Fiber Cement Board Market - Forecast(2023 - 2028)

Overview

Fiber Cement Board Market size is forecast to reach $2.5 Billion by 2025, after growing at a CAGR of 8.20% during 2020-2025. Fiber cement boards are defined as a composite material made up of sand, cement and cellulose fibers. It is a combination of cement and reinforcing fiber which contributes to making the fiber cement material even stronger. Whereas, fiber cement siding is a building material used to cover the exterior of a building in both commercial and domestic applications. With a growing population, the demand for residential construction has seen an upsurge in the recent past. There are many inventions pertaining to the kind of materials being used in construction activities. One such important innovation is the fiber cement board which is made up of mixtures of cement, water, and either reinforcing fibers or particles.

Report Coverage

The report: “Fiber Cement Board Market– Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the Fiber Cement Board Industry.

Key Takeaways

• Higher growth in the urban housing sector in the world, especially in developing economies such as China and India, due to an exponentially growing population has led to strong demand for construction chemicals and products such as fiber cement board
• Fiber cement is easy to alter in terms of visual properties. They can easily be manufactured to look like natural wood planks or shingles. It can maintain the aesthetic properties of the house as it does not compromise on the traditional design and thus, increases its acceptance to home owners.
• Role of fiber cement board in making fire resistant buildings will be a major opportunity for the fiber cement board market during the forecast period.

By Type - Segment Analysis

Low-Density segment held the largest share in the fiber cement board in 2019. Low-density fiber cement is designed with the best structural efficiency but is generally not considered to be used for external applications requiring high strength capabilities. With rising construction throughout the globe, the demand for low density fiber cement board is set to surge majorly in interior applications. Low density FC can be used in structural flooring particularly in bathrooms, providing considerable strength to weight ratio and is effectively water resistant. 

By Application- Segment Analysis

Commercial buildings segment held the largest share in the fiber cement market in 2019 growing at a CAGR of 8.35% during the forecast period. Fiber cement boards have become a convenient option in the construction of commercial buildings as they are better options than plywood and other materials. Cement boards are used because when compared to gypsum boards, they stand strong in the presence of moisture and leaks. Cement boards have excellent moisture absorbing and drying properties making them resistant to weather change as well. Fiber cement boards are better choices for applications such as wall cladding, wall portioning, and decorative walling owing to its properties such as high impact strength and fire resistance. Fiber cement boards are also best used for exterior wall panels outside the house as siding due to their durable and water-resistant/waterproof nature.

Geography - Segment Analysis

Asia-Pacific dominated the fiber cement board market with a share of more than 35% during the forecast period.  The economic outlook for Asia-Pacific region is favorable owing to the large economic developments in China and other developing countries. The factor that led to this growth is the rapid industrialization and humungous amount of construction in this region. China was the top destination for FDI, where the construction sector grew by 7.8% in 2015. The stable investments in the construction sector indicate that the country is still an attractive recipient for foreign investors due to increased industrial restructuring and urbanization.

Drivers – Fiber Cement Board Market

·         The use of fiber cement boards and claddings are useful in harsh environment conditions

Fiber cement installations are particularly useful in areas with persistent harsh environments. They can act as a viable replacement for aluminum and wood installations typically found near marine environment, where the air is salty. These sidings also provide good protection against rain and hail

·         Lightweight fiber cement products facilitate transportation and helps in cost saving.

As fiber cement derived boards are much lighter than their aluminum and wood counterparts, they can easily be transported from the factory to the consumer. Moreover, the lightweight also helps in cost savings by reducing the use of fuel for transportation.

Challenges – Fiber Cement Board Market

·         Fiber cement manufacturers face unprecedented challenges due to the high cost of the product

The manufacturing process for fiber cement is such that it adds up to the cost of the final product. Generally, they cost upto 3 to 4 times more than conventional materials. Fiber cement boards need to be repainted every 15 to 20 years, thus maintenance cost is also high. Additionally installation of fiber cement fixtures requires more manpower who are skilled in handling the fiber cement boards, as they are susceptible to damage when not handled properly.

Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the sailcloth market. In 2019, the market of fiber cement board has been consolidated by the top five players accounting for xx% of the share. Major players in the fiber cement board market are James Hardie Industries PLC, Etex Group NV, Cembrit, Mahaphant Fibre Cement Co., Ltd., Everest Industries, Saint-Gobain, Hume Cemboard Industries and Nichiha Corporation among others.

Acquisition/ Investment

• In December 2017, James Hardie Industries acquired German based XI (DL) Holdings GmbH and its subsidiaries (including, but not limited to, Fermacell GmbH) from Xella International S.A. With this acquisition James Hardie Industries added high-quality business of fiber cement business growth in Europe.
• In July 2015, Etex invested 62 million euros in the second factory in Indonesia. This new production facility will strengthen Etex’s market leader position by locally producing fibre cement building boards.