Wall Cladding Market Expected to Reach $168.1 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Wall Cladding Market," The Wall Cladding Market Size was valued at $102.55 billion in 2022, and is estimated to reach $168.1 billion by 2032, growing at a CAGR of 5.1% from 2023 to 2032.

The primary driver of demand for a variety of structures, including non-residential buildings like offices, apartments, and institutional spaces, are the growing urban population and urban sprawl. Wall cladding is frequently used in commercial and residential buildings, which drives the wall cladding market. Over 85% of the sector's population now lives in urbanized countries, such as the United Arab Emirates, New Zealand, Australia, Japan, Brazil, India, Denmark, Sweden, Jordan, Israel, and Qatar. The end result has been an overcrowding of the arena's biggest cities. For this reason, most cities worldwide now consider infrastructure development and upgrade to be essential

The utilization of wall cladding extends to both the exterior and interior of buildings. The latter reigned in revenue in 2022 owing to escalating infrastructure development, notably in developing nations like China, Japan, Africa, among others.

The market thrives on commercial and residential real estate sector growth, construction industry resurgence, and amplified spending on home renovations and maintenance. Nevertheless, market growth faces challenges due to fluctuating raw material prices. Further, key material suppliers are typically large enterprises that have the power to pass on their higher commodity costs, which leads to an increase in the prices of the materials; thereby, increasing the input prices. Hence, fluctuation in prices of raw materials is anticipated to hamper the growth of the wall cladding industry.

Conversely, the mounting demand for eco-friendly structures anticipates promising growth prospects for the market. A green building complies with the requirements set forth to reduce its CO2 emissions. Green buildings are energy efficient and lead to reduced waste and population. Aluminum cladding panels enhance the energy performance of a building by efficiently insulating it from external temperatures, eventually reducing the electricity bill. Such factors play a significant role in driving wall cladding market growth.

The year 2022 saw the Asia-Pacific region dominating the global wall cladding market share in revenue, closely followed by Europe and North America. Meanwhile, the MEA region anticipates the highest Compound Annual Growth Rate (CAGR) due to an increase in commercial building construction.

Due to growing spending on building infrastructure improvement in countries like China and India, that is projected to drive market place growth over the forecast period, Asia-Pacific is anticipated to peer upward push within the construction enterprise. For example, in October 2021, the governments of Dubai and India agreed to construct infrastructure in the Indian states of Jammu and Kashmir, along with commercial parks, multipurpose towers, logistics hubs, scientific schools, and forte hospitals. Thus, it's far anticipated that the spike in constructing initiatives taking region in numerous parts of the arena could propel the wall cladding market growth.

Furthermore, prominent players in the wall cladding market offer an extensive array of products tailored to diverse requirements. For instance, ALUBOND U.S.A. specializes in fire-rated aluminum composite panels, while Viva Aluminum Composite Panel provides 3mm, 4mm, and 6mm wall cladding suitable for both interior and exterior applications.

The global real estate market is experiencing increased demands due to rise in urbanization. Countries such as UAE, New Zealand, Australia, Japan, Brazil, India, Denmark, Sweden, Jordan, Israel, and Qatar have witnessed more than 85% of urbanization. This has led to the overpopulation of the major cities of the world. Thus, the upgradation and development of infrastructure have become a necessity for most cities in the world.

For instance, Indonesia is building a new planned capital city known as Nusantara. Its construction started in July 2022 and is expected to be inaugurated in August 2024. The city is designed to be eco-friendly; thus, is expected to have highly energy-efficient buildings. Furthermore, in November 2022, in India, Reliance Industries Ltd., announced its plans to build a greenfield smart city near Gurugram.Such expansion and setup plans for new cities is expected to increase migration, which in turn, boosts the demand for residential and commercial real estate among investors.In addition, real estate companies around the world have exponentially increased the use of wall cladding panels in construction as they are cost-efficient, durable, make building energy efficient, and offer speedy installation. Hence, such factors drive the wall cladding market growth.

Key Findings of the Study

• The report provides an extensive analysis of the wall cladding market trends and dynamics.
• On the basis of type, the metal segment was the largest revenue generator in 2022 in the wall cladding market forecast.
• On the basis of construction type, the new construction segment is expected to exhibit the highest CAGR during the forecast period.
• On the basis of end user, the commercial & industrial segment generated the highest revenue in 2022.
• The wall cladding market overview for region is bifurcated across North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. On the basis of region, Asia-Pacific is anticipated to dominate the market throughout the study period.
• The report provides an extensive wall cladding market analysis.