The global construction sector is undergoing limited growth as a consequence of the economic recession caused by the COVID-19 crisis, which has resulted in low investor confidence and a decline in construction activities, as a result, the market has also experienced a catastrophic setback.
The spread of the COVID-19 in the U.S. affected the growth of the engineering and construction industries. The increasing costs of construction materials and equipment, along with supply chain disruptions, are the major factors limiting the growth of this industry. However, the use of aerial measurement and 3D modelling technologies had increased during the pandemic, which supported the market growth.
According to the State of the Industry Report for Roofing Contractors, U.S., roof replacements in North America accounted for a share of approximately 94% of the overall roofing projects in 2020. Several properties in North America and Europe are more than 25-30 years old. Hence, they are expected to undergo roof replacements in the coming years.
The advent of reflective coatings that can be applied to dark-colored roofing materials is expected to have a positive influence on the industry. Reflective coatings have excellent heat reflection properties and help to reduce the overall energy consumption of the building structure.
The power of suppliers is expected to be moderate owing to the presence of a large number of suppliers of raw materials in the market used for developing various roofing materials. A diversified product range, coupled with high-quality services, is anticipated to play a crucial role for suppliers to attain a competitive edge in the market.
Product Insights
Concrete and clay tiles product segment led the market and accounted for more than 29% share of the global revenue in 2021. These tiles offer benefits such as improved aesthetics, durability, and ease of recycling, hence drive the product demand. However, growing consumer preference for stone-coated steel roofing is projected to impede product demand.
Asphalt shingles segment is projected to register a CAGR of 4.1% in terms of value over the forecast period.Low capital costs and an easy installation process are anticipated to drive the demand for asphalt shingles as roofing materials over the forecast period.
In 2021, the metal roof segment held a share of 22.4% of the overall market in terms of revenue. Metal roofs are versatile and can be converted into any desired shape such as shingles or slates to fit the surface structures of different types of buildings. Moreover, the low lifecycle costs, less weight, and fire resistance of metal roofs are expected to drive their global demand over the forecast period.
The plastic roof segment is anticipated to grow at a CAGR of 2.6% over the forecast period owing to advantages such as ease of installation, and low maintenance. However, plastic roofs offer lower aesthetic appeal than their counterparts. Furthermore, the product is particularly vulnerable to UV radiation degradation, thereby restricting its application.