Market Trends of GRC Cladding Industry
This section covers the major market trends shaping the GRC Cladding Market according to our research experts:
United States is Expected to Dominate the Market
The United States plans to invest USD 2 trillion in infrastructure, housing, building construction, and other projects, as this initiative provides many opportunities for the construction industry. The COVID-19 pandemic severely impacted the country, but low mortgage rates, limited existing inventory, and government protection against forbearance and foreclosure are expected to support market recovery. Several construction projects are underway to help resupply the economy, including residential, institutional, industrial, and infrastructure projects.
The growing awareness and increased emphasis on green buildings drive the market. LEED is a United States-based council that certifies a building based on the energy consumed, energy requirements for operation, and environmental impact. Residential construction in this region is significantly influenced by the efforts taken by the national governments to provide housing facilities to the growing population.
The market in the United States is expected to exhibit high growth shortly due to increasing remodeling and renovation activities in the residential construction sector. Remodeling expenditure in the United States amounted to USD 353 billion in the first quarter of 2021. Moreover, new home construction output in the US private sector reached over USD 776 billion in 2021, the second year of strong growth in a row. This trend is also reflected in the number of housing units authorized by building permits, where the Dallas-Fort Worth-Arlington metropolitan in Texas experienced some of the highest residential construction output in the country.
Increasing demand for fire and weather resistance, design flexibility, dimensional stability, ease of handling, and rapid installation is driving the growth of the GFRC cladding.
Rise in Construction Industry Spending
The rapidly growing construction industry, increasing technological advancements in the construction sector, and advantages offered by precast concrete, such as reduced cost and time and easy installations, are contributing to the growth of the precast concrete market. Using glass fibers in precast concrete helps prevent or delay crack propagation.
The construction industry grew to a spending value of close to 12 trillion U.S. dollars before the coronavirus pandemic and is expected to grow by three percent per annum. This includes building projects in real estate(either residential or commercial) but also in infrastructure or industrial structures.
India was the country with the most infrastructure projects in development or execution, valued at over USD 25 million as of May 2022. In contrast to India's 1,944 construction projects, the United States had 1,866 such projects, and China with 1,175. Power facilities made up most of the new private infrastructure construction in the United States.
However, as of May 2022, the three most expensive infrastructure projects currently under development were in Europe and the United States. The United States has one of the world's largest construction industries, and the total value of new construction has grown since the global recession.
Construction activity is anticipated to increase due to the expansion of the residential, commercial, and industrial sectors brought on by continuous economic growth, which will ultimately drive the GRC Cladding market demand over the forecast period. In addition, increased construction of single homes is likely to emerge as one of the primary factors fueling the demand for the glass fiber-reinforced concrete cladding market globally.
