Thinking of investing in the garage door industry?
Overall, the garage door industry is doing just fine during the coronavirus pandemic of 2020, and it is expected to continue to grow in the coming years. Data from Statista shows that the industry reached $1.07 billion USD in 2016 and is expected to increase to a worldwide total of $1.38 billion USD by 2021. One of the most exciting areas of the garage door industry’s growth is in developing nations like China and India, but North America still firmly shares in the growth that is affecting the entire market.
For example, the garage door market in the United States in 2020, according to data gathered and analyzed by IBISWorld, was valued at over $372 million USD, with an annualized growth rate of 2% from 2015 to 2020. In this article, we will analyze some key factors in the garage door industry and show how those factors might affect business owners in the United States and Canada, from garage door repair in Pittsburgh to garage door repair in Calgary.
What the Data Tells Us
Collected research on the garage door industry reveals many insights. For example, commercial institutions were analyzed by Transparency Market Research, showing that there is a tie between current construction trends and commercial garage door installation/repair/maintenance. Other commercial business trends include:
- An expected push toward sliding and hinged garage doors
- An emphasis on metal doors, due to issues like insulation and resistance to hazards like fire and chemical damage
- An increase in construction of hospitals, shopping malls, and other commercial areas in the near future
A business owner in the garage door industry should focus on these types of data to discern where to invest. For example, it would be a good idea to begin manufacturing or ordering the manufacture of sliding and hinged metal doors, as these are likely candidates for commercial institutions.
Overall, both residential and commercial consumers are seeking these three factors when selecting their garage doors:
- increased security
- insulation to cope with temperature changes
- energy efficiency (which equates to significant savings over time)
Residential Garage Door Trends
Commercial industries are only one part of the overall garage door market. Much of the business taken in by garage door installation, maintenance, and repair companies throughout the US and Canada will include residential homeowners. Therefore, it’s crucial to understand trends that are affecting the market for these homeowners.
First, the coronavirus pandemic may actually wind up helping business owners in the garage door industry. According to the Canadian government, as reported by The Motley Fool, the emergence of COVID-19 has led to significant dips in the housing market. Though it is expected to recover in the first half of 2021, the market has seen somewhere between a 9% and 18% decrease in home prices. The result is not great for real estate investors, but it is good for potential homeowners who may find lower prices for their houses. In fact, home sales were up in Canada by a whopping 6.2%. This expected influx of new homeowners will include many who desire new or renovated garage doors, which is expected to boost the garage door industry. In the United States, the housing market has taken a similar hit and will likely have a similar effect.
But the raw numbers are just one factor that should be considered. Other factors include aesthetic trends, such as the material and design of garage doors favored by residential homeowners. For this, we turn to a report by garage door company Wayne Dalton. The company found that many trends tend to start in Canada and travel southward to the United States. Upon traveling the great Canadian expanse, Wayne Dalton arrived at a few conclusions regarding what types of garage doors are popular.
- Colors: homeowners are beginning to move to one of two designs — black or darker colors; or coordinated colors between the garage door and the accent color of the house itself.
- Materials: fiberglass and wood-grain steel doors are becoming more popular in Canada and are expected to move to the northern US soon. That’s because these materials are better at thermal insulation for the cold months.
This data should be a boon to industry insiders, as it shows the kinds of garage doors to focus on in the future: namely, energy-efficient, color-coordinated materials.