Recovering Construction Market Expected to Impact Global Window and Door Demand
Global demand for windows and doors is expected to rise 7.1% per year through 2017 to $223 billion, significantly exceeding the growth rate of the 2007-2012 period, according to a new study from The Freedonia Group. Growth will reportedly be driven by recoveries in the building construction markets of many developed countries, although gains will be somewhat exaggerated by a weak 2012 base, particularly in the U.S. In addition, continued strong increases in building construction activity in developing areas is expected to boost demand.
China was the world’s largest window and door market in 2012, and will see its share of global demand rise to 36% of the total in 2017. Continuing rapid economic growth and industrialization, as well as an increase in the average size of a housing unit in the country, will reportedly boost gains. In addition, as personal incomes rise, households can better afford more expensive, modern fenestration products, thereby increasing the value of demand. As such, China is expected to post robust demand gains of 8.7% annually through 2017, a rate slower than that of the previous decade but still among the highest in the world.
Rapid demand gains are also expected in the other developing areas of the world, particularly in the Africa/Mideast region and South America. However, gains will be slightly below the world average, as the global financial crisis did not have as strong an impact as in the developed areas, and these regions are starting from a higher 2012 base. Rising personal incomes will reportedly lead to the adoption of more Western-style building practices, encouraging the use of modern windows and doors and boosting demand gains.
The U.S. market for windows and doors is forecast to post a strong recovery and see gains of over 10% per year through 2017, after suffering declines between 2007 and 2012. The primary driver of demand will be an expected housing market recovery in the country. Western Europe, another market that saw declining window and door demand between 2007 and 2012, is also projected to see a recovery through 2017, though not as strong as that in the U.S.
For additional information, visit www.freedoniagroup.com.