Thursday, 11 August 2016

Growing Acceptance of Synthetic Alternatives Encourages Growth in Demand for Fencing Products

The global Fencing Market is led by suppliers both large and small, operating at the domestic and global levels. Key players in the market include: National Fence Systems Inc., Tyco International, Saint Gobain, Guardian Fence Supplier, and Sogazco Inc. Being a consumer-driven industry where all players are competing to attract new consumers through aggressive marketing strategies, customer satisfaction has become the main motto of players, finds Transparency Market Research (TMR) in a new study. The entry of new players has made the market highly competitive. Companies are thus striving to offer cost-effective, yet high quality fencing solutions, says TMR.

A lack of stringent regulatory norms for entry in the market bodes well for new entrants. Thus, the threat of new entrants is expected to be medium in the coming years. This has compelled existing players to look for strong distribution networks and business agreements with large players, to ensure long term profitability. There also exists a high scope of consolidation in the market, in the emerging economies. This is expected to make the competition level high in the coming years. The only substitute for fencing is cement walls, and thus the threat of substitutes from external products is minimal in the market.

Refresh and Remodeling Projects Fuels Demand for Fencing Solutions

The global demand for innovative and decorative home improvement products has increased significantly as consumers are increasingly becoming conscious about home maintenance and repair. Remodeling activities have been growing in recent years, increasing the demand for fencing products. Growing disposable income of people in emerging nations, a need for increased security and maintaining privacy, and rising housing constructions are other factors that are contributing to the growth of the global fencing market.

Market Players Face Reduced Profitability due to Rise in Raw Material Prices

One of the challenges gripping the global fencing market is the volatility of raw material prices. Players in the fencing industry have to pay high tariffs on electricity and gas, which in turn increase the overall cost of production considerably. Thus, the profitability of fencing products is dampened owing to lower margins.

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Another factor restricting the growth of the market is the need for metals and steel to produce colorful and strong fences, which are not only more expensive, but also not abundantly available. This limits the scope of product varieties and also restrains the development of novel products, thus affecting the potential of growth in the global fencing market.

Increasing Demand for Residential Fences to Create Opportunities of Growth

The growing construction and remodeling industry segments are expected to create huge opportunities for privacy fences. People are increasingly opting for comfort, convenience, and attractive decorative materials, which is behind the popularity of privacy fences.

The growing acceptance of synthetic alternatives is encouraging the demand for temporary fence, wire mesh, wire fence, portable fence, and steel fence post. This is expected to create a strong growth potential for the fencing market. Developing innovative and attractive fences for consumers who are preferring fashionable and casual home decoration products will also create a need for design developments in the industry.

The global fencing market is expected to be worth US$29.1 bn by 2018. By product, the commercial wire fence, is expected to lead in the market by 2018. On the basis of type, the metal fencing segment is expected to lead and account for 52.3% of the global fencing market by 2018. The residential segment is anticipated to lead by 2018, and account for 61.2% of the global market. North America led the market in the past and is expected to continue to lead in the coming years, and account for 32.6% of the market.

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Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.

TMR’s data repository is continuously updated and revised by a team of research experts so that it always reflects the latest trends and information. With extensive research and analysis capabilities, Transparency Market Research employs rigorous primary and secondary research techniques to develop distinctive data sets and research material for business reports.  

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