Indoor Flooring Market Size, Share & Trends Analysis Report By Product (Ceramic Tiles, Vitrified (Porcelain) Tiles, Carpet, Vinyl, Luxury Vinyl Tiles (LVT), Linoleum/Rubber, Wood & Laminate, Natural Stone, Other Flooring Materials), By Construction Type (New Construction, Renovation), By End-User (Residential, Commercial & Industrial) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global indoor flooring market size was valued at USD 136.45 billion in 2021, envisioned to reach USD 217.48 billion growing at a CAGR of 6% during the forecast period. 

The lower surface that encloses a space within a building is referred to as the "flooring" of the building. Products designed for indoor flooring are pieces of construction material installed as flooring in residential, commercial, and industrial buildings. Indoor flooring can be installed during the construction of a new building or the renovation of an existing one. The indoor flooring of infrastructure contributes to the improvement of the interior. The products sold as indoor flooring can be found in various materials, colors, and shapes.

The growth in renovating and remodeling old houses is the primary factor propelling the market for indoor flooring. In addition, the construction of new homes is another factor driving the need for indoor flooring. Also, introducing new indoor flooring products that are both cost-effective and simple to install has contributed to increased demand in the market. Throughout the forecast period, the market for indoor flooring is anticipated to be boosted by an increase in awareness regarding the construction of environmentally friendly buildings.

Market Dynamics

Market Driving Factor

The Growth in Construction and Renovation Activities and the Ease of Installation and Replacement Process

The construction of malls and offices in Asia, Africa, and Latin America's developing nations significantly contributes to global market expansion. Approximately 100 malls have been constructed in Latin America since 2017. These malls have multiple floors and are situated on numerous acres of land. In addition, the rapid industrialization of developing nations has resulted in the construction of new, abundant office spaces in major cities. In addition, urban development has fostered the efficient utilization of urban land. By 2040, the worldwide population is projected to increase by approximately 2 billion, with a 46% increase in the urban population, resulting in a massive demand for residential and commercial structures. 

Old infrastructures are being demolished to make way for the construction of new, modern structures, which increases the demand for renovation and remodeling projects. In urban cities, land is now a scarce resource. In addition, the increased construction of high-rise buildings to facilitate a large population base has necessitated the demolition and reconstruction of existing structures. In addition, numerous old buildings and structures have reached the end of their useful lives and are no longer inhabitable. Thus, owners or the government demolish the structure to construct new facilities. In addition, the growing trend to renovate or remodel older homes and buildings to improve their aesthetics increases the demand for indoor floorings.

In addition, installing new flooring is a simple process that entails removing the old flooring, cleaning the surface, and applying an under layer, which is carefully fixed for a smooth surface to prevent moisture absorption and temperature change. When a flooring patch is damaged, it is carefully removed and replaced with a similar design and size. There is no need to remove or uninstall the entire flooring in the area. These advantages of flooring products make DIY applications popular and drive the global indoor flooring market share.

Market Restraining Factor

Global Trade War to Hinder Market Growth

The U.S.–China trade dispute has impacted the global manufacturing and sales of indoor flooring. The price of indoor flooring materials has increased due to a rise in import duties in either of the two countries. In addition, the United States exported approximately USD 9 billion worth of lumber and logs to China in 2018. These materials are used to manufacture finished wood products, including flooring products. The United States is one of the most significant importers of these goods. However, the trade war increased tariffs and taxes, such as import duties, pushing up raw materials and finished goods prices. Consequently, the global trade war is anticipated to restrain the global indoor flooring market growth.

Key Market Opportunities

The Growing Green Building Awareness to Spur Market Opportunities

Rising environmental consciousness related to waste recycling and reuse among individuals and increasing CO2 emissions is anticipated to spur market growth prospects for sustainable indoor floor products. Market participants have taken proactive steps to recycle non-hazardous waste to prevent pollution and reduce environmental risks. Recycling processes for construction and demolition waste are increasingly adopted to reduce CO2 footprint, minimize the environmental impact, develop space in urban areas, reduce the amount of land required for landfills, and generate job and business opportunities worldwide. Consequently, it is anticipated that such factors will facilitate global market expansion.

Regional Analysis

The region-wise segmentation of the global indoor flooring market includes North America, Europe, Asia-Pacific, and LAMEA.

The Asia Pacific is most likely to advance at a CAGR of 6.41% and command the market with the largest share. It is assumed that the Asia-Pacific region will experience a notable growth rate in the indoor flooring market due to the rapid development of the construction industry and the ease with which raw materials are obtained. Moreover, fast-growing markets in economies like India, China, Indonesia, and Malaysia are experiencing infrastructural development and a rise in new construction activities, which is expected to increase the demand for indoor flooring solutions in commercial buildings such as schools malls, airports, and offices.

In addition, major players are attempting to establish manufacturing facilities in these markets to increase production volumes and serve Asian construction industries, both residential and non-residential. Such developments affect the expansion of the construction and manufacturing establishments. Consequently, enhancements to global production facilities are anticipated to generate opportunities for the indoor flooring market growth in this region.

