The fiber cement market is Estimated to Witness High Growth Owing to Increasing Infrastructure Development Projects and Growing Renovation Activities
The Fiber Cement Market is estimated to be valued at USD 16.81 billion in 2024, exhibiting a CAGR of 4.1% over the forecast period (2024-2031). Furthermore, the growth of the fiber cement market can be attributed to rising investments in infrastructure development projects globally.
The fiber cement market is primarily driven by increasing infrastructure development projects across both developed and developing nations. Continued investment in large public infrastructure such as roads, bridges, office buildings, and residential complexes is augmenting the demand for fiber cement products. For instance, in 2022, the U.S government approved an infrastructure bill of USD 1.2 trillion to improve the transport infrastructure over the next five years. Additionally, growing renovation activities of aged buildings and houses in Europe and North America is also boosting the market growth. Fiber cement products find wide applications in flooring, sidings, roofing, and others during renovation projects. However, volatility in raw material prices may hamper the market growth during the forecast period. Ongoing product innovation to develop cost-effective and sustainable solutions is expected to create new opportunities for fiber cement market players over the coming years.
Increasing Demand for Non-combustible and Fire-resistant Construction Materials is Driving the Fiber Cement Market
Fiber cement is gaining popularity as a non-combustible building material. It does not burn or support combustion, making it an attractive option for construction in fire-prone areas. The material's fire-resistant properties meet international standards and building codes. As concerns over fire safety increase, especially in densely populated urban areas, the demand for fiber cement siding, roofing, and other non-combustible products is growing. Manufacturers are launching new product lines tailored for commercial, institutional and multi-family residential projects where fire protection is a high priority.
Growing Renovation and Remodeling Activities are Fueling the Sales of Fiber Cement Siding and Trim Materials
Homeowners association regulations and visual appeal are driving higher spending on remodeling and renovation projects. Fiber cement siding is a popular choice for exterior renovations due to its low maintenance and durability. It can be painted to match any design style. Compared to alternatives like wood or vinyl, fiber cement holds paint better and resists weathering with minimal upkeep. Contractors and do-it-yourself customers are recognizing these advantages, boosting sales. Manufacturers are expanding their fiber cement trim and accessory product lines to further tap into the remodeling boom.
Volatility in raw material prices poses a challenge for fiber cement manufacturers
The fiber cement manufacturing process relies on several key raw materials whose prices fluctuate regularly. Cellulose fiber, cement and filler materials experience frequent price swings due to changes in supply and demand fundamentals. For example, China's policies impact global supply and pricing of cellulose fiber. Similarly, energy costs influence cement production. Steep rises in input costs squeeze profit margins for fiber cement producers. They struggle to pass on higher prices fully to customers in a competitive market environment. Volatility introduces unpredictability in production budgets and planning. It acts as a restraint on the fiber cement market’s growth and profitability.
Construction labor shortages in many regions limit the expansion of fiber cement production capacity
Building the large-scale manufacturing plants required for fiber cement production involves substantial capital expenditure and skilled labor requirements. However, construction labor shortages pose a bottleneck for greenfield capacity additions or facility upgrades in different parts of the world. The tight labor market drives up wages and delays projects. With high demand projected over the long run, manufacturers aim to debottleneck and ramp up capacity. But labor availability constraints their aggressive expansion plans and ability to fully capture market opportunities. This acts as a brake on the fiber cement market's ability to keep pace with rising demand.
Focus on moisture resistance and durability drives innovations in fiber cement formulations
To expand its addressable market, fiber cement producers constantly strive to improve product performance characteristics. One such opportunity is enhancing moisture resistance through advanced formulations. Next-gen formulations with hydrophobic polymers or other additives can resist water penetration better while maintaining key properties like strength. This allows fiber cement to replace traditional sidings, trims, and accessories in more climates prone to high moisture. Manufacturers are launching new product lines optimized for humid regions are tapping new geographic markets.
Growth of green building movement presents an avenue for fiber cement market growth
Sustainable construction is gaining prominence globally with the green building movement. Fiber cement scores well on various sustainability attributes when compared to alternative materials like wooden cladding products. Its production process emits fewer greenhouse gases. Fiber cement does not off-gas toxic compounds and is fully recyclable at the end of its long lifespan. These credentials are appealing to architects, developers and homeowners with an eco-conscious mindset. By promoting its green profile, the fiber cement industry aims to leverage the expanding green building sector as an opportunity for sustained long-term demand.
Link - https://www.coherentmarketinsights.com/market-insight/fiber-cement-market-5229
Key Development
- In February 2024, HVG Facades, a leading provider of facade solutions, launched a new fiber cement product. Fiber cement is a durable and versatile building material composed of cement reinforced with natural or synthetic fibers, offering excellent resistance to weathering, fire, and impact. The launch of this new product by HVG Facades likely expands their range of facade options for architects, designers, and construction professionals, providing them with an additional high-quality material choice for their projects.
- In May 2024, Everest Super launched a new campaign promoting its fiber cement roofs. This initiative aims to highlight the benefits of fiber cement roofing, such as durability, weather resistance, and aesthetic versatility, making it an ideal choice for various construction projects. The campaign is designed to engage consumers and industry professionals alike, showcasing the innovative features and advantages of Everest Super's roofing solutions.
- In 2023, Nuvoco Vistas, a leading building materials company, launched Duraguard Microfibre, a fiber-reinforced cement product. Fiber-reinforced cement is a type of composite material that combines cement with short, discrete fibers to enhance its tensile strength, impact resistance, and durability. By incorporating microfibers into their cement, Nuvoco Vistas aimed to create a high-performance building material suitable for various applications such as roofing, facades, and flooring. The launch of Duraguard Microfibre likely expanded Nuvoco Vistas' product portfolio and provided customers with an innovative solution for their construction needs.
- In 2023, Specialty Building Products, LLC, a major North American distributor of specialty building products, announced an expansion of its distribution partnership with James Hardie Building Products. James Hardie is the global leader in fiber cement siding and backerboard solutions.
Key Players
American Fiber Cement Corporation, Etex group, Elementia Materials, Everest Industries Limited, James Hardie Industries PLC, Johns Manville, Knauf Gips KG, Saint-Gobain, BetonWood Srl, Cembrit Holding A/S, HIL Limited, GAF, NICHIHA Co. Ltd, Allura , CSR Limited , Toray Industries Inc. , SHERA Europe, EcoPro, Briarwood Products, and Eternit
