Rainscreen Cladding Market

Market Overview

The global rainscreen cladding market size was valued at USD 11.49 billion in 2022. It is estimated to reach USD 16.92 billion by 2031, growing at a CAGR of 4.4% during the forecast period (2023–2031). The demand for rainscreen cladding is expected to increase over the forecast period due to stringent government regulations and growing awareness of environmental degradation. Rainscreen cladding prevents thermal bridging, which further helps increase energy efficiency and minimize running energy costs. 

Rainscreen cladding is an exterior layer of water-repellent material commonly found on the exterior of structures. The two-layer cladding panels can be created from a range of materials, including aluminum, copper, zinc, and stainless steel. The inner layer serves as a structural wall, insulation, and additional weather barrier for a building, while the outer layer is designed to shed water. The insulating material can be installed inside the building or applied to the load-bearing wall.

Highlights

• Fiber cement dominates the raw material segment
• Commercials dominate the application segment
• Europe is the largest shareholder in the global market

Market Dynamics

Rainscreen Cladding Market Drivers

Rising Construction Industry‌ in Emerging Economies

The demand for rainscreen cladding is anticipated to be positively impacted over the forecast period by rising construction spending in emerging nations of the Asia-Pacific and the Middle East due to population growth and strong economic and industrial development. The governments of developing nations have contributed a considerable sum of money to construct public infrastructure, including hospitals, offices, and housing societies. In the upcoming years, it is anticipated that the growth of private construction companies in China, India, and the UAE will significantly boost spending on building.

China's transition toward a consumer- and service-driven economy has provided ample and tremendous growth opportunities in new construction activities across various end-use industries like healthcare, education and social infrastructure, and retail. Middle Eastern countries have impressive national development plans to diversify their economies and lower their reliance on depleting oil and gas reserves. Major projects taken up in the region include King Abdullah Economic City (KSA), Lusail City (Qatar), Basra New City (Iraq), and Mohammad Bin Rashid City (UAE). Increasing urbanization and global events such as the FIFA World Cup 2022 in the region are expected to fuel construction spending and create high demand for rainscreen cladding.

Several Benefits Offered by Rainscreen Cladding

Rainscreen cladding systems are estimated to gain wide acceptance globally owing to several benefits, including lightweight materials, thermal insulation, improved external appearance, and acoustic performance of the buildings. Rainscreen cladding increases the durability of materials that would otherwise be directly exposed to the exterior elements, thereby avoiding heavy repair expenses in the future and extending the life of the building.

The use of lightweight materials for the panels and framework ensures that the additional load applied to the existing structure is minimal. In addition, lightweight insulation materials are also used to reduce the structure's overall weight. The market is further expected to grow significantly owing to the benefits such as improved external appearance and recyclability of raw materials. Restoring a building with rainscreen cladding improves thermal and acoustic performance and extends the property's lifespan. Such factors are expected to influence the market for rainscreen claddings over the forecast period.

Rainscreen Cladding Market Restraints

High Initial installation and Maintenance costs

Rainscreen cladding market is anticipated to be negatively affected by high initial installation costs and maintenance issues. The tendency to hide primary flashing elements behind the cladding components limits the opportunity to conduct routine maintenance or evaluate the materials in terms of their performance without removing panels.

The risk of failure exists if the structural components are not checked and maintained regularly. The sealant joints need regular checks to hold the outer panels and seal between the air and water barrier of the system. For typical open-joint systems, the cladding components benefit from the ventilation created through the open joints between panels, exposing the same components to exterior conditions and creating inherent performance concerns. These factors are estimated to challenge the growth of the global market.

Rainscreen Cladding Market Opportunities

Favorable Government Regulations‌

The reduction of thermal bridging results in less condensation and provides a better internal environment. As per the Federal Energy Policy Act 2005 in the U.S., a tax credit of up to USD 2,000 is provided for builders of new energy-efficient homes constructed per Federal Manufactured Homes Construction and Safety Standards standards.

Other initiatives promoting and encouraging energy efficiency have been adopted and implemented in Europe. For instance, the "European Portal for Energy Efficiency of Buildings" initiative of the European Commission enables the investigation and exchange of information regarding best practices in providing energy solutions for buildings. The rainscreen cladding system contributes to energy conservation by providing thermal insulation. Therefore, such favorable government initiatives are expected to create opportunities for market growth.

Regional Analysis

Europe Dominates the Global Market

The global rainscreen cladding market is bifurcated based on region into North America, Europe, Asia-Pacific, Central and South America, and the Middle East and Africa. 

Europe is the most significant global rainscreen cladding market shareholder and is anticipated to exhibit a CAGR of 3.2% during the forecast period. Europe is the largest consumer of rainscreen cladding owing to the significant product demand from developed economies, including Germany, the U.K., Russia, Italy, and France. The European market has witnessed significant construction activity growth, which can be directly translated into increased product demand. Due to the rising pace of immigration, the market is anticipated to be considerably influenced by the expanding residential sector. In addition, the residential construction industry accounted for most of the consumption of rainscreen claddings due to the wide variety of product applications available in this market. The region's expansion of residential construction activities is anticipated to drive up product demand over the forecast period. Increasing rainscreen cladding in commercial constructions owing to increased consumer preference for aesthetic appeal is also expected to expedite the market over the forecast period.

North America is estimated to exhibit a CAGR of 4.4% over the forecast period. The North American economy is characterized by high diversity owing to the presence of major developed economies such as the U.S. and Canada. The construction industry in North America is witnessing moderate growth owing to reduced investments. These factors have further resulted in a reduction in the amount of investment in the non-residential sector. In addition, the decision to shut the stores by various organizations, such as Target Corporation in Canada, is anticipated to hamper the overall construction industry, affecting product demand. However, the increased pace of domestic and foreign migration in the area is anticipated to enhance housing demand, accelerating residential buildings.

