The Roofing Materials Market is estimated for 2023 for the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Roofing materials such as asphalt shingles, clay tiles, concrete tiles, metal sheets, membranes etc. are used widely in construction of commercial and residential buildings for protection from external elements such as rain, heat, wind etc. These materials provide weatherproofing and insulation.
Market Dynamics:
The roofing materials market is expected to grow at a significant rate during the forecast period owing to rising construction activities across both residential and non-residential sectors. Increased urbanization has led to demand for new housing units and commercial infrastructure projects which is driving the market growth. Furthermore, repair and renovation of existing structures also contributes to the demand for roofing materials. Growth in infrastructure projects such as roadways, metros, airports etc. further creates opportunities in the market. Stringent building codes regarding energy efficiency and weatherproofing also boost the sales of advanced roofing materials providing high insulation.
Major Driver 1: Rising Infrastructure Spending and Construction Projects
One of the major drivers of the roofing materials market is the increase in infrastructure spending and construction projects globally. Governments around the world are investing heavily in upgrading and expanding transport, utility and building infrastructure to support economic growth. Many countries are undertaking large scale highway, airport, seaport, power and real estate construction projects which require huge amounts of roofing materials. The commercial and industrial construction sector is also growing rapidly due to increasing globalization and industrialization. All these types of infrastructure and construction activities generate strong demand for various roofing materials like asphalt shingles, tiles, membranes etc. According to studies, the global construction industry is expected to see a compound annual growth rate of over 4% in the coming years, which will drive significant sales of roofing materials.
Major Driver 2: Increasing Adoption of Green and Sustainable Roofing Solutions
Another key driver for the roofing materials market is the rising adoption of green and sustainable roofing solutions by both residential and non-residential building owners. Issues like global warming, depleting resources and environmental protection are prompting people as well as governments to focus more on green construction practices. Green roofing materials like vegetation-based roofs, cool roofs, solar reflective roofs etc. are gaining popularity as they provide benefits like reduced energy consumption, minimized urban heat island effect, reduced pollution and longer roof lifespan. Government regulations in several countries now require or encourage the use of these eco-friendly roofing alternatives in new construction projects. With greater awareness and initiatives around sustainability, the demand for "green roofing" is expected to grow substantially over the coming decade.
Major Restrain: Volatility in Raw Material Prices
One of the major challenges faced by manufacturers and suppliers in the roofing materials market is the volatility in prices of key raw materials. Most common roofing materials heavily rely on commodities like asphalt, synthetic rubbers, resins and polymers in their production. However, prices of these raw materials can fluctuate frequently depending on global demand-supply dynamics and geopolitical factors. For example, asphalt prices are directly influenced by crude oil prices. Significant surges in commodity input costs put pressure on the operating margins of roofing companies. Unpredictable raw material costs also make forward business planning difficult. To cope with this restrain, roofing product makers try to introduce efficiencies, find alternate material sources and pass on a portion of extra costs to buyers through price hikes, though that impacts the demand as well. Stable raw material pricing remains an important factor affecting competitiveness and profitability in the roofing market.
Major Opportunity: Rise of Reroofing and Retrofitting Activities
The continuous aging of infrastructure and older roofing systems across regions presents a lucrative opportunity for growth in the roofing materials market. As buildings and structures grow older over 10-20 years, their original roofing loses effectiveness against weathering and damage. This leads to an increasing need for reroofing or roof replacements. Likewise, certain government mandates require upgrading older roofs to meet current building codes and environmental standards. The retrofitting and re-roofing segment is emerging as an important growth driver, especially in developed nations which already have a large base of aging residential and commercial properties. Since replacement activities require complete tear-off and installation of new roofing systems, they generate higher demand compared to new construction projects. Roofing product manufacturers are well-positioned to tap into the gains from the worldwide expansion of retrofitting activities in the coming years.
