The decking market is expected to grow at a CAGR of 6% during the forecast period. Changing lifestyles and rising use of outdoor living spaces, Revival of construction industry, and Replacement of wood with composite decking are some of the significant factors fueling decking market growth.
Changing lifestyles and rising use of outdoor living spaces
The growth of residential construction activities in the US, Europe, and APAC will drive the growth of the segment. However, due to COVID-19, many businesses have stopped operations or working on a limited capacity. For instance, in May 2020, private-owned housing completions were at an annual rate of 1,115,000 as compared to the rate of 1,230,000 in May 2019. Therefore, the growth of the residential segment of the decking market in the US will be driven by the initiation of maintenance and repair projects.
The increasing disposable incomes of people and rapid urbanization in countries in APAC, such as China, India, Malaysia, and Indonesia, are necessitating the construction of new residences and public infrastructure. Hence, the governments of several countries in the region have implemented such initiatives. For instance, the Government of India initiated the Smart City Mission and the Make in India initiative. It also allocated $7.5 billion for the Atal Mission Rejuvenation for Urban Transformation (AMRUT) mission. In 2015, the Government of India launched a Housing for All program to build 20 million residences for the urban poor by 2022. Such initiatives will increase the volume of residential construction and drive the growth of the segment in APAC.
