Fencing Market Trends

Growth Drivers

• Growing urbanization and increasing land scarcity - Urbanization has been considered one of the major driving forces for the fencing industry. Owing to the increasing density of population along with the increasing need for efficient land use, the demand for fencing solutions has been significantly anticipated. This is because fences provide a convenient way to demarcate space and establish boundaries. According to a report, about 44% of the world's population lives in cities, about 43% lives in suburbs and towns, and around 13% in rural areas in 2020. Additionally, urbanization has also led to an increasing focus on aesthetics and design, which has created a surge in the market demand for fencing solutions that are not only functional but also visually appealing. 
• Increased emphasis on safety and security - The increasing incidence of crime has led to an increasing concern for safety in cities and many communities, which has created a surge in the demand for safety measures, including fences and other barriers as well, to ensure the safety and security of people in public spaces, residential areas, and businesses. According to a report, the world crime statistics rate was about 5.61 in 2020, which was valued at about 0.74% in 2019.
  
  The fencing sector also contributes to providing a safe and secure environment by acting as a barrier, while minimizing the potential criminals and also by providing visual protection.
• Increasing need for defense systems - The increasing need for defense systems, specifically missile shields and air defense systems, has created a surge in the demand for fences to protect those systems. In addition, coupled with the poised concerns over border threats and security, the demand for the fence sector had crossed substantially while providing a barrier against the potential aggressors. According to a report, the predicted market share of home security systems is more than 106 billion by 2039, with a CAGR of about 8.5%.

Challenges

• Limited applications - The fencing industry can only be used and installed in areas with flat surfaces, such as open spaces, courtyards, and more. Fences also have limited adaptability, credited to their designs and height, which are often restricted and propelled by geographical limitations or regulatory compliances. This limits the estimated increase of the fencing industry, which in turn can act as a restraining factor for the growth of the landscape. Fencing systems also lack visibility, which limits their effectiveness and deterrent factor in certain situations.
  
  As installing fencing solutions can incur lucrative high costs, and after that, there is also a high cost associated with its maintenance and upgrading. This is necessary to remove any barriers across national and international lines, as fences have limited durability and require frequent maintenance to remain effective over time.