A new report is predicting that the asphalt shingles market will surpass the $9.5 billion mark by 2025, with residential applications witnessing gains at over 3 percent by 2025.

According to Global Market Insights, a number of factors will contribute to the growth of the market. Rapid urbanization, combined with builders continuing to develop advanced roofing systems, are expected to drive the asphalt shingles market’s expansion on a global scale.

In general, asphalt shingles are known for their strength, durability, heat reflectivity and waterproofing properties. The report states that these aspects are leading to an upsurge alongside their clean and minimalistic qualities.

The shingles are desirable not only for their endurance, but their variety. More and more consumers have the option to afford modern and varied types of building designs for their private residences, which in turn allows them to select asphalt shingles in colors and designs that fit their needs.

“They are manufactured with a heavier base mat with multiple layers which gives them durability, aesthetically sophisticated and minimalistic look[s] which will increase market share,” the report states.

The residential roofing sector will be a major contributor to this multi-billion dollar market. The U.S. population is expected to hit 345 million by 2025, which is around 5 percent higher than 2018’s numbers. Naturally, as the population grows, residents will look to replace older, worn-out roofs on their homes.

Major players in the industry are constantly coming up with new and innovative roofing systems to expand their portfolios and ready themselves for green initiatives and regulations. For instance, roofing systems that easily handle solar panel systems will be in demand as states like California mandate that new residential homes have solar panel technology starting in 2020. Whether other states follow suit has yet to be seen.

The majority of the market players reside in the U.S., but offer a wide range of products around the globe. The report lists the following companies as playing a key role in the shingles market:

• CertainTeed Corporation
• GAF Materials
• Henry Company
• IKO Industries
• NBP International
• Owens Corning
• Shibam Ventures
• TAMKO Building Products
• Tarco

Though the majority of manufactures and suppliers are in the U.S., Global Market Insights’ report indicates manufacturers in Eastern Europe and Asia Pacific regions are entering the market, which is bound to raise the competitive environment.

This globalization is also a leading factor in the rising demand for asphalt shingles as people and ideas from around the world influence construction techniques. Commercially, asphalt shingles are expected to register considerable gains thanks to growing manufacturing activities in the Asia-Pacific belt, creating a higher demand for the material. 

European countries are expected to play a role as well. Thanks to rapid urbanization and a rise in disposable income levels, additional revenue for the market will come from construction and renovation projects for old houses. The U.K. alone is predicted to consume more than 57 million square feet (5.35 million square meters) in the foreseeable timeframe.

Other roofing markets are seeing similar increases. A report released earlier this year from Lucintel forecasts that the global TPO roofing membrane market will reach $2.2 billion by 2024. Another report predicts that global roofing sales will hit $120 billion by 2022.