Ceramic Tiles Market

Market Overview

The Global Ceramic Tiles Market size was valued at USD 379.83 billion in 2022 and is projected to reach USD 692.44 billion by 2031, with a CAGR of 6.9 % during the forecast period, 2023–2031. 

Ceramic tiles are made from clay and other natural resources, including sand, quartz, and water. They are mainly found in homes, restaurants, offices, and shops. Ceramic tiles are commonly utilized on bathroom walls and kitchen floors. They are simple to install, clean, and maintain, and they are reasonably priced. Ceramic tiles can also be utilized on walls, both internal and external. They can be used on internal walls to create patterns or change the color of space and on external walls to produce a cooling effect because they do not absorb heat, which is especially useful during summer. Ceramic tiles are strong and can endure high temperatures and acidic chemicals, yet they are brittle and weak in tension and shearing. Floor tiles, pipes, bricks, cookware, tableware, sanitary ware, pottery goods, kiln linings, knife blades, disc brakes in automobiles, watch cases, biomedical implants, gas and fire radiators, and so on are all examples of applications. In the ceramic sector, manufacturers are emphasizing the use of hydrophilic kaolin.

These tiles are more durable than their counterparts, provide significant resistance to high temperatures, and can endure exposure to caustic or acidic substances. These tiles have arisen as an alternative to hardwood and other flooring goods such as marble, concrete, and others due to their appealing appearance and availability in various designs, textures, colors, forms, and sizes. These characteristics, together with their lightweight, anti-skid, and anti-bacterial features, make these tiles ideal for usage in hospitals, hotels, laboratories, and pharmaceutical manufacturing facilities where hygiene is paramount.

Market Dynamics

What are the Driving Factors for The Global Ceramic Tiles Market?

The growing population is one of the primary factors driving the market for ceramic tiles to expand. Additionally, the global migration of people from rural to urban areas has considerably accelerated the rate of global development. According to the United Nations Population Division, the global population is projected to reach 9.5 billion by the year 2050, with metropolitan populations accounting for around 66.4% of the total. A favorable shift in everyday comfort expectations will necessitate enhanced cleanliness and disinfection. Recently, APAC has made tremendous strides in the ceramic tile market, which is dominated by growing nations such as India and China. By 2050, Asian urban areas are projected to account for 52.3% of the global metropolitan population, creating the largest workforce ever.

The population movement from rural to urban areas in the APAC region has greatly accelerated the metropolitan population growth rate. According to the United Nations Population Division, the overall population of APAC is expected to reach 5.1 billion by 2050, with metropolitan populations comprising at least 68% of the total population. Together, the APAC metropolitan population and the growth of the rest of the world's population might add another 2.5 billion people to urban areas by 2050, with about 90% of this increase projected in Asia and Africa. This change will stimulate demand for housing and other business infrastructure in metropolitan communities to accommodate the growing population.

What are the Challenges for The Global Ceramic Tiles Market?

The production of tiles is an extremely energy-intensive operation; electricity, gas, and transportation costs are the primary expense-related factors affecting the business. Consistency in power and fuel availability at reasonable costs is crucial for the growth of the ceramic tile sector. Unpredictable and unstable marketplaces have enormously negative outcomes, which are closely monitored by manufacturing groups. In addition, there is greater volatility in the pricing of unprocessed materials used to manufacture ceramic tiles. Unrefined components, such as silica sand, kaolin, feldspar, and bentonite, have a variable cost. Unstable raw substance costs increase the capital connected with ceramic tile assembly as a whole. Increasing expenses and unexpected fluctuations in the prices of unprocessed materials weaken supply chains and make it difficult for manufacturers to compete in the competitive ceramic tiles market.

What are the Future Opportunities for The Global Ceramic Tiles Market?

The entry of coordinated retailers increases the availability of numerous types of ceramic tiles, hence boosting the growth potential of this sector. Many retail establishments, including hypermarkets, supermarkets, and specialized shops, are opening due to the rapid expansion of the global retail business. As a result of increasingly hectic lifestyles and work schedules, accommodation and comfort are becoming increasingly important to customers; consequently, large coordinated retail locations focus on stocking more varieties and brands of ceramic tiles under one roof to provide customers with more options. Additionally, ceramic tiles are available for purchase at stores specializing in interior design. With increasing brand awareness among consumers, the significance of coordinated shops selling branded ceramics and other home furnishings has increased. Coordinated retailing enables customers to gather information on several brands and compare the price, quality, and design of multiple things before making a purchase decision. In the subsequent couple of years, the coordinated retailing area is expected to significantly impact the ceramic tile market.

