Canada Asphalt Shingles Market SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Canada Asphalt Shingles Market Analysis

The Canada asphalt shingles market size is expected to reach US$ 1.45 Bn by 2030, from US$ 1.23 Bn in 2023, at a CAGR of 2.4% during the forecast period. Asphalt shingles are one of the most popular roofing materials made from fiberglass mat, asphalt, mineral granules, and organic material. They are economical, easy to install, fire-resistant, and available in a wide variety of colors and styles. The growth of the construction industry and rising demand for residential buildings are driving the demand for asphalt shingles in Canada.

The Canada asphalt shingles market is segmented by product type, application, end-user, and region. By product type, the market is segmented into asphalt shingles, modified asphalt shingles, organic asphalt shingles, fiberglass asphalt shingles, natural slate asphalt shingles, synthetic slate asphalt shingles, and others. Fiberglass asphalt shingles account for the largest share, as they are more durable and fire-resistant compared to organic shingles.

Canada Asphalt Shingles Market Drivers

• Growing construction industry supporting demand for asphalt shingles: The steady growth of the construction industry in Canada is a major driver for the asphalt shingles market. Residential construction spending has grown significantly owing to rising immigration, low interest rates, and government investments in affordable housing projects. This has resulted in increased demand for roofing materials like asphalt shingles for new home construction as well as remodeling and re-roofing projects on existing homes. Asphalt shingles are a preferred choice among contractors and homeowners due to their cost-effectiveness, durability, and wide availability. The robust growth outlook of the construction industry, driven by both residential and non-residential segments, will drive adoption of asphalt shingles over the coming years.
• Product innovations and new product launches: Manufacturers are continuously investing in Research & Development to develop innovative and high-performance asphalt shingle products. They are incorporating new features like enhanced weather resistance, improved flexibility, better traction, and superior durability. Several new product launches have taken place in recent years, such as Owens Corning’s TruDefinition Duration FLEX Shingles with SureNail Technology, launched in 2022. It uses patented Flexor technology to make the shingles more flexible and wind-resistant. Similarly, CertainTeed launched NorthGate ClimateFlex in 2021, an asphalt shingle line made with polymer-modified asphalt that provides extreme weather protection. Such product innovations are expected to boost replacement rates and support market growth.
• Supportive government policies and incentives: The Canadian government offers various rebates, incentives, and tax credits to homeowners for installing eco-friendly and energy-efficient roofing systems, including asphalt shingles. For instance, in Ontario, the provincial GreenON rebate program provides up to CAD 1600 for installing cool roofing systems. The City of Toronto also has the Eco-Roof Incentive Program, which offers CAD 50-100 per m2 for eco-roofing installation, including asphalt shingles. Such policies encourage adoption of sustainable roofing materials, including asphalt shingles, thereby driving market growth.
• Property investments and infrastructure development activities: Rising investments in residential and commercial properties, along with large-scale infrastructure development projects in Canada, are fueling the adoption of asphalt shingles. The housing market has witnessed significant growth in property prices, driven by high demand. This has led to increased spending by households on renovation and roofing upgrades, boosting the use of asphalt shingles. Moreover, upcoming infrastructural projects such as Harbour redevelopment, Calgary Cancer Center, and Montreal's airport expansion will further drive demand.

Canada Asphalt Shingles Market Opportunities

• Integration of solar PV modules with asphalt shingles: Integration of photovoltaic solar cells with asphalt shingles to produce electricity presents an emerging opportunity for market growth. Companies like SunTegra and CertainTeed offer solar shingle systems. Key benefits include ability to generate clean energy and lower electricity bills, along with avoiding separate solar panel installation costs. Solar shingles are still in the nascent stage, with around 2-3 percent adoption. Increasing renewable energy goals and higher efficiencies of solar cells will encourage uptake of such products. This represents a significant opportunity for energy generation.
• Rising demand for green and environment-friendly products: Consumers and contractors are increasingly seeking sustainable and eco-friendly roofing solutions. Asphalt shingles made from recycled content and cool roof shingles made with reflective paints that reduce energy consumption are gaining traction. CertainTeed offers asphalt shingles containing up to 25% recycled content. The use of bio-based oils in place of petroleum oils for shingle production also presents an opportunity for eco-friendly innovation. Companies can capitalize on this trend by offering ‘green’ asphalt shingles.
• Adoption of premium designer shingles for aesthetic appeal: Premium architectural asphalt shingles that replicate the look of expensive roofing materials like wood shake, slate, and clay tiles are gaining popularity, driven by growing consumer interest in aesthetic appeal. These luxury shingles provide the look of natural materials at affordable costs, along with high durability and longevity compared to natural materials. Companies like IKO, GAF, and CertainTeed are offering such products. Rising disposable incomes and demand for beautiful, upscale home designs provide an opportunity for premium designer shingle uptake.
• Expanding online and Do It Yourself (DIY) distribution channels: The emergence of DIY and online roofing material suppliers provides increased accessibility to homeowners for purchasing asphalt shingles and undertaking do-it-yourself installation projects. Home improvement retailers like Home Depot and Lowe’s offer several online buying options along with in-store availability. Companies can leverage e-commerce channels and digital marketing to attract more DIY consumers and boost product sales. Tie-ups with such retailers provide huge growth opportunities for market expansion through online distribution.

