The global fencing market was evaluated at $24.22 billion in 2015 and has never stopped growing since then, with this trend being expected to continue at least for some years to come. By 2025 it is expected to grow up to $35 billion or more. Of course, one should remember that both its current state and projected growth differ from country to country – for example, the UK alone is responsible for more £1 billion. So, what defines the development of this market? Let’s look at the most important trends influencing its development and evolution.
1. New construction, remodeling, and improvement
Both the construction of new properties and the growing needs for the improvement of appearances and, therefore, the value of existing ones drives the growth of the industry because the fence is one of the first things a person sees when visiting a lot. Its appearance and quality define to a considerable extent the first impression. If the quality of fencing is low, it immediately devalues the rest of the property, even if everything else about it is alright.
2. Metal will remain the major material
In 2015 metal was responsible for 52 percent of overall revenue, and this position isn’t going to be contested. Metal fences and gates continue to be the most sought-after variants due to their longevity, dependability, and versatility. The growing interest for chain link and ornamental fences may further improve their position within the industry. Wood, on the contrary, is likely to be pressed by plastic and composite due to their lower costs.
3. Safety and security concerns
Not all fences are built with the sole purpose of security in mind (decorative fences always have been and remain a major segment of the market), but when it comes to office, commercial, and transportation construction, it does constitute a significant concern. Increasing construction rates in these spheres mean higher need for secure and durable fences, further driving the industry growth.
4. Government spending and institutional construction
Growing government spending in building and beautifying parks, public locations and premises of governmental institutions is predicted to also contribute to the growing demand for fences of all kinds. It is especially true for military and defense segment, particularly the increasing need for border control and safety.
5. Regional trends
The most significant regions for the industry are North America and Europe, with North America being responsible for no less than 36 percent of overall revenue. At the same time, over 70 percent of global consumption comes from middle-class families in Europe and North America, which makes this segment of the market the most competitive and saturated.
6. Not enough specialists
Although one wouldn’t call the growth rates of fencing industry explosive, it does grow at a steady pace, and this means the ever-increasing need for new employees. These people have to undergo special training and join the workforce at a regular rate. The problem is that almost half of businesses working in the fencing industry are small-scale local operations that usually cannot or don’t want to offer wide-scale training opportunities. However, some organizations already understand the importance of training new specialists for the sustained growth of the industry and make the first steps in this direction.
All in all, the global fencing industry is showing the signs of slow but consistent growth which is likely to continue over the next ten years or so. However, it is highly dependent on the continuing economic growth and increasing per capita income, especially in emerging economies such as China, India and other countries of the East Asian region.