February 24, 2024
asphalt shingles Market

The Canada Asphalt Shingles Market Is Expected To Be Flourished By Increased Demand For New Housing Construction

Asphalt shingles are roofing materials that are most commonly used for residential roofing in Canada. Asphalt shingles provide weather-resistance and are reasonably priced for homeowners. They are made up of fiberglass mats that are impregnated with asphalt and come in various styles and colors. Asphalt shingles are lightweight roofing materials that can be installed over most types of roof decks. They are often the material of choice for new home construction due to their affordability. An increase in the rate of urbanization has contributed to high demand for new housing in Canada. According to Canada Mortgage and Housing Corporation (CMHC), housing starts in Canada increased by 11.2% in 2021 compared to 2020 levels. The strong economic recovery, low interest rates, and shift towards remote work have been driving factors for increased demand for new home construction in the country.

The global Canada asphalt shingles Market is estimated to be valued at US$ 1.23 Bn in 2023 and is expected to exhibit a CAGR of 2.4% over the forecast period 2023 to 2030, as highlighted in a new report published by CoherentMI.

Market Dynamics:

The increased demand for new housing construction is expected to be a key growth driver for the Canada asphalt shingles market over the forecast period. As more homes are built across the country each year, it will translate to higher sales of asphalt shingles used for residential roofing applications. Additionally, homeowners routinely repair or replace aged roofs made up of asphalt shingles every 15-25 years. As a large installed base of asphalt shingle roofs reaches the end of its useful life, it will fuel replacement demand in the market. Long-term economic growth prospects of the Canadian economy and expected rise in disposable income levels are also projected to support housing starts and home renovation activity in the country. Both factors will contribute to growth of the asphalt shingles market in Canada through 2030.

Segment Analysis :

The Canada asphalt shingles market is divided into three key segments based on product type – strip shingles, large size shingles and three-tab shingles. Among these, strip shingles dominate the market with over 50% share due to their durability and aesthetic appeal. Strip shingles have multiple horizontal lines that mimic the look of wood shake shingles but at a much lower cost.

Canada asphalt shingles Market Segmentation:

  • By Product Type
    • Asphalt Shingles
    • Modified Asphalt Shingles
    • Organic Asphalt Shingles
    • Fiberglass Asphalt Shingles
    • Natural Slate Asphalt Shingles
    • Synthetic Slate Asphalt Shingles
    • Others
  • By Application
    • Residential
    • Non-residential
    • Commercial
    • Industrial
    • Infrastructural
    • Others
  • By End-user
    • Households
    • Commercial Buildings
    • Government Buildings
    • Industrial Facilities
    • Educational Institutions
    • Religious Structures
    • Others

PEST Analysis:

Political: The asphalt shingle industry is affected by regulations regarding recycling and waste disposal procedures. Environmental regulations encourage use of sustainable materials.
Economic: Factors such as rising disposable incomes, low interest rates and fiscal incentives for construction projects influence demand for housing and thus asphalt shingles market.
Social: Growing home ownership supported by favorable demographics drives market. However, as demand rises, recyclability and green credentials gain importance.
Technological: Manufacturers focus on advanced adhesives to improve shingle performance in extreme weather. Digital printing allows customization of strip shingle designs.

Key Takeaways:

The Canada Asphalt Shingles Market Size is expected to witness high growth over the forecast period of 2023 to 2030 supported by growth in residential construction projects across the country. The global Canada asphalt shingles Market is estimated to be valued at US$ 1.23 Bn in 2023 and is expected to exhibit a CAGR of 2.4% over the forecast period 2023 to 2030.

Regional Analysis:

The Ontario region is expected to continue dominating the Canada asphalt shingles market over the forecast period due to high density of residential projects for its growing population in major cities. Quebec follows with over 15% share led by residential construction in Montreal. Both provinces are anticipated to grow at a CAGR above 3% during the forecast period.

Key Players:

Key players operating in the Canada asphalt shingles market are IKO, Johns Manville, TAMKO and CertainTeed. IKO dominates the market with over 20% share owing to its vast product offerings and widespread distribution network in Canada facilitating easy access for both installers and homeowners.

*Note:
1. Source: CoherentMI, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it