Facade Market is expected to reach US$ 275.24 billion by 2031

Environment and Energy-Related Benefits of Facades Drive Facade Market Growth

According to our latest market study on "Facade Market Forecast to 2031 – Global Analysis – by Material Type, Product Type, and Application," the market is expected to grow from US$ 205.60 billion in 2023 to US$ 275.24 billion by 2031. It is expected to register a CAGR of 3.7% from 2023 to 2031.

Upsurging demand from commercial buildings across the world drives the facade market growth. According to the United Nations Environment Program, every year, buildings and their construction utilize over 36% of global energy and lead to ~40% of global greenhouse gas emissions. Pelli Clarke Pelli Architects, Inc. (PCPA), a leading architecture firm, has been designing stainless steel into building facades for the past 30 years. Ideally fabricated materials, such as Nickel-containing stainless steel that provides low thermal conductivity, are widely used for structures in corrosive environments or architecturally exposed structural steel applications. Various key players are incorporating functional facades, including curtain walls, that positively impact energy efficiency and provide high resistance toward weather, heat, noise, light, and glare. These inherent properties of modern facades and rising environmental and energy-related concerns worldwide bolster the growth of the global facades market. Components of a facade system such as roofs, walls, doors, and windows control the air inflow and outflow and play a key role in reducing the entry of dust and other airborne particles into the building. Through the smart linking of the exteriors and interiors of the building, the facade assists in controlling light penetration or filtration, heat regulation, and solar gain depreciation, leading to energy-efficient buildings with higher levels of solar shading and passive cooling.

Facade Market Share — by Region, 2023

Source: The Insight Partners Analysis

In 2023, Asia Pacific held the largest revenue share of the global facade market. The region is estimated to register the moderate growth rate in the global market during the forecast period owing to factors such as growing urbanization and industrialization. A large population in the region has been posing high demand for commercial and residential construction. Moreover, construction activities are growing significantly in Southeast Asia, which would contribute to the facade market size in the region during the forecast period.

In North America, the rising construction of green buildings and increasing retrofitting activities drive the growth of the façade market. Also, the construction sector, coupled with government bodies of the US, is taking initiatives to promote infrastructural development in the country. It includes the renovation of older architecture and the installation of new facades at public buildings. This aspect will promote the use of façades in the coming years.

In Europe, industrial sectors are inclining toward adopting advanced technologies. Moreover, Italy, the UK, and Germany have a major deployment of facades owing to the imprints of a large number of facade manufacturers. Seele GmbH, Lindner Group, Ramboll Group A/S, and ROCKWOOL International A/S are among the well-established players operating in the market and offering complete facade installation services to cater demand of rising infrastructure projects. In the MEA and SAM, the Red Sea and Neom, Al Qiddiya in Saudi Arabia, and Vision 2030 are among the prominent projects that would create significant growth in the construction sector in the MEA.

The facade market report is driven by the growing construction sector at a rapid pace across developing nations, including India, Mexico, Argentina and Japan, driving the façade market growth. According to government data, the real estate Industry in India is expected to reach US$1 trillion by 2030 and currently contributes to 13% of GDP. The country is witnessing tremendous growth in the demand for commercial space, and there is an accelerated rate of construction of office spaces, hotels, retail, and entertainment. Notably, the net office space absorption across India’s 6 largest cities amounted to 31.9 billion square feet in 2020.

The facade market report is segmented based on material type. The facade market is segmented into glass, metal, ceramic, wood, and others. The glass segment held the second-largest market share in 2023, owing to the rapid adoption of glass material for projects in the commercial construction sector with significant private and public investments. According to the World Bank Organization, investments in smart infrastructure in low and middle-income countries are expected to reach the range from 2% to 8% with a valuation of between US$ 640 billion and US$ 2.7 trillion of these countries' GDP per year by 2030. Thus, rapidly growing investments in infrastructure development projects are expected to create ample opportunity for the facade market for the glass segment during the forecast period.

In terms of revenue, Asia Pacific dominated the facade market share in 2023. The Asia Pacific facade market analysis is segmented into China, India, Australia, Japan, South Korea, and the Rest of Asia Pacific. According to the Chinese Ministry of Electronics and Information Technology, investments in new construction and real estate declined by 5.8%, reaching US$ 362.45 billion from January to March 2023. Among this, the investments in the construction of residential buildings declined by 4.1%, reaching US$ 275.84 billion. However, the Chinese government's support and funding initiatives for the new construction activities are expected to revamp the construction industry in the future. In April 2023, the Chinese government planned to invest more than US$ 1.8 trillion in the industry. Further, the Indian government planned to build commercial infrastructure projects with a significant investment of US$ 1.3 trillion as a part of the national master plan, “Gati Shakti,” established for commercial and public infrastructure development. Thus, growing government investments in commercial construction development bolster the facade market in the Asia Pacific.

Government initiatives and regulations, technological advancements, and the augmenting need for energy conservation have created a favorable ecosystem for the facade market in APAC. The China Green Building Council (China GBC), a branch of the Chinese Society for Urban Studies, is a non-profit national academic organization that supports the government in promoting the development of green buildings in China, directed by the Housing and Urban-Rural Ministry. Prominent multinational companies, large domestic enterprises, and many hotels and resorts are shifting toward a green building culture in China. The growing environmental awareness among people and government initiatives to reduce China’s overall energy use are expected to increase the popularity of green building practices in the coming years, propelling the demand for energy-efficient sustainable facade systems in the Asia Pacific.

Prominent architecture and construction firms in Asia Pacific are infusing innovations in their product design and installation, creating ample opportunities for the facade market in APAC. In November 2021, Zaha Hadid Architects completed Infinitus Plaza for the new headquarters of Infinitus in China. The 185,643-square-meter complex features a bronze-clad facade covered by perforated aluminum shading panels to minimize the solar heat gain.

Qingdao Rexi Industries Co., Ltd., Meinhardt Group, Alupex India Pvt. Ltd. and JML are among the key companies contributing to the expansion of the Asia Pacific facade market. Leading industry players are taking up inorganic market strategies, including mergers and acquisitions, to extend their geographic presence and offer a comprehensive product range. For instance, in February 2020, Meinhardt Group announced the acquisition of Bonacci Group to strengthen and expand the Group’s Australian business.

Contact Us
 
Phone: +1-646-491-9876
Email Id: sales@theinsightpartners.com