Fiber Cement Market Outlook - 2021–2030
The global fiber cement market size was valued at $16.4 billion in 2020, and is projected to reach $24.4 billion by 2030, growing at a CAGR of 4.11% from 2021 to 2030.
Fiber cement is a composite building material primarily made of cement reinforced with fiber. It is projected to grow at a CAGR of over 4.11% from 2021 to 2027. The growing need for curbing the overall carbon emission from the building & construction sector is expected to drive the product usage. In addition, factors such as rapid urbanization and industrialization in developing countries, booming construction industry, high efficiency of fiber cement products, and ban on asbestos cement products drive the market growth. In addition, increase in investment in the infrastructure sector offers opportunities to the market players. However, lack of skilled labor in developing countries hampers the growth of the global fiber cement market.
The use of asbestos cement is associated with severe health hazards, such as ovarian cancer, lung cancer, and other diseases. Therefore, the ban on asbestos cement products by government agencies fuels the demand for fiber cement products, such as planks, sheets, panels, boards, and others. The global fiber cement market is driven by the boom in the construction sector. The adoption of fiber cement has increased in prime end-use industries, namely residential, commercial, infrastructure, hospitality, and others. In addition, rapid growth of the residential sector is expected to boost the market growth. However, lack of skilled workforce for manufacturing fiber cement products is one of the major factors that hampers the fiber cement market growth. However, companies offer trainings to workers through formal vocational education programs to ensure optimal use of equipment. Moreover, developing countries, including India, China, South Africa, Thailand, and others, are expected to offer lucrative growth opportunities to the global fiber cement market players, owing to boom in the construction sector and proactive government initiatives to increase infrastructure investments. The fiber cement market is segmented on the basis of raw material, application, end use, and geography.
On the basis of raw materials used for manufacturing, the market is segmented into Portland cement, silica, cellulosic fiber, and others. The construction type segment of the fiber cement market is broadly classified into molding & trimming, siding, roofing, and others (backerboards, countertops, and ceiling). The end use of the market is categorized into residential and non-residential sectors. The non-residential sector accounted for the highest market share in 2020, owing to increase in installation of fiber cement products in commercial, infrastructure, and other projects. On the basis of geography, the fiber cement market is segmented into four regions, namely North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific is the leading region in terms of demand for fiber cement, and is expected to maintain its dominance during the forecast period. The high adoption of fiber cement products in the region is anticipated continue to bolster the fiber cement market size.
The key players profiled in the report include Etex Group NV, James Hardie Industries PLC, Evonik Industries AG, Compagnie De Saint Gobain SA, Toray Industries Inc., CSR Limited, The Siam Cement Public Company Limited, Nichiha Corporation, Plycem Corporation, and Cembrit Holding A/S.
The other companies operating in the fiber cement industry include Elementia, S.A.B de C.V., Marley Eternit Ltd., Thai Olympic Fibre-cement Co., Ltd., Mahaphant Fibre Cement Co., Ltd., Everest Industries Ltd., Swisspearl, Equitone, Allura USA, Beijing Hocreboard Building Materials Co., Ltd., and Fry Reglet. These companies compete for the share of the market through product launch, joint venture, partnership, and expanding the production capabilities to meet the future demand for the fiber cement market during the forecast period.
By Region
Asia-Pacific holds a dominant position in 2020
Fiber Cement Market, By Region
Asia-Pacific occupies the largest part of the fiber cement market and consists of countries, such as China, India, Japan, South Korea, Australia, and rest of Asia-Pacific. Major parts of the Asia-Pacific region witness rise in construction of buildings. Growing population and increase in disposable income of people in the emerging countries have fueled the sales of real estate in the past few years. Major countries, including Thailand, the Philippines, Indonesia, Vietnam, Australia, and others experience tremendous growth in terms of construction output in the region. China is majorly driven by ample developments in residential and commercial construction, supported by the growing economy. In China, the housing authorities of Hong Kong launched several measures to push-start the construction of low-cost housing. The officials aim to provide 301,000 public housing units by 2030. In India, various policies implemented by the Indian government, such as the Smart City project, Housing for All by 2022, and others are expected to bring a much-needed impetus to the slowing construction industry. Moreover, recent policy reforms, such as the Real Estate Act, GST, and REITs are expected to reduce approval delays and strengthen the construction sector over the next few years. The development of these construction activities is expected to have a certain impact on the growth of the fiber cement market.
By Raw Material
Portland Cement segment is projected to create abundant $ opportunity till 2030
Fiber Cement Market, By Raw Material
The Portland cement segment dominates the global fiber cement market. China holds the largest share in global Portland cement production. Portland cement is the most widely used type of cement, which is used for making concrete and mortar. The chief chemical components of Portland cement are calcium, silica, alumina, and iron. It is a reasonably priced material and is readily available, which makes it one of the widely used materials for construction globally.
