EIFS Siding Market Gains Through 2025 to Be Driven by Rising Residential Adoption

CLEVELAND, March 11, 2022 /PRNewswire/ -- A new Freedonia Group analysis projects demand for exterior insulation finishing system (EIFS) siding to increase 1.5% annually through 2025 to 2.9 million squares valued at $490 million:

• Demand gains for EIFS siding – also known as "synthetic stucco" – will be driven by rising use in the residential market, which will account for the majority of growth over this period, boosted by new home construction.
• EIFS siding demand is also expected to rise in the commercial market, bolstered by rising commercial building construction and the specification of EIFS in more applications because of its ability to lower energy bills and meet stricter building codes for energy efficiency at a relatively affordable price.

Additionally, market growth will be supported by product developments that are expanding the range of colors and textures in which EIFS siding is available, allowing the material to be used in a wider range of styles (for example to mimic a brick aesthetic).

Product Improvements to Fuel Increased Residential Adoption

As manufacturers continue to improve EIFS durability and moisture resistance, more consumers are likely to opt for this product, particularly in areas of the country where the look of EIFS and stucco is already popular, such as the Southeastern states and in the West.

Outside of these areas, the widening range of colors and textures that EIFS can emulate will also increase demand for these products. Introduction of EIFS siding that imitates bricks, for example, can increase use of this material in the Northeast and Middle Atlantic states where brick aesthetics predominate. Additionally, rising contractor familiarity with EIFS will support demand, as this will limit improper installation of EIFS, which in the past has led to a negative perception of the material.

However, faster demand gains for EIFS will continue to be restrained by intense competition from alternative stucco and fiber cement, which have similar aesthetics and are more familiar to consumers and building construction professionals.

Want to Learn More?

EIFS Siding (Exterior Insulation Finishing Systems), now available from The Freedonia Group, analyzes US demand for EIFS siding by market. Historical data for 2010, 2015, and 2020 and forecasts for 2025 and 2030 are presented in squares and in current dollars (which are not adjusted for inflation).

The major market segments analyzed are:

• new residential
• residential renovation
• new commercial
• commercial renovation

In addition, residential demand is segmented by housing type (single-family, multifamily, manufactured housing).

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Press Contact:
Corinne Gangloff
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SOURCE The Freedonia Group