Ceiling Tiles Market Trends

Growth Drivers

• Growing Urbanization – Presently, a huge number of people are residing in urban areas, and more people have been shifting towards urban cities on account of getting better job opportunities, better education, as well as better healthcare services. Thus, the ratio of urbanization has been increasing in a more dramatic way, which is leading the growth of construction activities throughout the world. Such a factor is fueling up the utilization rate of ceiling tiles in buildings and infrastructures, subsequently positively contributing towards the growth of the market over the forecast period. For instance, in 2018, 55% of the world's inhabitants lived in cities; by 2050, that number is projected to rise to 68%.
• Rising Population – With the burgeoning population, the demand for construction processes for buildings is also expected to rise. As a result, the need for ceiling tiles is forecasted to increase in the next few years. Recent statistics revealed that the world population is estimated to increase by 2 billion people during the next 30 years, from 7.7 billion people today, and reach approximately 9.7 billion in 2050. This number is further anticipated to reach around 11 billion people around the year 2100.
• Increasing Disposable Income - As the economies are growing, so does the disposable income of the people. As a result, individuals have more spending capacity to spend on the appearance and looks of the rooms by adopting modern products such as ceiling tiles. Hence, the high adoption rate of ceiling tiles among the high-income population is projected to expand the market size in the assessment period. The disposable personal income in the US rose by about 1 percent in August 2022 compared to the same month the previous year.
• Increasing Residential & Non-Residential Construction Activities – For instance, according to short-term projections, the non-residential building market in the United States is expected to expand by more than 5% in 2023.
• Rise in Spending on Home Remodeling – As a result of quick urbanization, people are shifting toward the remodeling of their homes. Hence, there is a high requirement for ceiling tiles in renovation processes which are anticipated to create a positive outlook for market growth in the future. About 50% of respondents to a study taken in 2020 stated that they had remodeled their homes, and the median amount spent on renovations by a household increased to more than USD 13,000 in 2020 across the globe.

Challenges

• High Cost of Ceiling Tiles - Ceiling tiles are only being utilized in limited business settings and residential rooms owing to their exorbitant cost. As the addition of ceiling tiles increases the overall cost of the infrastructure, people with low incomes are not able to afford it. Therefore, the high cost of ceiling tiles is considered to be a major obstacle to their expansion in residential buildings.
• Negative Effect on Human Health – Some of the ceiling tiles are manufactured using harmful ingredients, including formaldehyde, microbes, antimicrobial coatings, flame retardants, and others. The addition of these components makes ceiling tiles harmful to human health and the environment.
• Lowering Installation Costs