Fiber Cement Market Analysis and Forecast to 2031: By Material [Portland Cement, Sand, Cellulosic Material (Fiber), Others], Application (Molding and Trim, Siding, Roofing, Wall Partitions, Flooring, Backer Boards, Others), End User (Residential, Non-Resi

Fiber Cement Market Analysis and Forecast to 2031: By Material [Portland Cement, Sand, Cellulosic Material (Fiber), Others], Application (Molding and Trim, Siding, Roofing, Wall Partitions, Flooring, Backer Boards, Others), End User (Residential, Non-Residential) and Region

The global fiber cement market was valued at US$ 17.1 billion in 2021 and it is anticipated to grow up to US$ 24.9 billion by 2031, at a CAGR of 3.8% during the forecast period.

Fiber cement [also known as Fiber Reinforced Cement (FRC)] is a versatile building material. Fiber cement comprises a few simple ingredients, including Portland cement, cellulose fibers, sand, and water. However, the composition may change depending on the manufacturer. Fiber cement is long-lasting and offers excellent overall value. Generally, it costs less than brick, synthetic stucco, and some wood siding options. It’s typically equally or less expensive than hardboard or composite siding and more expensive than vinyl. Fiber cement is commonly used in several sectors of construction, industrial, agricultural, domestic and residential buildings. Further, it is mainly used for roofing and cladding applications in the construction sector. Moreover, it is fast replacing conventional cement in these areas, paving the way for manufacturers, investors, and market growth.

Market Drivers and Trends

A surge in global residential construction is acting as a key driver for the global fiber cement market. For instance, according to the Russian news agency, in July 2021, the commissioning of housing in Russia in the initial 5 months of 2021 increased by over 28% compared to 2020. This growth is attributed to increasing demand for houses because of an improving outlook for growth in sustained employment, record-low interest rates, and programs provided by the government. Moreover, various government initiatives have also been observed to help the housing industry. For instance, the South Korean government had taken an initiative to ease the building regulations and to support re-development projects in urban locations to raise the number of new houses up to 8,36,000 countrywide, according to the Yonhap News Agency website data of February 2021. Furthermore, the latest housing policy focuses on growing the home supply in the Seoul metropolitan area and other major cities to stabilize the real estate crises. This construction activity will boost the growth of residential and commercial buildings in the country. Therefore, the growth in commercial and residential housing constructions and several government initiatives in housing construction are influencing the requirement of fiber cement siding, a durable and low-maintenance material commonly used to cover the exterior of residential houses and, in some cases, also used in commercial buildings.

Market Restraints and Challenges

Alternatives to fiber cement siding are acting as a restraining factor for the fiber cement market. Like, Vinyl, wood, and steel are all popular siding materials and alternative options to fiber cement siding. Moreover, vinyl siding is a popular choice owing to its wide range of availability in styles and costs. Secondly, wood siding is commonly used in custom homes because it is expensive, requires regular maintenance, and is susceptible to insects. Thirdly, steel siding is widely used as an alternative for fiber cement siding in industrial and commercial buildings and residential siding. Thus, alternatives to fiber cement siding are acting as a restraining factor for the fiber cement market.

Global Fiber Cement Market Segmental Overview

The report analyses the global fiber cement market based on material, application, end user, and region.

Global Fiber Cement Market by Material

Based on material, it is segmented into Portland cement, sand, cellulosic material (fiber), and others. The Portland cement segment is likely to dominate the market during the forecast period. This segment's market growth is increasing faster because Portland cement is a widely used type of cement used for making concrete and mortar. The chief chemical components of Portland cement are silica, calcium, alumina, and iron. It is a reasonably priced material and readily available, making it one of the widely used materials for construction globally. Thus, numerous benefits of the Portland cement segment boost the market's growth.

Global Fiber Cement Market by Application

Based on application, it is bifurcated into molding and trim, siding, roofing, wall partitions, flooring, backer boards, and others. The siding segment is likely to hold the major share of the market. Siding is the major fiber cement application in residential and non-residential constructions. In this application, fiber cement is applied to the exterior sides of the walls to protect them from the effects of extreme weather conditions. Moreover, fiber cement siding also improves the aesthetic appeal of the buildings. Fiber cement siding is affordable and most suitable for regions having extreme weather conditions.

