United States Roofing Market Set to Reach Valuation of $39.64 Billion by 2031
The US roofing market is a highly competitive industry with the top 10 players holding less than 55% of the market share. The market is expected to grow due to increasing demand for environmentally friendly roofing materials, technological advances, and the need for roofing repairs and replacements. However, challenges such as price sensitivity, regulatory changes, and economic uncertainty may impact growth opportunities in the industry.
In 2022, the United States roofing market was valued at $26.20 billion and is projected to generate a revenue of $39.64 billion by 2031.
The US is witnessing significant growth, driven by factors such as an increase in new construction activity, growth in renovation and remodeling projects, and a rise in demand for energy-efficient roofing materials. A comprehensive research analysis of Astute Analytica reveals the various aspects of the US roofing market, with a focus on key sectors such as industrial building construction, aviation, hospitality, retail, and the green roofing movement.
In 2022, the US construction industry spent $565.4 billion on private construction, including residential and commercial projects, indicating a strong demand for roofing products and services across various building types. The non-residential construction sector alone accounted for $444.6 billion of this expenditure, encompassing industrial buildings, public infrastructure, and commercial buildings like hotels and retail stores.
The aviation sector also offers potential for the roofing market, with approximately 19,622 airports in the US, of which 5,000 are under public-use. These airports require ongoing roofing maintenance and renovation to ensure safe and reliable operations, creating further opportunities for roofing companies to cater to the aviation industry’s needs.
In the hospitality sector, the average cost of a new roof installation ranges from $15,000 to $200,000, depending on the size and complexity of the building. This emphasizes the need for high-quality roofing systems within the hotel industry, which is a crucial market for roofing companies.
The retail industry’s renovation and remodeling projects in 2021 amounted to approximately $5.5 billion, with an average cost of $61 per square foot. This highlights the necessity for roofing companies to offer cost-effective and efficient roofing solutions for commercial clients in this sector. The US market for green roofs is expected to grow at a CAGR of 10.3% from 2023 to 2031, driven by the increasing demand for sustainable building practices and energy-efficient solutions. This trend is likely to influence the US market, as more clients seek out eco-friendly roofing options.
Residential Activities Contribute More than 38% Revenue to the US Roofing Market
More than 38% of the US revenue is projected to come from residential activities, with a significant portion attributed to new independent house construction, renovation of residential roofing, and building separate garages and shades. In 2021, a total of approximately 1.07 million new single-family houses were completed in the United States. Assuming an average cost of $5,000 to install a new roof on a single-family house, the revenue generated from new independent house construction in the roofing market would be around $514 million in 2021. On the other hand, the residential sector also invests heavily in renovation and remodeling projects, including roof replacements and repairs. In 2021, homeowners spent an estimated $330 billion on home improvements and repairs. Out of which over $300 million was spent on roofing.
Additionally, building separate garages and shades contributes to the demand for residential roofing services. In the United States, it is estimated that 63% of households have a garage or carport. With the average cost of constructing a detached garage ranging between $35,000 and $60,000, a portion of this expenditure goes towards roofing. Around 10% of the garage construction cost is allocated to roofing, and 5% of households with a garage built or renovated one in 2021.
Considering that residential activities account for more than 38% of the US market revenue, it is crucial for roofing companies to focus on the unique needs and preferences of homeowners, offering cost-effective and efficient solutions for new construction, renovation, and additional structures like garages and shades.
Exploring the Future of the US Roofing Market: Opportunities and Challenges Ahead
- Green Roofing Segment: The demand for environmentally friendly roofing materials is increasing due to growing awareness of sustainability. Companies can capitalize on this opportunity by offering innovative, eco-friendly roofing solutions.
- Highly Competitive Market: The roofing market in the US is highly competitive, with many players vying for market share. This makes it challenging for companies to stand out and gain a foothold in the market.
- Price Sensitivity: Many customers in the market are cost-sensitive, making it difficult for companies to compete solely on price while maintaining profitability.
- Regulatory Changes: Regulations regarding roofing materials and installation practices can change, leading to additional costs for companies that must adjust their product lines and practices.
Dominance of PVC and SPF in the US Roofing Market to Generate More Than 45% Revenue
Polyvinyl Chloride (PVC) and Spray Polyurethane Foam (SPF) have emerged as the most popular materials used in roofing across the United States. According to Astute Analytica, these two materials accounted for more than 45% of the market share, with SPF dominating the market with over 24% revenue share, followed by PVC with over 21% market share.
SPF has become a preferred choice for many residential, commercial, and industrial roofing projects due to its unique properties and benefits. The dominance of SPF in the roofing market can be attributed to factors such as energy efficiency, seamless and waterproof nature, and durability and longevity. SPF provides exceptional insulation and energy-saving properties, which can help reduce heating and cooling costs in buildings. This energy efficiency appeals to both homeowners and businesses looking to minimize their energy consumption and related expenses. Moreover, SPF forms a seamless, waterproof barrier when applied, reducing the risk of leaks and water damage. This characteristic makes it an ideal choice for roofing in areas prone to heavy rainfall or extreme weather conditions. Furthermore, SPF roofing systems offer a long lifespan, often lasting for over 30 years with proper maintenance, making it a durable and cost-effective roofing solution.
PVC roofing has also gained significant market share in the US due to its various advantages. PVC offers excellent resistance to harsh weather conditions, chemicals, and fire, making it a suitable option for commercial and industrial applications. Additionally, PVC roofing is known for its durability and low maintenance requirements, which contribute to its overall appeal. Its reflective properties help reduce the heat absorbed by the building, lowering energy costs associated with cooling. As a result, PVC has become a strong contender in the roofing market, capturing over 21% of the market share.
Competitive Landscape: Top 11 Players Hold Less than 55% Revenue Share, 3M Company Dominates the Market
The roofing market in the US is highly competitive, with the top 11 players holding less than 55% of the market share. This indicates a fragmented market with many players competing for business. 3M has established itself as a market leader, but still only holds less than 10% of the market share, which leaves significant room for growth. Other players in the market are Atlas Roofing Corporation, BASF SE, Berkshire Hathaway Inc., Carlisle Companies Inc., Certain Teed Corporation, DoW Chemical Company, Dupont de Nemours Company, Duro-Last Inc., GAF, and IKO Industries Ltd.
In such a competitive market, companies must differentiate themselves through product innovation, quality, pricing, and distribution channels. Companies must also be aware of regulatory changes that could impact their business and be prepared to adjust their product offerings accordingly. Additionally, economic uncertainty can impact the demand for roofing products and affect companies’ sales and profitability.
To remain competitive in the US roofing market, companies must focus on staying ahead of industry trends, investing in research and development, and expanding their product portfolios to cater to the needs of different customer segments. Building a strong distribution network and brand reputation is also crucial to winning and retaining customers in this market.
Some of the Top Market Players Are:
- 3M Company
- Atlas Roofing Corporation
- BASF SE
- Berkshire Hathaway Inc.
- Carlisle Companies Inc.
- Certain Teed Corporation
- DoW Chemical Company
- Dupont de Nemours Company
- Duro-Last Inc.
- IKO Industries Ltd