Global Nonresidential Ceilings

Report Overview

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This study analyzes global nonresidential ceiling demand by product and market. Demand is presented in US dollars and square meters.

Historical data are provided for 2010, 2015, and 2020, and forecasts are presented for 2025 and 2030.

Demand for ceilings is segmented into the following product types:

• ceiling tiles, which are also known as ceiling panels:
  • mineral fiber, including mineral wool and fiberglass
  • metal
  • wood, vinyl-faced gypsum, and other materials, including vinyl and polystyrene
• suspension systems (aluminum, steel, and other materials, including vinyl)
• specialty ceilings (baffles, clouds, stretch ceilings, and other specialty ceiling products, including ceiling islands, ceiling planks, and open cell ceilings)

The major ceiling markets analyzed are nonresidential buildings, including:

• • offices, retail and wholesale, and lodging buildings
  • institutional buildings such as schools, healthcare facilities, and religious institutions
  • industrial buildings, predominately factories
  • transportation buildings
  • other commercial buildings such as civic centers and recreational facilities

Excluded from the scope of the study are:

• drywall (which itself is typically covered by paint, joint compound, or some form of spray coating)
• open plenum (open deck or exposed upper structure) surfaces
• return vents and other in-ceiling non-ceiling products (such as recessed lights)
• ceiling accessories (wires and attachments, moulding and trim, and all other accessories such as seismic braces)

Demand by Region

Through 2025, global demand for ceiling products in the nonresidential market is forecast to increase 4.8% per year to $7.9 billion, driven by:

• rapid advances in new nonresidential building construction in China, Indonesia, and India
• rising nonresidential renovation activity in the US, Canada, and Western Europe, following a decline in 2020 due to the COVID-19 pandemic
• global design trends favoring enhanced acoustics and aesthetics, resulting in the use of a variety of ceiling products in nonresidential buildings

The nonresidential market dominates the global ceiling product market, accounting for 93% of demand in value terms in 2020. This sector’s dominance is directly attributable to the popularity of drywall or plaster in residential buildings, as well as the high cost and impracticality of many ceiling products in residences, particularly in the developing world.

Demand by Product

Ceiling tiles were the most used product type in the nonresidential market in 2020, accounting for 63% of demand. Collectively, ceiling tiles and suspension systems accounted for 85% of sales, as these are complementary products and the use of ceiling tiles in nonresidential structures is widespread.

Specialty products are projected to see the fastest growth through 2025, as adoption rates in developing countries is rising and these products continue to gain market share in nonresidential renovation projects in the US and Western Europe, where the vast majority of specialty product demand is derived.

New Construction vs. Renovation Demand

Renovation projects generate the most demand in the nonresidential market due to the large existing stock of ceiling tiles, which are often replaced when a building is renovated or when the tiles are damaged due to moisture, impact, or breakage. Ceiling tiles account for the majority of demand for ceiling products in the nonresidential renovation market.

Demand for specialty products in nonresidential renovation applications will be supported by the continued trend of businesses and institutions replacing more standard ceiling tiles with attractive clouds, baffles, and stretch ceilings.

The new construction market will present better growth opportunities going forward, as nonresidential construction rises at a strong pace in the Asia/Pacific region. In general, demand in this application will be supported by increased construction of offices, institutional structures, and retail buildings, which typically use large amounts of ceiling products.

Demand by Building Type

Demand for ceilings in nonresidential building applications is projected to reach $7.9 billion in 2025 on 4.8% annual advances:

• Office buildings are projected to remain the largest outlets for ceiling products in nonresidential buildings due to their increasing installation of high-value ceiling tiles and specialty products. These same products are also frequently installed in healthcare and education buildings
• Industrial and retail buildings will maintain significant market shares, due in part to the vast stock of these building types and ongoing renovation activity.

North America: Nonresidential Ceiling Market Size & Historical Trends

North America is comprised of the United States, Canada, and Mexico.

The region is the second largest nonresidential ceilings market in the world in value terms; however, it dominates the global market in area terms, as it is a less intensive user of high-cost metal tiles and specialty products than Western Europe.

North America is the global leader in mineral fiber ceiling tile demand and production, as it is home to Armstrong, CertainTeed, and Knauf’s USG operations.

Through 2025, global demand for nonresidential ceiling products is forecast to increase 4.8% annually to $7.9 billion, driven by:

• global building design trends favoring enhanced acoustics and aesthetics, resulting in a shift away from drywall and building plaster to ceiling tiles and specialty products
• rapid advances in new nonresidential building construction in China, India, and Indonesia
• rising nonresidential renovation activity in the US and Western Europe, particularly in office and institutional buildings
• increased market penetration of specialty products in all regions, including greater use of these products in conjunction with open plenum designs in retail buildings in the US

However, the market will continue to be restrained by the popularity of drywall and building plaster in many developing countries.

US To Remain Dominant Nonresidential Ceiling Market

In both volume and value terms, the US is by far the largest nonresidential ceiling market in the world, supported by the popularity of mineral fiber ceiling tiles over drywall in most nonresidential buildings, particularly in the office and institutional sectors. Additionally, the US had a large and varied nonresidential building construction sector, with many wealthy building owners who are willing to invest in higher value ceilings with unique appearances and good construction to improve the aesthetics and acoustics of their spaces or to make them visually unique.

Going forward, the US is expected to maintain its leading position. However, it remains a mature market for ceiling products, and the growth rate is expected to be slower than the global average.

Asia/Pacific Region Drives Global Gains

The Asia/Pacific region will drive global demand for nonresidential ceiling products, growing at an above average pace through 2025. A large number of countries in the region are developing or upgrading infrastructure, leading to increased installation of both basic and specialty ceilings:

• Shifts away from wet construction methods will benefit increased use of prefabricated products such as ceiling tiles, as will increased focus on improving acoustics and aesthetics in more industrial settings.
• Higher value specialty products and ceiling tiles are being increasingly adopted in higher income areas such as South Korea as well as in buildings that see much outside traffic, such as airports, metro and train stations, and public spaces in hotels and cultural buildings.

As the stock of buildings with installed ceilings increases, replacement demand will also grow, especially for products like ceiling tiles, which can be easily damaged.