Exterior Wall Systems Market Size, Share & Industry Analysis, By Material (Vinyl, Ceramic Tiles, Gypsum/Plasterboard, Glass Panel, EIFS, Fiber Cement, Wood Board, HPL Board, Fiberglass Panel, Bricks & Stone, and Others), By Type (Ventilated Fa�ade, Curtain Wall, and Non-Ventilated Fa�ade), By End-use (Residential and Non-Residential), and Regional Forecast, 2024-2032

The global exterior wall systems market size was valued at USD 237.53 billion in 2023 and is projected to grow from USD 256.04 billion in 2024 to USD 466.57 billion by 2032, exhibiting a CAGR of 7.8% during the forecast period. Moreover, the exterior wall systems market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 55.45 billion by 2032, driven by the increasing inclination toward dry construction practices over wet ones in the country, which will increase the demand for products.

Exterior wall systems are an envelope or enclosure of a building designed to protect the covered interior from the external environment. Rising private and public investments across residential, industrial, and commercial establishments have surged the demand for wall systems. The growing construction industry in developing countries and technological advancements in construction techniques are responsible for the market's growth. Moreover, introducing new regulations and reforms to develop the real estate sector also boosts market prospects. Additionally, stringent regulations on energy efficiency and green buildings are assisting the market growth.

The COVID-19 pandemic had a staggering impact on the construction industry. Construction activities across the globe were halted due to regulations on maintaining safe social distancing to contain the spread of the virus. Restrictions on the movement, transportation and logistics of raw materials disrupted supply chains and negatively impacted the global market. However, the gradual opening of the economies from 2021 resulted in a slow market recovery.

Exterior Wall Systems Market Trends

Incorporation of Exterior Wall Systems in Green Buildings to Boost Market Growth

Constructions that do not implement energy-saving technologies and materials waste up to 25-30% of energy. Developments in modern construction methods and the incorporation of efficient exterior wall systems offer significant advantages in energy conservation. The rising need for energy-efficient buildings will propel the demand for exterior wall systems. Additionally, regulations by several governments to promote energy-efficient building construction and the use of environment-friendly construction materials are further boosting the market growth. For example, the European Union’s energy performance of building directives will help clients reach their building and renovation goals outlined in the European Green Deal.

Exterior Wall Systems Market Growth Factors

Rapid Growth in Construction Activities to Drive Market Progress

The growth in industrial, commercial, and residential construction activities around the globe is increasing the demand for exterior wall systems. Government initiatives to develop infrastructures and modernize the existing ones are driving market growth. The Government of India, for instance, allowed 100% FDI in select construction projects. Rising disposable incomes and increasing preference for dry construction methods over wet ones will further support the demand for exterior wall systems.

Increasing Focus on Energy Efficiency and Sustainability to Drive Market Growth

The rising emphasis on energy efficiency and sustainability is driving exterior wall systems market growth. As governments implement strict building codes and regulations to mitigate climate change, there is a growing demand for building materials and systems that enhance energy performance and reduce environmental impact. Exterior wall systems play a pivotal role in achieving these objectives by providing superior insulation, minimizing heat loss and reducing overall energy consumption in buildings.

The integration of sustainable materials, such as recycled content and renewable resources, into exterior wall systems further reinforces their appeal to environmentally conscious developers and architects. As a result, the market is experiencing robust growth as stakeholders prioritize sustainable building practices and seek innovative solutions to improve energy efficiency in construction projects.

RESTRAINING FACTORS

Regulations by Governments on Carbon Emissions to Hamper Market Growth

The exterior wall systems comprise materials such as ceramics, insulation materials, cement, fiberboards, and vinyl. The amount of pollutants and toxic emissions produced while manufacturing these materials are threatening the environment and posing risks to human health. As a result, governments in several countries are imposing strict regulations to limit carbon emissions from the construction industry, which are likely to restrain market growth.

Exterior Wall Systems Market Segmentation Analysis

By Material Analysis

Glass Panel to Gain Notable Traction Owing to its Superior Properties

Based on material, the market is segmented into vinyl, ceramic tiles, gypsum/plasterboard, glass panel, EIFS, fiber cement, wood board, HPL board, fiberglass panel, bricks & stone, and others.

The glass panel segment dominates the market owing to the ability of these panels to provide an aesthetic appeal and superior performance. The implementation of new regulations, such as the EU’s proposed plan to move from the current zero-energy buildings to zero-emission buildings by 2030, is promoting the use of glass panels and the introduction of smart glass. Thus, the demand for glass panels is expected to increase further.

