Demand for siding in the U.S. is estimated to increase 7.1 percent annual to total 103.5 million squares by 2018 according to "Siding," a new study from The Freedonia Group. The upswing in demand comes from an expected rebound in construction activity of new homes, many of which are clad in siding.

Vinyl siding accounted for the largest share of siding demand in 2013, but demand for vinyl in the U.S. market fell from 39 percent in 2003 to 27 percent in 2013.

The study also notes that 57 percent of 2013 siding sales came in the form of replacement materials that includes fiber cement, brick, and concrete and stone.

“Vinyl will remain the leading replacement siding material but will continue to be challenged by newer products with enhanced performance and aesthetic characteristics,” said analyst Matt Zielenski.