Global Window and Door Growth Slowing

September 15, 2007
Statistics
Markets

Global demand for windows and doors is projected to rise 5 percent per year to $150 billion in 2011, according to a new report from the Freedonia Group. Product sales will be spurred by generally healthy economic growth, rising per capita income and ongoing industrialization efforts in developing parts of the world.

While demand will continue to increase, the study from the Cleveland-based market research firm does see growth slowing. While overall demand is expected to grow 5 percent annually for 2006 to 2011, Freedonia estimates global demand was growing 6.5 percent per year from 2001 to 2006 (Table 1).

World Window & Door Demand
(billions of dollars)

 

% annual growth
 
2001
2006
2011
2001-
2006
2006-
2011
Total
85.7
117.5
150.0
6.5
5.0
North America
27.8
36.8
44.2
5.7
3.7
Western Europe
27.1
32.4
37.9
3.6
3.2
Asia/Pacifica
22.6
36.1
51.7
9.8
7.4
Rest of World
8.2
12.3
16.3
8.5
5.7
Table 1 - Source: The Freedonia Group Inc.

China, India, Mexico and Russia will register some of the largest sales increases in the coming years, and market gains are also expected to be strong in lower volume markets such as Malaysia, Indonesia, Ukraine, Iran and Turkey. Although growth will be less robust than in developing nations, fenestration demand in developed areas such as North America and Western Europe will climb as well.

In most industrialized countries, repair and improvement-related window and door demand will outperform sales in new construction applications. In the U.S. and Japan, new housing starts are off from record levels, preventing overall window and door demand in these nations from expanding at a faster rate through 2011.

World demand for vinyl, fiberglass and other plastic door products will outpace increases for other product types. Plastic door demand will be driven by technological advances that are enabling manufacturers to improve the appearance and performance of their products, resulting in competitive inroads being made in a number of markets now served by wood and metal doors. Sales of plastic windows will also grow at an above-average rate through 2011; however, wood and metal products will continue to account for a larger share of window and door demand in many areas, and sales of these items will rise along with construction spending.

The residential building market dominates world window and door demand, accounting for 63 percent of all sales in 2006. Consumer product demand will be fueled by higher income levels and growth in the number of households, even in regions such as Eastern Europe, where total population is declining.

Residential aftermarket sales of fenestration products will outperform new construction-related demand. Nonresidential building window and door demand will expand at a faster pace than residential building product sales. In contrast to trends in the residential building market segment, new window and door demand will outperform aftermarket product sales in the nonresidential building market, stimulated by increases in global new construction expenditures.

Entitled World Windows & Doors, the 387 pages report is available from Freedonia for $5,800. Information is available by calling the firm at 440/684-9600 or visiting its Web site at www.freedoniagroup.com.