Rapid Growth in the Construction Activities Globally
There is an expectation of increase in construction activities worldwide due to significant demographic shift. The United Nations (UN) estimates that in the last three decades, around one billion people have been uplifted from the poverty. This has majorly fostered construction activities around the globe to provide the people with higher living standards. Moreover, UN also estimates that two third of world population will live in urban areas by 2050, compared to half of the urbanized population in present and one-third who were urbanized in 1960.
Regulations for Sustainable Roofing Material
The growing need for sustainable construction materials has also significantly contributed to the increased market growth and supportive government regulations. Harmful environmental impacts that arise from various construction waste streams have fostered the development of new environment-friendly roofing material regulations. This is projected to propel the growth of the market. Moreover, few eco-friendly roofs are also durable and cost-effective which is also estimated to lead to its adoption in the upcoming years.
High Cost of Few Roofing Materials
High cost of few roofing materials is anticipated to hinder the market growth in terms of their utilization. Replacement of roof is one of the costlier upgrades in residential building which depends on the complexity of the roof design. This is anticipated to impede the growth of the market. Furthermore, lack of skillful manpower required for installation results in a faulty installation which increases the likelihood of problems and reduces the life longevity of a roof.
The roofing materials market is observing a significant growth on account of rapid urbanization, industrialization and infrastructural development. Rise in number of renovation and construction activities is also estimated to propel the growth of the market. Additionally, upgradation of industrial structures and increased demand for re-roofing is also expected to drive the growth of the market. Moreover, increased emphasis on the role of environment-friendly and energy efficient cool roofs rather than the conventional roofs is also projected to positively impact the growth of the market.
Technical advancements in the roofing materials on account of growth in the green construction and high-performance have significantly strengthened the demand of these materials. Green roofs, cool roofs, blue roofs, and innovations in cladding attachments & insulations have resulted in numerous roofing material developments.
The global roofing material market is anticipated to record a CAGR of around 4% over the forecast period i.e. 2019-2027. The market is segmented by product type into asphalt shingles, clay and concrete, metal, slate, wood shingles and shake, and others, out of which, segment clay tile and concrete is anticipated to have a leading share in the global roofing material market on account of their ease of installation, availability, durability, aesthetic appeal and resistance it provides to fire and insects.
Additionally, light-colored tiles reflect sunlight and hence reduce heat penetration into the roof. Based 0n end-user, the market is segmented into residential and non-residential, out of which, the residential segment is anticipated to show higher demand during the forecast period, owing to increasing number of renovations in residential sector. This can further be attributed to the rising population, urbanization and increasing personal income of consumers coupled with growing developing economies.
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Our-in depth analysis of the global roofing material market includes the following segments:
By Product Type
By End User
On the basis of region, the global roofing material market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
The market in Asia Pacific is expected to show a significant growth over the forecast period on the back of rapid industrialization and increasing construction activities particularly in emerging economies such as, China, India, South Korea, Malaysia and Thailand. China is the leading player in the Asia Pacific region on account of developments in the construction industry in the recent years, facilitating its economic development and urbanization.
The market in North America is anticipated to show fast growth owing to increasing construction activities demand from the residential sector. This can be attributed to population growth, increase in household formation, strong economic conditions, and low mortgage rate.
The global roofing material market is further classified on the basis of region as follows:
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Smruti Ranjan, Rajrani Baghel