Saudi Arabia Turbo Generators Market Assessment, By Cooling Type [Air-cooled Turbo Generator, Hydrogen-cooled Turbo Generator, Water-cooled Turbo Generator], By End-user [Coal Power Plant, Gas Power Plant, Nuclear Power Plant, Others], By Region, Opportun

Saudi Arabia Turbo Generators Market Assessment, By Cooling Type [Air-cooled Turbo Generator, Hydrogen-cooled Turbo Generator, Water-cooled Turbo Generator], By End-user [Coal Power Plant, Gas Power Plant, Nuclear Power Plant, Others], By Region, Opportunities and Forecast, 2017-2031F

United States building product market is projected to witness a CAGR of 4.05% during the forecast period 2024-2031, growing from USD 159.23 billion in 2023 to USD 218.76 billion in 2031. The United States building products market is projected to expand substantially due to a shift in homebuyer preferences due to rapid urbanization, intra-country migration, and shifting consumer preferences tied to changes in demographics, such as the aging of the population and maturing millennials. Between 1992 and 2023, the percentage of residents of the United States living in urban areas increased from 76% to 83% and is expected to continue as the population has become urbanized, so has its composition. Growth of the housing market due to urbanization and economic growth fosters renovations and new constructions, making it a potentially big market for manufacturers and suppliers. Meanwhile, millennials are buying their homes, thus boosting the demand for building products to be incorporated into new homes. Moreover, as homeowners increasingly prioritize comfort, luxury, smart building products, and aesthetic appeal, the demand for high-quality products with a wide range, including flooring, cabinetry, countertops, fixtures, and energy-efficient systems, is rising. Smart-home systems, which are intended to aid the buyer of a home in becoming more convenient, are attracting a lot of interest. The shift in consumer preferences has created new categories of products that have become hotbeds for building products in metropolitan areas. Companies are carefully monitoring consumer preferences and pain points and responding in time to effectively and promptly fulfill customers' demands. This proactive approach allows manufacturers to stay ahead of trends and enhance their product offerings, ensuring they align with the evolving needs of modern consumers who want to build products with aesthetic looks and low maintenance.

For instance, in June 2023, VERSATEX Building Products, LLC introduced XCEED, the First 16-foot Cellular PVC Lap Siding New System that reduces butt joints and assures 16″ on center nailing. This product is physically profiled for faster, easier, and more accurate installation in homes and commercial places. This durability reduces replacement costs and appeals to homeowners looking for low-maintenance options. Additionally, the sleek profile of their products enhances the aesthetic appeal of homes, allowing customers to achieve a modern look without sacrificing quality. Such advancements reflect the industry's commitment to improving efficiency and meeting the evolving needs of consumers, further driving market growth.

Comfort, Luxury and Aestheticism to Drive Market Growth

Comfort, luxury, and aestheticism are significantly augmenting the growth of the United States building product market. Consumers are increasingly concerned about their home and workplace environment, coupled with looking for products and designs that ensure comfort and elegance. Due to this, high-end building products, smart home technologies, and green and sustainable building products have gained popularity in metropolitan regions. However, homeowners are no longer satisfied with mere buildings, demanding spaces that represent their lifestyle and cater to a healthy well-being. Luxury features are becoming integral in new homes and restructured buildings through products such as fine flooring, sophisticated lighting, and top-of-the-line appliances. Moreover, aesthetic appeal in building products, from natural stone to sleek panels, plays a fundamental role in buying attraction and real estate value.

Environmental concerns of homeowners lead to investments in luxury products that fulfill their aesthetic needs and signify their values. Due to this, manufacturers have been looking forward to innovating to respond to the requirement, focusing on materials that may not compromise the style and are environmentally friendly. Thus, building products companies are moving ahead with a clear emphasis on the junction of comfort, luxury, and design.

For instance, in February 2024, Knauf Group expanded its range of oversized gypsum wallboard systems with the launch of its new Maxiboard boards. The boards’ 900 mm thickness allows for a 30% reduction in studs, screws, and joint treatment in installation and gives aesthetic looks in commercial places. Maxiboard boards are optimal for use in large spaces, including shopping centers, cinemas, and data centers. They offer aesthetics and EI 240-certified fire resistance in systems up to 6 meters high and EI 120-certified fire resistance in systems up to 11 meters high.

Aging Population to Boost the Demand for Reconstruction and Renovation

The aging population in the United States provides an appealing business opportunity for the building product market players, as many homes that were built during the mid-20th century require major remodeling or reconstruction. As reported by the U.S. Census Bureau, the population in the United States aged 65 and over grew from 2010 to 2020 at the fastest rate since 1880 to 1890 and reached 55.8 million, a 38.6% increase in just 10 years. Although an ever-increasing number of householders appreciate the old features, contemporary building products that enhance functionality and aesthetics are in high demand. Homeowners are opting for quartz countertops, energy-efficient appliances, and cabinetry styles that may immediately enhance a property's aesthetic appeal while encouraging a more efficient lifestyle. The push for sustainability has upgraded the old insulation, windows, and roofing materials with more environmentally friendly alternatives. This initiative achieves significant objectives of making processes easily accessible, lowering escalating energy costs, and addressing the growing market demand for energy efficiency. On the contrary, the younger generations of millennials are expected to spend time in homes that retain the historical flavor and a modern touch. They find these restorations with the original architectural value of the older structures appealing while assuming the newer comforts. The demand for innovative and smart building products is driving the market and initiating improvement and sustainability within communities across the country, making old homes technically advanced and improving living standards generally.

