PUBLISHER: Orion Market Research | PRODUCT CODE: 1758739
PUBLISHER: Orion Market Research | PRODUCT CODE: 1758739
Global Facade Market Size, Share & Trends Analysis Report by Raw Material (Glass, Wood, Metal, Ceramic, Polyvinyl Chloride (PVC), Stone, Concrete, and Others), and by Facade Type (Ventilated and Non-Ventilated), by Application (Interior and Exterior), and by End-User Industry (Commercial, Residential and Industrial), Forecast Period (2025-2035)
Industry Overview
Facade market size reached $320 billion in 2024 and is projected to grow to $580 billion by 2035 at a CAGR of 5.6% during the forecast period (2025-2035). Industry growth is attributed to pivotal factors such as rising industrial, commercial, and residential construction activities, increasing concern towards energy efficiency, and external beautification aspects. It helps with the temperature management of the buildings, due to which the facade market players are developing weather-specific facades. The facades are primarily used in high-rise buildings and offices, including storefronts and residences. The role of the facade has increased in the construction sector, majorly due to the changing perception of consumers and the increasing deployment of facades in the exterior appearance of a building.
Market Dynamics
Rising Focus on Energy-Efficient and Sustainable Facades
The construction industry is one of the biggest energy consumers in the world, responsible for some 40% of global energy consumption and producing a substantial majority of all greenhouse gas emissions. Consequently, there is an increasing call for sustainable building design solutions that have the potential to cut energy usage and minimize the environmental footprint. For instance, Saint-Gobain offers COOL-LITE XTREME solar control glass that can reduce HVAC energy use by 30%. Additionally, according to the US Department of Energy, innovative facade systems can minimize both lighting and HVAC energy consumption more optimally while addressing occupant comfort requirements. Further, an estimated 1-2 quadrillion BTUs of energy could be saved annually if innovative facade systems are adopted across the commercial building sector.
Increasing Urbanization and the Construction Industry
The rapid increase in world population and fast-paced urbanization are the foremost drivers for moving the facade market. As urban dwellers and cities expand, there is a corresponding increase in demand for new commercial, residential, and industrial buildings, directly influencing facade installation needs. This population growth is most evident in developing economies within the Asian-Pacific region, where China, India, and Japan are witnessing fast-paced construction. As per Our World in Data, in most of the high-income countries - such as Western Europe, the Americas, Australia, Japan, and the Middle East - over 80% of people are urban residents. In most upper-middle-income countries - throughout Eastern Europe, East Asia, North and South Africa, and South America - 50% to 80% of people do. Furthermore, the construction of commercial buildings and office spaces with an emphasis on energy efficiency is generating huge opportunities for facade manufacturers and installers. Also, growing infrastructure development and speedy industrialization are likely to drive market growth in the forecast period.
Market Segmentation
Ventilated Facade to Hold Prominent Shares in the Global Facade Market
Among the facade types, the ventilated segment is estimated to hold a prominent market share in the global facade market. This is mainly owing to its benefits over non-ventilated facades such as energy-saving and providing rich aesthetics. This has increased the demand for ventilated facades for most buildings, and future construction. The market players are also focusing on the segment prominently by launching new innovative ventilated facade ideas and designs to gain an edge in the ongoing competition. For instance, in June 2021, Paroc published a well-insulated ventilated facade design, which offers guidelines for designing the ventilation of facades of diverse heights and for selecting the right windshield and thermal insulation products.
The global facade market is further divided by region, including North America (the US and Canada), Europe (the UK, Germany, France, Italy, Spain, Russia, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, Australia and New Zealand, ASEAN Countries, and the Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).
Asia-Pacific to Exhibit Significant Market Growth
The increasing construction of new commercial and industrial buildings in countries, including China, India, and Southeast Asia, is making a significant contribution to the regional market growth. China is the largest contributor to the regional market growth owing to the advancements in facade installation techniques, availability of labor, cost-effective materials, and rising investments in the construction industry. In addition, rapid urbanization in developing countries such as India, Japan, China, and South Korea is further driving the demand for facade installations in the region. For instance, in August 2022, Architecture studio Aedas unveiled its Dance of Light office skyscraper in Chongqing, China, with a twisted facade informed by the shape of the northern lights. The 180-meter-tall tower, which is situated on Xingfu Plaza in Chongqing's Jiangbei District, has two double-curved facades that give the structure the appearance of being twisted.
North America Holds Significant Market Share
Among all the regions, North America holds a significant share owing to the constant growth of the construction sector and increasing demand for solar facades. Urban spread continued in Canada's urban centers as the population growth of many suburban cities outpaced the growth occurring elsewhere. Activity in the non-residential sector is projected to remain strong across the forecast period, given the high volume of large projects planned and underway in most regions of the country. Construction is a key contributor to Canada's GDP. In 2022, there were 252 large infrastructure projects in Canada under development, which were valued at over $33.8 million. As of now, Canada has many projects in the works. Projects such as Industrial: Anthony Henday Business Park, Retail: The Mills (Halifax), and TD Terrace will further boost the facade market growth in the region. On the other hand, construction is also the main driver of the US economy. In the US, there were around 919,000 construction establishments during the first quarter of 2023. An estimated $2.1 trillion worth of structures are made annually by the construction industry, which employs 8.0 million people.
The major companies operating in the global Facade market include AGC Inc. (AGC Group), Permasteelisa S.p.A, Apogee Enterprises, Inc., Rockwool International A/S, Kingspan Group, Lindner SE., Saint-Gobain India Pvt. Ltd. (Saint-Gobain Group), among others. Market players are leveraging partnerships, collaborations, mergers, and acquisition strategies for business expansion and innovative product development to maintain their market positioning.
Recent Developments