Global Fiber Cement Market by End User

Based on end user, it is segmented into residential and non-residential. The non-residential segment is likely to dominate the market during the forecast period. The non-residential segment is dominating because fiber cement is usually used in industrial buildings, such as factories, warehouses, and mills, and owing to legislation enforcement by several governments, such as the US, Canada, and the UK, banning the use of asbestos in such workplaces.

Geographical Analysis of Global Fiber Cement Market

Region-wise, it is studied across North America, Europe, Asia Pacific, and the Rest of the World. The Asia Pacific market is expected to hold the majority of the market share during the forecast period. Several factors, including the growing construction sector, improving the global economy, and higher foreign investments, are expected to boost the market for fiber cement. Additionally, stricter norms regarding using asbestos cement in the construction of commercial and residential houses have made it mandatory for builders to look for alternatives such as fiber cement. This, in turn, boosts the demand for fiber cement in the Asia Pacific region.

Major Players in the Global Fiber Cement MarketCOVID-19 Impact

The COVID-19 pandemic has been affecting several sectors worldwide, adversely affecting the global economy in 2020. However, the construction sector witnessed steady year-on-year (Y-o-Y) growth until the emergence of COVID-19 in late 2019. The massive outburst of the coronavirus had derailed the entire construction sector heavily, with several construction projects cancelled and several projects postponed indefinitely. The COVID-19 pandemic has also disturbed fiber cement siding market growth. Factory shutdowns and travel bans have adversely affected the construction industry, negatively impacting the growth of the fiber cement siding market. Also, the housing material sector witnessed a huge drop in terms of trade due to lockdown restrictions in different countries, which hindered manufacturing operations during the COVID-19 pandemic. Moreover, procurement of raw materials was challenging due to the logistics disruption. Therefore, the COVID-19 pandemic had negatively affected the global fiber cement market in 2020.

Recent Developments

• October 2019, Cembrit Holding A/S had announced the launch of a new 3D effect fiber cement facade board.
• August 2018, Nichiha Corporation had invested US$ 120 million to expand its manufacturing site in Macon-Bibb County (US) to widen its operations. This strategic initiative is expected to assist in growing the demand for the company's products in the south-eastern region of the US.
• April 2018, James Hardie Industries plc acquired Fermacell GmbH (Germany), a building material business, to strengthen its business. This strategic initiative is expected to spur the growth of its fiber cement business across Europe. Furthermore, it would also strengthen its geographical footprint and product portfolio.
• March 2018, Toray Corporation acquired TenCate Advanced Composites Holding B.V., a subsidiary of Koninklijke Ten Cate B.V. (Netherlands), for US$ 1.12 billion to enhance its fiber cement product portfolio and geographical reach.

Frequently Asked QuestionsQ1. How big is the fiber cement market?Ans. The global fiber cement market size was US$ 17.1 billion in 2021 and is anticipated to reach US$ 24.9 billion in 2031, growing at a rate of 3.8% from 2022 to 2031.Q2. What is the fiber cement market growth rate?Ans. The growth rate of the fiber cement market is 3.8% from 2022 to 2031.Q3. Which region holds a major market share for the fiber cement market?Ans. Asia Pacific holds a major market share of the fiber cement market in 2021.Q4. Which segment accounted for the largest fiber cement market share?Ans. Based on material, it is segmented into Portland cement, sand, cellulosic material (fiber), and others. The Portland cement segment is likely to hold the major share of the market.Q5. Who are the key players in the fiber cement market?Q6. What are the factors driving the fiber cement market growth?Ans. The major factor driving the growth of the market is growth in the residential and commercial construction activities.Q7. What are the key growth strategies of fiber cement market players?Ans. The key growth strategies of fiber cement market players are product launch, partnerships, and government initiatives.Q8. Which region will provide more business opportunities for the fiber cement market during the forecast period?Ans. The Asia Pacific region will provide more business opportunities for the fiber cement market during the forecast period.

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