By Construction Type
Siding segment is projected to create abundant $ opportunity till 2030
Fiber Cement Market, By Construction Type
The siding segment dominates the global fiber cement market on account of the increasing replacement of asbestos cladding in the U.S. over past few years. Siding is the major application of fiber cement in both, 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. 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.
By End Use
Non-Residential segment is projected to create abundant $ opportunity till 2030
Fiber Cement Market, By End Use
The non-residential segment dominates the global fiber cement market. The non-residential segment comprises industrial, commercial, and agricultural buildings of fiber cement. Fiber cement is commonly used in industrial buildings, such as factories, mills, and warehouses, owing to the enforcement of legislation by several governments over banning on the usage of asbestos. Indonesia is drafting ambitious plans for investing more than $400 billion in building projects, from constructing 25 airports to new power plants in the forecast period. In September 2020, Mitsubishi Corp and Temasek Holdings announced plans to build a smart city, 25 km southwest of Jakarta. The smart city is expected to include homes, shopping centers, and medical facilities, with the goal of housing 40,000 to 60,000 permanent residents.
Covid-19 Analysis:
COVID-19 severely impacted the global economy with devastating effects on global trade, which simultaneously affected households, business, financial institution, industrial establishments, and infrastructure companies. The spread of COVID-19 substantially dropped construction activities around the globe, impacting the overall fiber cement market volume in 2020. The building 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. Procurement of raw materials was challenging owing to the disruption in logistics. The COVID-19 spread in China had great impact on the global fiber cement market, as it is the major manufacturer of Portland cement.
Key Benefits For Stakeholders
- This report provides a detailed quantitative analysis of the current fiber cement market trends and estimations from 2020 to 2030, which assists to identify the prevailing opportunities.
- An in-depth analysis of fiber cement market across the globe is anticipated to provide a detailed understanding of the current trends to enable stakeholders formulate specific plans.
- A comprehensive analysis of the factors that drive and restrain the growth of the market is provided.
- Region-wise and country-wise market conditions are comprehensively analyzed in this report.
- The projections in this report are made by analyzing the current trends and future market potential from 2020 to 2030 in terms of value.
- An extensive analysis of various regions provides insights that are expected to allow companies to strategically plan their business moves.
- Key market players within the market are profiled in this report and their strategies are analyzed thoroughly, which help to understand the competitive outlook of the global fiber cement market.
Fiber Cement Market Report Highlights
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Analyst Review
Increase in urbanization and industrialization, rise in the construction industry, higher efficiency of fiber cement products, and ban on asbestos fiber cement products are some of the key factors that fuel the growth of the fiber cement market. The use of fiber cement witnessed quite a significant growth in the past years, as they offer durability, versatility, resistant to termite and water, and ensure higher strength and low moisture movement.
With the rise in adoption of fiber cement in residential construction projects, Beijing Municipal Commission of Development and Reforms announced to construct 300 new construction projects to enhance building infrastructure in 2019. The increase in investment of the governments in the public facilities, such as educational institutions, hospitals, and others have huge influence on the market, as fiber cement products provide effective solutions for exterior and interior cladding applications.
Asia-Pacific is the leading regional market for the fiber cement market due to major infrastructure investments in China and India. Majority demand for fiber cement in Asia-Pacific is expected to be driven by growing population along with increase in disposable income of people in the emerging countries. Major countries, including Thailand, Philippines, Indonesia, Vietnam, Australia, and others experience tremendous growth in terms of construction output in the region.
Growing urbanization and industrialization in developing countries and rising construction industry are the key factors boosting the Fiber Cement market growth
The market value of Fiber Cement in 2030 is expected to be US$ 24.4 billion
Etex Group NV, James Hardie Industries PLC, Evonik Industries AG, Compagnie De Saint Gobain SA, Toray Industries Inc., CSR Limited, The Siam Cement Public Company Limited, Nichiha Corporation, Plycem Corporation, and Cembrit Holding A/S.
Construction industry is projected to increase the demand for Fiber Cement Market
The fiber cement market is segmented on the basis of raw material, application, end use, and geography. On the basis of raw materials used for manufacturing, the market is segmented into Portland cement, silica, cellulosic fiber, and others. The construction type segment of the fiber cement market is broadly classified into molding & trimming, siding, roofing, and others (backerboards, countertops, and ceiling). The end use of the market is categorized into residential and non-residential sectors. On the basis of geography, the fiber cement market is segmented into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
Ban on asbestos cement products is the Main Driver of Fiber Cement Market
Building and construction especially non-residential sector end-use industry are expected to drive the adoption of Fiber Cement
COVID-19 pandemic negative impacted the Fiber Cement market in 2022
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