The North America rainscreen cladding market size was estimated at USD 34.6 billion in 2018 and is expected to ascend at a CAGR of 6.6% over the forecast period. Rising popularity of aesthetically appealing homes coupled with an increase in single & multi-family residential construction on account of the growing population is likely to propel the product demand.
The assembly structure of rainscreen cladding consists of different materials including blocking wall, vapor control layer, insulation, panel support system, panels, and panel joints. The system is manufactured as a double-wall construction, which uses the internal layer to provide thermal insulation and the outer layer to prevent rainwater from entering.
These systems are finding increasing acceptance in building & construction industry within the U.S. owing to their suitability for both new and redevelopment projects. In the case of old buildings, these systems help improve the appearance of the building structure while improving thermal efficiency. Volatility in the raw material prices results in variations in the prices of cladding components, thus affecting profit margins of companies across the value chain. However, the presence of numerous raw material suppliers with high production volumes is likely to lower bargaining power of suppliers in the market.
Commercial construction is likely to emerge as a key application segment in the industry owing to rising demand for aesthetically appealing building structures. Increasing investments in commercial constructions in the U.S. and Canada are expected to drive the demand for rainscreen cladding within North America.
Multiple incidents of fire mishaps due to rainscreen cladding in buildings have been recorded across the globe. A majority of the incidents occurred on account of the characteristics of the panels that allowed the fire to spread quickly. Thus, the industry players are finding it challenging to regain consumer confidence in terms of using rainscreen panels.
Fiber cement raw material, in terms of revenue, is expected to progress at a CAGR of 7.0% over the projected period on account of its cost-effectiveness, durability, and low maintenance cost. The panels are gaining increasing acceptance in rainscreen market as they can resist rainwater and high-pressure winds.
Rainscreen cladding made from various types of composite materials such as aluminum composite material (ACM), copper composite material (CCM), and zinc composite material (ZCM) are likely to witness a high growth on account of their load-bearing capacity, durability, superior strength to weight ratio, and ability to be molded into complex shapes.
Metal rainscreen cladding segment, in terms of revenue, is expected to progress at a CAGR of 7.5% over the forecast period owing to increasing preference for cladding structures with high durability, corrosion resistance, rigidity & stability under changing thermal conditions, low maintenance, fire resistance, and sound & thermal insulation properties.
Terracotta was the leading segment in 2018 with a share of 35.3% owing to its durability, resistance to ultraviolet radiation, recyclability, fast & easy installation, and weatherproof & fireproof properties. Terracotta panels are preferred to offer continuous insulation and enhance the thermal performance of buildings.
Residential application segment is expected to ascend at a CAGR of 7.0%, in terms of revenue, over the forecast period on account of factors such as rising income levels and population expansion. Moreover, the need for renovation of old buildings is further expected to boost the growth of residential segment.
Institutional segment is expected to account for 19.5% of the total market revenue share by 2025 owing to increasing investments for developing educational premises and public amenities. Rising construction of healthcare facilities and growth of medical tourism are further projected to positively impact the industry growth.
Rapid industrial development and increasing investments from the government as well as private companies in commercial construction are factors expected to propel the demand for industrial rainscreen cladding over the forecast period. The growth of office application segment can be attributed to the increasing employment rate along with the regional expansion of existing companies. Growing awareness regarding the safety of building structures and employees is further expected to propel the market growth over the forecast period.
Industrial sector in North America is likely to witness significant expansion owing to the rising GDP of the region while manufacturing industry is expected to benefit from new policy reforms. This is expected to boost industrial construction in the region, thereby driving the demand for rainscreen cladding over the forecast period.
The U.S. dominated North America rainscreen cladding market with a revenue share of 79.2% in 2018 owing to the extensively developed manufacturing industry and government initiatives for developing public infrastructure. Furthermore, rising awareness regarding rainscreen cladding systems among the consumers is expected to fuel their demand.
Canada emerged as the second-largest market for rainscreen cladding products in the North American region. It is projected to ascend at a CAGR of 7.0%, in terms of revenue, over the forecast period on account of the expanding construction industry in the country, primarily driven by the growing population, urbanization, and increased rate of migration.
The market in Mexico is expected to progress at a CAGR of 5.3% over the forecast period owing to a gradual recovery in the economic conditions of the country. Furthermore, the domestic demand for rainscreen cladding is expected to be benefitted from increasing investments by private and public companies in infrastructure projects.
The key players in the market for rainscreen cladding include manufacturers, distributors, and installers. The industry players are likely to undergo mergers and acquisitions to get integrated into the value chain and establish themselves in the global market. The players are witnessing high product demand with increasing consumer awareness, positive government outlook, and early product penetration.
The major players operating in the market are OmniMax International, Inc.; CENTRIA International; Dow Building Solutions; TERREAL Group; NVELOPE Rainscreen Systems Ltd.; Trespa International B.V.; Cladding Corp.; Kingspan Insulation plc; and Rockwool International A/S. The major players are focusing on residential and commercial construction activities as the product demand is high in these sectors.
This report forecasts revenue growth at regional and country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the North America rainscreen cladding market report on the basis of raw materials, application, and country:
- Raw Materials Outlook (Volume, Thousand Square Meters; Revenue, USD Million, 2014 – 2025)
- Fiber Cement
- Composite Material
- High Pressure Laminates
- Application Outlook (Volume, Thousand Square Meters; Revenue, USD Million, 2014 – 2025)
- Single Family
- Multi Family
- Country Outlook (Volume, Thousand Square Meters; Revenue, USD Million, 2014 – 2025)
- The U.S.