U.S. High-Performance Vinyl Door Market

Market Overview

A high performance or a high-speed vinyl door is used as a barrier to separate processes and save energy.  The U.S. high-performance vinyl door market was valued at USD 280.6 million in 2019 and is expected to reach a value of USD 467.4 million during the forecast period 2020-2029.

Market Dynamics

Increase in Building Construction Spending

As per the Federal Reserve, the U.S. economy is expected to make a rebound following the pandemic. The real GDP is expected to grow at 4.2% in 2021 and come down to 3.2% in 2022, with a significant contribution from the construction industry, especially in the industrial sector. A key reason for this is the U.S. government’s push for domestic manufacturing.

The e-commerce boom is expected to generate demand for warehouses and cold storage facilities, and the pandemic is forecasted to accelerate the industry 4.0 wave, stimulating the warehousing market growth. Leading the growth of warehouses and distribution centers in the e-commerce giant Amazon. With a market capitalization of more than USD 600 billion, the company plans to open 33 fulfillment centers. Private property owners, such as Blackstone, are also looking at warehouses as an ideal investment opportunity. Overall, the e-commerce surge and the increasing number of warehouses and distribution centers are expected to drive the vinyl door market.

Food and beverage are another industry propelling the demand for vinyl doors, which are used to limit bacteria build-up and maintain hygiene. In the industry, food packaging and processing facilities and cold storage facilities are some of the key consumers of vinyl doors. The pandemic is likely to leave some permanent changes, especially in terms of the work model. As more people work from home, the demand for food items required for cooking is anticipated to increase, stimulating the food processing industry and, in turn, food processing facilities where these doors are used extensively.

Increasing Cost Owing to Rising Trade Disputes

The U.S. and China account for more than half the global Polyvinyl Chloride (PVC) market, and the U.S.-China trade dispute has adversely affected the PVC market. In 2017, China accounted for 11% of U.S. PVC exports; however, after both countries levied tariffs on multiple products and commodities, PVC was also affected.

The ongoing Boeing-Airbus trade dispute has fueled more concerns regarding tariffs charged on certain products and commodities. In November 2020, the EU imposed tariffs and other penalties on up to USD 4 billion worth of U.S. goods and services. This came after the U.S., in 2019, slapped penalties on EU goods worth USD 7.5 billion. Altogether, rising trade disputes have negatively impacted the vinyl door market as a result of the disruption in PVC supply-demand.

Manufacturing Sector in Mid-West

The post-pandemic era is expected to see a revolution, especially in manufacturing. A key shift in U.S. manufacturing is expected to be in localized manufacturing. During the pandemic, many companies faced the brunt of supply chain disruptions and weak demand. Thus, companies are expected to build local manufacturing hubs, increasing resilience, and moving production activity closer to the consumer. This way, the construction of new manufacturing facilities is expected to create a favorable growth avenue for the high-performance vinyl doors market. Also, the pandemic has created other platforms for market growth as the demand to create temporary compartments using vinyl in public areas, such as gyms and restaurants, has increased.

Another key factor expected to propel market growth is the fact that manufacturers are anticipated to take sustainability seriously. In a large-scale bid to reduce energy consumption, vinyl doors will emerge as the solution of choice across numerous end-use verticals.

Manufacturing activity is up and running in the states of Indiana and Wisconsin. The Midwest region is expected to thrive alongside the Southern region. Sectors such as automotive, agricultural, and raw material manufacturing are expected to be a stronghold in the Midwest.

Segmental Analysis

Door Speed

Door speed plays a crucial role when it comes to the installation of high-performance vinyl doors. These doors are attached to a high-speed motor for rapid opening and closing, which enables them to improve the speed of movement in and out at various end-use facilities. Based on door speed, the U.S. high-performance vinyl door market is categorized into less than 30” per second, 31”–50” per second, and above 50” per second. Among these, the 31”–50” per the second segment is expected to register the fastest growth with a CAGR of 5.9%, driven by their significant use in medium traffic applications, such as automotive, manufacturing, and food and beverage, drives the segment's dominance.

End-User

Based on end-user, the U.S. high-performance vinyl door market is segmented into manufacturing, food and beverage, pharmaceutical, logistics and distribution, and others. Among these, the manufacturing segment dominates the market. It contributed to 31.6% of the market share in 2019, driven by demand from both indoor and outdoor, medium to high traffic applications.

Manufacturing

Vinyl doors' ability to separate work areas with an airtight seal while allowing quick access to personnel and blocking dust, noise, and harmful contaminants drive their widespread applications in manufacturing industries. These doors retain the environments in the partitioned areas, which is a significant boon for manufacturing industries where controlled temperature and other external conditions are vital for product health or performance. This ability is an especially important aspect since it substantially cuts energy costs, which would be otherwise spent in controlling temperature and humidity.

Additionally, the breakaway system of vinyl doors eliminates the cost and mitigates the downtime associated with accidental impacts caused to the sectional doors, which significantly contribute to the repair and maintenance cost in these manufacturing facilities. These advantages have made high-performance vinyl doors the preferred choice in manufacturing facilities.

Food and Beverage

The U.S. food and beverages industry is thriving due to changing consumer preferences, which lead to the development of novel products, ingredient formulations, and packaging formats. This drift has transformed food and beverage from a supply-driven to a demand-driven industry, where speed-to-market, efficiency, and quality standards are crucial. The high speed and tight seals of high-performance vinyl doors help maintain the desired air temperature, humidity, and sanitation on the loading dock; thus, players in the industry are installing these doors in warehouses and food processing facilities.

Vinyl doors' energy efficiency and low labor requirement amount to low overall capital costs, which drives adoption as players constantly seek solutions that minimize manufacturing costs and increase profit margins. Further, the food and beverages industry shift toward sustainability is also expected to augment market growth.

Regional Analysis

Northeast

The Northeast market is expected to observed slow growth during the forecast period. The region's low growth momentum is attributable to the fact that its primary economic activities are fishing, farming, and forestry. However, the resurgence of Connecticut's manufacturing industry and the increasing number of government policies that aim to help anchor manufacturing companies in New York are expected to bolster the growth of the region's manufacturing sector and, consequently, create a lucrative growth opportunity for the high-performance vinyl door market in the years to come. Additionally, the modernization of transportation systems across the region is also anticipated to add to market growth.

Midwest

The Midwest market contributed 21.1% to the U.S. high-performance vinyl door market in 2019 and is anticipated to register a CAGR growth of 5.5 percent during the years to more in. This boom in the demand for high-performance vinyl doors market in the years to come, driven by Michigan, Indiana, and Illinois, among others, started that are some of the largest automotive manufacturing hubs in the U.S. The well-established automotive industries here not only support manufacturing but also foster the car wash and detailing industry, where vinyl doors find extensive applications.

Unlike other regions where healthcare accounts for the largest percentage of the civilian employed population, in the Midwest, the manufacturing sector is the largest employer of the civilian population, which also makes it one of the most active sectors. And since production in the region is high, there is always a high demand for logistics and distribution centers for the storage and delivery of products to other neighboring markets. The increasing number of logistics and distribution centers across the region will further augment market growth since vinyl doors find significant uptake in these centers.

U.S. High-Performance Vinyl Door Market Segmentation

By Door Speed

• Less Than 30” per second
• 31”-50” per second
• Above 50” per second

By End-User

• Manufacturing
• Food and Beverages
• Pharmaceutical
• Logistic & Distribution
• Others

By Region

The U.S.

• Northeast
• Midwest
• West
• South