The global fencing market size was worth USD 28.0 billion in 2019. It is anticipated to register a 5.2% CAGR over the forecast year, 2020 to 2027. The increasing number of new house constructions and renovating activities are likely to drive the market over the forecast duration. In addition, other factors such as high reliability and low cost involved in maintenance are further anticipated to propel the market growth. Over the past few years, there has been a rise in investment in the construction of commercial complexes and transportation, which in turn, has further bolstered the product demand.
Increasing focus on improving the value and appearance of properties is estimated to bode well for the growth of the market. In addition, rising institutional construction activities are anticipated to drive the demand for fencing. Government investment in the construction of parks, government offices, and public places has surged over the past few years. The customer considers various factors such as design, quality, aesthetic value, and cost before making the purchasing decision.
The growth in the real estate sector is likely to affect the fencing market positively. Rapid industrialization is the other factor attributing to the growth of the market. Over the past few years, the introduction of cost-effective fencing solutions has spurred the product demand considerably. Rising construction sectors in developing countries such as India and China are further driving the product demand. Moreover, an increase in the number of security breaches has resulted in a rise in investment in safety and security.
Growing environmental concern among consumers is likely to drive the demand for environment-friendly fencing materials. However, eco-friendly fencing requires high maintenance; as a result, consumers are shifting towards vinyl, as it requires low maintenance. Moreover, plastic fences are lightweight and require no professional assistance in installation.
The demand for fencing has been gaining traction in the agriculture sector owing to the increasing focus on securing livestock and related properties by farmers. The introduction of durable fencing solutions is estimated to positively affect fencing adoption in the agriculture sector. However, growing sales of counterfeit products are projected to emerge as a challenge in the market growth. In addition, increasing raw materials prices such as wood, aluminum, and iron are expected to hinder the market growth.
Depending on the material, the fencing market is classified into wood, plastic & composite, concrete, and metal. Of them, the metal segment is estimated to register the highest share over the forecast years. Increasing demand for this segment from government and public organizations is estimated to drive the segment growth. Further, increasing demand for ornamental and chain link fences are likely to spur the growth of metal fencing solution.
On the other hand, wood fencing is gaining traction among consumers due to its natural appearance and aesthetic values. Wood is likely to witness increased competition from composite and plastic. The high cost of maintenance and lack of durability is further anticipated to restrain wood demand. On the other hand, factors such as durability and low cost are predicted to drive the demand for composite and plastic fencing materials over the forecast duration.
Depending on the distribution channel, the market is segmented into retail and online. In 2019, the retail segment accounted for the highest share and is projected to dominate over the forecast duration. Retail stores offer easy access to various products offered by vendors. In addition, retail stores help in reducing marketing budgets for the companies.
The online segment, on the other hand, is anticipated to register the highest growth over the forecast duration. Online stores are easy to set up and incur a low cost. In addition, online channels provide a variety of products along with features such as doorstep delivery and price comparison. These advantages are likely to drive sales through online channels, especially in urban areas.
Depending on the installation, the fencing market is categorized into contractor and Do-It-Yourself. In 2019, the contractor installation segment held the largest share in the market. Contractors offer placement based on their experience and products, which makes fencing more efficient and aesthetically appealing, thereby gaining traction.
Besides, varieties of Do-It-Yourself kits are available in stores. Vinyl is the most preferred material for the DIY segment as it is easier to install. However, the installation of a sturdy fence requires multiple tools, which results in consumers seeking professional help.
Depending on the application, the market is segmented into industrial, agricultural, and residential. Among them, the residential application is projected to be the key segment from 2020 to 2027. The rise in new construction and remodeling activities is anticipated to drive the demand for this segment over the forecast years. In addition, the rise in disposable income and increasing focus on ensuring the safety of households are anticipated to bode well for the growth of the residential segment.
