May 24, 2024

Facade Systems are Pivoting towards Smart and Sustainable Materials

 

The global facade systems market is estimated to be valued at US$ 361.49 billion in 2024 and is expected to exhibit a CAGR of 5.7% over the forecast period from 2023 to 2030. Facade systems provide outer enclosure and aesthetic design of buildings while controlling heat, light, and ventilation. These system use various materials like glass, metal, wood, concrete, and others which offer properties like weather resistance, durability, and insulation. The rising number of construction projects worldwide has increased the demand for facade materials that can improve energy efficiency and reduce operational costs of buildings.

The Global facade systems market is driven by rapid growth in commercial and residential construction activities. Facade materials play a key role in enhancing aesthetic appeal, energy efficiency, thermal insulation, soundproofing and weather resistance of buildings. Growing awareness about reducing carbon footprint is encouraging demand for sustainable facade materials like engineered wood, recycled aluminum and high performance glass. The market is witnessing innovations in material technology for developing smart materials that can dynamically alter thermal and light transfer properties as per changing climate conditions.

Key Takeaways
Key players operating in the facade systems market are Saint-Gobain, Nippon Sheet Glass, Asahi Glass, Central Glass, Guardian Industries, Schott AG, China Glass Holdings, Xinyi Glass, CSG Holdings, Taiwan Glass, Kibing Group, AGC Glass, PPG Industries, NSG Group, Fuyao Glass Industry Group, Sangalli Group, DuPont, Emerge Glass, Glass Wall Systems, and W&W Glass.

The rapidly growing construction industry is driving the demand for facade systems globally. Rising infrastructure development and renovation of old buildings require enhanced facade materials for aesthetic design and energy efficiency. Developing countries in Asia Pacific and Middle East are major demand centers.

Facade system companies are expanding globally through acquisitions and partnership with local players to leverage market opportunities. Saint Gobain recently acquired Stone Wool company Isover to strengthen its insulation product portfolio for facade applications. Schott Glass is setting up new production facilities in China and India.

Market Key Trends
Sustainable and smart materials are a key trend in the facade systems market. Many players are developing bio-based and recyclable facade materials made from agri-waste, plant-fibers and post-consumer recyclates. These eco-friendly alternatives help in reducing embodied carbon and supporting circular economy. Facade glass manufacturers are offering switchable and photochromic glass that can control solar heat and light transmission dynamically. Inteligent curtain wall systems are integrated with sensors and IoT for monitoring energy usage, daylight optimization and predictive maintenance of buildings. These innovations will foster growth opportunities for facade systems market over the forecast period.

Porter’s Analysis
Threat of new entrants: The initial investments require to enter the facade systems market are high due to the need for manufacturing facilities, R&D infrastructure, and brand building, decreasing the threat of new entrants.

Bargaining power of buyers: The bargaining power of buyers is moderate as facade systems are differentiated products and switching costs for buyers are high.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as the raw materials required are commoditized.

Threat of new substitutes: The threat of new substitutes is low as facade systems have no close substitutes that can provide the same functionality and aesthetic value.

Competitive rivalry: The competitive rivalry in the facade systems market is high due to the presence of several global manufacturers competing on product quality, design, and pricing.

Geographical Regions
North America dominates the facade systems market in terms of value owing to high construction spending and presence of international facade system manufacturers. Europe is the second largest market led by countries like Germany, UK, and France where preservation of historical buildings fuels demand. Asia Pacific is expected to be the fastest growing region during the forecast period given the ongoing construction boom in China and India.

The Western European region accounts for the largest share of the facade systems market in terms of value. Countries like Germany, UK, France, and Italy have a large number of historical buildings where facade refurbishment and renovation activity is high. stringent energy efficiency regulations also drive the replacement of existing facades with high performance systems in the commercial and residential sector.

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  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it