U.S. Exterior Wall Systems Market Size, Share & COVID-19 Impact 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 , Curtain Wall, and Non-Ventilated ), By End-Use (Residential and Non-Residential), and Regional Forecast, 2023-2030

The U.S. exterior wall systems market size was worth USD 27.43 billion in 2022 and is projected to record a CAGR of 7.7% during the forecast period.

Exterior wall systems protect the exterior of a building from environmental threats such as extreme cold & heat, rain, fire, and other weather-related hazards. It acts as a building envelope by offering a shield for the exterior structure. The market is predicted to expand significantly due to the increased demand for crash barrier systems and improving a building's aesthetics. Sustainable construction is already quite in vogue in the U.S. The growth of the U.S. exterior wall systems market is associated with the rising importance of energy conservation in residential and commercial buildings. The U.S. government has implemented building energy codes and set standards for buildings to meet minimum energy performance requirements. The wall systems are a proven, cost-effective method to improve the energy performance of both new and existing residential & commercial buildings. Furthermore, sustainable building material legislation was adopted in California, San Francisco, New York, and Seattle. Hence, the exterior wall systems will witness significant growth in demand in the U.S. during the forecast period.

The outbreak of the COVID-19 pandemic served as a major challenge to the market in 2020. This was associated with the declining demand from building & construction companies due to supply chain constraints, a shortage of raw materials & inventory, and a temporary halt in production. Many companies persistently worked to improve their customer service, delivery time, and supply chain. With the gradual lifting of the lockdown, several sectors resumed operation.

LATEST TRENDS

Rising Use of Exterior Wall Systems for Green Buildings to Drive Market Progress

Green building construction is gaining popularity in the U.S. due to advantages, such as lower energy usage and decreased operating & maintenance costs. Governments across the country are introducing new measures and rules to support green construction. Additionally, emerging markets offer good possibilities for the green building sector through increasing urbanization, industrial development, and economic expansion.  For instance, the International Finance Corporation states that the U.S. government holds 15% of the commercial real estate in the country. A 20% saving in water and energy in buildings owned by the government -would reduce spending on utility bills. This amount can be utilized for development areas to improvise citizens’ lives. Additionally, the low-income tenants would be able to save on utility bills by using green social housing.

Hence, the rapid growth of green buildings and increasing consumption of green cement will propel the demand for exterior wall systems in the U.S. during the forecast timeframe.

DRIVING FACTORS

Rapid Growth in Construction Activities to Aid Market Growth

The U.S. exterior wall systems market growth has sped up due to strong growth in industrial, commercial, and residential construction activities. The market is also growing due to a rising preference for dry construction methods over wet ones and an increase in government initiatives to enhance and upgrade the existing infrastructures. For instance, in March 2020, the Indian government approved 100% foreign direct investment in some construction projects. The increased need for residential spaces due to the growing population and government’s attempts to provide homes for the Economically Weaker Section (EWS) will increase product consumption.

Furthermore, pursuing greater job opportunities has increased urbanization, boosting the product usage in offices and other commercial areas. Hence, such factors will augment the U.S. market progress during the forecast timeline.

RESTRAINING FACTORS

Strict Regulations by Governments on Carbon Emissions May Hinder Market Growth

Exterior wall systems comprise insulation materials, ceramics, fiberboards, cement, and vinyl. The number of pollutants and toxic emissions produced during the production of these materials poses risks to human health and negatively impacts the environment. Environmental protection has been an essential concern for the U.S. government, prompting it to impose strict rules and regulations. Environmental pollution caused by aluminum, glass, fiberglass, plasterboard, fiber, cement, PVC board, and magnesium-oxide board manufacturers and the chemical industry has been a major cause for concern. This industry offers raw materials for exterior wall systems. It has compelled manufacturers to adhere to stringent emission regulations.

SEGMENTATION

By Type Analysis

Based on type, the market is segmented into ventilated façade, curtain wall, and non-ventilated façade.

The curtain wall segment accounted for the largest U.S. exterior wall systems market share in 2022 and is projected to be the fastest-growing segment during the forecast period. The expansion of real estate has facilitated the development of large-scale commercial structures, thereby surging the demand for curtain walls.

The non-ventilated façade segment is expected to grow significantly due to the increasing inclination toward dry construction practices in the country, which will increase the demand for exterior wall systems.

By Materials Analysis

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 EIFS segment is anticipated to hold a dominant U.S. market share. Consumers' growing demand for heating and cooling services has substantially increased energy consumption and related costs. As per the U.S. Department of Energy, 40% of the energy consumed to maintain ambient temperature in residential and commercial spaces is lost due to air infiltration. Using the EIFS system reduces the HVAC system's cost by 50-60%. Therefore, the need for efficient energy consumption is driving the segment growth in the country.

The gypsum/plasterboard segment is expected to grow significantly during the forecast period. The few factors contributing to the segment growth are the increase in consumer disposable income, rise in demand for new construction projects, and emergence of eco-friendly construction techniques. Governments across the U.S. are implementing regulations with regards to using environmentally friendly materials. This has resulted in more building & construction companies using eco-friendly, cost-efficient, and modern construction techniques, fueling the demand for plasterboard to make exterior wall systems.

By End-use Analysis

Based on end-use, the market is segmented into residential and non-residential.

The non-residential segment dominates the market share due to the expansion of multinational corporations in the country and increasing foreign direct investments. Many multinational conglomerates are setting up their offices and commercial buildings in the country with state-of-the-art designs that incorporate sustainability.

The rising demand for energy-efficient residential spaces is boosting the growth of the residential segment in the country.

KEY INDUSTRY PLAYERS

In terms of the competitive landscape, the market depicts the presence of established and emerging companies that are engaged in the production of exterior wall systems. Key players include PPG Industries, Inc., Owens Corning, DuPont, Dow, and AGC Inc. These firms are competing on the price and application areas of the product. They are emphasizing on product innovations, social marketing practices, acquisitions, and collaborations.

LIST OF KEY COMPANIES PROFILED:

• PPG Industries, Inc. (U.S.)


• Owens Corning (U.S.)


• DuPont (U.S.)


• Dow (U.S.)


• AGC Inc. (Japan)


• Sika AG (Switzerland)


• 3A Composite Holding AG (Switzerland)


• Etex Group (Belgium)


• Evonik Industries AG (Germany)


• LafargeHolcim (Switzerland)

KEY INDUSTRY DEVELOPMENTS:

• February 2022- Malarkey Roofing Products, with estimated net sales of USD 600 million, was acquired by Holcim in 2022. Through this acquisition, Malarkey expanded Holcim's range of roofing systems in the highly profitable U.S. market for residential roofs. This acquisition was an important step toward Holcim's goal of generating net sales of USD 4 billion by 2025, while accelerating the company's expansion into solutions and products.

REPORT COVERAGE

The U.S. market research report thoroughly examines key factors such as leading companies, applications, and products. It also provides insights on market trends and highlights significant industry advancements. The study includes different variables that have contributed to the market's growth in recent years. It examines the industry's newest market dynamics, opportunities, historical data, and revenue growth estimates at the country level.

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