Market Trends of North America Siding and Decking Industry
This section covers the major market trends shaping the North America Siding & Decking Market according to our research experts:
United States is one of the most Expanding Markets
The siding and decking market in the US is one of the most growing markets. Every year, the US's demand for the decking market keeps growing by nearly 1.3%. The growing construction industry in the United States is projected to propel the North American siding and decking market during the forecast period. The United States has one of the world's largest construction industries, and it recorded annual revenue of USD 1,306 billion in 2019 (a decline of 0.1%, when compared to 2018). According to the Federal National Mortgage Association (Fannie Mae), residential house construction jumped by 10% across 2020 in the United States with 1 million new homes expected to hit the market by the end of 2021. The U.S. new home construction in April 2021 was around 600,000 units which were nearly 67% higher than it was in April 2020. Even though the US construction sector was declining in 2020, the industry is expected to recover, thereby increasing the demand in the market during the forecast period.
The demand for decking materials in the US is driven by several factors, including the macroeconomic environment, demographics, residential construction starts, and repair and remodel (R&R) expenditure Materials like Composite and plastic lumber are growing in popularity in the country because they offer performance and pricing advantages over natural wood, particularly in exterior applications such as decking, fencing, and trim. Additionally, the wood-look alternatives are also gaining popularity as they require less maintenance and do not need to be replaced as frequently as natural wood. Composite decking continues to gain momentum as homeowners turn to these quality materials to improve their outdoor living spaces.
Residential Segment Accounts for the Largest Share
The residential segment accounts for the major share in the market and residential decks are built both on new housing starts and as replacement decks on older homes. The North American market for residential decking has experienced significant growth that has been forecast to continue in the future. The materials commonly used for deck surfaces in the region include treated wood, naturally durable wood, and wood-plastic composites. Treated wood has maintained its market share over the past few decades despite the introduction and growth of new man-made materials in the marketplace Backyard decks are a familiar feature of many North American homes, providing an enjoyable outdoor living area for dining, lounging, and entertaining. In the United States, outdoor living spaces can be found in nearly 82% of single-family homes. In Canada also there is a rise in residential activities and various government projects, including the Affordable Housing Initiative (AHI), New Building Canada Plan (NBCP), and made in Canada, have been supporting the expansion of the sector.
