Global Flooring Market: Rise in population & rapid urbanization fueling the market growth.

Published Date: 11/05/2021

The flooring market was valued at USD 386 billion in 2020 and is projected to reach USD 530.06 billion by 2027; at a CAGR of 4.6 % during the forecast period .Rising urbanization spending across the globe coupled with easy availability of finance options will boost the product sales over the projected time period.

Flooring comprises permanent coving of floor with the usage of several products such as carpets, tiles, laminates, among others. The growing renovation & remodelling activities supported by lower lending rates will fuel the business expansion. Further changing green building regulations and the development of infrastructure projects are driving demand for flooring products.

Technological advancements coupled with ongoing product development to enhance the performance will propel market growth by 2026. For instance, in December 2019 BASF launched high-performance flooring systems with excellent resistance to abrasion and impact. Additionally, rising trend towards environment-friendly floor will stimulate market growth. Government are using public and private sector together by PPP supporting the investment even in financially constrained periods.

Renovation and home re-modeling activities are increasing across countries, as these activities are supported by programs run by various governments. For instance, in Europe, the National Energy Efficiency Action Plans (NEEAPs) aims to foster investments in the renovation of residential and commercial buildings. According to the Leading Indicator of Re-modeling Activity (LIRA), released by Re-modeling Futures Program, annual gains in home repair & renovation spending in the US is expected to increase from 6% in the first quarter of 2018 to 6.3% by the end of second quarter of 2018. Furthermore, in the US, owners are expected to spend over USD 330 billion on home replacements, upgrades, and routine maintenance, in 2018. This, in turn, creates growth prospects for the overall flooring market.

The rising focus toward home decor and the improving lifestyles of consumers are also boosting the renovation & re-modeling activities in the current scenario. Presently, the growing trend of spending on the styling and interiors of the living spaces among consumers has led them to expend on home furnishings such as carpets, rugs, and other floor coverings that add to the aesthetic appeal of interiors. This shift is supported by the rise in consumer income levels, changes lifestyles, and adoption of different cultures, in terms of interior decor, which has further resulted in the growing interest of consumers in the interior decoration of their houses and workspaces.

The market for flooring is led by major players such as Mohawk Industries (US), Shaw Industries (US), Tarkett (France), Armstrong Flooring (US), Forbo (Switzerland), Gerflor (France), Interface (US), Beaulieu International (Belgium), TOLI Corporation (Japan), and Milliken & Company (US).

North America flooring market share is expected to witness considerable growth over the forecast time frame Improvement in overall economic stability in the construction sector is expected to support the business growth. Rising smart infrastructure demand along with increasing infrastructure spending in the U.S. will escalate regional demand. Low inflation along with reducing fiscal tightening is expected to fuel construction spending in the region. The U.S. market for flooring is a highly structured sector due to large presence of significant manufacturers including RFCI, Mannington Commercial, Forbo Flooring. Asia Pacific is projected to lead the flooring market accounting major global share by 2025. The growing construction industry in developing countries including India and Thailand due to regulatory support for infrastructural development is anticipated to be the key factor triggering the product demand. Moreover, growing economic prominence of China, India, and other countries owing to the presence of a large consumer base, cheap labor, and high level of resources is expected to drive the construction industry in the region, which is expected to support the market expansion.