Supported by a strong economy and a developed market, the industry is anticipated to thrive in the coming years. The U.S. fencing industry landscape is dominated by the metal fencing segment, which forms the majority of a chunk of the U.S. market and is anticipated to remain so due to the growing demand from the residential sector for fencing solutions.

The increasing real estate development and remodeling projects are expected to drive the revenue demand over the forecast period. Commercial sectors, such as schools, colleges, and industrial premises, are adopting these products to enhance their security & safety. Governments, local and federal, are making huge investments in the development of parks and gardens to facelift these places.

Though the market tends to be easily affected by price variations and supply of raw materials in the manufacturing of products, the growing consumer affordability, availability of low-cost and fashionable fences, and customizable options are expected to propel the industry growth in the coming years. The use of new improved materials that are not only more strong and agile but also eco-friendly are anticipated to be the major product trends in the coming years. Hence the U.S. fencing industry is anticipated to grow over the forecast period in the industrial, agricultural, and especially the residential sector.
Material Insights

The market is segmented on the basis of materials used in metal, wood, plastic, and composite and concrete. The metal fencing segment is the largest segment, owing to its increased demand from the residential sector and government organizations, public places, associations, and for business use.

The cost effectiveness, security, and aesthetic value of metal fencing is driving the segment growth in the industry. The concrete segment is anticipated to grow at a rapid pace, owing to the easy installation, maintenance, and strength of the material it offers.
Distribution Channel Insights

The increasing awareness of the benefits offered by online channels is encouraging suppliers to opt for these channels, over the offline distribution channels. The benefits include considerably lower startup costs, less capital, and better customer experience, among others. Online channels also help in building and maintaining better customer relations across a variety of platforms.

The retail segment dominated the distribution segment in 2016, as fence manufacturers in the U.S. preferred selling their products through distributors and their sales and services centers. Suppliers often chose the offline channel as it allows them to run their business without making investments in marketing budgets.
Installation Insights

Fences installed by professionals have a high level of quality, require lesser time and efforts, possess durability and longevity, and are able to withstand weather changes. The fence manufacturers collaborate with contractors, having knowledge pertaining to installation. This is anticipated to propel the growth of the U.S. fencing market, with contract installation gaining popularity in 2016 and was valued at USD 5,359.8 million

The fences are expected to be installed by professionals as their placement and aesthetics in the premises have a crucial role in determining the value of the property However, the installation of fences by do-it-yourself method lacks quality due to inadequate experience. This will ultimately result in deterioration of the appearance and value of a property.
Application Insights

The residential segment is the largest in the U.S. fencing industry and is expected to remain so in the coming years. The demand for the segment is driven by the growing real estate market, a large number of construction projects, and the growing demand for home décor as well as privacy and security. The segment was valued at USD 4,370.9 million in 2016 and is predicted to witness remarkable growth over the forecast period.

North America metal fencing market size accounted for over 50% of the global revenue share in 2015. The prime reason for metal fences deployment in residential, agricultural and commercial sectors is to provide security and safety. In addition, it is also utilized to improve the aesthetics of buildings and construction properties. Increasing customer’s interest towards home improvement and home decor, the industry is expected to witness significant gains over the forecast period.

U.S. metal fencing market size was responsible for over 75% of regional revenue in 2015. The imperative need for residential fences and use of synthetic substitutes is rapidly growing in residential sector. In addition, rising economic growth of nations across North America is likely to propel the industry demand. In contrast, the need for fencing is prevailing across building and housing construction plans owing to increasing demand for safety and security in commercial sectors. The aforementioned factors are likely to surge the demand growth in commercial and residential sectors over the coming few years.

Increasing demand for barbed wire fencing is expected to drive the industry demand. It offers superior security as compared to other types of fences. Metal fences are ideally deployed for additional privacy and security. Pins can firmly lock into the rails and post as a barrier to the intruders while still being attractive. The strength of wrought iron fences protect against dreadful whether and are ideally used in residential and commercial sectors. In addition, these fences are furnishes with e-finish coating that offers maintenance free protection and also resists corrosion.

Mesh fencing is available in welded mesh or metal mesh and has experienced an impressive surge in popularity over the last few years. This type of fencing is strong as well as durable and mostly used in an extensive range of applications such as anti-climb, high security fences, integrated sliding gates, anti-ram, sports areas, boundary fencing and spectator enclosures. In addition, these fencing are much affordable as it provides immense value and less maintenance costs.

Growing demand for decorative home products and construction activities are anticipated to fuel the demand growth over the forecast period. Rising housing rebounds or constructions in housing completions coupled with increasing consumer interest in home décor and home improvement are likely to fuel the industry demand. However, rising energy cost as well as volatile raw material prices are expected to hinder industry growth. Development of attractive and innovative fences is likely to act as potential growth opportunity over the forecast period.

The industry has been bifurcated based on end use and product type. By end use, the industry is classified as industrial, residential and agricultural. Agricultural wire fence and commercial wire fence are the key product types. Residential sector is likely to grow at high CAGR over the forecast period owing to the mounting remodeling products and construction activities. Industrial segment may likely to witness growth owing to increasing demand from colleges, industrial premises and schools. Moreover, proliferating need to protect crops, farm areas and farm animals from crooks and wild animals are expected to fuel the industry demand in agricultural sector.

The U.S metal fencing market share is primarily driven by mounting installation of high value fences such as composite fencing and ornamental metal. In addition, increasing adoption of these materials based on their performance advantages and aesthetic by customers in the region is likely to surge the demand growth.

Demand for fencing is forecast to rise 4.5% annually through 2024. Growth will be driven by an increase in construction activity. Additionally, the increased adoption of high value fencing materials such as ornamental metal and plastic and composite lumber will further boost demand. Improvement in product designs and performances will mean these materials will be increasingly specified to improve the appearance and value of the properties on which they are installed.

Fencing shipments are also forecast to grow 4.5% annually. The US trade deficit in fencing will rise through 2024 due to increased demand for low-cost imported fencing products. However, the imposition of import tariffs on aluminum and steel (in March 2018) and Canadian softwood lumber (in November 2017) may have an adverse impact on domestic producers of fencing that import fencing raw materials, as the tariffs will lead to higher material prices and therefore increase production costs.

Conversely, foreign producers that acquire fencing raw materials from outside the US and export their fencing products to the US may benefit, as their production costs are not affected by the tariffs. However, it is not expected that these tariffs will affect the fencing trade balance in 2022, as they are being challenged both domestically by Congress and internationally through the World Trade Organization (WTO) by countries impacted by the tariffs.

Residential areas are responsible for the biggest fencing market, and the demand for plastic and composite fencing is growing. Fencing composed of these materials resembles authentic wood, but it lasts longer, requires less care, and if often more environmentally and economically friendly. Ornamental varieties of fencing are also available to enhance to overall appeal of a piece of property.

Fencing is also in demand in the non-residential market, mainly for construction, agricultural, and commercial services. Concrete fencing materials as well as chain link fencing are utilized more often in these areas to mark boundaries, and provide protection and security. These forms of fencing are highly durable.

There are specific classifications of facilities and areas that are frequently required be enclosed by fencing: establishments with high-voltage equipment in open areas, transformer stations, machinery with potential dangerous pieces, quarries, explosive factories, industrial plants, military facilities, zoos and other wildlife parks, pastures with free roaming animals, aquatic centers, prisons, airfields, and occasionally railway lines (dependent upon their location).