US demand for Coated Fabrics to reach 725 million square yards by 2018

US demand for coated fabrics to rise 3.8% pa to reach 725 mln sq yards by 2018, as per Freedonia. Rebounding construction expenditures will provide opportunities for coated fabrics used in products that are closely tied to building activity, such as wall coverings, furniture, and awnings and canopies. In value terms, demand for coated fabrics is forecast to increase 5% to US$4 bln in 2018, benefiting from an acceleration in area demand, as well as moderate price increases. However, pricing gains will be limited due to increased competition from lower cost imports. The largest market for coated fabrics in 2013 was motor vehicles, with 30% of the total benefiting from the large number of light vehicles that are produced in the US each year. Going forward, growth will accelerate from a high 2013 base that reflects a recovery in vehicle production. Still, advances will be propelled by the increased incorporation of polyvinyl-coated and polyurethane coated fabrics in upholstery and interior trim in light vehicles. In these applications, coated fabrics are aided by continued improvements in appearance and feel, placing further competitive pressures on alternative materials. Gains will also be promoted by a higher number of airbags per light truck and van through the forecast period. Silicone-coated fabrics are typically used in the manufacture of airbags. Coated fabrics are categorized based on the substrate or coating used. Versions with polyester substrates accounted for approximately 45 percent of total US coated fabric demand in 2013. These substrates are valued for their versatility at a relatively low cost. While used in a variety of markets, three markets (motor vehicles, industrial, and furniture) account for approximately half of coated polyester sales. Above-average gains in the furniture market will provide opportunities. In addition, demand for coated polyester will benefit from its use in other above-average growth markets, such as wall coverings, and awnings and canopies. Polymer-coated fabrics dominated coated fabric demand in 2013, and will continue to do so through 2018. Within this category, vinyl-coated fabrics account for the largest share 40% of demand. Going forward, vinyl-coated fabrics will retain their significant position due to their adequate performance characteristics provided at a relatively low cost. Among the major types of polymer coated fabrics, polyurethane-coated fabrics are expected to post the fastest gains through 2018. Improvements in polyurethane coatings, particularly in their appearance and feel when cured, will boast opportunities. The rubber coated fabrics product category is much smaller, but growth will benefit from the usage of silicone varieties in the large market for airbags. Advances will be fastest for fabric-backed wall coverings, which will recover in line with the rebound in the building construction sector, especially in the institutional and office segments where these wall coverings find significant use.