Fiber Cement Market Report: By Raw Material (Portland Cement, Silica, Cellulosic Fiber), Application (Siding, Roofing, Cladding, Molding and Trimming), End User (Residential, Non-Residential) – Global Industry Analysis and Growth Forecast to 2030

Market Overview

The global fiber cement market revenue stood at $17,500.0 million in 2021, and it is expected to grow at a compound annual growth rate of 5.3% between 2021 and 2030. This is due to the rapid increase in usage of fiber cement for internal and external residential applications.

Furthermore, the steady rise in the residential sector is likely to promote the market growth. Also, superior product characteristics of fiber cement such as water-resistant, fire-resistant, high strength, durability, and stability are bolstering its demand, globally.

During the COVID-19 pandemic, construction activities in the residential sector had witnessed a significant drop, which also impacted the cement industry. For example, worldwide cement consumption reduced by more than 3% in 2020.

Moreover, the International Finance Corporation (IFC) promotes base materials manufacturing, especially cement, in order to strengthen domestic links to other industries and improve economic complexity in emerging nations. In addition, the IFC has established a Sector Crisis Response Facility to give immediate assistance to its clients that were severely suffered or faced the economic consequences of COVID-19. Therefore, due to the increasing demand for fiber cement from residential buildings and renovation and refurbishment projects, post-pandemic, the medium-term outlook for the market remains optimistic.

Paradigm Shift Toward Green Building Drives the Market Growth

Fiber cement is more environmentally friendly as compared to asbestos. Thus, national governments have regulations in place to limit the use of asbestos and are trying to impose a ban on its use, resulting in increased usage of fiber cement as its substitute. For instance, in 2005, the European Union banned the usage of asbestos in new products, as it is hazardous to health.

Moreover, countries are shifting toward green buildings and constructions, for which governments have offered several supportive initiatives. For instance, the Government of Canada is encouraging the development of green and inclusive community facilities across the country through upgrades, retrofits, repairs, and new constructions. Furthermore, Mexico, like other developing countries, is also embracing the green building trend. Mexico has joined the World Green Building Council and is trying to learn the best practices from Canada, Europe countries, and the U.S., in order to save money and gain the health advantages of green and sustainable buildings.

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Climate Resistance Properties and Affordability Spur Usage of Fiber Cement in Siding Application

Fiber cement is largely used in a siding application, which generated the largest revenue share in 2021, over 40%. Individuals are preferring fiber cement siding over other materials, due to its advantages such as it withstands high winds compared to vinyl siding and is lighter and economical compared to bricks and stone siding, among others. Currently, brick veneer siding typically ranges between $7 and $12 per square foot while fiber cement siding cost ranges from $5 to $7 per square foot.

The substantial profits originate from the residential sector, as people are progressively looking for environment-friendly solutions, thereby getting themselves involved in replacing the existing siding with fiber cement to provide the better exterior performance along with saving money and time on maintenance. The abovementioned factors are projected to augment the fiber cement market, globally.

Residential Sector Shows Substantial Growth

The residential category is expected to gain significant momentum during the forecast period, propelling at a CAGR of more than 5%. In the U.S., the use of fiber cement for exterior walls for building single-family houses increased from around 5% in 2005 to about 8% in 2020, depicting the potential growth in the coming years. The major factor attributing to this growth includes a higher return of investment, i.e., around 85% compared to approximately 75% from natural wood or 80% from engineered wood.

Portland Cement Is the Highly Used Raw Material

The Portland cement has been the highest revenue-generating raw material and it is expected to remain so throughout the analysis period. Stringent rules and regulations to decrease the risks associated with silica sand, silica dust exposure, and quartz sand, are resulting in surging consumption of Portland cement, hence boosting the market growth in this category.

APAC Led the Market

Geographically, APAC is the largest fiber cement market and it is also expected to depict the fastest growth, advancing at a CAGR of around 6%, during 2021–2030. The region consists of some of the fastest-growing economies in the world and every jurisdiction is concerned and highly focused on creating ample opportunities for the expansion and growth of the infrastructure. Moreover, factors such as increasing disposable income, burgeoning construction industry particularly in developing nations such as China and India, surging foreign investments, and increasing knowledge about the depraved consequences of asbestos use, are projected to drive the demand for fiber cement in the region.

For instance, the Chinese government authorized 26 infrastructure projects in 2019 with an estimated investment of $142 billion, which are scheduled to be completed by 2023. Furthermore, for new development projects, China is adhering to green building requirements. For example, Suzhou Taihu New City in Jiangsu province is expected to accommodate 200,000 people and will focus on high-end service sectors, including education and training, research and development, tourism, and finance. Therefore, with the rising infrastructure expenditure and construction activities, the demand for fiber cement is expected to rise significantly in the coming years.

To Increase Market Share, Companies Have Been Involved in Product Launches and Acquisitions

The fiber cement market has the presence of several key players, and in recent years, they have been involved in launching new products and acquiring other companies, in order to stay ahead of their competitors. For instance:

• In March 2022, Briarwood Products, a cement roofing sheets supplier, acquired Tubex SA, a Spanish producer of fiber cement sheets and molded accessories.
• In June 2020, Cembrit UK launched a fiber cement facade board, Patina Inline. This product adds a 3D look to the building by using milled linear grooves in the facade board. Because of the fiber cement composition, the product has increased durability and strength.

Top Fiber Cement Manufacturers Are:

• Cembrit Holding A/S
• Evonik Industries AG
• Etex Group NV
• The Siam Cement Public Company Limited
• James Hardie Industries PLC
• Compagnie De Saint Gobain SA
• Toray Industries Inc.
• CSR Limited
• Nichiha Corporation
• Plycem Corporation

Market Size Breakdown by Segment

The research offers the market size of the global fiber cement market for the period 2017–2030.

Based on Raw Material

• Portland Cement
• Silica
• Cellulosic Fiber

Based on Application

• Siding
• Roofing
• Cladding
• Molding and Trimming

Based on End User

• Residential
• Non-Residential

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • Italy
  • France
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
• Latin America
  •  Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa