US Air & Water Barriers

US Air & Water Barriers

US demand for air and water barriers is forecast to decline at an annual average rate of 1.5% to $8.6 billion in 2027, the result of prices for these products moderating significantly from their 2022 peak. Real demand in the near term will be restrained by the significant levels of air and water barrier demand in 2020 and 2021, which were elevated due to high levels of new housing construction, a surge in home renovations, and severe weather events in parts of the US during those years. However, growth in real terms and in market value will resume later in the 2022-2027 period due to:

•  a rebound in the commercial building construction market after the pandemic-induced declines of the 2017-2022 period
• housing starts that are forecast to start increasing again, after initial declines

Rebounding Commercial Building Construction Leads to Building Wrap & Fluid-Barrier Sales

Among the major weather-resistive and air barrier (WRAB) products, building wrap and its liquid-applied counterpart – fluid-applied barriers – will see gains in both real terms and market value. While approximately 25% of building wrap demand is derived from the commercial market, fluid-applied barriers are overwhelmingly used in commercial applications. Growth will largely stem from building owners continuing previously delayed renovation and repair projects.

Infrastructure Investment & Jobs Act Boosts Demand; Pipelines to See Sizable Gains

Air and water barrier products demand will be bolstered by the Infrastructure Investment & Jobs Act, which was passed in late 2021 and allocates over $1 trillion (over eight years) for a wide array of infrastructure-related projects around the US. Many of these projects – including the renovation of bridges, roads, highways, and water and sewage facilities – will provide opportunities for air and water barrier manufacturers.

Pipelines will be the leading outlet for air and water barrier infrastructure products, due to the importance of protecting potable water pipes from corrosion and cracking, leading to water contamination. Roads and bridges will be an important secondary market for air and water barrier infrastructure products. Beyond the mere size of the US roads system, many roads and bridges are far past due for repair, upgrade, or outright replacement, which will create market opportunities for membrane and liquid-applied waterproofing products.

Study Description