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, Bricks & Stone, Fiberglass Panel, and Others), Type (Ventilated Façade, Curtain Wall, and Non-Ventilated Façade), By End-Use (Residential and Non-Residential), and Regional Forecast, 2022-2029

The global exterior wall systems market size was valued at USD 211.41 billion in 2021 and is projected to grow from USD 223.67 billion in 2022 to USD 370.82 billion by 2029, exhibiting a CAGR of 7.5% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with exterior wall systems witnessing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 3.5% in 2020 as compared to 2019.

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

COVID-19 IMPACT

Halted Construction Activities and Supply Chain Disruptions amid COVID-19 to Hinder Growth

The onset of COVID-19 has deeply affected the performance of the construction industry. Worldwide, construction activities were halted due to regulations on maintaining safe social distance to contain the spread of the virus. The restrictions on transportation & logistics of raw materials have disrupted the supply chains of several companies. Small-scale companies have shut down their projects to conserve cash and avoid liquidation. Commercial and industrial sectors have been struggling owing to lockdowns imposed by various governments. The weakening of major national economies has affected most of the world’s population, which impacted residential construction heavily. The above-mentioned factors have affected the exterior wall systems market growth.

LATEST TRENDS

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Incorporation of Exterior Wall Systems for 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 propels the demand for these wall systems. Additionally, regulations by several governments regarding 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 directive will help reach the building and renovation goals set out in the European Green Deal.

DRIVING 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. Initiatives by governments that aim to develop infrastructures and modernize the existing ones are driving the market's growth. The Government of India, for instance, allowed 100% FDI in selected construction projects. Rising disposable incomes and increasing preference for dry construction methods over wet construction methods further support the demand for these wall systems.

Additionally, exterior wall systems are experiencing high demand owing to the growing need for efficient thermal management of buildings and increasing awareness among consumers regarding environment-friendly façade solutions.

RESTRAINING FACTORS

Regulations by Governments on Carbon Emissions to Hamper Growth

The exterior wall systems comprise materials such as ceramics, insulation materials, cement, fiberboards, and vinyl. The number of pollutants and toxic emissions produced during the manufacturing of 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 the growth of the industry.

SEGMENTATION

By Material Analysis

Glass Panels Segment to Hold Dominant Share in the Market Owing to its Superior Properties

Based on material, the exterior wall systems market is segmented into vinyl, ceramic tiles, gypsum/plasterboard, glass panel, EIFS, fiber cement, wood board, HPL board, and fiberglass panel, metal panels, 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 a new regulation, such as the EU’s proposed plan to move from the current nearly 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 and the aesthetic & visual appeal associated with the ceramic tiles have fueled their consumption.

The gradual shift of building and construction companies toward the use of environment-friendly materials has resulted in the growth of the gypsum/plasterboard segment. Properties, including thermal, chemical and wear resistance combined with extreme durability augment the demand for HPL boards.

By Type Analysis

Curtain Wall Segment to Make Rapid Progress due to its Preference in Construction Industry

Based on type, the market is segmented into ventilated façade, a curtain wall, and a non-ventilated façade. The curtain wall segment is expected to grow at the highest rate due to reduced fabrication time and a 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's growth.

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

By End-Use Analysis

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Non-Residential Segment to Dominate the Market due to Rising Construction and Infrastructure Projects Globally

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

Factors, such as rapidly growing population, urbanization activities, and increasing investments in the real estate sector, contribute 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

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The market size in the Asia Pacific stood at USD 86.83 billion in 2021. The Asia Pacific holds the largest share in the market. This dominance is attributable 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 demand 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 trend of energy efficiency and green buildings is responsible for the market's growth. In addition, steps taken by the European Union (EU) to convert energy-wasting buildings into energy-efficient structures will further drive the market.

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

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In Latin America and the Middle East & Africa, 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.

KEY INDUSTRY PLAYERS

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

Product innovation is an important aspect 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 also involved in the research and 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:

• 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 is subject to customary closing conditions.


• December 2021 - Evonik Industries' CALOSTAT Pad expanded its portfolio of mineral-based, non-combustible, 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.

REPORT COVERAGE

An Infographic Representation of Exterior Wall Systems Market

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This market research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, end-use, disposable types, and distribution channels. Also, the report offers insights into market dynamics, trends, and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation