SOURCE: Freedonia Group, Inc.

April 18, 2007 10:51 ET

World Siding Demand to Reach 5.1 Billion Square Meters in 2010

CLEVELAND, OH -- (MARKET WIRE) -- April 18, 2007 -- World demand for exterior siding (or cladding) is forecast to climb 3.8 percent per year through 2010 to 5.1 billion square meters, valued at $69 billion. China will record the largest gains of any national market and will surpass the U.S. to become the largest cladding market in the world. Sales growth is also expected to be strong in India and Russia, as well as in lower-volume markets in the developing world. These and other trends are presented in "World Siding (Cladding)," a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Demand for siding in developed countries will rise too, although the rate of increase will be less robust than in developing parts of the world. Product sales in Western Europe will accelerate through 2010, and siding demand in Japan is expected to exhibit renewed strength following an extended period of decline. Market gains will be fueled by generally favorable economic conditions and higher income levels, leading to growth in both repair/remodeling activity and new building construction. In the U.S., overall siding sales levels will remain essentially flat. Although nonresidential building construction expenditures will increase through 2010, new housing starts are expected to decline, preventing cladding sales in the nation from expanding at a faster pace.

Globally, masonry and concrete cladding products are the most popular, accounting for over two-thirds of all demand in 2005, with brick and tile being the single most widely used product type. Demand for metal, and concrete and stone siding will register the strongest market gains through 2010. Fiber cement siding demand will also rise at an above-average rate, driven by performance attributes, comparatively low cost, and the ability to mimic the appearance of other cladding materials.

Residential building applications, which currently account for 65 percent of all siding sales, will continue to dominate world demand through 2010, although advances will be limited by a generally weak sales climate in the U.S. and by a deceleration in residential building construction activity in a number of other areas. Demand for cladding used in nonresidential applications will expand at a faster pace, stimulated by a step-up in construction expenditures in Western Europe, Latin America and the Africa/Mideast region.

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