Ceilings

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Through 2026, demand for ceiling products in the US is forecast to increase 3.1% annually to $2.4 billion. Going forward, market advances will be driven by:

• a rebound in commercial building construction – bolstered by increased renovations in office and institutional buildings – following the declines of 2020 and 2021 due to the COVID-19 pandemic
• design trends favoring enhanced acoustics and aesthetics in commercial buildings, resulting in a shift away from drywall and building plaster to ceiling tiles and specialty products
• increased market penetration of specialty products, including greater use of these products in conjunction with open plenum designs in retail buildings
• rising use of decorative wood and metal ceiling tiles in residential renovation projects – on ceilings as well as on walls and other surfaces

However, the market will continue to be restrained by the popularity of drywall and building plaster in residential applications, as well as in some commercial applications. 

Supply Chain Disruptions Exacerbated Price Increases in 2021, Boosting Value Demand

In 2021, pandemic-driven supply chain disruptions and other factors led to a sharp increase in average prices for ceiling products in 2021, boosting value demand growth in that year. In addition to shifts in the product mix toward higher value products, ceiling product prices were also affected by changes in the cost of raw materials such as metals, mineral fiber, wood, fiberglass, and plastics, many of which saw above average pricing growth during the pandemic. Going forward, pricing growth is expected to moderate from the elevated levels of 2021, causing a deceleration in ceiling product demand growth in value terms, despite demand in area terms accelerating over the same period.

Office & Retail Buildings to Fuel Ceiling Market Growth

Office buildings will remain the leading outlet for ceiling products in the US and see some of the fastest growth rates among building types, boosted by increasing renovations attributable to telecommuting workers transitioning back to the office on part- or full-time bases. Rising improvement spending on retail buildings, the second largest ceiling market, will also be a significant driver of gains. Additionally, strong growth in the construction of healthcare buildings – the need for which spiked during the pandemic and will continue to grow going forward due to the aging US population – will boost gains in that market.

Ceiling Tiles to Remain the Leading Product, While Specialty Products to See Faster Growth

Ceiling tiles and the suspension systems typically required for their installation together accounted for 85% of US ceiling product demand in 2021, and they are expected to continue driving demand gains through 2026. However, market growth in value terms will be boosted by rising demand for specialty ceiling products. Above average growth for these higher value products will be fueled by their expanding usage in commercial buildings where both acoustics and aesthetics are a priority, including in open plenum designs where ceiling tiles do not compete.