The market for ceiling tiles is expected to register a CAGR of around 7%, during the forecast period. The major factors driving the market studied are surging demand for ceiling tiles from the construction industry, and the reduction of carbon impacts in the processing of raw materials for manufacturing ceiling tiles. On the flipside, the threat of substitutes, such as asphalt and mortar, is expected to hinder the growth of the market studied.
- The commercial segment dominated the market and is expected to grow during the forecast period, with the rapidly growing service sector.
- Innovation in gypsum tiles for its biodegradable properties is likely to provide opportunities for the market studied, during the forecast period.
- Asia-Pacific dominated the market across the world, with robust growth of construction activities in countries, such as India, China, the Philippines, and Indonesia.
Key Market Trends
Commercial Construction to Witness Noticeable Growth
- In the commercial sector, ceiling tiles are mostly used in offices, retail stores, educational institutions, hospitals, hospitality industry, multiplexes, home theaters, auditoriums, etc.
- Office buildings require strength, durability, and good aesthetic value ceilings, and the ceiling tiles used in this sector cater to the aforementioned needs. The major ceiling tile types used in office buildings are drop ceilings tiles and planks.
- The global construction industry grew by around 3%, during 2019. Commercial construction contributes noticeably to this growth, due to the rapidly expanding service sector across the world.
- Regions, like Asia-Pacific, United States, and the Middle-East and Africa, etc., are experiencing huge domestic, as well as foreign investments, for the construction of industrial units, hospitals, malls, multiplexes, hospitality industry, and the IT sector.
- For Instance, the construction spending in the public sector in the United States in 2018 increased by 6.28% from the previous year and expected to witness positive growth over the forecast period.
- Various multinational companies have been exploring opportunities for new or expansion projects in these regions. Some of the attractive countries in these regions witnessing such investments include India, China, Indonesia, Malaysia, Vietnam, Saudi Arabia, and the United Arab Emirates.
- The aforementioned opportunities and investments in the market are driving the commercial construction activity, which is further driving the demand for ceiling tiles.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region dominated the ceiling tiles market. With growing investments in residential and commercial construction in countries, such as India, China, the Philippines, Vietnam, and Indonesia, the market for ceiling tiles is expected to increase in the coming years.
- Currently, China has numerous airport construction projects, which are either in development or planning stage. These include Beijing Capital International Airport, Chengdu Shuangliu International Airport, Guangzhou Baiyun International Airport, etc. Furthermore, the government rolled out massive construction plans for the movement of 250 million people to its new megacities, over the next 10 years.
- In India, the government's investment target of USD 120.5 billion, for developing 27 industrial clusters, is expected to boost commercial construction in the country.
- The Indonesian government announced its plans to invest about USD 450 billion in the construction sector, by 2021, which is expected to boost residential construction in the country.
- Hence, the aforementioned investments and planned projects in various countries are driving the construction activities in the region, which are further likely to drive the demand for ceiling tiles in the region, over the forecast period.
The ceiling tiles market is highly fragmented in nature. Some of the noticeable players in the market include Armstrong Worldwide Industries Inc., Saint Gobain SA, Haining Shamrock Import & Export Co. Ltd, New Ceiling Tiles LLC, and Knauf, among others.
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