Future Market Insights anticipates the vapour barrier market to be worth US$ 11,431.3 million in 2023, surpassing a value of about US$ 18,268.8 million by 2033. The global market is projected to witness a growth rate of 4.8% over the forecast period.
Drivers:
- Increasing awareness about energy efficiency and sustainability is driving demand for vapour barriers in residential and commercial buildings.
- Rising concerns about mould and moisture-related issues in buildings are driving the demand for vapour barriers.
- Stringent regulations and building codes mandating the use of vapour barriers in construction projects are driving demand for these products.
- Advancements in materials and technologies are creating new opportunities for manufacturers to develop innovative vapour barriers with improved performance and durability.
Restraints:
- Increasing competition among manufacturers is making it difficult for companies to maintain profit margins.
- Rising raw material costs are putting pressure on manufacturers to increase prices, which may impact demand for their products.
- Lack of awareness among builders and contractors about the benefits of vapour barriers may hinder the growth of the industry.
- Adherence to quality standards and regulations can be challenging for manufacturers, which can result in costly compliance efforts.
Opportunities:
- Increasing demand for energy-efficient buildings and green construction is creating opportunities for investors to fund the development of new and innovative vapour barrier products.
- Advancements in technology and materials present opportunities for investors to support research and development efforts to create efficient and durable vapour barriers.
- Partnerships and collaborations with companies in related industries, such as insulation and roofing, can provide opportunities for investors to diversify their portfolios.
- Investing in companies that provide installation and maintenance services for vapour barriers can be a profitable opportunity as the demand for these services is expected to increase.
Trends:
- The adoption of sustainable and eco-friendly materials in the production of vapour barriers is a growing trend in the industry.
- The development of vapour barriers with enhanced fire-retardant properties is gaining traction in the market, especially in high-rise buildings.
- The use of spray foam insulation as a vapour barrier is becoming increasingly popular due to its ease of installation and energy efficiency.
- The integration of smart technologies and sensors in vapour barriers to monitor moisture and temperature levels in buildings is a unique trend that has the potential to transform the industry.
2018 to 2022 Vapour Barrier Demand Outlook Compared to 2023 to 2033 Forecast
The sales of vapour barriers increased at 3% CAGR, between the period of 2018 and 2022, owing to their significant applications in the construction of buildings. A significant rise in the construction of residential, commercial, and institutional buildings all over the globe is expected to boost the demand for vapour barriers for damp proofing, moisture prevention, and other applications.
The rising adoption of insulation in commercial and residential buildings is one of the key growth factors enhancing the demand for insulation. It consequently contributes to the global vapour barrier market’s growth. Recovery of the construction sector all over the globe is being accelerated by urbanization, growing per capita disposable income, and growth in the construction of residential and non-residential buildings.
Growing demand for vapour barriers for water vapour prevention, corrosion resistance, insulation, and others is anticipated to bolster its consumption rate in the coming years. Considering this, FMI has projected the global vapour barrier sales to reach a value of US$ 18,268.8 million by 2033.
Countries like China, and the United States have witnessed a hefty growth in the development of building infrastructure in their prominent cities. Also, developing countries like India, Brazil, and ASEAN have registered significant investments for the enhancement of the infrastructure. The growth in the construction of the residential and commercial sectors is anticipated to boost the sales of vapour barriers.
How Increasing Scope of Repair and Rehabilitation from Existing Structures Fuels the Growth of the Market?
The construction industry has established stability regardless of the adversities in the market. Investments in private construction are increasing in the current scenario. While spending on construction is sizeable, material costs have increased further. Construction projects in private offices across the globe are expected to drive steady demand for construction materials, including insulation materials.
The total expenditure, repair, and rehabilitation are expected to account for a key share of the overall figures with a sizeable scope of demand generated from residential and commercial building construction.
In the coming years, more than half of all construction workers, both commercial and institutional, are likely to invest their energy in green buildings, which is driving the global market of vapour barriers.
Country-Wise Insights
What is the Demand Outlook for Vapour Barriers in the United States?
The United States vapour barrier market accounted for a 25.1% share in 2022. The sales of the vapour barrier in the United States are estimated to witness a growth rate of 4.6% over the forecast period. Strong development in the end-use sector has bolstered the market demand outlook in the country.
The growth of the vapour barrier market is highly dependent on the growth of end-use industries like building construction. The building and construction industry in the United States has witnessed considerable growth over the recent past. The growth prospects are expected to remain strong throughout the forecast period. The vapour barrier also needs to remain updated and integrate new VOC emission regulations.
Increasing investment in research and development to produce efficient products with a low carbon footprint is providing significant opportunities for the key market participants of the country.
How Emerging Technologies and Players are Changing the Game?
The vapour barrier market is highly competitive, with a few key players dominating the market. Key players have established themselves in the market and have built strong brand recognition, making it challenging for new entrants to compete.
To maintain their dominance in the market, the key players in the vapour barrier market are focusing on innovation and product development. They are investing hugely in research and development to create new and advanced products that meet the growing demand for energy-efficient construction materials. Additionally, these companies are also expanding their distribution networks and entering into strategic partnerships with suppliers and contractors to reach a wide customer base.
One of the significant challenges faced by companies in the vapour barrier market is the fluctuation in raw material prices. The industry relies mainly on plastic and synthetic materials, and any disruption in the supply chain can impact production and profitability. Additionally, the increasing demand for eco-friendly materials is also creating a challenge for companies, as they must balance the need for sustainable products with maintaining quality and affordability.
Key market participants are also focusing on expansion strategies by establishing new manufacturing units and collaborating with other market participants to enhance their market footprint.