On the other hand, increasing focus on safeguarding livestock and agricultural properties is driving the demand for fencing solutions in the agricultural segment. In addition, incidents such as theft of costly pesticides and farm’s invasion for other related properties are driving the segment growth. Agricultural fences are designed as per the customer's needs and robust raw materials are used. On the other hand, the industrial segment is likely to gain traction owing to increasing demand from industrial and manufacturing units.
Among different applications, in 2019, the military and defense segment held the largest share in the fencing market. Focus on border control and safety is the key factor driving the segment growth. On the other hand, the energy & power end-use segment is likely to emerge as the fastest-growing segment over the next seven years. To protect the critical power grid infrastructure, fences are made around with robust raw materials. Due to the increasing security concern in this sector, anti-climb and anti-cut perimeters are required for better protection.
On the other hand, the petroleum and chemical sector is witnessing increased demand for fencing solutions. Infrastructure related to petroleum, and chemicals industries are critical in nature and they require robust fencing. The risk pertaining to explosive chemicals, caustic gases, and potential toxins are high in petroleum industries, thereby, its boundaries are well protected from fencing. Various other industries are also focusing on installing physical deterrence with an aesthetically appealing design.
Europe and North America are projected to be the major markets for fencing from 2020 to 2027. The rise in construction activities coupled with increasing demand for decorative home products is driving the product demand in these regions. In 2019, North America alone held more than 35% share in the market. It is predicted that over 70% of consumers will be from the middle-income groups in North America and Europe.
Increasing per capita income across the globe is likely to result in an increase in focus on home safety products. The Asia Pacific is anticipated to witness considerable growth owing to increasing installation for fencing from agriculture and residential sectors in emerging countries such as China and India. In India, rapid urbanization and growing spending on institutional construction in India are likely to further supplement the market growth.
COVID-19 outbreak has adversely affected the demand for the market. The pandemic has led to the closure of various end-user industries such as real estate, manufacturing, transport, and energy & power among others; as a result, there has been a significant decline in the growth of the market. In addition, the lack of raw materials owing to the disruption in the supply chain has led to the low production of fencing products.
With the reopening of various economic activities, construction activities have restarted, which, in turn, will supplement the demand for fencing. However, achieving the pre-COVID-19 level growth is estimated to take two to three years. Companies can focus on launching cost-effective and durable fencing products to gain a larger consumer share.
Major companies operating in the market include CertainTeed Corporation, Allied Tube & Conduit, Jerith Manufacturing Company Inc., Betafence NV, Bekaert, Ply Gem Holdings Inc., and others. The market is fragmented in nature, therefore, highly competitive. Various local manufacturers are catering to the regional needs. Technological innovation regarding design is projected to be the key factor in the growth of the market. Companies such as Allied Tube & Conduit, Betafence, and CertainTeed Corporation are holding a major share in the market.
To strengthen their market position, key players are focusing on mergers & acquisitions. Major companies are acquiring local players owing to their dedicated customer base. In addition, companies are introducing new products to diversify their product portfolios.
The base year for estimation
Actual estimates/Historical data
2016 - 2018
2020 - 2027
Revenue in USD Million and CAGR from 2020 to 2027
North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
U.S., Canada, U.K., Germany, France, Italy, Belgium, Poland, China, India, Japan, Brazil, Mexico, Saudi Arabia, and UAE
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
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This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Million Insights has segmented the global fencing market report on the basis of material, distribution channel, installation, application, end-use and region:
• Material Outlook (Revenue, USD Million, 2016 - 2027)
• Plastic & Composite
• Distribution Channel Outlook (Revenue, USD Million, 2016 - 2027)
• Installation Outlook (Revenue, USD Million, 2016 - 2027)
• Application Outlook (Revenue, USD Million, 2016 - 2027)
• End-Use Outlook (Revenue, USD Million, 2016 - 2027)
• Petroleum & Chemicals
• Military & Defense
• Energy & Power
• Regional Outlook (Revenue, USD Million, 2016 - 2027)
• North America
• The Asia Pacific
• Latin America
• Middle East & Africa
• Saudi Arabia
Research Support Specialist, USA