For instance, in June 2024, Armstrong World Industries Inc. introduced Tectum DesignArtLines Final PB ceiling and wall panels. The company offers architects and designers an opportunity to deliver unique visuals created by panels, providing excellent sound absorption. Tectum DesignArt-Lines Finale PB panels come in 29 standard routed panels, including 14 designs for 24"" x 24"" panels and 15 designs for 24"" x 48"" panels. Panels are available in 24 nature-inspired colors, unpainted Natural, and several made-to-order colors.

New Construction Segment to Dominate the Building Product Market Share

There is growing demand for new construction and buying new homes among the millennials, driving the demand in the building product market. There has been an increased rate of economic growth, rising population densities in urban areas, and rising preferences of GenZ and millennials, which in turn fuels a strong demand for new housing and commercial developments. Currently, millennials are interested in new home construction rather than renting. As cities expand to accommodate rising populations, they develop major new construction projects. This triggers the need for more building complexes such as shopping malls, commercial places, cinemas, retail outlets, and data centers. Economies of scale are realized on new construction projects, whereby the cost per unit is reduced. This cost efficiency makes newly constructed homes more competitive than older homes that may require big investments for upgrades. Sustainable materials made up of fire-resistant material and smart home technologies combined with new construction meet standards for the current times and appeal to buyers who seek energy-efficient and innovative living spaces that are not found in older homes that require major renovations to achieve comparable standards. These features appeal to buyers seeking energy-efficient and innovative living spaces and quality that older homes often lack unless extensive renovations are undertaken.

For instance, in August 2024, according to the Census of the United States government, privately-owned housing construction projects in August stands at a seasonally adjusted annual rate of 1,356,000. This is 9.6 percent above the revised July estimate of 1,237,000 and 3.9 percent above the August 2023 rate of 1,305,000, which shows the rising trends in new housing construction. This upward trajectory reflects increasing demand for homes as more people seek new, signaling a robust recovery in the housing market for the construction of new projects.

Northeast Region to Witness Surge in Demand for Building Products Amid Rapid Development

The demand for building products is high in the Northeast region of the United States. High metropolitan cities such as New York City, Boston, and Philadelphia have dense urban landscapes that are consistently being built and renovated. This kind of high population density boosts the demand for household and commercial spaces, which in turn triggers the demand for a range of building products. Furthermore, the region boasts a diversified economy that includes sectors of high potential, such as finance, technology, education, and healthcare, that will attract many new residents to the area and spur construction activity. The northeast region has an aging infrastructure and older housing stock that is supposed to be refurbished. Owners and developers are exploring renovation to meet today's requirements for higher efficiency in energy use, safety, and aesthetics. In addition, cultural orientations play a role as homeowners tend to have an aesthetic sense of the building and an interest in preserving history, so there is more of a demand for high-end materials that bring added value to a property. Companies have taken their initiatives, including collaborating, establishing manufacturing facilities, and others, to meet the demand in the Northeast region of the country and differentiate it from other sections of the country.

For instance, in September 2024, a joint venture between The HYM Investment Group, National Real Estate Advisors LLP, Cathexis Holdings LLP, and the City of Revere opened Amaya, the first residential building to deliver at Suffolk Downs. Upon completion, the entire project will provide some 10,000 units of housing. Located in Massachusetts, the Northeastern region, the 475-unit community provides more than 34,000 square feet of amenities and 24,000 square feet of ground-level retail space. Amaya’s residences range from studio units to two-bedroom apartment homes.

Future Market Scenario (2024 – 2031F)

Rising government and consumer attention to realizing sustainable construction practices will increase demand for eco-friendly building products.

The rise of smart building technologies and automation systems will gain market influence in the forecasted period, leading to enhanced energy efficiency and user experience.

Rapid urbanization will stimulate demand for new building solutions to accommodate growing populations.

The building codes and regulation requirements will be much more stringent and allow manufacturers to develop compliant, high-performance building products that keep evolving with changing standards.

Key Players Landscape and Outlook

Building product manufacturers are currently evaluating the diversification of their product portfolios in response to innovations. This evaluation enables them to decide whether to focus on organic growth or explore inorganic strategies, such as mergers and acquisitions, to develop innovative products.

Technological advancements are reshaping opportunities and risks throughout the industry value chain. Some steps in the value chain are being entirely bypassed due to technological innovations, prompting company executives to reevaluate their positions within their market. In this competitive landscape, building products companies have a unique opportunity to harness smart building solutions, offering more cost-effective services. As the industry currently underutilizes these digital advancements, early adopters stand to gain a competitive edge. Industry leaders can not only implement digital platforms for sales but also leverage them to enhance the overall customer experience.

Sustainability remains a critical concern, with consumers and builders alike prioritizing eco-friendly products and manufacturing processes that reduce environmental impact. This shift has led to increased investment in sustainable building practices and products that promote energy efficiency.

For instance, in March 2024, Saint-Gobain Group, through its building products subsidiary CertainTeed Siding, announced that it achieved a 96% reduction (Scopes 1 & 2 only) in emissions from the manufacturing of polymer shakes, vinyl trim, millwork, and vinyl siding at its manufacturing facilities in McPherson, Kansas, Social Circle, Georgia, and Williamsport, Maryland, respectively. With fully electrified processes and 100% of the electricity used backed by renewable energy credits (RECs), Saint-Gobain has taken a significant step in its mission to provide low-carbon siding products to the United States market and reduce its environmental footprint.