LAMEA will hold a revenue share of USD 50,613 million, growing at a CAGR of 7%. The growth of the market in LAMEA is driven by the rising demand for industrial and commercial facilities caused by urbanization. The market for indoor flooring is anticipated to grow at a faster rate due to the expansion of the construction sector and the expansion of infrastructure. In addition, the market's growth is supported by an improved business climate and increased construction spending, particularly in Latin America and Africa. 

Moreover, the United Arab Emirates and Qatar will remain profitable investment regions due to population growth and urbanization expansion. The Brazilian government has implemented various programs, like Agencia Especial de Financiaço Industrial (FINAME), to promote real estate development. Consequently, these factors propel the growth of the indoor flooring market in LAMEA over the forecast period.

Segmental Analysis

The global indoor flooring market is classified based on type, construction type, end-user, and region.

Segmentation based on type includes ceramic tiles, carpet, vinyl, linoleum & rubber, wood & laminate, and others.

The ceramic tiles segment is expected to advance at a CAGR of 6.5% and will hold the largest share. The demand for these tiles is significantly increased by characteristics such as their design, color, and texture adaptability. For instance, technological advancements have produced ceramic tiles with the same texture and appearance as wood, concrete, stone, and terrazzo. In addition, their adaptability, high mechanical resistance, low maintenance costs, and longevity make them excellent materials for indoor flooring solutions. Numerous applications exist for ceramic tiling for indoor flooring in residential, commercial, and industrial structures.

The carpet segment will hold the second-largest share. Carpet segments include synthetic fiber and fabric-based carpets and rugs. There are different sizes, colors, and patterns of indoor carpets to accommodate the interiors of buildings. In addition, they guard indoor flooring against direct damage and improve its appearance. In addition, indoor carpets are widely used in residential, office, museum, and other infrastructure settings, which fuels their demand and propels the indoor flooring market growth.

Segmentation based on construction type includes new construction and renovation. 

The new construction segment will advance at a CAGR of 6.1% and hold the largest market share. Tiles are installed in newly constructed apartments, buildings, commercial complexes, and other infrastructures. One of the major factors boosting the expansion of the indoor flooring market share is the increasing demand for new construction to accommodate a growing population. In addition, increased population migration in Europe has necessitated new construction. All advancements in the construction sector are anticipated to have a positive impact on floor tile adoption.

The renovation segment will hold the second-largest share. Renovation is the process of restoring a structure that is already standing. Flooring is replaced during the renovation of older homes and buildings to improve their appearance. Companies operating in the market employ various strategies to broaden their customer base and increase their manufacturing capacity to withstand the intense competition and enhance their product portfolio. In addition, during the forecast period, the improvement in renovation practices of old heritage buildings is anticipated to present market participants with lucrative growth opportunities.

Segmentation based on end-user includes residential and commercial & industrial.

The residential segment is estimated to advance at a CAGR of 6.25% and will hold the largest share. This segment comprises indoor flooring products utilized in residential houses, bungalows, villas, and condominiums in hallways, living rooms, bedrooms, bathrooms, and kitchens. Gradual increases in population and disposable income of the majority population in several developing nations, such as India and Brazil, contribute to the expansion of the indoor flooring market share. In addition, the increase in remodeling and renovations in developed countries like the United States, the United Kingdom, and Germany is anticipated to drive market growth.

The commercial & industrial segment will hold the second-largest share. This segment encompasses indoor flooring products used in commercial & industrial office buildings, hotels, art galleries, and similar establishments for hallways, work areas, restrooms, and kitchens. In the well-established economies of North America and Europe, there is a high demand for commercial and industrial non-residential buildings. In addition, new commercial and industrial infrastructures are being constructed in Asia-Pacific and LAMEA developing nations due to urbanization and industrialization.

Impact of covid-19

COVID-19 has positive and negative market consequences, as carbon emissions have decreased globally due to the lockout. COVID-19's reduction in emissions is a short-term benefit. Still, when industries and enterprises attempt to recoup some of their financial losses in the first quarter of the year, carbon emissions will rise dramatically. COVID-19 had a negative impact on global recycling efforts. Countries, notably the United States, have halted or decreased recycling programs to focus on collecting additional domestic waste or because services have been disrupted by the virus.

Also, with industries slowly returning to normalcy following the COVID-19 outbreak, this shift in workplace health and safety is expected to increase due to mandatory social distancing and continuous personal care through sanitization to eliminate even the tiniest possibility of COVID-19 spread. COVID-19 has impacted various companies' revenues, and if the lockdown is lifted, companies will turn their attention to operations to make up for their losses.

Recent Developments

• In 2022, Armstrong Flooring, Inc. announced the launch of three new heterogeneous sheet collections, Asanaä, Nidraä, and Zenscapeä.
• In 2022, Ecore International launched the first vinyl sports floor with high-performance rubber backing.