Fencing Market Growth & Trends
The global fencing market size is anticipated to reach USD 44.39 billion by 2030, growing at a CAGR of 5.5% over the forecast period, according to a new report by Grand View Research, Inc. The growing need to safeguard agricultural assets and the aggressive investments being made by private companies in strengthening the security and enhancing the aesthetics of their premises are expected to drive the growth of the market over the forecast period. The growth of the real estate market and the increase in the number of remodeling projects being undertaken are expected to contribute to the growth of the market.
Fencing Market Segmentation
Grand View Research has segmented the global fencing market based on material, distribution channel, installation, application, end use, and region:
Based on the Material Insights, the market is segmented into Metal, Wood, Plastic & Composite, Concrete.
- The metal segment accounted for the largest revenue share of over 50% in 2021. Metal fencing is particularly used in public places and by government organizations. The growing preference for chain links fences and ornamental fences is expected to drive the growth of the segment. The growing need to install a stronger fence to enhance security can also be considered one of the key factors driving the popularity of metal fencing. The growing preference for durable fences that can potentially withstand the changing weather conditions bodes well for the growth of the segment.
- Wood fencing is a popular choice for residential applications, especially in semi-urban and rural areas, owing to its distinctive aesthetic appeal and the easy availability of wood at affordable prices. These factors have been driving the growth of the wood segment over the past few years. However, wooden fencing is anticipated to witness intense competition from plastic & composite fencing, owing to the lower cost and maintenance associated with the latter. Hence, the plastic & composite segment is also poised for significant growth over the forecast period.
Based on the Distribution Channel Insights, the market is segmented into Online and Retail.
- The retail segment accounted for the largest market share of over 75% in 2021. The retail distribution channel provides customers with instant access to the products offered by key vendors. It also helps vendors in reducing their marketing budget, thereby contributing to the growth of the segment. Customers looking for customized fences prefer visiting retail stores. Given that customized solutions are rarely available on popular online marketplaces; customers can conveniently visit retail outlets to procure fences as per their requirements.
- The online segment is expected to register the fastest growth over the forecast period. There are several benefits associated with online distribution channels. Setting up an online distribution channel calls for relatively lower startup costs as compared to a retail store. Besides, online channels also allow customers to check out all the products on offer and compare those with each other in real time. The growing awareness about the benefits associated with online channels is also encouraging vendors to opt for online distribution channels, thereby driving the growth of the segment.
Based on the Installation Insights, the market is segmented into Do-It-Yourself and Contractor.
- The contractor segment accounted for the largest revenue share of over 75% in 2021. There are several contractors present in the market offering adequate expertise in installing fences according to customers’ suggestions related to aesthetics. Contractors possess the material handling capability usually hard to establish on the customers' part. Contractors can also deploy skilled professionals capable of installing fences with utmost efficiency. Hence, customers prefer getting fences installed through contractors. All these factors are allowing the contractor segment to dominate the market.
- The Do-It-Yourself segment is poised for significant growth over the forecast period in line with the customers’ growing preference for customized fences. There are numerous Do-It-Yourself (DIY) fencing kits available in the market. In most cases, fences constructed using DIY kits tend to be vinyl fences as they are the easiest to install. However, although installing a fence as a DIY activity can be an option for customers, it is often highly time-consuming. In other words, customers opting for DIY kits may have to cope with a lengthy fence construction process.
Based on the Application Insights, the market is segmented into Residential, Agricultural, and Industrial.
- The residential segment accounted for the largest market share of over 60% in 2021. The increasing residential construction and remodeling activities allowed the segment to dominate the market. The strong emphasis households are putting on security and privacy and the increasing levels of disposable income are driving the investments in fencing products for residential applications. The preference for installing customized fences and enhancing the aesthetic appeal of the residential properties is also emerging as one of the key factors driving the growth of the segment.
- The growing need to safeguard farm animals, crops, and farm areas from wild animals and thieves is anticipated to drive the demand for fences for agricultural applications. The rise in the instances of agricultural area intrusions is propelling the demand for fencing for agricultural applications. Fences used in agricultural applications are typically designed and manufactured according to customers’ requirements using good-quality raw materials. Meanwhile, the industrial segment is anticipated to grow in line with the growing demand for fencing solutions from industrial and manufacturing units.
Based on the End-use Insights, the market is segmented into Government, Petroleum & Chemicals, Military & Defense, Mining, Energy & Power, Transport, Others.
- The military & defense segment accounted for the largest market share of over 29% in 2021. The growing need for adequate border control and safety is expected to drive the growth of the segment. Meanwhile, the energy & power segment is expected to emerge as the fastest-growing end-use segment over the forecast period. The growing demand for high-security fencings, such as anti-cut and anti-climb perimeter fencing and partitioning to protect critical power grid infrastructure is estimated to drive the growth of the segment over the forecast period.
- Petroleum companies and chemical companies are making significant investments in upgrading their existing refineries and processing plants as well as developing new industrial infrastructure. Activities carried out in these facilities often involve the release of hazardous chemicals and gases, which can be harmful to both trespassers and other individuals invading the premises knowingly or unknowingly. Hence, these companies are installing strong and durable fencing to counter any potential instances of trespassing, thereby driving the growth of the petroleum & chemicals segment.
Fencing Regional Outlook
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
Market Share Insights
- September 2020: Bekaert and Almasa SA signed an agreement to merge Proalco SAS, a subsidiary of Bekaert, with Almasa SA’s steel wire activities to combine the resources and expertise in offering new and existing steel wire products and solutions to the customers.
Key Companies Profile & Market Share Insights
The market can be described as a highly competitive market characterized by a high degree of fragmentation and dominated by a large number of local manufacturers catering to the needs of the customers in their respective regions.
Some of the prominent players operating in the global fencing market include,
- Allied Tube & Conduit
- Ameristar Fence Products Incorporated
- Associated Materials LLC
- Betafence NV
- CertainTeed Corporation
- Gregory Industries, Inc.
- Jerith Manufacturing Company Inc.
- Long Fence Company Inc.
- Ply Gem Holdings Inc.
- Poly Vinyl Creations Inc.
Order a free sample PDF of the Fencing Market Intelligence Study, published by Grand View Research.