Regional Analysis

The global market for Ceramic Tiles has been segmented based on geography into North America, Europe, Asia Pacific, and LAMEA.

In 2021, Asia Pacific dominated the market and accounted for around 46% of the revenue share. High product demand from residential and nonresidential building segments in Asia-developing Pacific economies, such as China and India, is anticipated to create development prospects for the market.

As a result of increased per capita income, fast urbanization, and a growing population, the Asia-Pacific construction industry is projected to rise. The region's expansion of residential, commercial, and industrial sectors as a result of sustained economic growth is anticipated to increase building activities, consequently driving product demand over the forecast period. Due to the region's increasing development of residential and commercial structures, the market for ceramic tiles in North America is anticipated to grow at a CAGR of 5.6% over the forecast period. In addition, a number of Italian tile manufacturers are expanding their manufacturing facilities in the region due to the availability of raw materials and the sizeable amount of unexplored markets.

In North America, the need to upgrade existing infrastructure is anticipated to increase demand for the product in residential and commercial replacement applications. In 2020, the commercial building industry, which includes offices, hotels, and other accommodation spaces, exhibited consistent expansion, which is anticipated to stimulate future product demand in the region.

Latin America is expected to observe healthy growth during the forecast period, 2023–2031. 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.

Segmental Analysis

The global market for Ceramic Tiles is categorised by Product, Application and End use.

Based on the Product, the market is segmented into Porcelain and Glazed Ceramic.

In 2021, porcelain tiles dominated the market and accounted for around 54% of revenue. These tiles are constructed from finer, denser clay and are fired at extremely high temperatures, giving them enhanced endurance when exposed to heavy foot activity. In addition, impermeable porcelain tiles are resistant to mold and germs, extending their durability as a floor covering. In addition, the chemical and stain resistance provided by the product is anticipated to increase demand for the aforementioned tiles due to their increasing use in retail malls, hotels, and other institutional buildings.

Glazed ceramic tiles are also one of the most popular types, with a demand of USD 96.42 billion in 2021 and an expected CAGR of 5.8% between 2022 and 2031. Due to the presence of a protective glass layer, these tiles exhibit great resistance to stains. The water resistance provided by the protective coating on the glazed ceramic tiles increases their utility in humid circumstances. Consequently, these tiles are widely used for applications in moist areas such as bathrooms, kitchens, and laundry rooms, which is anticipated to accelerate market expansion throughout 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.

In 2021, flooring applications dominated the market and accounted for over 54% of the revenue. Increasing demand from commercial projects, such as hotels and shopping malls, is anticipated to fuel product demand, as these tiles offer both greater aesthetics and cost-effectiveness. The increasing influence of designers and architects in the commercial application of porcelain tiles and flooring is anticipated to increase product demand. These products' simple maintenance, elegant designs, and stain- and water-resistance are predicted to increase their demand in commercial flooring applications over the forecast period. Wall tiles have witnessed a higher growth rate owing to the increasing demand for visually appealing wall surfaces.

Based on End-use, the market is segmented into Residential and commercial.

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. On the other hand, the residential segment is expected to hold a smaller market share but grow at a higher rate during the forecast period.

Recent Developments

• In March 2022, RAK Ceramics, one of the world's largest producers of ceramic products, acquired the entirety of Germany's Kludi Group to expand its worldwide activities.
• In June 2022, Mohawk Industries, Inc. announced the acquisition of Grupo Industrial Saltillo's (GIS) Vitromex ceramic tile business for roughly USD 293 million in cash.
• In April 2021, M S International Inc (MSI), the largest provider of flooring, wall tiles, countertops, and hardscaping goods in North America, announced the addition of over 100 Q Premium Natural Quartz products to its already extensive and ever-expanding collection. The introduction featured five of the most recent, on-trend marble-look quartz shades, including lighter and darker tones to complement any design.
• In February 2021, Pamesa Ceramica collaborated with Spanish fashion designer Agatha Ruiz de la Prada to launch the 'Agatha 21' ceramic tile collection. Agatha 21 is characterized by its vivid powder colors, confetti effects, mathematical designs, and glossy sheen.