Growing Energy-Efficient and Sustainable Construction to Boost the Global Facade Market

Published: May 2023

Facade refers to the building envelope that acts as the outer skin of a building. The market is being driven by the growing demand for energy-efficient building solutions, growing awareness of the environmental impact of buildings, and increasing construction activities in emerging economies. Facades offer several benefits, such as improved thermal insulation, enhanced aesthetics, and reduced energy consumption. Additionally, the implementation of stringent building codes and regulations is also expected to drive the growth of the facade market as building owners and developers seek to comply with these standards. Owing to such factors, the global facade market is projected to grow at a CAGR of 8.1% during the forecast period (2022-2028).

Browse the full report description of “Global Facade Market Size, Share & Trends Analysis Report by Raw Material (Glass, Wood, Metal, Ceramic, Polyvinyl Chloride (PVC), Stone, Concrete, and Others), by Façade Type (Ventilated, and Non-Ventilated), and by End-User Industry (Commercial, Residential, and Industrial) Forecast Period (2022-2028)” at https://www.omrglobal.com/industry-reports/facade-market

Key Trends in the Facade Market

Increasing Construction Activities and Urban Area Developments

There is an increase in urban area developments and construction activities across the globe. For instance, according to the World Bank, cities are home to 56% of the global population (4.4 billion people). This trend is predicted to continue, with the urban population more than tripling by 2050, when roughly 7 out of 10 people will live in cities. As the urban population grows, construction activities will also increase. Additionally, according to the UN Environment Programme, the value of the global building construction business climbed by 5% to more than $6.3 trillion in 2021. The commercial segment is also the major adopter of facade systems and contributes 51% to the global facade market. The growth is largely attributed to the vertical expansion of multinational companies across the globe. 

Use of Technology and Sustainability in Facade Manufacturing

There is increasing use of advanced technologies to manufacture cost-efficient and easy-to-manufacture facades. For instance, the use of building information modeling (BIM) software and 3D printing technology has enabled architects and designers to create more complex and customized facades. Additionally, the use of sustainable materials such as timber, recycled glass, and green walls has become more popular due to the growing emphasis on sustainability and environmental responsibility. For instance, the Edge building in Amsterdam features a fully transparent glass facade that uses solar panels to generate renewable energy. 

Increasing Use of Energy-Efficient and Solar Facades 

Taking the external environment into account, the demand for environmentally friendly facades is growing across the globe. Building owners are also understanding the need for such facades. According to UN Environment Programme data, building energy efficiency investment surged by an astounding 16% from 2020 to nearly $237 billion in 2021. The energy efficient initiatives include double-skin façades (DSFs) that increase internal thermal comfort and energy efficiency in building envelopes to encourage energy savings and solar shading facades.

Hence, solar facade installations are seeing profitable development, and most manufacturers are working on creating new and sophisticated solar facades to suit the rising demand for solar facades. For instance, in March 2022, Mitrex, a Canadian solar technology firm, unveiled the Solar Brick, which resembles a brick wall but has integrated solar modules. These modules are lightweight and sturdy, and they can store enough energy to power the structure. 

Expansions and Innovations by Major Market Players

The facade market has significant contributors such as Enclos Corp., Apogee Enterprises Inc. (Harmon, Inc.), Rockwool International A/S, Permasteelisa SPA, Walters & Wolf, and Saint-Gobain Glass Facade. To maintain their competitiveness in the market, some of these players are diversifying their product portfolios and following various mergers and acquisitions activities. Some of the recent developments by these market players include-

In December 2022, Enclos Tensile Structures, Inc. (ETS), a Minnesota-based specialized facade contractor and leading manufacturer of custom curtainwall, purchased Dallas-based PFEIFER Structures America LLC from its parent organizations, P&E Holding, LLC, and PFEIFER Structures (US) Holding Inc. Through this acquisition, Enclos added structural glass systems, unique tensile membrane structures, and kinetic structures to its North American portfolio.

In February 2021, a new company, Clarison Group, was formed to compete with European façade suppliers. Clarison was formed by Alucraft Systems, EAG, Alucraft, and Williaam Cox. These four companies are owned by Elaghmore, a UK private equity investor.

Government Regulations and Campaigns to Support the Market

Governments across the globe are launching schemes and initiatives to raise awareness about the benefits of energy-efficient building practices, including the use of high-performance facades. These campaigns are creating demand for energy-efficient facades and helping educate builders and architects about the latest developments in facade technology. Additionally, various funding programs are also being launched to increase development activities and demand for facades. Some of the recent programs include-

In February 2023, in the US, the West Chester Business Improvement District opened applications for a façade enhancement grant program from February to March 2023. The BID won a $50,000 grant from the state Department of Economic and Community Development to finance the Façade Improvement and Maintenance Grant Program. The incentives will assist companies and commercial property owners in making necessary building upgrades and enhancements. Qualified projects may be eligible for a matching grant covering up to $5,000 in project costs. 

In January 2023, the Town of Onancock in Virginia, the US, initiated a new effort to boost the economic vibrancy and identity of the town's commercial areas. The Onancock Commercial Façade Improvement Grant (OCFIG) offers financial incentives for remodeling, restoring, and conserving commercial business exteriors in the B-1, B-2, and B-Waterfront business zones of the Town of Onancock.

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