Demand for fiber cement siding is forecast to grow to 22.1 million squares by 2023 on 2.5% annual growth. Growth in the material market will be fueled by fiber cement’s ability to mimic the look of natural wood more effectively than vinyl products, increased use in high-end buildings, and affordability relative to brick and natural stone, according to a forecast from The Freedonia Group.
While the share of the U.S. siding market occupied by fiber cement will continue to grow through 2023, the rate of market penetration will moderate, according to Freedonia Group analyst Nick Cunningham. Improvements in the quality of competitive materials, particularly vinyl, and fiber cement’s growing maturity will contribute to the more moderate growth in market share for fiber cement.
The residential market accounted for 79% of fiber cement siding demand in 2018, and The Freedonia Group estimates the residential market will grow 2.9% annually to 17.8 million squares in 2023. The Cleveland-based research firm estimates the residential market will account for the majority of demand gains for fiber cement in the next four years. The most significant gains will come from the residential renovation market, as homeowners increasingly replace existing siding with fiber cement to improve exterior performance or to save time and money on maintenance.
The full study, Siding, is available for $5,800 from The Freedonia Group.
