Evaluating Regional Market Trends in the Roofing Materials Industry

Evaluating Regional Market Trends in the Roofing Materials Industry

Roofing materials are essential building and construction materials used for waterproofing roofs and providing protection from external elements like sun, rain, and wind. This encourages the construction of durable and aesthetically pleasing roofs for homes and commercial buildings. Key roofing material products include asphalt shingles, concrete & clay tiles, metal, and membranes. These materials provide durability for roofs, are easy to install, and come in a variety of textures and colors to suit architectural designs.

The global Roofing Materials Market is estimated to be valued at US$ 170.03 Bn in 2024 and is expected to exhibit a CAGR of 3.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

Growth in residential construction activity is projected to generate lucrative opportunities for roofing materials manufacturers. According to the US Census Bureau, spending on private residential construction in the US is estimated to increase by 3.9% in 2024, driving demand for roofing materials from home builders. Emerging economies are also witnessing a rise in middle-class income levels and urbanization rates, fueling residential construction projects. Additionally, the increasing disposable income of consumers has boosted spending on home renovation and remodeling activities in recent years. This is expected to drive the replacement demand for roofing materials during the forecast period. Manufacturers can gain a competitive edge by developing new cost-effective and eco-friendly roofing material solutions targeting residential construction markets worldwide.

Porter’s Analysis:

• Threat of new entrants: The threat of new entrants is moderate as the roofing materials market requires large investments to penetrate into the market. However, new small players can disrupt the market with innovative products.
• Bargaining power of buyers: The bargaining power of buyers is high as roofing materials have substitutes and buyers can switch to alternatives. Buyers can negotiate on prices, especially for commercial projects involving large quantities.
• Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials like asphalt, concrete, metals are globally available from multiple suppliers. However, suppliers of specialized materials can influence prices.
• Threat of new substitutes: The threat of new substitutes is moderate as innovative green materials and recent development in solar roof tiles pose a threat to traditional materials.
• Competitive rivalry: The competitive rivalry is intense as the market is consolidated with few global players competing on pricing, quality, and warranty.

SWOT Analysis:

• Strength: Owens Corning, Carlisle, and GAF are globally established brands with extensive distribution networks and manufacturing capabilities. Their brands are recognized for quality and durability.
• Weakness: Fluctuating raw material prices increase input costs, reducing margins. Labor-intensive installation increases costs especially for small projects.
• Opportunity: Growing construction activity across Europe, North America, and Asia Pacific regions drives demand. Innovative green roofing systems for residential, commercial, and industrial sectors present new opportunities.
• Threats: Changing weather patterns increase risks of severe storms, hurricanes, and other disasters threatening existing infrastructure requiring repairs or replacement. Stagnant construction in some regions negatively impacts sales.

Key Takeaways:

The global Roofing Materials market is expected to witness high growth driven by increasing construction spending across major economies. The global Roofing Materials Market is estimated to be valued at US$ 170.03 Bn in 2024 and is expected to exhibit a CAGR of 3.8% over the forecast period 2023 to 2030.

Regional analysis:
The Asia Pacific roofing materials market accounts for more than 35% of the global market share led by China, India, Japan and other developing countries. Government initiatives to develop infrastructure and individual housing programs spurs construction activity in the region. In India, the government's 'Housing for All by 2022' mission aims to build over 20 million affordable houses augmenting roofing material demand. Europe is the second largest market with Germany, the UK, France being major countries. Steady construction and renovation activities support sales.

Key players:
Key players operating in the Roofing Materials market are Owens Corning, Carlisle, GAF, Atlas Roofing Corporation, Duro-Last, Inc., Firestone Building Products, CertainTeed, TAMKO Building Products, Inc., IKO Industries Ltd., Johns Manville, Polyglass. Owens Corning leads the asphalt shingle market while GAF and Carlisle focus on diversified roofing portfolios including non-residential markets.