Rising government initiatives in the commercial sector as well as in the renovation of new buildings is bolstering the growth of the flooring market. Flooring Market size is forecast to reach US$ 252.0 billion by 2026, after growing at a CAGR of 6.1% during 2021-2026
The flooring market is growing at a significant rate as the governments of various countries are embracing new initiatives for modern commercial construction activities to help meet the flooring production demands. The demand for housing is projected to rise as the population and urbanization is expanding. This is expected to pave the way for several other commercial projects, including restaurants, offices, and shopping malls, which is a major driving force in the flooring industry. Moreover, in the upcoming years, an increase in remodeling activities in emerging economies such as Japan, China, and Malaysia, is expected to boost the flooring industry growth. Furthermore, the increasing R&D activities in the flooring market are further estimated to drive the growth of the flooring industry in the forecast period.
Rising government investments in commercial buildings such as airports, railway stations, hotels, and hospitals has raised the growth of the flooring market. For instance, the Indian government aim to make air travel affordable, improve regional connectivity, and develop regional airports. In February 2020, under the Centre's Udan scheme, the Indian Union Budget proposed to build 100 new airports by 2024 to help with increasing air traffic. In October 2020, the Government of Burkina Faso awarded a EUR 122 million (US$ 139.34 million) contract for the construction of Lot 2A of the new International Airport of Ouagadougou-Donsin. In July 2020, Bulgari has signed an agreement for a new hotel in the centre of Rome, scheduled to open in 2022. In October 2020, by 2030, 40 hospitals will be constructed as part of a £3.7 (US$ 4.4) billion package, according to the European government. In addition, 20 hospitals will receive a share of £850 million (US$ 1026.3 Million) to update obsolete facilities and equipment, as revealed last year, with enabling work already underway at many sites. Such government initiatives are bolstering the growth of commercial construction industry. Also, with the increasing retrofitting and renovation of the buildings, and availability of better flooring materials in the market which helps in energy conservation, it is predicted that there will be an upsurge in the demand for flooring renovation and retrofitting too, which will eventually drive the flooring market in the various region during the forecast period. For instance, aaccording to the U.S. Census Bureau, in Quarter 4 (Oct to Dec) 2019 in Great Britain, the repair and maintenance of non-housing and public housing increased 1.6 percent and 0.9 percent, respectively. Further, the level of construction output in November 2020 was 0.6% above the February 2020; with repair and maintenance work 7.4% above. Thus, it is anticipated with the rising government investments in the commercial industry and retrofitting and renovation of buildings will boost the market growth during the forecast period.
Asia-Pacific region dominated the flooring market in terms of revenue with a share of 41% in 2020 and is projected to dominate the market during the forecast period (2021-2026). In developing countries such as Japan and Malaysia, the growing commercial sectors has raised the demand for flooring at a fast pace. With the development of new commercial buildings, the implementation of flooring has created larger opportunities for the growth of the market. Development of new constructions has been set up in Japan, which is further estimated to drive the flooring market growth. For instance, in September 2020, Mitsubishi Estate Co. announced that it plans to finish work on Japan's tallest building (390m) in a redeveloped district near Tokyo Station in the fiscal year 2027. The new structure would have 63 floors above ground and four floors below, totalling 544,000 square metres of floor space. Similarly, The National Airport Strategy Plan (NASP), which is scheduled to be completed in 2023, will look at the airport development or expansion projects such as the Kulim International Airport and Penang International Airport in greater detail. With the development or expansion of new airports in Malaysia, the demand for flooring materials will also increase which would further drive the flooring market over the forecast period. Thus, growing demand for flooring materials in various applications in this region will further drive the market growth during the forecast period.
The COVID-19 outbreak led to major economic problems and challenges for the residential and commercial industry. The government announced strict measures to slow the spread of the corona virus, owing to which the construction output growth slowed down causing widespread concern and economic hardship for the flooring industry. Owing to the lack of funding, several projects remained in the unfinished stages. The construction industry also faced challenges such as supply chain disruption, shortage of subcontractors and materials, and the termination of contracts to control expenses, which curbed the flooring market growth during the forecast period. Construction operations were temporarily halted in a multitude of regions. For instance, due to the corona virus pandemic, construction production in the United Kingdom dropped by a record 35.0 percent in Quarter 2 (April to June) 2020, compared to Quarter 1 (January to March) 2020. Thus, with the halt of several construction projects due to the COVID-19 pandemic, the flooring market growth was also affected in the year 2020.
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Flooring Market Growth Driver
Increasing Retrofitting and Renovation of Buildings
Globally, there is an increase in retrofitting and renovation of buildings as it helps in aesthetics of the building, reduce energy consumption, while bringing the building up to latest technical standards. People are turning to renovation and reconstruction of buildings for a variety of purposes, the most important of which is to improve living comfort and indoor environment. At the same time, it saves money and reduces energy consumption. The most durable flooring choices are porcelain and glazed ceramic tile, which need very little maintenance. Furthermore, laminate and vinyl are common materials because they help to reduce energy consumption. In July 2020, in an effort to meet the requirements for improving life quality, expanding domestic consumption, promoting urban renewal and transition in development and construction, and facilitating high-quality economic development, the Chinese State Council issued a guideline aimed at pushing forward work on renovating old urban residential areas as a major project concerning people's livelihood and economic development. Also, China plans to renovate twice as many old residential communities to improve living standards, encourage investment, and boost economic development. In 2020, the country aimed to renovate 39,000 aging urban residential neighbourhoods, more than double the goal of 7 million households set last year. Thus, with the rising retrofitting and renovation of buildings the flooring market is estimated to rise in the forecast period.
In 2018, KIRKBI, the Kirk Kristiansen family's holding and investment firm, has agreed to buy KKR's 49.8% interest in Välinge, a Swedish industrial R&D company, alongside the founding Pervan family, which will retain a controlling control of 50.2 percent through Pervanovo Invest AB. Välinge's partnership with KIRKBI aims to further solidify the company's status as a leading industrial R&D and flooring manufacturer.
Major Players of Market Include:
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the flooring market. Major players in the flooring market are Mohawk Industries Inc., Shaw Industries Group Inc., Tarkett S.A., Armstrong Flooring, Interface Inc., Gerflor Flooring, Mannington Mills Inc., Forbo Holding AG, Beaulieu International Group, and TOLI Corporation among others.
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- In October 2020, Interface Inc. launched first carbon negative carpet tile styles. The collection offers a variety of carpet tile designs inspired by and manufactured to respect nature. Consistent with the company's Climate Take Back mission and commitment to lower the carbon footprints of its products, all seven styles of Embodied Beauty are carbon neutral across their full product life cycle through the Carbon Neutral Floors program.
- In March 2020, Beaulieu Yarns launched EqoCycle yarns designed with circular economy benefits & high performance for the carpet industry.
- In January 2020, Mannignton launched 5 new looks featuring clean and modern designs that reflect the latest home trends, the four wood and one tile design offer colos and styles in a variety of constructions.
Mr. Venkat Reddy
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