April 18, 2016
Wellesley, Mass., April 18, 2016 – Today’s roofing industry is seeing intensified interest in products that are made from recycled materials and promote energy efficiency and sustainability. BCC Research reveals in its new report that the industry is on the “environmental fast track” with roofing manufacturers, distributors and contractors offering more environmentally friendly products and services.
The North American residential roofing materials market is expected to grow from nearly $6.5 billion in 2015 to $7.8 billion by 2020, reflecting a five-year compound annual growth rate (CAGR) of 3.8%. Lightweight (LW) laminate as a segment should grow from nearly $3.2 billion in 2015 to $3.8 billion by 2020, demonstrating a five-year CAGR of 3.8%. Heavyweight (HW) laminate as a segment should total $956.8 million by 2020, up from $801.8 million in 2015, reflecting a five-year CAGR of 3.6%.
Although hard hit by the Great Recession from December 2007 to June 2009, the industry has rebounded and remains a vital part of the economy, and an important component in achieving and maintaining the “American Dream” of home ownership.
The asphalt shingle segment, which is expected to retain its market dominance through 2020, accounts for about 90% of the total market in volume and over 70% in value. Other products that will outpace the market growth rate will benefit from new material or processing technologies (polymer composite), increased contractor and homeowner education (metal), and that are eco-friendly, made from recycled materials and promote energy efficiency and sustainability.
Potential new entrants to the residential roofing market may see opportunity to gain a substantial segment position for an attractive price, or to establish a foothold for future product introduction. Large distributors can provide a means for smaller suppliers to gain access to new markets nationwide through their extensive distribution networks and supplier diversity programs.
The most notable positive trend in the market was the high growth rates in value of environmentally responsible products promoting energy efficiency and sustainability (reflective, building-integrated photovoltaic [BIPV] and “green” roof). Although the segments are small (each represents less than 0.1% of the total residential market value), all grew at rates between 7.5% and 10% from 2013 to 2014. These advances were driven by the availability of incentives, including government tax credits, as well as boosted overall demand for more eco-friendly residential roofing products.
In high growth segments, such as BIPV and green roof, new entrants are drawn by the revenue creation already achieved by existing suppliers. Innovative companies can enter the residential roofing market either through acquisition or partnerships with existing manufacturers to create new roofing products.
“These organizational combinations provide new entrants with access to financial and creative resources, channel relationships, product development resources, customer relationships, and other assets they may lack themselves that can afford their new product or brand the opportunity to achieve acceptance and success in the market,” says BCC Research analyst Lisa Marshall.
Residential Roofing Materials: The North American Market (AVM070C) examines the latest product developments, material and technology enhancements, and various distribution channels and their dynamics. The report also quantifies the current market demand for each product type by volume and value, and projects CAGRs through 2020.
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Residential Roofing Materials: The North American Market( AVM070C )
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