Facade Market Size, Share & Trends Analysis Report By Product (Ventilated, Non-ventilated), By End Use (Commercial, Residential, Industrial), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global facade market size was valued at USD 217.9 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 6.4% from 2021 to 2028. The rise in construction-related activities has been an important factor in driving the market. Furthermore, technological innovations are leading to the development of energy-saving facade materials. These advanced products absorb solar energy and find widespread adoption in several commercial and residential buildings as a secondary source of electricity generation. The market is expected to grow at a considerable rate over the forecast period. This growth can be attributed to rising customer spending power, primarily in China, Japan, India, Brazil, and GCC countries, along with the need to provide a secure work environment to employees. Furthermore, the use of metal composite materials offers a durable, harmonious, and modern appearance to the building. Increasing usage of such composite materials to build facades is projected to boost the market growth over the coming years.

Modernization and urbanization are playing a vital role in the growth of the market. Several factors including waterproofing, fabrication, durability, and resistance to extreme climate come to play during the construction of facades. Changing perceptions of consumers and increasing focus on the exterior appearance of a building are anticipated to boost the growth of the market. Rising disposable income is leading to increased investments in renovations, which, in turn, is estimated to augment the market growth. Growing investments in the advancement of the residential and commercial construction industries in developed countries, such as the U.S., can stoke the growth of the market.

The ongoing impact of the COVID-19 pandemic has hit hard the construction industry across the globe. Moreover, the complete lockdown in several cities across key countries, such as China, the U.S., Germany, U.K., and India, had a significant impact on the global economic slowdown in 2020. Moreover, owing to the rapid spread of the virus, it has forced the shutdown of various ongoing residential, commercial, and industrial construction projects globally. Therefore, the slower growth in the construction and real estate industry due to the lower demand for buying homes and offices is expected to slow down the demand for facade products and services over the shorter period. Furthermore, the relaxations in lockdown measures provided by the federal governments, coupled with the releasing of economic relief packages across prominent countries, such as the U.S., U.K., China, and Germany, are expected to bring the market growth on track over the next seven years.

Product Insights

In 2020, the ventilated facades segment held the largest share of 44.3%. Ventilated facades are likely to be the most prominent product during the forecast period. In the ventilated facades segment, curtain walls are poised to be the fastest-growing sub-segment over the forecast period owing to their increasing penetration in commercial buildings. They mainly comprise glass materials that can transmit heat to provide a warm atmosphere in regions with low temperatures. As a result, they are also projected to gain high demand in residential applications soon, primarily in the U.S., the U.K., and other colder parts of Europe.

The market, at present, is dominated by classic designs, which are anticipated to be replaced by modern, eco-friendly designs over the coming years. Ease of raw material availability and strong demand in the end-use sector, including the commercial and industrial sectors, owing to the recovery of the global economy are estimated to unfold opportunities for the industry players over the forecast period. Major innovations in composite material development are leading to overcoming several limitations of excess heat and soundproofing. Several basic materials used in the development of the product include aluminum, plastic and fiber, glass, ceramic, and steel. Aluminum and glass-based composite materials are widely used to build facades owing to their low weight and high transparency, respectively.

Aluminum and glass are highly preferred due to their durable and elastic properties. This allows designers to provide proper shape and size to facades. Investments in R&D have also led to the development of eco-friendly or sustainable bio-climatic “second-skin facades” to make use of the environment for building lighting, heating, and cooling.

End-use Insights

In 2020, the commercial end-use segment captured the largest share of exceeding 50.0%. Facades are extensively used in commercial and residential buildings to protect the interior and provide a visually appealing outer architecture. The product is extensively used in commercial buildings due to the availability of high construction budget among corporates. The rise in the number of commercial buildings, such as retail stores, hotels, medical centers, warehouses, and garages, in India, China, Brazil, and the Middle Eastern countries is expected to spur the growth of the market over the forecast period.

Implementation of the product in residential buildings is also likely to increase over the next few years. This is primarily attributed to the rising customer awareness regarding energy saving, especially in the U.S., the U.K., Germany, China, and Japan. Additionally, residential buildings, nowadays, are constructed as a part of the planned development by the government through public-private partnerships (PPPs). The buildings in this category are generally equipped with quality facades. This is estimated to improve the residential segment growth with respect to the adoption of façade products from 2021 to 2028.

Regional Insights

In 2020, Asia Pacific accounted for the largest share of more than 35.0%. Increasing construction of new commercial and industrial buildings in countries, including China, India, and Southeast Asia, is contributing to the growth of the regional market. Additionally, the evolving trends in facade design that is responsive to the geographical location, building use, social aspects, and safety and sustainability concerns are expected to significantly fuel the growth of the APAC market in the years to come. Moreover, the growing emphasis on energy efficiency, coupled with the hot and humid climatic conditions in the Middle East and Africa region, is anticipated to drive the regional market.

Furthermore, the development of innovative, eco-friendly materials is poised to impel customers, particularly in the U.S. and the U.K., to redevelop/renovate buildings. North America and Europe, collectively, accounted for more than 45.0% share of the total revenue in 2020 owing to a growing affinity towards advanced facade materials. These regions are highly adaptive to new technologies. As a result, penetration of the product in the commercial and residential sectors is projected to be high, thereby positively influencing the market growth.

Key Companies & Market Share Insights

Key market players are strategically focused on mergers and acquisitions in order to expand their geographical presence and overall product portfolios. For instance, in December 2019, YKK AP America Inc. (YKK AP) acquired the Erie Architectural Products Group (Erie AP), a Canada-based facades solutions provider. The strategic acquisition would help YKK AP to expand its geographical presence and product offerings. Additionally, the key market players such as Bouygues and ROCKWOOL Group are investing in R&D to introduce new and technologically advanced façade products, which help reduce overall energy consumption and carbon emission.

Leading market players aggressively focus on forming partnership agreements to deploy facade products for specific applications, such as airports, metros, and stadiums. For instance, in Jan 2021, Skanska signed an additional agreement with Hartsfield-Jackson Atlanta International Airport. The agreement aims to build the Concourse T-North Extension and modernization project in Atlanta, Georgia, U.S., in a Skanska-led joint venture along with New South Construction, FS360, and Synergy Construction. Moreover, Skanska’s share of the agreement is worth nearly USD 56 million. Some prominent players in the global facade market include:

• Rockpanel Group (ROCKWOOL B.V.)

• Aluplex

• Bouygues

• Enclos

• EOS Framing Limited 

• Saint-Gobain Group

• AFS International B.V.

• Kingspan Group

• Lindner Group

• Fundermax

• Gartner (Permasteelisa Group)

• HansenGroup

• Hochtief

• National Enclosure Company, LLC. 

• Schuco International (OTTO FUCHS KG)

• Skanska

• Trimo d.o.o.

• Norsk Hydro ASA

• YKK AP Inc.

Facade Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global facade market report based on product, end use, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2028)

  • Ventilated Facades

    • Curtain Walls

    • Others

  • Non-ventilated Facades

  • Others

• End-use Outlook (Revenue, USD Million, 2017 - 2028)

  • Commercial

  • Residential

  • Industrial

• Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • Poland

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa (MEA)

    • Saudi Arabia

    • Kuwait

    • Bahrain

    • Qatar

    • UAE

    • Oman