Artificial Grass Turf Installation
The Artificial Grass Turf Installation industry includes contractors that install synthetic or artificial grass for sport applications, residential lawns or other commercial properties. Technological improvements at the manufacturing level and an increasing focus on water conservation efforts have d...
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| Format: | Market Research |
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| Language: | eng |
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| Summary: | The Artificial Grass Turf Installation industry includes contractors that install synthetic or artificial grass for sport applications, residential lawns or other commercial properties. Technological improvements at the manufacturing level and an increasing focus on water conservation efforts have driven revenue growth for the industry over the five years to 2020. Moreover, the industry has been supported by increased activity in construction markets for most of the current period, before the COVID-19 (coronavirus) pandemic decimated nonresidential construction markets in 2020. Through 2019, an increase in sports turf installation and an expanding residential construction market have driven industry growth. As a result, industry revenue is anticipated to increase overall at an annualized rate of 1.1% to $2.6 billion over the five years to 2020. This growth is despite an 11.0% decrease estimated in 2020, largely due to the coronavirus pandemic and resulting economic downturn.
Because the industry's performance is closely linked to building markets and sport spectatorship and participation, the industry benefits from growing construction activity and improving economic conditions. Mounting awareness of the cost savings and environmental benefits of artificial turf products has also helped increase both the adoption of industry products and installation fees. Moreover, technological advancements among manufacturers, including the increased use of polyethylene yarn, have reduced the probability of turf-related injuries in sports applications, further boosting the acceptance of artificial turf. Accordingly, industry profit, measured as earnings before taxes and interest, is expected to reach 7.7% of industry revenue by 2020.
Over the five years to 2025, industry revenue is forecast to increase at an annualized rate of 2.6% to $3.0 billion. Improvements in both residential and nonresidential construction activity are anticipated to provide stable demand for installation opportunities as the economy recovers from the coronavirus pandemic. However, a projected increase in interest rates due to Federal Reserve monetary policy is expected to somewhat hinder growth for the industry at the end of the outlook period. Success for smaller industry operators is anticipated to become more difficult, as larger players continue engaging in merger and acquisition activity to form vertically integrated companies with manufacturing and installation divisions. |
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