by Market Overview:
Facade systems refers to the exterior walls and windows of a building. They help in controlling thermal transfer, as well as provide aesthetics and weather protection to the building. Facade systems play a key role in achieving energy efficiency in buildings. They help in minimizing heat transfer through building envelope and regulation of indoor climate. Growing awareness about green buildings and increasing adoption of energy efficient products is expected to drive the demand for facade systems over the forecast period. With increasing construction activities across residential as well as commercial sector globally, demand for facade systems is increasing.
Market key trends:
Growing construction sector is the key driver boosting the demand for facade systems market. Rapid urbanization and industrialization is propelling the construction of new residential, commercial and industrial infrastructure globally. As per statistics, annual investment in global construction industry is projected to increase from US$ 8 trillion in 2020 to US$ 15.5 trillion by 2030. This rising construction activities creates demand for facade systems. Furthermore, increasing focus on energy conservation and implementation of stringent regulations regarding energy efficiency of buildings also augments the growth of facade systems market. Major players in the market are focusing on developing innovative and sustainable facade materials to cater to growing demand for green buildings. For instance, transparent insulating glass units, high performance aluminum composite panels and organic photovoltaic modules are some emerging trends in facade systems.
Porter’s Analysis
Threat of new entrants: The threat of entry into facade systems market is moderate as it requires significant capital investments in R&D and building large production facilities. However, innovations in materials can allow smaller players to enter the market.
Bargaining power of buyers: The bargaining power of buyers is moderate as facade systems are customized products with limited substitution options. However, standardized products offer buyers better negotiation power.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as major raw materials like glass, aluminum are provided by large conglomerates globally with established supply chains. However, specialty materials have fewer suppliers.
Threat of new substitutes: The threat of substitutes is moderate as new building materials and technologies can replace existing facade systems. However, certifications and safety norms limit faster adoption of substitutes.
Competitive rivalry: The competitive rivalry is high among global players competing on technology, design, energy efficiency and pricing.
Key Takeaways
The Global Facade Systems Market Demand is expected to witness high growth, exhibiting CAGR of 5.7% over the forecast period, due to increasing construction of green buildings.
Regional analysis
Europe dominated the market in 2020 and is expected to continue its dominance over the forecast period, accounting for over 30% of global market share in 2023. The growth is attributed to strict energy efficiency regulations in the region driving demand for sophisticated facades. Asia Pacific is expected to be the fastest growing market till 2030 with China, India exhibiting over 6% CAGR owing to rapid urbanization and infrastructure development.
Key players
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, W&W Glass. Saint Gobain and Central Glass are market leaders with innovations in high performance glass and architectural designs.
Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
