Building Product Market

Building Product Market Outlook (2024 to 2034)

The global building product market size is estimated at US$ 47.26 billion in 2024 and is forecasted to reach a size of US$ 77.72 billion by 2034-end, expanding at a CAGR of 5.1% between 2024 and 2034.

A vast array of materials, parts, systems, and technologies are referred to as "building products" when discussing the development and construction of buildings and other structures. These goods improve a building's overall performance, aesthetics, usefulness, and physical structure.

Building products are used at different stages of the construction process. They include both finished goods and raw materials. Plasterboard has become a popular alternative to traditional plaster-and-lath walls due to its ease of installation, cost-effectiveness, and versatility.

Sustainable and ecologically friendly components, such as recycled materials, energy-saving technologies, and eco-friendly finishes, are used in construction to reduce its negative effects on the environment. Integrated technologies and systems, such as energy management systems, smart home technologies, and building automation systems, improve a building's overall performance and efficiency.

In the construction sector, building products are essential because they affect a structure's sustainability, efficiency, safety, and longevity. Dry construction refers to a building method where construction elements are assembled without the use of wet processes like mortar laying or concrete pouring.

Key Drivers for Market Growth

• The market is transforming due to rising demand for contemporary, aesthetically pleasing, and environmentally friendly building products.

• Modernized electric infrastructure, energy efficiency programs, and urbanization are driving growth in the electrical sector.

• Consumer preferences are changing the building product market. Examples include the desire for high-end flooring materials, eco-friendly and stylish sanitary ware, and smart electronic systems.

Report Attributes	Details
Building Product Market Size (2024E)	US$ 47.26 Billion
Forecasted Market Value (2034F)	US$ 77.72 Billion
Global Market Growth Rate (2024 to 2034)	5.1% CAGR
North America Market Share (2034F)	22.67%
East Asia Market Growth (2024 to 2034)	5.6% CAGR
Renders Segment Market Share (2024E)	31.5%
East Asia Market Share (2024E)	36.5%
Key Companies Profiled	PPG Industries Ardex Parex Group SA Toupret Rockwool International China National Building Material Company Knauf Gips KG Ceresit

Which Market Trends are Opening Up Opportunities for Building Product Manufacturers?

“Rapid Urbanization and Consequent Increase in Infrastructure Development Projects”

Urbanization, or the migration of people from rural to urban areas in quest of greater economic prospects, amenities, and educational opportunities, is a process that frequently follows population growth. In addition to new residential construction, there is a need for existing structures to be upgraded and renovated to accommodate the expanding population. This covers the construction of roads, bridges, schools, hospitals, and other crucial public buildings in addition to transportation networks.

“Rising Investments in Construction Projects”

Positive economic conditions, reflected by GDP growth, exert a substantial impact on the construction sector. The increased demand for residential and commercial construction projects is a result of this increased economic activity. Construction projects may stall during the recession as a result of lowered corporate and consumer confidence, more stringent lending requirements, and an all-around more cautious investment strategy. To predict trends, make wise business decisions, and match their strategy with the current economic environment, stakeholders in the market must thereby comprehend the relationship between economic conditions and construction activity.

How is Global Market Growth being Restrained to Some Extent?

“Rising Material Costs Due to Stringent Trade Regulations for Contractors”

Global market developments, trade regulations, and environmental factors can all have a substantial impact on the price of raw materials. Growing expenses have the potential to lower manufacturers' and builders' profit margins and raise the overall cost of construction projects.

Growing material costs make it harder for builders and contractors to bid on projects. Pricing volatility might make it challenging to provide precise projections or continue turning a profit on fixed-price contracts. This may occasionally result in project cancellations or delays, especially if the costs rise above the client's budget.

“Labor Shortages in Many Parts of the World”

In the construction sector, a lack of skilled workers can be a major obstacle. This issue is frequently brought on by an aging labor force, a lack of interest in construction occupations among younger generations, and difficulties with workforce development and training.

The aging workforce is one of the main causes of labor shortage. There's a noticeable shortage of skilled labor, especially in trades requiring specific knowledge and experience, as older, more experienced workers retire. The younger generation's changing educational and job preferences as they frequently choose digital and service-oriented careers over conventional sectors like construction means that the influx of younger people does not sufficiently offset this generational change.

Country-wise Insights

Rapid urbanization in China has been a major factor behind market expansion in the country. There has been an ongoing need for residential and commercial construction due to the substantial population shift from rural to urban areas. The market in the United States is a complicated synthesis of different industries, including commercial, industrial, and residential construction, and it is impacted by several variables, such as technical advancements and economic cycles.

What is the Demand Outlook for Building Products in China?

