becoming increasingly popular among clients, which bodes well for the DIY industry's future in the next years. Homeowners can find a variety of DIY fencing kits on the market. Fences built with DIY kits appear to be made of vinyl because they are the most straightforward to erect. DIY fence installation is an option for some consumers, but it might take a long time to complete. Customers who choose to build their own fences may have to deal with a lengthy process.

By Application, the Global Market is segmented into Residential, Agricultural, and Industrial. In the year 2021, largest share was held by the residential market for more than 58%. Increased home development and remodeling allowed this category to take over. Increasing amounts of disposable income and the growing need of protection and privacy in the home are driving investments in fencing goods for residential usage. One of the primary aspects fueling the segment's rise is the inclination for erecting custom fences and boosting the aesthetic value of residential properties.

Fences in agricultural sector are expected to expand in demand due to the growing need to protect farm animals, crops, as well as farmland from wild animals as well as thieves. Agricultural invasions are on the rise, which is driving up demand for agricultural fencing. It is common practice for agricultural fencing to be custom-designed and produced using high-quality materials.

By End Use, the Global Market is segmented into Government, Petroleum & Chemicals, Military & Defense, Mining, Energy & Power, Transport, and Others. More than 32% of the market in 2021 belonged to the military and defense sector. Growth in the market is projected to be driven by the demand for increased border security and control. Over the projected period, the energy and power sector is anticipated to outpace all other end-use segments.

Huge amounts of money are continuously being invested by the oil and chemical industries in both modernizing their current refineries and processing units and building new infrastructure. Trespassers and others who enter the premises deliberately or unknowingly may be exposed to dangerous chemicals and gases that are released during the course of these activities. To prevent trespassing, these corporations are erecting sturdy and long-lasting fences. This is boosting the petroleum and chemicals sector's growth.

By Region or Geography, the Global market is segmented into North America, Europe, Asia-Pacific (APAC), Latin America, and Middle East & Africa (MEA). In 2021, North America held a share of the revenue of more than 40% of the fence market. Global construction market dominance is a result of North America's unrelenting rise in construction activities. Over the next few years, growth is expected to pick up in the Asia Pacific region. Customers' growing concerns about safety, as well as government efforts to improve public infrastructure in the region, are projected to help the regional market flourish.

Impact of covid-19

The automotive industry is critical to the economy's growth. However, during the second and third quarters of 2020, the COVID-19 outbreak impacted the whole automotive supply chain, affecting new car sales in FY 2020.

South America is most affected by COVID-19, with Brazil leading the way, followed by Ecuador, Chile, Peru, and Argentina. South America's government (SAM) has taken a number of steps to protect its citizens and stem the spread of COVID-19. South America is expected to have fewer export revenues as commodity prices fall and export volumes fall, particularly to China, Europe, and the United States, which are all significant trading partners. The manufacturing industry, especially automotive manufacturing, has been damaged by containment measures in various South American countries. Due to the pandemic, major automotive manufacturers have also temporarily halted manufacturing in the region as a cost-cutting move. Furthermore, the automobile disc brake industry has been significantly affected in 2020 due to a lack of raw materials and supply chain disruption.

The Automotive Brake System control module of a vehicle is meant to alert the driver with a warning light if the system fails. The module itself is rarely defective; instead, the sensors or the wiring to the sensors are frequently defective. The most typical cause of dysfunction is when the Automotive Brake System is contaminated with particles or metal shavings. There is no signal continuity when sensor wiring is destroyed. Brake fluid becomes contaminated in corrosive situations, and the hydraulic unit fails to function.

Recent Developments

• January 2022 - A definitive agreement has been reached by Associated Materials and SVPGLOBAL, a worldwide investment organisation with over $18 billion in assets under management, under which funds administered by SVPGLOBAL would purchase Associated Materials.
• December 2021 - Gregory Industries is putting the last touches on the designs for a bigger headquarters in Canton, Ohio, with the goal of beginning construction in 2022. This decision has been taken as part of a five-year expansion strategy that the company has devised in order to solidify its position as a leading maker of roll formed steel products across the nation.