Siding Market: The Emerging Growth Strategy

The Siding Market Overview

In order to curb utility costs and energy consumption, consumers are more inclined to integrate advanced technology in products. The global siding market, thus, is projected to gain traction, promising to reach USD 196.78 billion by 2035, adhering to a CAGR of 4.92% through 2035. The sector reached USD 116.02 billion in 2024.

The siding market is a billion-dollar industry in the United States and extends across different parts of the world. Siding is a crucial element of home improvement, one of the few aspects, besides the roof and foundation, that can significantly enhance a home's appearance.

However, this market faces several challenges: some homeowners cannot afford to replace their old siding; others struggle to find the time to obtain quotes from contractors or installers; and many simply do not know how to select the right type of siding for their homes.

The siding market is constantly evolving. New products are developed, and the popularity of particular brands rises and falls based on their ability to meet the needs of modern homeowners. As an installer, this means continually seeking the best ways to serve customers, staying ahead of trends, and remaining competitive.

This post explores key challenges and opportunities directly affecting siding installers. The first part focuses on challenges, while future posts will explore opportunities to address these challenges.

Previously, when examining the siding market, we observed mostly positive outlooks. The major growth driver was homeowners updating their homes with energy-efficient options.

However, with rising interest rates and economic uncertainty both domestically and abroad, it was unclear how consumers would respond. Despite these concerns, market growth has remained steady, and many predictions, especially concerning vinyl's market dominance, have proven accurate.

Yet today’s business environment presents more challenges than ever. New products, competitors, and a complex regulatory landscape are among the obstacles installers face. To succeed, it is crucial to identify the challenges most critical to your success and learn how to overcome them.

Below are some of the main concerns:

Recent years have seen the introduction of numerous vinyl-based siding options at lower price points than ever before. This has directly affected the pricing of other types of siding, including wood and fiber cement. Additionally, there is now greater availability of stock items and an expanded selection of custom colors for vinyl siding.

What does this mean for siding installers? Competition has intensified due to these low-cost options. Contractors must balance price competitiveness with profit margins. While some may wish to offer higher-end products, affordability constraints often prevent homeowners from paying more.

The good news is that opportunities remain, particularly in the high-end and premium product segments. Vinyl siding, while still dominant, is becoming less desirable as a home upgrade, creating space for premium alternatives to gain traction.

Regional Analysis

In North America, the US and Canada dominate the siding market, with high demand for vinyl, fiber cement, and composite sidings. Energy efficiency and aesthetic upgrades drive growth, while competition from low-cost alternatives remains a challenge.

In Europe, Germany, the UK, and France have a strong demand for premium siding products, particularly energy-efficient and sustainable options. Regulatory compliance and environmental standards influence product choices.

In the Asia-Pacific region, China, Japan, and India are seeing rapid growth in the siding market due to urbanization, rising construction activity, and increasing disposable income. Vinyl and fiber cement siding are becoming popular.