The global flooring market is experiencing tremendous growth due to aging infrastructures, growing restricting & maintaining activities, and growing income levels. Moreover, the increasing quality of life is positively impacting the demand for flooring products in emerging economies. China and India are the two most significant countries in the Asia Pacific region, and they are expected to overtake each other in terms of growth rates. However, some of the regions are lagging behind other regions in terms of market size.
The flooring market will grow largely due to the rise in construction activity in developing countries. As per UN-HABITAT, only 13% of urban areas are housing societies regulated. With the increase in construction output, governments in emerging economies are investing in this sector. As a result, these governments will be creating massive demand for flooring solutions. Here are some key trends expected to drive the market in the next few years:
According to UN-HABITAT, only 13% of urban areas are home to affordable housing. As a result, the demand for flooring products will grow in these countries. Moreover, the middle-class population in developing nations will fuel the market growth. Therefore, the Asia Pacific region is expected to grow at the fastest rate between 2020 and 2027. Further, the growing middle class population in these countries will help the industry grow.
The growth of the flooring market will be driven by the need to retrofit existing buildings. This will promote the demand for sustainable and energy-efficient flooring solutions. Various regions are promoting the growth of the flooring industry in these regions. The U.S. Census Bureau estimates that the value of real estate in India will reach $1 trillion by 2030. As of February 2020, office leasing space in India is estimated at 60 million square feet.
The flooring market in Asia Pacific is expected to grow at the fastest rate in the region from 2018 to 2023. The growth will be primarily driven by the rising number of households in China and India, whose increasing disposable incomes and building-related expenditures are boosting the construction sector. As a result, the region is expected to have the largest flooring market in the world. Moreover, the region is projected to have the highest growth rate in terms of revenue during the forecast period.
China and India have emerged as the fastest-growing flooring market during the forecast period. This region is characterized by low manufacturing costs, rising disposable income, and favorable policies, such as the National New-type Urbanization Plan. The region’s construction output was 7.4% higher than February 2020, and this is expected to continue in the future. In addition to China and India, the United States and Europe are also projected to witness strong growth.
Besides the major developed regions, the flooring market is growing rapidly in emerging economies. Developing countries are rapidly developing their economies, which have increased the demand for flooring solutions. Several factors are driving the growth in the region. For example, the growing number of immigrants and a rise in the number of residential units in the United States and China is a major driver of the flooring market. This will also increase the demand for flooring products in emerging countries.
The construction industry has experienced substantial growth over the past few years, thanks to rapid industrialization and urbanization. As cities continue to grow, the demand for flooring products is also increasing. Moreover, the cost of labor in developing countries is lower than in developed markets. Meanwhile, emerging economies are primarily driven by consumers’ preference for elegant flooring finishes. The global flooring market is anticipated to reach a value of USD 2.3 billion by 2020.
North America is a highly developed region with millions of job opportunities. The high standard of living attracts highly skilled workforce. Moreover, the region’s growing immigration rate and rising construction projects will spur the demand for flooring products in the coming years. The flooring market is expected to be profitable in the US and in emerging regions. In the United States, the industry is expected to grow at a CAGR of 7.4% in 2020.