Global Ceramic Wall Tiles Market - 2024-2031

Overview

Global Ceramic Wall Tiles Market reached US$ 138.2 billion in 2023 and is expected to reach US$ 228.7 billion by 2031, growing with a CAGR of 6.5% during the forecast period 2024-2031.

A clear divergence has emerged in the global market with regards to demand between emerging and developed markets. In emerging markets, demand is majorly generated by new construction, whereas in developed markets, the vast majority of demand comes from renovation and upgradation of existing residential quarters.

One notable trend that has emerged in recent years is an increase in consumer preference towards aesthetical designs. Instead of plain colors, many consumers are opting for tiles with intricate design patterns. Tile producers have caught onto this trend and are introducing various factory customization options for consumers

Dynamics

Rapid Urbanization in Developing Countries

With trade liberalization and shifting of manufacturing to emerging nations beginning from the early 2000s, a new and unprecedented wave of urbanization has been unleashed. The effects of this are visible in Asia-Pacific, where small towns have been transformed into bustling metropolises in under two decades. Such a rapid growth of urbanization has created its own set of challenges, the most glaring of which is the shortage of residential housing units.

To stem a potential crisis, many governments are pouring capital into various affordable housing schemes. The objective behind such schemes is to build up residential housing stock to alleviate pricing pressure on real estate. Ceramic wall tiles are a cost-effective way of adding new aesthetics to enclosed living spaces. The global market will continue to rely upon urbanization in emerging nations to fuel its growth.

Construction of New Affordable Housing

All across the world, real estate prices have grown much faster than incomes, making housing unaffordable for large segments of the population. Housing affordability has become a hot button political issue in democratic countries, with many political parties promising massive increases in affordable housing if elected to power. Countries have adopted different tactics to tackle this problem.

The Philippine government instituted a program in August 2023, called 4PH with an aim to build 6 million new affordable homes through 2028. Along similar lines, the Indian government is building affordable housing for the urban poor under the 'Pradhan Mantri Awas Yojana' scheme. While it will take a few years to gauge the impact of such schemes, it will spurt an increase in demand for ceramic wall tiles over the long term.

Enaction of New Trade Barriers

The global trade in ceramic wall tiles is facing headwinds, as western governments are contemplating the imposition of tariffs and other restrictions. U.S. and EU governments are specifically concerned about domestic markets being flooded with cheap Chinese imports, which have undermined local manufacturers. In 2022, the EU commission launched a multi-year investigation to impose anti-dumping duties on Chinese imports.

A similar investigation was also launched against Indian ceramic wall tile manufacturers. In January 2024, Ceramics UK, the main lobby group of ceramic manufacturers in UK, released a statement that it will fully support the government's stance of imposing anti-dumping tariffs on Chinese imports. China accounts for nearly 53% of the global ceramic wall tile production and new tariffs would be highly destabilizing for the growth of the global market.

Segment Analysis

The global ceramic wall tiles market is segmented based on type, construction type, application, end-user and region.

Despite Challenges, Residential Construction Still Accounts for the Largest Share

2023 has been very challenging for the global residential real estate sector. The cost of capital in the developed world has increased significantly due to multiple interest rate hikes by U.S. Federal Reserve. The Chinese government has also announced new policy measures to restrict funding for new residential construction. The aim of these policies is to cool an overheated real estate market.

Even as the residential real estate sector runs into headwinds, it still continues to account for the highest demand for ceramic wall tiles. Comparatively, commercial and industrial demand is significantly limited. Despite an predicted boom in Asia-Pacific, the overall demand will still remain muted through the coming years.

Geographical Penetration

Asia-Pacific Will Face Challenging Growth Conditions

The decade from early 2000s to 2010s were the prime boom years for the real estate sector in Asia-Pacific, mainly characterized by fast-paced growth in China and India. However, in recent years, the real estate sector in both countries has lost its luster. In India, despite increasing demand, new construction has been sluggish and the sector has witnessed several bankruptcies due to the pandemic.

Evergrande, China's largest real estate developer, was ordered to undergo liquidation by the Chinese government in January 2024. Such a move has further dampened the real estate sector in the country. With weakened demand growth in two of the largest Asian economies, the market will have to renew focus on southeast Asian countries like Thailand, Malaysia, Vietnam and Indonesia to ensure continued stable growth.

COVID-19 Impact Analysis

The pandemic represented an extremely challenging period for tile manufacturers. Demand had dropped precipitously across residential and commercial real estate sectors and many existing customers cancelled orders in face of economic uncertainty. In such conditions, many manufacturers temporarily curtailed or suspended production.

The market witnessed a consolidation in favor of established players, since many small and medium enterprises went bankrupt. Ceramic wall tile manufacturers had been forced to introduce new products and slash prices to stimulate demand in the initial months following the pandemic. However, despite a challenging period, the global market has once again returned to a positive growth trajectory.

Russia-Ukraine War Impact Analysis

The war in Ukraine negatively impacted the Russian market for ceramic wall tiles. With western countries imposing harsh sanctions, most of the western ceramic tile manufacturers have exited the Russian market, leaving a considerable gap which cannot be plugged by domestic production or a surge in Chinese imports.

Another knock-on effect of the sanctions has been the stagnation of Russia's real estate sector, with most cities witnessing a slowdown in new construction. Decrease in purchasing power and increased tile prices have also put off consumers from undertaking renovations. Anemic demand growth will continue to plague the Russian ceramic tile market in the upcoming years.

By Type

• Porcelain
• Glazed
• Unglazed

By Construction Type

• New Construction
• Renovation

By Application

• Internal Wall
• External Wall
• Others

By End-User

• Residential
• Commercial
• Industrial

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In August 2023, Somany Ceramics, an Indian manufacturer of ceramic tiles, announced plans to enter into a joint venture to develop a manufacturing facility in Nepal
• In January 2024, Sheltech Ceramics Limited, a Bangladesh-based ceramic tiles manufacturer raised Tk. 1.5 billion (US$ 13.7 million) in preferential share issues to fund a new phase of expansion.
• In September 2023, the Indian government increased import duties on propane gas, dealing a blow to the ceramic tile manufacturing operations in Morbi, Gujarat.

Competitive Landscape

The major global players in the market include Mohawk Industries, Inc., Grupo Lamosa, RAK Ceramics, Kajaria Ceramics, SCG Ceramics Public Company Limited, Grupo Cedasa, Prism Johnson Limited, PT Arwana Citramulia Tbk, Ceramica Cielo and STN Ceramica.

Why Purchase the Report?

• To visualize the global ceramic wall tiles market segmentation based on type, construction type, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of pouch tapes market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global ceramic wall tiles market report would provide approximately 69 tables, 62 figures and 210 Pages.

Target Audience 2024

• Construction Companies
• Tile Manufacturers
• Engineering Contractors
• Industry Investors/Investment Bankers
• Research Professionals