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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