Exterior Wall System Market Size

Exterior Wall System Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The exterior wall system market is valued at US$151.4 billion in 2023 and is projected to reach US$270.9 billion by 2032, growing at a CAGR of 7.5% from 2018 to 2032. The rapid growth of the market is mainly driven by the increasing urbanization, the development of the economy, and the increasing demand for energy-saving construction. The development of the building industry, the use of advanced materials and technology such as wall system and energy-saving wall board, has become more and more common, and the market has been expanding. The building code is stricter, and the demand for energy-saving building materials is increasing. The development of new materials, such as the development of light and durable composites, has also improved the performance and aesthetics of exterior wall systems. The famous companies in this industry, such as Saint-Gobain, BASF, and Owens Corning, have all made strategic plans such as cooperation and R & D to enhance their core competitiveness. This not only meets the needs of sustainable development, but also enables these companies to occupy a leading position in the competition of the exterior wall system industry.

Regional Market Size

Regional Deep Dive

The market for exterior wall systems is growing rapidly in many regions of the world, driven by the need for energy conservation, the growing focus on energy-saving building materials and the development of new products. North America is characterized by a strong focus on sustainability and regulatory compliance, while Europe is characterised by the emphasis on design and materials innovation. In the Asia-Pacific region, construction activity is growing rapidly, particularly in emerging economies, and the demand for modern exterior wall systems is also growing. In the Middle East and Africa (MEA), building activity is being influenced by a growing focus on green building and on improving the quality of life, while in Latin America the introduction of modern exterior wall systems is taking place slowly, amid the economic upheaval and urban development projects.

North America

• Among the many things the American Green Building Council has done to encourage the use of sustainable exterior wall systems, the most recent LEED certification standards have prompted the manufacture of new products and a change of policy.
• But the fact is that a great many of the products of the wall system manufacturers have been adapted to the new building regulations. The result is that the construction industry is undergoing a transition to a more ecological building policy.
• The increasing prevalence of intelligent building systems has led to a growing demand for integrated facade systems that can be equipped with a wide range of advanced energy and insulation solutions.

Europe

• The European Union's strict regulations on energy efficiency, such as the Energy Performance of Buildings Directive (EPBD), are driving the market towards more sustainable exterior wall solutions.
• In Milan, the Bosco Verticale, a green wall combining advanced wall systems and a biophilic approach, is an example of this.
• Rockwool and Kingspan are the leading companies in developing high-performance insulating materials that can increase the thermal performance of a wall.

Asia-Pacific

• Rapid urbanization in China and India, for example, is driving considerable investments in the construction of new cities and the modernization of their building stock. Hence the demand for modern wall systems, which are able to withstand the various climatic conditions, is growing rapidly.
• Australian government initiatives to promote sustainable building practices have influenced the innovation in the local exterior wall system market.
• Nippon and Asian Paints are concentrating on the development of weather-proof and aesthetically pleasing wall coatings.

MEA

• The sustainable development policy of the UAE Vision 2021 initiative, which places great emphasis on the energy efficiency of buildings, is encouraging the use of energy-saving facade systems in new constructions.
• The NEOM project in the Kingdom of Saudi Arabia is a revolutionary city that is being built with the most advanced wall systems.
• In the meantime, local firms have started to collaborate with international companies, which are introducing new wall systems. This is in keeping with the growing modernization of the building industry.

Latin America

• The Brazilian government’s “Minha Casa, Minha Vida” program has sparked a housing boom, and there is a great demand for cost-effective, efficient exterior wall systems.
• In countries like Chile, consumers are increasingly demanding sustainable products that comply with international standards.
• Prefabricated walls are being used by local building contractors, and they are proving to be popular because of their speed and economy.

Did You Know?

“In Europe, the building sector accounts for about 40 per cent of the total energy consumption. Therefore, the development of energy-saving wall systems is of paramount importance for the reduction of the total energy consumption.” — European Commission

Segmental Market Size

The Exterior Wall System market is currently experiencing a steady growth, mainly due to the growing demand for energy-efficient building solutions and enhanced aesthetics. Moreover, the stringent government regulations to reduce carbon footprints, along with the rising demand for sustainable building materials, have been driving the growth of this market. The technological advancements in the Insulation and Cladding materials are also expected to boost the market growth, as builders are seeking to meet the performance and design criteria.

Advancing façade systems are now in the process of being applied at large scale, notably in Europe and North America, where the leading companies are Kingspan and Sto SE & Co KGaA. These systems are mainly used for residential and commercial buildings, where they provide thermal and weather protection and an aesthetic finish. Among the main drivers of growth in this market are the drive towards green building certification and government regulations on energy efficiency. Prefabricated wall panels and smart materials are enabling faster building times and better energy performance.

Future Outlook

In the year 2023 the market for the exterior wall system is expected to grow from $ 151,4,000,000 to $270,100,000. This represents a CAGR of 7.5%. The growth is due to a combination of urbanization, increased building activity and the growing importance of energy-saving building solutions. In particular, the need for improved exterior wall systems with better insulating, durable and aesthetic qualities will lead to higher penetration in both the residential and commercial building segments.

“The most important technological advances in the field of wall systems are smart materials and prefabricated wall systems. Insulation and material developments are also of great importance, because they not only improve the performance of the wall system but also respond to the stricter building and environmental regulations. Also, government initiatives to promote energy efficiency and green building will have a positive impact on the market. It is expected that by 2032 more than 60% of new construction will have an advanced wall system, indicating a significant shift towards sustainable building practices.

The rising popularity of prefabricated building and digital tools for the design and construction of buildings will further accelerate the growth of the market. The development of smart cities and the growing demand for climate-resilient buildings are also expected to have a significant impact on the future of the external wall systems market. In the end, the prospects for the external wall systems market are positive.