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INDUSTRY TRENDS Expect more fiber cement, energy efficiency in siding

EXPECT MORE FIBER CEMENT, ENERGY EFFICIENCY IN SIDING

------------ BY DAVID KOENIG

GOOD NEWS for lumber dealers, as fiber cement—the type of siding most commonly distributed by traditional lumberyards—is forecast to exhibit the fastest growth among all types of siding, according to a new Lucintel report, “Siding Market: Trends, Opportunities and Competitive Analysis.”

The global siding market is expected to reach an estimated $126.1 billion by 2027 with a compounded annual growth rate of 4.9% from 2022 to 2027. The

FIBER CEMENT may hold a fraction of the siding market, but it remains the fastest-growing type. (Photo by James Hardie) major growth drivers for this market are increasing construction activities, growing repair and maintenance of building exteriors, and a rise in the hospitality industry.

The sharpest increase lies with fiber cement. “Fiber cement siding continues to pick up steam for several reasons,” explained Jamal Saghir, director of products at James Hardie. “First, we’ve seen that traditional construction practices using brick and stucco are becoming increasingly more expensive and difficult to achieve, leading consumers to evaluate alternative siding options. Another trend we’ve seen is an increase in modern styles and the growing desire for customization. Fiber cement panels are well aligned to this trend of modern styles as they deliver a clean and simple aesthetic.

“Lastly, the impact of severe weather on home design is something we’ve been watching closely for several years now, as homeowners are looking to protect their homes and their families inside those homes.”

Nonetheless, vinyl will remain the largest material type segment over the forecast period, due to low material and maintenance costs, and availability of a wide variety of colors.

Also becoming increasingly popular are sidings that offer good insulation to reduce energy consumption generated by air conditioners and heaters. The most energy-efficient type of siding—insulated vinyl—is laminated with a solid foam-core backing. Once installed, it looks similar to regular vinyl siding with a stepped profile, but provides significantly higher R-values. However, it does cost more and is more labor intensive to install.

Globally, non-residential will remain the largest end use segment for siding during the forecast period due to growth in retail and office buildings. Yet residential construction is expected to witness the highest growth due to increasing adoption of energy efficient homes.

Asia Pacific is expected to remain the largest market and witness the highest growth over the forecast period, supported by increasing urbanization and building construction activities. BP

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