The rising demand for thermal insulation in residential buildings owing to regulations pertaining to energy savings is boosting the growth of the EIFS segment. The functionality, aesthetics, and visual appeal offered by ceramic tiles have fueled their consumption.

By Type Analysis

Curtain Walls to be Widely Demanded due to their Robust Use in the Construction Industry

Based on type, the market is segmented into ventilated façade, curtain wall, and non-ventilated façade. The curtain wall segment is expected to grow at the highest rate due to reduced fabrication time and shorter duration of construction. Curtain wall systems minimize the damage caused by natural calamities and provide protection from severe weather conditions, which will further drive the market growth.

The ventilated façade segment is displaying a considerable growth rate owing to the ability of these systems to regulate humidity and act as an effective outdoor protection solution. The advantages offered by non-ventilated façades, such as design freedom for architects, time efficiency, high-quality insulation and noise damping, are aiding the segment’s growth.

By End-use Analysis

Non-Residential to Increase Product Use Due to Rising Construction and Infrastructure Projects

On the basis of end-use, the market is bifurcated into residential and non-residential. The non-residential segment dominates the market share owing to an increase in the number of construction and infrastructure projects in emerging economies. Additionally, investments by foreign companies in developing countries and standardization in the building & construction industry will further support the non-residential segment's growth.

Rapidly growing population, urbanization activities, and increasing investments in the real estate sector are contributing to the growth of the residential segment. Furthermore, the rising demand for energy-efficient residential spaces is another factor boosting the segment growth.

REGIONAL INSIGHTS

Asia Pacific dominated the exterior wall systems market with a market share of 41.51% in 2023. This dominance is attributed to the large number of construction projects undertaken in developing countries such as China and India. In China, the non-residential segment is witnessing high product adoption owing to the increasing number of infrastructure projects such as the Shanghai Urban Rail Transit Expansion project and Beijing’s Daxing International Airport. Additionally, the increasing number of housing schemes and rising disposable incomes are the other factors responsible for the regional market's growth.

In Europe, the rising trends of energy efficiency and green buildings are responsible for the regional market's growth. In addition, steps taken by the European Union (EU) to convert energy-wasting buildings into energy-efficient ones will further drive the market.

In North America, the implementation of advanced construction methods significantly reduces time duration, thereby boosting product adoption. Furthermore, the increasing inclination toward dry construction practices over wet ones in this region will increase the demand for products.

In Latin America and the Middle East & Africa regions, the strong demand for these systems can be attributed to the growth of the construction industry, which is supported by the schemes to improve the regions’ infrastructural development.

List of Key Companies in Exterior Wall Systems Market

Key Players are Adopting Various Growth Strategies to Maintain Dominance in the Market

Product innovation is important for a company to cater to the growing demand for wall systems. Companies are focusing on developing innovative and environment-friendly products to increase their presence in the market. Partnerships with raw material suppliers and construction companies are the main strategies used by the key market players to increase their global presence and maintain their lead in the competition. Additionally, the key players are involved in the research & development of sustainable wall solutions.

LIST OF KEY COMPANIES PROFILED:

• Nippon Sheet Glass Co., Ltd (Japan)


• Saint-Gobain (France)


• AGC Inc. (Japan)


• Sika AG (Switzerland)


• PPG Industries, Inc. (U.S.)


• 3A Composite Holding AG (Switzerland)


• SCG (Thailand)


• Etex Group (Belgium)


• Owens Corning (U.S.)


• Evonik Industries AG (Germany)


• LafargeHolcim (Switzerland)


• USG Boral (Australia)


• DuPont (U.S.)


• Dow (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• December 2021 - Evonik Industries' CALOSTAT Pad expanded its portfolio of mineral-based, non-combustible, and high-performance insulation materials. CALOSTAT Pad is an excellent insulating material for façade elements, vented curtain walls, flat roofs and balconies, building components, basement ceilings, and underground parking structures, and for optimizing technical building equipment.


• November 2020 – Etex acquired Knauf’s plasterboard business in Australia. With this development, the company will expand its footprint in the Australian construction market with significant growth opportunities. The acquisition was subjected to customary closing conditions.

REPORT COVERAGE

The market research report provides detailed market analysis and focuses on crucial aspects such as leading companies, end-use, disposable types, and distribution channels. Also, it offers insights into market dynamics and trends, highlighting vital industry developments. In addition to the abovementioned factors, the report encompasses various factors contributing to the market's growth in recent years.

Report Scope & Segmentation