The global ceramic tile market is expected to grow at a CAGR of 7.1% during the forecast period, 2019–2026, and exceed USD 60 billion in terms of value by 2026
Rapid urbanization, increasing disposable income, and a consistently growing demand for residential housing are projected to positively affect the growth of the ceramic tile market. Growth in construction activity, fuelled by an increasing need for housing, rapid industrialization, and an increase in income among emerging economies, are expected to be among the key aspects influencing market growth.
Raw materials used in the manufacturing of ceramic tiles are feldspar, zircon, alumina, kaolin, sand, and silica. Feldspar and similar natural minerals are used in the manufacturing of ceramic tiles to lower the firing temperature during production. The tile industry has witnessed considerable technological advancements owing to the integration of IoT (internet of technology) and AI (artificial technology), which has enabled manufacturers to produce a greater number of tiles of significantly higher quality. Some of the manufacturers of ceramic tiles are also using inkjet printing technology to fulfill consumer demand for aesthetically appealing tiles. However, increasing raw material prices, in combination with stringent environmental regulations, are expected to restrict the growth of this market to some extent. Furthermore, restrictions on carbon dioxide emissions have compelled several producers to either cut down production or adopt environment-friendly ways and invest in changing their infrastructure. These factors are expected to hamper the growth of the market to some extent, particularly in Europe and North America.
The glazed segment by type is anticipated to hold a significant market share, owing to the easy availability and relatively low selling price of these tiles. Various government initiatives such as affordable housing schemes, along with considerable improvement in living standards, are projected to drive the demand for this market segment. Porcelain tiles have also been witnessing a considerable increase in adoption, and the segment is anticipated to grow at a high rate in the coming years.
The commercial segment by end-use is expected to hold the highest market share, owing to the sheer volume of ceramic tiles used in commercial construction projects. The growing demand for energy-efficient government buildings and office spaces is expected to drive the demand for ceramic tiles in this segment. The commercial segment is however expected to grow at a moderate pace due to price volatility and the adoption of cost-cutting practices by multinational companies. The residential segment, on the other hand, is expected to hold a smaller market share but grow at a higher rate during the forecast period.
Based on the application, the market is segmented into wall tiles, floor tiles, and others. While the floor tiles segment is expected to dominate the market, the wall tiles segment also accounts for a substantial market share. Wall tiles have witnessed a higher growth rate owing to the increasing demand for visually appealing wall surfaces.
Europe and North America are projected to witness relatively moderate growth rates during the forecast period, owing to the stringent environmental framework for operations related to the production and manufacturing of building materials. Additionally, it has been observed that there is a rising trend in developed economies of adopting protectionist business policies, which will negatively impact imports and lead to a rise in the prices of raw materials and finished goods that are to be exported. However, these regions have a balanced mix of emerging economies, such as Mexico in North America and Poland and Hungary in Europe, which will result in smoother trade related to ceramic tiles.
North America, owing to major construction activities in Canada, the U.S., and Mexico, is projected to witness significant market growth. There has been a considerable rise in the number of green building projects being undertaken in the U.S. For instance, as stated by the U.S. Chamber of Commerce, around 81% of the contractors were engaged in commercial green building construction in 2017. Furthermore, Canada has been investing considerably in infrastructure improvement. For instance, the Ontario government has announced a USD 30 billion infrastructure funding program under the Canada Infrastructure Program. Mexico, an emerging economy, is set to significantly contribute to the growth of this market as well. The total size of the Mexico building materials and services market increased from USD 94.6 billion in 2016 to around USD 94.9 billion in 2017. Noteworthy growth in the construction sector and demand for housing are some of the factors expected to propel the growth of the ceramic tiles market.
Europe’s ceramic tiles market to register significant growth in the upcoming years. The European construction sector witnessed around 10.4% growth during the period 2010–2016. A surge in housing demand and the high migration are responsible for the growth of the construction sector. Furthermore, as per the European Construction Observatory, the mortgage rates for loans have fallen from 6% in 2003 to just over 3% in 2016. Lower interest rates are expected to witness higher demand for loans, which will lead to an increase in the buying of homes. As the demand for residential and commercial space increases, the demand for ceramic tiles is projected to increase.
Asia-Pacific has been witnessing significant growth in industrial and residential construction, owing to rapid development in emerging economies such as India, China, and Singapore. There have been considerable investments in the real estate sector, especially in economies such as India. For instance, the Indian real estate sector attracted around USD 30 billion in institutional investments between 2009 and 2018. Governments of economies such as India have been introducing initiatives such as smart cities and metros, which is projected to boost the demand for ceramic tiles.
Economies such as Malaysia and Indonesia, among others, have been witnessing considerable investments in the construction sector, which will drive the growth of the ceramic tiles market in Asia-Pacific. For instance, the construction sector in Malaysia achieved an annual growth rate of 7.2% in 2017. The emerging middle class, owing to high urban development and the recent employment boom, has been driving demand for the construction of new residential and commercial spaces, which will lead to an increase in the procurement of ceramic tiles for an array of applications.
Latin America is expected to observe healthy growth during the forecast period, 2019–2026. The availability of raw materials in economies such as Argentina, Chile, and Brazil is expected to drive market growth in the region. Furthermore, major tile manufacturers are focusing their attention on expansion in metro and tier 2 utilities of South and Central America.
There are among the key players operating the global ceramic tiles market. Players involved in this market are adopting strategies such as expansion and expected to increase their manufacturing bases by shifting to emerging economies with the widespread availability of raw materials.
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