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A facade system refers to exterior cladding or facing of a building which provides the building envelope. Modern facade systems allows buildings to achieve desired aesthetics along with providing protection from heat, sunlight, wind, and rain. They help improve energy efficiency of buildings by regulating temperature and offering weather resistance. Key product types include curtain walls, windows, sun control systems and louvers which enhance building functionality and looks. Rising construction of green buildings and focus on energy efficient structures is fueling demand for advanced facade systems.
The global Facade Systems Market is estimated to be valued at US$ 361.49 Bn in 2023 and is expected to exhibit a CAGR of 5.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trend gaining traction in the facade systems market is the rising popularity of smart glass. Smart glass can be electronically or chemically treated to change properties such as transparency, glare and heat absorption. These dynamic glass systems help control daylight, heat and glare in buildings as per changing external conditions. Moreover, increasing focus towards achieving net zero energy buildings by optimizing energy efficiency through innovative facade designs is augmenting market growth. Development of advanced materials such as organic photovoltaics and thermochromic coatings are further expanding application scope of facade systems.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate due to high capital requirements for establishing manufacturing facilities and R&D. However, opportunities exist for new specialized players to enter niche application segments.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of a large number of facade system vendors and product substitutes. Buyers can negotiate on price and demand high-quality facade solutions.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw material prices fluctuate based on demand-supply forces affecting glass, aluminum, and other metal producers. However, key suppliers possess proprietary technologies.
Threat of new substitutes: The threat of substitutes is moderate as energy-efficient facades made of different materials can be used for building envelopes. However, glass facade systems have better aesthetic appeal and performance advantages over other materials.
Competitive rivalry: The market is consolidated with global players competing on the basis of product performance, technical expertise, and brand reputation.
Key Takeaways
The global Facade Systems Market size is expected to reach US$ 361.49 Bn in 2023 and is projected to grow at a CAGR of 5.7% during the forecast period due to increasing construction of green buildings and focus on energy-efficient building envelopes.
The Asia Pacific region dominated the facade systems market in 2022 and is estimated to continue its dominance during the forecast period. Rapid urbanization and investment in commercial real estate are driving the demand for advanced building facade solutions in China, India, and other APAC countries.
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, and Sangalli Group. These players are focusing on developing innovative, sustainable, and aesthetically appealing facade products to strengthen their market position.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
