Artificial Grass Turf Installation Market Research Report Now Available from IBISWorld
The outlook for the Artificial Grass Turf Installation industry is largely positive, with growth expected to pick up relative to that of the previous five years, according to a new report from IBISWorld, the nation’s largest publisher of industry research. As demand from residential and non-residential construction markets picks up and consumer and businesses continue to seek ways to reduce water usage and maintenance costs of their lawns and green spaces, artificial turf and grass installations are expected to increase significantly. Although construction markets are expected to remain relatively weak through 2012, revenue is expected to jump 9.9%. With increased construction activity, greater funding for schools and a generally strengthening economy over the five years to 2016, industry revenue is projected to grow at an annualized rate of 12.3% to $1.2 billion.
According to IBISWorld analyst, Brian Bueno, the Artificial Grass Turf Installation industry surfed through the recession, aided by rapidly growing demand for its products due to advancements in quality and cost reduction efforts by sports venues, cities, homeowners and schools. “In fact, revenue declined only once – 2.0% in 2009 – due to especially tough economic conditions,” says Bueno. “Even though continued weaknesses in construction markets and pressures on school budgets have limited growth over the five years to 2011, revenue has increased 5.7% per year on average. Rapid adoption of artificial grass and turf will help push revenue up 6.5% to $648.5 million in 2011.”
According to the Southern Nevada Water Authority, every square foot of natural grass replaced with artificial grass saves an estimated 55 gallons of water per year. Beyond water use reductions, artificial grass and turf can also save on green space maintenance costs and reduce pollution caused by fertilizers and landscaping equipment. Major marketing efforts by industry firms have helped increase adoption of artificial grass and turf, educating customers on the cost and environmental benefits of industry products. The residential market is one of the fastest-growing sources of industry revenue, particularly as cities impose harsher restrictions on water usage and increase water consumption rates. Cities and states have also offered tax credits and rebates for residents and businesses that replace natural grass and turf with synthetic alternatives.
The deterioration of the residential and non-residential construction markets stifled revenue growth over the previous five years. Although consumers with sufficient income to invest in home improvements supported demand for artificial grass, overall residential demand will hit its stride over the next five years. In particular, new home construction is expected to grow robustly in the latter part of 2012 and through 2016. Growing demand from rising construction activity will also boost revenue growth, rising at an average annual rate of 12.3% to $1.2 billion over the five years to 2016. With rising installation activity, industry employment is forecast to increase 12.7% per year on average to 15,152, faster than employment growth in similar industries (e.g. flooring installation).
The Artificial Grass Turf Installation industry market research report from IBISWorld provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets. For more information, download the full report from IBISWorld on the Artificial Grass Turf Installation industry
Tags:
