by Peter Kusnic
October 27, 2021
The global market for ceiling tiles is forecast to grow 4.4% annually to $5.3 billion in 2025, according to a new Freedonia Group analysis. While the market will continue to be restrained by the popularity of drywall and building plaster in residential applications in most regions – and in nonresidential applications in many developing countries – a number of trends will support advances. Below, we highlight four key trends driving market growth through 2025.
The COVID-19 pandemic had a negative impact on the nonresidential ceiling tile market, especially in the US, since the majority of ceiling tiles are installed in nonresidential buildings. Social distancing and lockdown measures affected both where and how workers around the world went about their jobs; it also changed supply and demand patterns, causing uncertainty in the financial situation of many business owners. Though price increases and expanding renovation activity in the US prevented further losses, the ceiling tile market is expected to rebound strongly, especially in the Asia/Pacific region and Europe, as construction activity is expected to grow at a healthy rate through 2025, particularly in new applications in the Asia/Pacific region.
Global design trends favoring enhanced acoustics and aesthetics in nonresidential buildings will continue to drive a shift away from drywall and building plaster to ceiling tiles – particularly in developing Asia/Pacific countries such as China, India, and Indonesia, where nonresidential construction is expected to grow rapidly.
Additionally, as mineral fiver ceiling tiles are increasingly used in both new and renovation nonresidential construction applications in South Korea, rising commercial construction in the country will promote growth, as well:
Rising nonresidential renovation activity in the US and Western Europe, particularly in office and institutional buildings, will also support global ceiling tile market gains.
In the US, for example, a significant stock of high-end, high noise reduction coefficient (NRC) mineral fiber tiles exists and continues to expand in tandem with rising office and institutional renovation. As building owners improve office space to attract new tenants, older ceiling tiles will be replaced by more aesthetically pleasing products.
In Western Europe, the UK is anticipated to be one of the fastest growing markets through 2025, supported by a strong rebound in nonresidential construction spending. Given the country’s large industrial building stock and preferences for modern, sleek designs in nonresidential buildings, metal ceiling tiles are widely used in the UK. As a result, the country has the highest average prices for ceiling tile products in the world.
While the vast majority of ceiling tiles are used in nonresidential buildings, some opportunities do exist in the residential market. For instance, increasing use of higher value decorative wood and metal ceiling tiles in residential renovation projects – on ceilings as well as on walls and other surfaces – will boost demand in North America and Western Europe through 2025.
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About the Author: Peter Kusnic is a Content Writer with The Freedonia Group, where he researches and writes studies focused on an array of industries.
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