Rapid industrialization along with increasing construction activities are the prominent factors driving the growth of the North America Stucco Market.
The North America Stucco Market was estimated at USD 2,979.0 million in 2020, and is expected to reach USD 3,903.7 million by 2027, growing at a CAGR of 3.9%, in the forecast period (2017–2027).
Rapid urbanization and increasing demand for enhanced aesthetics in residential and non-residential construction is majorly driving the demand for stucco market in North America. Stucco offers several properties such as durability, fire resistance and toughness which makes it suitable for long-term construction plans. Owing to these properties, stucco is widely used in the interior and exterior surfaces of the buildings. In addition, stucco plaster offers a great surface finish and is a low-cost material that requires least amount of maintenance. Due to this, it is widely being adopted in the construction of highways and skyscrapers. Moreover, the increasing inclination of a large number of people towards renovating their houses is also expected to accelerate the growth of stucco market. All these favorable factors are thus contributing in driving the demand of stucco market in North America.
Moreover, the increasing demand for Stucco can also be attributed to its growing architectural use in North America. Stucco helps in adding aesthetic values to architecture by acting as a sculpting and artistic material. It also is helps in covering up lesser visually appealing surfaces such as clay brick, metal and concrete surfaces. Apart from these, another crucial property offered by stucco is its resistance to rot and fungus. This is due to its the ability to transfer water or moisture that enters the plastered surface. These factors are highly impacting the use of stucco in the construction of architectural projects. Therefore, rising number of architectural projects in North America, particularly in the U.S., are driving the stucco market in the region. Some of the major architectural projects that were completed in 2020 in U.S. includes National Museum of the United States Army in Virginia, Oklahoma Contemporary Arts Center, US Olympic and Paralympic Museum in Colorado and One Thousand Museum in Florida among many others.
Furthermore, lucrative growth from Canada is also driving stucco market in North America. In 2016, the government of Canada launched its ‘Investing in Canada Plan’ project. This project involves an investment accounting to over $180 billion for building infrastructure in the country. The plan provides funding for several major projects relating to affordable housing, developing rural communities and public transit among others. In addition, some major projects in the country includes Bellechasse Transport Centre, the new Brampton Transit Facility and Calgary’s Complex Continuing Care Facility. These projects are highly expected to drive the market during the forecast period.
Despite strong growth factors, the North America Stucco Industry has faced certain challenges such stucco’s inability to hold well in the wet environments. Stucco is not the best option in highly humid region as it forms cracks on the walls. However, the advancement in stucco production by the use of insulation foam is offering immense opportunity in the market. Modern stucco applied on foam insulation creates a weather-proof seal and helps in reducing indoor energy consumption. In addition, modern stucco compound incorporates acrylic and offers a small quantity of flex. This has enabled stucco in earning eco-point due to its increased durability, thereby positively driving stucco market.
Covid-19 impact on North America Stucco Market
The Covid-19 outbreak has majorly impacted the North American economies and led to lowest growth in the construction sectors. Many projects in its final or bidding stages have been cancelled or delayed. The data released by the American Road & Transportation Builders Association shows that infrastructure projects exceeding $9.6 billion have been cancelled or delayed due to the pandemic. The negative hit of pandemic on construction sector has majorly impacted the growth of North America Stucco market. However, the growth is expected to recover due to the ongoing and upcoming infrastructure investments in the region. Some of the key upcoming and ongoing construction projects includes Wexner Medical Center's new inpatient hospital involving an investment of US$ 1.79 billion, new construction and renovation project in Harborview Medical Center that involves an investment accounting to US$1.74 billion among many others. These projects will immensely help stucco market in getting traction in the coming years.
The North America Stucco Industry Segmentation:
Key Findings:
Company Profiles and Competitive Intelligence
The key players operating in the stucco market in North America are:
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