The global market for is a medley of a large number of medium, large, and small-sized companies, says Transparency Market Research (TMR) in a new report. The leading four names in the market, Armstrong World Industries Inc., USG Corporation, Saint-Gobain S.A., and Knauf held 33.9% of the overall market in 2015 on account of their unwavering winning strategies. This includes consistent product innovation and use of technology for improvements in existing products. To further boost their market presence, these companies are engaged in the development of environmentally sustainable products.
As per the report by TMR, the global ceiling tiles market is projected to reach a valuation of US$51.3 bn until the end of 2024, considerably up from its evaluated value of US$21.6 bn in 2015. The global ceiling tiles market is expected to rise at a CAGR of 10.1% for the forecast period between 2016 and 2024.
North America is expected to lead amongst other key regional segments in the ceiling tiles market. The region is expected to hold a share of 31.8% by the end of 2024. In terms of product, the segment of mineral wool is expected to display substantial growth expanding at a CAGR of 10.2% between 2016 and 2024. The growth of this segment is mainly because of environmentally sustainable new construction undertakings in developed as well as developing economies.
Environmental Benefits of Ceiling Tiles over Conventional Products Boost Uptake
Due to rampant industrialization and urbanization, construction activities have received a boost across the world. In particular, large investments for infrastructural development in emerging economies of Asia Pacific and South America is leading to a large number of construction undertakings. These factors are directly influencing the demand for ceiling tiles on account of cost and other advantages such as acoustics and thermal insulation. Therefore, ceiling tiles are best suited for low-cost accommodations that are designed for low-income group individuals.
Some other factors stoking growth of the ceiling tiles market are rising GDPs, increasing disposable incomes, demand for better designs and aesthetics, and improved standard of living. At present, ceiling tiles find applications in residential, non-residential, and industrial spaces as these tiles are recyclable. Due to the advantage of reducing carbon footprint, ceiling tiles are increasingly being adopted for environmentally sustainable construction in place of conventional ones. Amongst several types of ceiling tiles, mineral wool ceiling tiles are anticipated to garner significant market share due to their low cost advantage to landfills. Thus, they provide a sustainable solution for waste management over other products.
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Availability of Par Excellence Substitutes Challenges Growth
However, the growth of the global ceiling tiles market is restrained due to several factors. The availability of substitutes such as asphalt and mortar that have been identified to be at par with ceiling tiles is expected to hamper the market’s growth. Furthermore, fluctuating raw material prices is challenging the growth of ceiling tiles market. For instance, prices of mineral wool and gypsum have been consistently rising since 2012, which has negatively impacted the cost of ceiling tiles.