The global fencing market is expected to be valued at approximate USD 24 billion in 2014 and it is projected to grow at an approximate CAGR of 5% over the forecast period of 2016 to 2024. Infrastructure development, improvement & remodeling work, new housing construction are expected to remain a key driving factor for market growth over the forecast period.
The major factors expected to spur the market growth are the security concern, a rise in safety, commercial construction, transportation construction, and rebounding office. Factors such as design, quality, and aesthetic value are expected to witness the rise in demand owing to the enhancement of aesthetic construction buildings and properties.
Investment in construction is expected to favor the growth of fencing market. Investment by the government such as public places, public parks, and government premises is also expected to drive the demand. The rise in consumer interest in home improvement and home decoration is expected to boost the demand over the next eight years.
Restraints in the fencing market are volatile raw materials price and rising energy cost. Volatility in the raw materials price is due to high supplier power by industry players.
Developing innovative and attractive fence, increasing demand for the residential fence, and popularity of synthetic alternatives are anticipated to offer lucrative opportunities to the industry participants. Developing new innovative raw materials can bring down the cost and improving durability to increase profit for the next eight years.
Unlicensed suppliers who supply inferior products is expected to act as a challenge for fencing market expansion. The rise in raw material prices such as aluminum, wood or iron is expected to limit growth over the next eight years.
The fencing market is segmented on the basis of products such as agricultural wire fence and commercial wire fence. An agricultural wire fence is further classified into hinge joint fence, electric fence and other agricultural wire fences. A commercial wire fence is also further classified into chain link fence, welded wire fence and other commercial wire fences.
The fencing market is segmented based on the material type such as wood, plastic, composite and metal fencing and concrete fencing. Metal fencing is expected to be the major segment and the overall revenue of metal fencing is 50% in 2014.
Metal fencing market is growing owing to increasing use of public parks and government organizations. Ornamental fences and chain link are expected to drive the metal fencing segment. Types of metal fencing are twisted steel wire fencing and nonwire fencing.
Hindrance in the wood fencing segment is high maintenance costs and durability. Types of wood fencing are assembled fencing and unassembled fencing. Concrete fencing is expected to grow at an approximate CAGR of over 6% for the next eight years.
Low maintenance, durability, and low cost are the superior properties which enhance the plastic fencing and composite segment growth. It does not require any regular repair or maintenance. Types of plastic fencing are vinyl fencing and HDPE fencing.
North America is expected to witness significant growth in the fencing market owing to increasing housing construction and home decorative products. In 2014, the overall revenue projected from fencing market is expected to be 30% in this region and it is anticipated to grow at an approximate CAGR of 4% over the next eight years.
Europe is also expected to have rapid growth due to better income opportunities from the increasing middle class. 70% of global consumption is anticipated from the middle-class investment in Europe.
Asia Pacific fencing market is also expected to be attractive for the next eight years owing to development in the agricultural sector. Increasing construction and home decoration demand are expected to drive the market in this region.
Some of the leading industry participants in the market include Allied Tube & Conduit, Betafence NV, Certain Teed, Ply Gem Holdings, Tenax Group, Jerith Manufacturing Company Limited, Poly Vinyl Company Incorporated, Gregory Industries Inc., Associated Materials LLC., Long Fence Company Incorporated and Bekaert. Tenax Group is following merger and acquisition strategies to be a leading industry player.
The fencing market is expected to be highly competitive because of local and global key industry players. Local manufacturers are supplying the needs based on the consumer preference in the particular region.
Research Support Specialist, USA