Canada Asphalt Shingles Market Restraints

• Volatility in input material prices: Asphalt shingle manufacturing depends on key raw materials like asphalt, polymers, fibers, and aggregates, whose prices are volatile in nature and affected by crude oil prices and supply-demand forces. Spikes in material costs squeeze profit margins for manufacturers. The inability to pass on the increased costs to consumers also impacts market growth. Companies are developing cost-adaptation strategies, including long-term supplier contracts and recycled material usage, to mitigate raw material price risks.
• Presence of alternate roofing products: Asphalt shingles face competitive threat from alternate eco-friendly roofing products, including metal, solar panels and membrane roofs are growing due to green building trends. Although higher upfront costs currently prevent mass adoption, the greater durability, energy efficiency and sustainability of such products may limit demand for asphalt shingles in the long term, especially in non-residential areas.
• Weather vulnerabilities and poor installation practices: Severe weather events like hailstorms, hurricanes, and seasonal temperature extremes can damage asphalt shingle roofs. Improper installation techniques also lead to cracking, blow-offs, and leaks over time, thereby increasing replacement needs. Though impact resistance and sealing technology have improved, lingering consumer perceptions regarding weather vulnerability affect adoption, especially in harsh climates. Industry education regarding proper installation and maintenance best practices is essential to address this restraint.

Canada Asphalt Shingles Market Trends

• Increasing adoption of polymer modified asphalt shingles: Polymer modified asphalt (PMA) shingles are gaining rapid popularity in the market. They are made by incorporating polymer materials like rubber and plastic into the asphalt coating to enhance weathering performance. PMA shingles are more durable, resistant to heat, cold, wind, and moisture, while also offering superior traction and stability. Leading manufacturers like GAF, IKO, and CertainTeed are expanding their PMA shingle product lines to meet the growing customer demand for such high-performance roofing materials.
• Growth in demand for algae-resistant shingles: Mold growth and algal buildup on roofs in damp climates results in ugly black stains, thereby increasing the need for algae resistant shingles. Manufacturers are using specialized granule technology using copper or zinc particles to inhibit algae formation. GAF’s Timberline HDZ line features an algae resistance zone with this granule technology. CertainTeed also offers algae-resistant Landmark PRO shingles. The development of new algae prevention formulations and growing consumer awareness regarding eco-friendly products will fuel uptake of algae-resistant asphalt shingles.
• Advancements in recycling technology: Asphalt shingles are 100% recyclable. Emerging techniques like cold central plant recycling, which uses half the energy, are enabling increased shingle recycling and reuse in paving asphalt mixes. Other innovations include microwave technology to reuse shingle fibers and the separation of nailed shingles into asphalt, paper, and nail components for recycling. Such trends will help develop a circular economy, minimize landfill waste, reduce raw material costs, and support environmental sustainability.
• Consolidation among market players: The asphalt roofing shingles industry has witnessed some major mergers and acquisitions among leading players. For instance, Standard Industries acquired GAF to become the largest North American roofing manufacturer. Similarly, in January 2023, Atlas Roofing Corporation acquired Highland Products Group. Such consolidation activities allow companies to enhance their market share, expand product portfolios, and benefit from economies of scale, which is an emerging trend in this fragmented market.

Figure. Canada Asphalt Shingles Market Share

Recent Developments in Canada Asphalt Shingles Market

Canada Asphalt Shingles Market Segmentation