According to a new report published by Allied Market Research, titled, "Stucco market by Construction Activity, Product, Insulation Type, and End Use: Global Opportunity Analysis and Industry Forecast, 2019-2026," the global stucco market was valued at $10.7 billion in 2018, and is projected to reach $15.3 billion by 2026, growing at a CAGR of 4.5% from 2019 to 2026.
Increase in use of stucco in the construction sector is expected to be the key driving factor of the global stucco market. Many challenges among makers arise in the costs of crude materials used to make stucco, which hampers the market growth. On the contrary, factors such as increase in investment in new technologies for stucco preparing machinery and rise in construction activities are expected to offer growth opportunities to the global stucco market.
The global stucco market is segmented into construction activity, product, insulation type, end use, and region. Depending on construction activity, the market is classified into new and renovation construction. The new segment was the highest contributor to the market and is estimated to grow with a CAGR of 4.3% during the forecast period. The renovation segment is estimated to be the fastest growing segment and is expected to grow with a CAGR of 4.8%.
By product, it is segregated into traditional three-coat stucco, exterior insulating & finish systems, and newer-one coat stucco. The exterior insulating & finish systems segment is the highest contributor and is predicted to grow at a CAGR of 6.0%. The traditional three-coat stucco and exterior insulating & finish systems segments collectively accounted for around 78.8% market share in 2018, with the former constituting around 53.8% share.
As per insulation type, the market is fragmented into insulated siding and non-insulated siding. The insulated siding segment was the dominant position in the stucco market size and is estimated to grow at a CAGR of 4.1% during the forecast period. The non-insulated siding segment is estimated to be the fastest growing segment, accelerating with a CAGR of 5.4%.
According to end use, the market is bifurcated into residential and nonresidential. The residential segment was the highest contributor to the market and the non-residential segment is estimated to be the fastest growing segment, growing at a CAGR of 6.1%.
Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific was the highest revenue contributor and is growing with a CAGR of 5.3%. India is estimated to be the fastest growing country in Asia-Pacific stucco market. India is growing with a significant CAGR of 7.1% owing to industrial growth for infrastructure segment promoting growth and functionality of stucco.
The key players operation in the global stucco market include BASF SE, RPM International Inc., Sika AG, Fosroc International Ltd., Mapei S.p.A., GCP Applied Technologies Inc., General Electric (GE), CEMEX S.A.B. de C.V., and Heidelberg. These companies have adopted various strategies such as product launch, R&D, acquisition, merger, product development, and partnership to gain a competitive edge in the market. In an instance, Sika opened a new manufacturing site for mortars in Kryoneri, near Athens. Complementary to Sika's existing concrete admixture plant in Thessaloniki, northern Greece, the state-of-the-art manufacturing plant will drive forward the mortar business in the country by broadening the current product portfolio and opening up new market segments.
Key Findings of the Study
- In 2018, the Asia-Pacific market held a share of over 42.19% in the global stucco market.
- The U.S. and Canada collectively accounted for around 87.2% share in North America in 2018.
- The traditional three-coat stucco and exterior insulating & finish systems segments collectively accounted for around 78.8% market share in 2018.
- The non-insulated siding segment is expected to grow with the highest CAGR during the forecast period. The qualitative data in the report aims on the stucco trends, dynamics, and developments in the stucco industry while the quantitative data provides information about the market share and market size in terms of revenue and volume.