According to a report by the Cleveland-based Freedonia Group, U.S. siding sales are expected to increase 7.7% annually through the next four years. This predictions puts the U.S. market, now worth about $3.3 billion, at $4.7 billion in 2021.
The growth reflects the trend of construction professionals to subcontract siding installation jobs to smaller contractors, Freedonia said. It added:
With an increase in housing starts and home renovation projects, the residential market accounted for the majority of siding sales in 2016 with a 5.5% compound annual growth rate (CAGR), compared to commercial projects with 3.6% CAGR.
Top distributors including ABC SupplyBeacon Roofing Supply, Builders FirstSource, Home Depot, and Lowe’s represent 32% of distribution. In the next few years, these firms will continue to expand in the market by opening new locations, providing value-added services, and offering other siding-related materials, including roofing or exterior trim.