North America Residential Light Frame Shear Wall Market Size, Share & Trends Analysis Report By Type (One-sided Panel, Two-sided Panel), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The North America residential light frame shear wall market size was estimated at USD 89.40 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 5.3% from 2023 to 2030. North America is a region with a high level of seismic activity; as a result, there is a growing demand for residential buildings that can resist earthquakes and other natural disasters. Residential light frame shear walls provide a cost-effective solution for enhancing a residential building's seismic resistance and are expected to drive market growth in North America over the forecast period.

Residential light frame shear walls can significantly enhance a building's structural stability during an earthquake by resisting the lateral forces generated by ground motion. They are typically designed to absorb and distribute these forces, reducing the potential for damage or collapse. Furthermore, residential building codes in North America require buildings in seismic zones to have a certain level of seismic resistance. Residential light frame shear walls help meet these requirements and ensure that residential buildings are safe for occupants in North America.

The residential light frame shear wall market in the U.S. has emerged as a significant sector within the residential construction industry, driven by the demand for efficient, affordable, and sustainable housing. These products are structural elements designed to resist lateral loads, such as wind and seismic forces, and transfer them to a building's foundation. In the U.S., residential shear walls are typically made of wood and the market is dominated by key players such as MiTek Inc. and Simpson Strong-Tie Company, Inc.

The value chain of the residential light frame shear wall market in North America comprises raw material suppliers, manufacturers, suppliers/distribution channels, and end-use industries. The most common raw materials used for manufacturing residential light frame shear walls in North America are wood-based products such as plywood, oriented strand board (OSB), and dimensional lumber. Other materials such as steel and concrete can also be used for residential light frame shear wall construction in North America, but they are less commonly utilized due to their higher cost and weight.

Fluctuations in raw material prices in North America can have a significant impact on the regional residential light frame shear wall market. These are primarily made from wood and sheathing panels, whose prices can be affected by various factors such as supply and demand, trade policies, and weather events. If the cost of raw materials increases, the cost of producing residential light frame shear walls may also increase, making them less competitive. Overall, fluctuations in raw material prices can have a significant negative impact on the growth of the residential light frame shear wall market in North America.

However, green building practices present a significant opportunity for the light frame shear wall market in the region, as these practices are becoming increasingly popular due to their environmental and economic benefits. These are an important component of sustainable residential building design. Light frame shear walls are designed to resist lateral loads such as wind and seismic forces, which are essential for the structural stability of buildings. The aforementioned factors are expected to boost the demand for the residential light frame shear wall market in North America.

Type Insights

The North America residential light frame shear wall market is segmented into two-sided panels and one-sided panels. Two-sided panels emerged as the largest and fastest-growing market segment with an expected 6.0% CAGR over the forecast period. The use of double-sided sheathing can increase energy dissipation by up to 70% compared to its single-sided counterpart for a specific dimension. The use of double-sided sheathing is more efficient in terms of providing higher resistance with less space occupancy overall.

In North America, certain multi-story timber building construction methods have used prefabricated volume modules owing to their high prefabrication level. A light-frame shear wall, which stabilizes these modules against the impact of horizontal forces, serves as the primary structural element of these modules.

One-sided panels generated a revenue of USD 37.1 billion for the year 2022 on account of their growing use in structures to protect against the damaging impacts of earthquakes and wind forces. The benefits of the single frame-shear structure and the assembled concrete structure are combined in an assembled frame-shear structure, which has been shown to have good cyclic endurance. This encourages their use in locations in North America that need seismic fortification.

Shear walls considerably reduce a structure's sway, avoiding chances of damage to the structure and its contents. The product is braced and built such that it does not collapse on itself. To ensure that the wall maintains rigidity even when subjected to lateral pressure, they often incorporate sheathing made of plywood or oriented strand board (OSB). These factors are expected to boost the product demand in North America.

Regional Insights

The U.S. is the largest market in North America, with a revenue share of 80.2% in 2022, owing to the rapidly increasing demand for affordable, sustainable, and energy-efficient housing by prospective buyers. In addition, the use of innovative materials, prefabricated systems, and advanced design technologies is expected to drive further innovation in this sector in the country.

One of the leading companies in the residential light frame shear wall market in the U.S. is Simpson Strong-Tie Company, Inc., which offers a wide range of products, including Strong-Wall wood shear walls. These shear walls are pre-fabricated, easy to install, and provide high lateral resistance, making them a popular choice among builders and contractors.

The Canadian residential light frame shear wall market is a well-established industry with several market participants, including manufacturers, distributors, and builders. Some of the major players in the Canadian residential light frame shear wall market include CanWel Building Materials Group Ltd., Canam, Weyerhaeuser Company, PFB Corporation, and Boise Cascade Company.

Mexico is likely to be the fastest-growing region in North America with a CAGR of 9.6% over the projection period of 2023 to 2030. This growth is attributed to rising factors such as population growth, urbanization, and government policies. Moreover, in Mexico, the use of light frame construction has been increasing in recent years due to its cost-effectiveness and speed of construction. Shear walls, made from light frame materials such as wood or steel, are commonly used in this type of construction.

Key Companies & Market Share Insights

The residential light frame shear wall market in North America is highly competitive, with large players catering to the local and regional demand. Manufacturers in North America majorly offer products to end-use companies via direct contracts or agreements as well as through a network of distributors. As a result, these companies strive to gain market share in North America by mostly competing based on pricing and product portfolio.

In February 2023, Waste Connections, Inc., and Georgia-Pacific Recycling announced a multi-year extension of their master procurement arrangement for recyclable materials. The expanded partnership between the two industry leaders is expected to ensure a consistent supply of high-quality recyclable materials in North America, which are used to create new goods and packaging, thus reducing the demand for virgin materials.

Prominent vendors in North America usually undertake yearly supply contracts with large-sized end-user companies such as large-scale building developers and building contractors. Small-scale end-use companies in North America, such as building contractors and developers, often procure light frame shear walls from distributors owing to their non-frequent and lower volumes of procurement. Some of the distributors for shear walls and panels in the U.S. include Clavalo Construction, Inc. and Louisiana-Pacific Corporation. Some prominent players in the North America residential light frame shear wall market include:

• MiTek Inc.

• Georgia-Pacific

• Builders FirstSource, Inc.

• Clavalo Construction, Inc.

• Louisiana-Pacific Corporation

North America Residential Light Frame Shear Wall Market Report Scope

North America Residential Light Frame Shear Wall Market Report Segmentation

This report forecasts revenue growth at the regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the North America residential light frame shear wall market based on type and region:

• Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Two-sided Panel

  • One-sided Panel

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico