Fiber cement siding is expected to make large gains in total market demand for siding through 2008, advancing 6.4 percent per year, according to a recent study by the Freedonia Group Inc., a Cleveland-based market research firm.
Fiber cement will overtake vinyl siding, which held the largest share of demand in volume terms in 2003. Demand for metal panels, which are widely used in nonresidential markets, is projected to increase as well, but at a slower rate.
The study also predicts that stucco and related nonbrick masonry siding will lead the way in increased demand defined in value terms instead of volume. In addition, wood siding is expected to lose market share to lower maintenance siding materials such as fiber cement, especially in the residential market, according to Freedonia.
Demand for siding in the U.S. is projected to increase 1.4 percent per year on the whole, the study predicts. Gains will be driven by a recovery in nonresidential construction from depressed 2003 levels as well as increases in residential remodeling, according to the study.
Freedonia also predicts growth in siding value will outpace gains in volume demand, increasing 3.9 percent to $10.2 billion by 2008. Advances will be powered by a shift toward higher value siding materials, rising costs of raw materials and increasing popularity of special features like supplementary foam insulation and factory-applied finishes and paint.
The Freedonia study predicts that further advances will be restrained by the relatively high level of price competition between the various types of siding.
The full study is available for purchase through the Freedonia Group.