Demand for siding in the US is forecast to advance 8.4 percent per year
through 2016 to 96.5 million squares, valued at $11.4 billion. 
Growth will be spurred by a rise in housing completions from a depressed 2011
base.  Although housing completions will remain below the level reached at
their cyclical peak in 2006, the recovery will fuel above average gains in the
residential siding market through 2016.  These and other trends, including
market share and product segmentation, are presented in US
Siding, a
new study from The Freedonia Group, Inc., a Cleveland-based industry
market research firm.  

Among material types, brick, stucco, and fiber cement siding are forecast
to see the most rapid demand gains through 2016, rising at
double-digit paces.  The South and West regions of the US -- where these
materials are most often installed -- are forecast to see the strongest growth
in population and housing activity through 2016.  Brick and fiber cement
see wide use in the South, while stucco is most commonly used in the West
region.  Fiber cement siding will continue to take market share from other
materials, such as vinyl and wood.  Fiber cement siding demand will also
be supported by continuing consumer acceptance of the material because of its
performance properties, such as resistance to degradation caused by insect
attack and moisture.

Vinyl siding accounted for the largest share of siding demand in 2011,
with a 37 percent share of the market in area terms.  Vinyl siding will
continue to lead the market in 2016,  with insulated vinyl siding and
products that better resemble natural materials such as wood and stone
promoting demand.  However, competition from fiber cement and stucco
siding will check growth.  Fiber cement and stucco siding offer end users
better long-term durability.

Residential improvements and repairs were the largest market for siding
in 2011, reflecting the low level of new housing activity in
that year.  Generally, new housing is the largest market for siding, as
most siding materials are not replaced unless they are severely worn or
damaged.  Nonresidential demand for siding is forecast to rise 6.4 percent
annually to 22.5 million squares in 2016.  Gains will be driven by
increasing nonresidential building construction.  The office and
commercial and lodging segments, which experienced the most rapid siding demand
declines of all nonresidential market segments between 2006 and 2011, will see
the strongest growth going forward as more office buildings and retail sites
are erected. 

The Freedonia Group is a
leading international business
research company, founded in 1985, that publishes more than 100 industry
research studies annually. This industry analysis provides an unbiased outlook
and a reliable assessment of an industry and includes product
segmentation and demand forecasts, industry trends, demand history, threats
and opportunities, competitive strategies, market share determinations and
company profiles.