Demand for siding in the United States is forecast to grow 6.5% per year through 2014 to more than 100 million squares, valued at $11.1 billion, according to new market research.
Advances will be driven by a rebound in housing completions from the sharp declines of 2007 to 2009. Although housing completions will remain below their cyclical peak in 2006, the recovery will fuel above-average gains in the residential siding market through 2014.
These and other trends are presented in "Siding," a new study from The Freedonia Group Inc., a Cleveland-based industry market research firm.
Fiber cement, stucco and brick siding are the materials expected to see the most rapid advances through 2014. Fiber cement siding demand will be promoted for its durability and ability to be made into siding that resembles more expensive materials, such as wood or brick. Stucco siding demand will be driven by its low cost, ease of installation, durability and minimal maintenance requirements. Brick will continue to draw homeowner appeal for its look, durability and fire resistance.
Vinyl siding is the industry’s largest product segment, accounting for about 40% of demand in area terms in 2009. Vinyl siding’s popularity will continue to be supported by its low cost, ease of installation, and durability. Efforts by manufacturers to broaden the range of available colors and textures will promote gains going forward. However, more rapid advances will be checked by rising competition from fiber cement and stucco siding, which offer enhanced long-term durability and require less maintenance.
Wood siding accounted for the second-largest share of siding demand in area terms in 2009. However, continuing a long-term trend, wood siding will account for a smaller share of the market going forward, losing ground to fiber cement and stucco . Wood siding demand has been negatively affected by concerns about its durability and resistance to degradation caused by exposure to the elements. These issues will continue to affect demand going forward.
More information www.freedoniagroup.com.