Single-family housing is likely to experience a significant increase in the region, whereas multi-family building is anticipated to diminish over the projection period. The market is also expected to witness moderate growth in institutional construction activities over the forecast period. Moreover, increasing product demand from the commercial sector, such as retail chains, shopping malls, and supermarkets and hypermarkets, is expected to fuel market growth in the coming years.

The Asia-Pacific rainscreen cladding market is estimated to exhibit the quickest growth over the forecast period owing to the region's huge potential for the construction industry. Flourishing tourism in the region has increased the restaurant, resort, and food chain requirements. In addition, rapid urbanization and rising standard of living due to rising per capita consumer income are anticipated to boost the expansion of residential and commercial construction sectors, including shopping malls and retail chains. Furthermore, the growing senior population in the region is expected to propel the need to expand the healthcare system. The aforementioned factors are anticipated to encourage construction activities in the region, consequently fueling the demand for rainscreen cladding over the forecast period.

In Central and South America, the construction sector is anticipated to witness substantial expansion due to the increasing investments in various infrastructure projects by foreign and domestic private players. The growth in the construction industry in the region is attributed to private capital infrastructure developments due to public-private partnerships coupled with increasing per capita income in the region. The industrial sector in Central and South America is anticipated to witness considerable growth because of the rising GDP in the region. In addition, the increasing demand for manufacturing facilities coupled with inexpensive labor in emerging economies is projected to positively impact industrial construction in the region over the forecast period.

The Middle East and African construction industry is expected to face a few challenges due to uncertainty regarding government spending on infrastructure projects. The rainscreen cladding market is expected to register moderate expansion in line with the growth of the regional building and construction industry. The recovery of oil prices is lessening the burden on government finances, which is expected to give rise to new development models, such as public-private partnerships for infrastructure development. A significant economic consumer base is also projected to benefit the market in terms of growth over the forecast period.

Segmental Analysis

The global rainscreen cladding market is segmented by raw material and application.

Based on raw materials, the global market is bifurcated into fiber cement, composite materials, metals, ceramics, terracotta, high-pressure laminates, and others. 

The fiber cement segment dominates the global market and is projected to exhibit a CAGR of 4.7% over the forecast period. Fiber cement-based rainscreen claddings are anticipated to experience increased demand because of their accessibility, exceptional durability, and minimal maintenance needs. The ingredients used to make fiber cement are pulverized limestone, cement, cellulose fiber, and water. These panels are gaining popularity in the rainscreen sector due to their waterproof nature and simple ability to withstand heavy winds and rain. Fiber cement also offers fireproof properties making it one of the most suitable raw materials for manufacturing rainscreen cladding panels.

Fiber cement panels are commercially available in various colors and shapes, which helps improve the aesthetic appeal of the construction structure. Furthermore, these panels can be colored or textured according to the project's requirements, even after installation. The average lifespan of fiber cement panels is 40 to 50 years. Therefore, the demand for fiber cement in rainscreen cladding manufacturing will likely grow over the forecast period.

External panels or facades for rainscreen cladding constructions are made of metal. Aluminum, copper, stainless steel, zinc, and copper are the main raw materials used to make panels. Due to its high tensile strength, longevity, corrosion resistance, superior flatness, stiffness and stability under changing heat conditions, and low maintenance requirements, metallic panels are becoming increasingly popular. These panels can be manufactured following the project design owing to their flexibility. In addition, the construction industry's growing demand for aluminum rainscreen cladding is expected to boost the market over the projected period because of its advantageous qualities, including recyclability, lightweight construction, resistance to algae and fungi, and ease of installation. These panels are widely utilized for fire resistance, sound and thermal insulation, and improving the aesthetic appeal of buildings.

Based on application, the global market is segmented into residential, commercial, office, institutional, and industrial constructions. 

The commercial segment owns the highest market share and is estimated to exhibit a CAGR of 4.4% during the forecast period. The commercial construction segment includes buildings for hypermarkets, supermarkets, departmental stores, shopping malls, hospitals and clinics, restaurants and hotels, resorts, etc. The building structure requires rainscreen cladding for thermal insulation, aesthetic appeal, and protection from rain and wind. Commercial constructions are generally large buildings or a cluster of buildings that require rainscreen made from rigid and durable materials to protect against extreme weather conditions. In addition, increasing urbanization and investments from the government in tourism and commercial construction are expected to drive the demand for rainscreen claddings. Commercial construction requires a large amount of rainscreen claddings for thermal insulation and to enhance the aesthetic appeal of the building.

Industrial construction includes factories, warehouses, and manufacturing and processing units. Industrial constructions are huge architectures requiring large cladding structures to protect against harsh environments. Thermal insulation and fireproof cladding panels are gaining popularity in industrial applications. The industrial construction sector is anticipated to rise due to quick industrial expansion and rising public and private sector investment. In addition, the demand for industrial development is fueled by the growth of international corporations and newly constructed manufacturing plants and processing facilities. These factors are expected to increase the demand for rainscreen claddings in industrial applications.

Recent Developments

• February 2023: Vivalda Group, the largest distributor of architectural rainscreen facades in the United Kingdom, announced an aggressive growth strategy for 2023. This results from appointing a new Group Chief Executive Officer and a new management structure for the business with EUR 40 million in revenue.
• March 2023: The Vivalda Group, the largest distributor of architectural rainscreen facades in the UK, invested EUR 1.3 million in a brand-new distribution and fabrication center in Naas. The new branch will offer property developers and contractors access to non-combustible cladding products of the utmost quality from a reputable provider with a 24-year track record.