“Focus on Technological Advancements Due to Need for Efficiency and Speed in Construction”

Attribute	China
Market Value (2024E)	US$ 9.81 Billion
Growth Rate (2024 to 2034)	5.7% CAGR
Projected Value (2034F)	US$ 17.1 Billion

Due to its substantial influence on the global construction sector and its rapid growth, the building product market in China has drawn attention from all over the world. The market in China is expanding, fueled by the country's expanding population, rapid urbanization, and ongoing economic growth. This market includes a broad range of goods, including mechanical and electrical systems, fixtures, fittings, and building materials.

Driven by the demand for efficiency and speed in construction, China is embracing more modern construction technologies, such as prefabrication and modular construction, in terms of technological innovation. The industry is changing as a result of the use of digital technology like building information modeling (BIM), which enhances project planning and administration.

Why are Building Product Suppliers Thriving in the United States?

“Growing Infrastructure Development in Compliance with Government Regulations”

Attribute	United States
Market Value (2024E)	US$ 9.69 Billion
Growth Rate (2024 to 2034)	5.5% CAGR
Projected Value (2034F)	US$ 16.62 Billion

The United States is known for being highly sensitive to changes in the economy. There is a noticeable increase in construction activity during periods of economic expansion, which raises the demand for building supplies. This increase is frequently driven by the residential sector, particularly during times of cheap borrowing rates and rising consumer confidence. Even though it may respond to changes in the economy more slowly, commercial construction, which encompasses office spaces, retail establishments, and industrial facilities, also makes a substantial contribution.

The regulatory landscape and policy shifts in the United States significantly influence the market for construction products. The items that are permitted for use in construction are directly impacted by regulations about environmental effects, safety, and building requirements. Growing emphasis on sustainability and green building techniques in recent years has increased demand for eco-friendly materials and energy-efficient products.

Category-wise Insights

In the construction sector, renders are essential because they fulfill both practical and decorative needs. Generally, the external walls of structures are covered with a plaster called renders. They are made up of a combination of materials such as cement, lime, sand, and other materials to enhance their durability and function. The market comprises a diverse range of materials, methods, and solutions utilized in residential building construction, repair, and upkeep.

Which Product Type is Projected to Occupy a Leading Market Share?

“Renders Playing Critical Role in Preserving Building Longevity and Structural Integrity"

Attribute	Renders
Segment Value (2024E)	US$ 14.88 Billion
Growth Rate (2024 to 2034)	5.3% CAGR
Projected Value (2034F)	US$ 25.49 Billion

Renders serve the main purpose of shielding walls from weather-related elements such as wind, rain, and extreme temperatures. To preserve the longevity and structural integrity of buildings, they serve as a shield, stopping moisture from penetrating the building structure. Construction aggregate refers to a category of coarse particulate materials used in construction activities such as building, road, and bridge construction. In regions with severe weather, where structures are more frequently exposed to the elements, this protective layer is especially crucial.

Renders are utilized for aesthetic reasons in addition to their defensive functions. They provide a means of improving the outside look of buildings. Architects and builders can generate a variety of visual effects and match the building's appearance to certain architectural styles or customer preferences due to the range of textures and colors accessible with renderings. Renders have the power to significantly change a building's appearance and feel, from sleek finishes to textured or patterned surfaces.

Which Application of Building Products Accounts for Higher Revenue Generation?

"Residential Segment Accounts for Extensive Building Product Use for Sustainability Goals"

The use of building products in residential construction is driven by regulatory frameworks, consumer preferences, technological advancements, and environmental concerns. For the foreseeable future, this segment is projected to be shaped by the emphasis on energy efficiency, sustainability, and smart home technologies.

Fiberglass, foam, and cellulose are examples of insulation materials that are crucial for preserving temperature regulation and energy efficiency in dwellings. The demand for cutting-edge insulation materials that provide excellent performance with little environmental impact has increased due to the push toward green building practices.

Competitive Landscape

Businesses compete by bringing new items to market that are more attractive, durable, energy-efficient, or perform better. Many producers, distributors, retailers, and service providers are present in the market. Because of their broad product lines and well-known brands, major global players in the building product market enjoy control over particular markets such as roofing or HVAC systems.

• American Gypsum, a manufacturer, supplier, and distributor of gypsum wallboard products in the United States, was granted permission by Eagle County in September 2021 to expand its 830-acre mine by 99.2 acres. This development gives the Gypsum-based company a 25-year supply of raw materials and assists the company in solidifying its position in the industry.

Segmentation of Building Product Market Research

• By Product Type :

  • Plasters
  • Renders
  • Skim Coats
  • Filling Compounds

• By End Use :

  • Residential
  • Commercial
  • Industrial
  • Infrastructural

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa