PUBLISHER: The Business Research Company | PRODUCT CODE: 1674493
PUBLISHER: The Business Research Company | PRODUCT CODE: 1674493
Cladding refers to the process of covering the exterior of a building with panels made from a different material. Cladding systems are utilized in the construction of buildings. The primary purpose of cladding in construction is to protect the exterior and frame of the structure. Additionally, cladding systems indirectly safeguard the interior of architectural constructions.
Cladding systems utilize materials such as steel, aluminum, zinc, copper, and plastic panels. Steel cladding systems involve covering a building's exterior with various panel materials. These systems serve to safeguard a building's appearance and provide thermal insulation. The primary applications for cladding systems are seen in walls and roofs, commonly employed in both residential and non-residential constructions to enhance structural aesthetics and insulation.
The cladding systems market research report is one of a series of new reports from The Business Research Company that provides cladding systems market statistics, including cladding systems industry global market size, regional shares, competitors with a cladding systems market share, detailed cladding systems market segments, market trends and opportunities, and any further data you may need to thrive in the cladding systems industry. This cladding systems market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The cladding systems market size has grown strongly in recent years. It will grow from $269.46 billion in 2024 to $284.04 billion in 2025 at a compound annual growth rate (CAGR) of 5.4%. The growth in the historic period can be attributed to construction boom, urbanization, energy efficiency, weather protection, regulatory requirements, renovation and retrofitting.
The cladding systems market size is expected to see strong growth in the next few years. It will grow to $348.83 billion in 2029 at a compound annual growth rate (CAGR) of 5.3%. The growth in the forecast period can be attributed to sustainable construction practices, smart building integration, population growth, cultural and regional preferences, affordable housing initiatives. Major trends in the forecast period include digitalization in construction, integration of smart cladding technologies, lightweight and high-strength materials, fire-resistant cladding solutions, modular cladding systems, dynamic and kinetic cladding designs.
The increase in the construction of new residential and commercial buildings is directly fueling the growth of the cladding systems market. The surge in high-end apartments, houses, and skyscrapers in developing countries is driving the demand for various materials used in building construction. Builders are increasingly using cladding systems to provide thermal insulation, weather resistance, and enhance the aesthetic appeal of buildings. For example, in July 2023, the Australian Bureau of Statistics, a government administration in Australia, reported that in the March quarter of 2023, there were 240,813 dwellings under construction, up from 240,065 in the same period in 2022. Of these, new houses accounted for 103,778 in 2023, compared to 101,240 in 2022. This growth in the construction market is expected to further drive the cladding systems market in the future.
The escalating demand for energy is anticipated to serve as a driving force behind the expansion of the cladding systems market in the foreseeable future. Energy, in this context, denotes the power sources essential for operating machinery, equipment, or tools required for various purposes including repairs. Cladding systems consume energy across their lifecycle-from manufacturing and transportation to installation and long-term performance of materials such as concrete, aluminum, and steel. Their aim is to curtail the necessity for artificial heating or cooling within structures. For instance, data from the Energy Information Administration in April 2023 highlighted a projected increase in energy usage within the US industrial sector, expected to surge by 5% to 32% between 2022 and 2050. This heightened demand for energy stands as a significant impetus behind the upward trajectory of the cladding systems market.
Major companies in the cladding systems market are concentrating on launching innovative products, such as high-density fibre cement, to meet the rising demand for durable and eco-friendly building materials. High-Density Fibre Cement is a resilient building material composed of a blend of cement, cellulose fibers, and water, designed to offer strength and resistance to moisture, fire, and pests, making it suitable for various construction applications, including cladding, roofing, and flooring. For instance, in February 2024, HVG Facades, an Australia-based company specializing in premium facade materials for commercial and residential projects, introduced Veterro. Veterro is a high-density fibre cement cladding suitable for both exterior and interior use. Featuring a concrete-like finish, Veterro panels provide a durable alternative to paint and gradually develop distinctive color variations over time, enhancing their character. The exterior Veterro range also includes colored panels, allowing for the creation of striking, customized patterns.
Companies in the cladding systems market are also focused on developing innovative products such as aluminum cladding to gain a competitive edge. Aluminum cladding products are exterior panels made from aluminum that cover and protect building structures, enhancing their aesthetic appeal while providing durability, weather resistance, and insulation. For example, in July 2023, Aodeli Australia, an Australia-based company, launched the Mirror Aluminium Panel (MAP). This high-quality cladding product is designed for aesthetic appeal and durability and has already been featured in significant projects like the KDV Sport Centre in Queensland. This innovative panel combines advanced mirror finishes with strict performance standards, reinforcing a commitment to safety and premium quality in the aluminum cladding market.
In October 2024, Profine Group, a Germany-based company, acquired EFP International B.V. (EFP) for an undisclosed sum. This acquisition supports Profine Group's strategy to enhance its portfolio of high-quality architectural systems. Their offerings include a wide variety of systems such as curtain walling, aerofoils, skylights, louvers, sunshades, doors, and sliding windows, along with specialized systems for cladding substructures. EFP International B.V. is a Netherlands-based company that specializes in the design, development, and production of aluminum profile systems for architects, operating under the brand EFP European Facade Products.
Major companies operating in the cladding systems market include Mitsui & Co. Ltd., Itochu Corporation, Marubeni Corporation, Toyota Tsusho Corporation, Compagnie de Saint-Gobain S.A., Sumitomo Corporation, Nippon Steel & Sumitomo Metal Corporation, JFE Steel Corporation, Tata Steel Limited, Hindalco Industries Limited, Sojitz Corporation, Kobe Steel Ltd., Westlake Chemical Corporation, Cold Steel Corporation (Taiwan), DuPont de Nemours Inc., Alcoa Corporation, Alubond USA Inc., Kingspan Group plc, Etex Group, James Hardie Industries plc, Boral Limited, Arconic Corporation, CSR Limited, Nichiha Corporation, Kajaria Ceramics Limited, Glen-Gery Corporation, Greenlam Industries Limited, Glittek Granites, FunderMax GmbH, Axiall Corporation
Asia-Pacific was the largest region in the cladding systems market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the cladding systems market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the cladding systems market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The cladding systems market includes revenues earned by entities by lightweight timber framing and cladding layers. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Cladding Systems Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on cladding systems market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for cladding systems ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The cladding systems market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.