Flooring Market Analysis APAC, North America, Europe, Middle East and Africa, South America - US, China, India, Indonesia, UK - Size and Forecast 2024-2028

Flooring Market Forecast 2024-2028

The flooring market size is forecast to increase by USD 84.98 billion, at a CAGR of 5.9% between 2023 and 2028. Market growth is driven by the rapid expansion of the global construction sector, evolving flooring needs in key industries, and the increasing demand for environmentally friendly and sustainable flooring solutions. The construction sector's growth, especially in developing regions, fuels the demand for innovative flooring options that meet both aesthetic and sustainability requirements. Industries such as healthcare, hospitality, and retail are seeking durable, easy-to-maintain flooring solutions that also align with their environmental goals. This trend is expected to continue driving market growth in the coming years. Our report examines historical data from 2018-2022, besides analyzing the current market scenario.

What will be the  Market Size During the Forecast Period?

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Market Definition 

Flooring refers to any enduring covering on a floor or the installation process of any such covering. Floors are an essential element in interior design and improve the aesthetic appeal of any property. These products are vital to commercial and residential construction, as they contribute functionally and add to the monetary value of the property.

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Market Dynamics

The market is witnessing substantial growth, especially in emerging economies, driven by a burgeoning middle class and increasing focus on renovation and modernization. With rising consumer awareness, the demand for innovative flooring solutions is on the rise, particularly in the tourism and hospitality industries. Manufacturers and suppliers play a crucial role in meeting this demand while addressing challenges such as waste disposal during installation and demolition. Adhesives are vital for securing various flooring types, including resilient flooring materials, known for their durability and long lifespan against heavy foot traffic. Regular maintenance ensures longevity, while occasional replacement keeps spaces fresh and appealing. Our researchers analyzed the market research and growth data with 2023  as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage. 

Key Market Driver

Rapid growth in the global construction industry is the key factor driving the market. The global construction industry stands as a pivotal end-user of flooring, significantly driving the market's expansion. Notably, since 2009, the construction sector has experienced exponential growth, with Europe witnessing its most substantial upsurge in the last five years. This growth, primarily propelled by the residential sector, is fueled by increasing home investments across Europe, particularly in countries like the Netherlands, Denmark, and Germany, expected to lead the industry's growth in the region.

Similarly, APAC, encompassing China, Indonesia, and India, boasts rapidly expanding construction markets. Indonesia's construction industry anticipates a growth rate of 4%-6%, primarily propelled by residential construction. Meanwhile, the Indian government's significant investments in affordable housing, facilitated by the National Housing Bank (NHB), further contribute to this trend. As a result, the global construction industry's growth trajectory is poised to exert a positive influence on the market during the forecast period, underscoring the importance of emerging economies, the middle class, and consumer awareness in shaping market dynamics.

Significant Market Trends 

The growing adoption of VR technology is one of the major market trends. Major players in the market, including Mohawk Industries and Armstrong Flooring, are leveraging virtual reality (VR) and augmented reality (AR) to enhance the customer experience. The advancement of technology and innovation has enabled these companies to offer virtual experiences of their products. Customers now can view, design, and customize virtual rooms with various options, empowering them to make better and more informed purchasing decisions.

For instance, Armstrong Flooring provides a VR tool called DesignVisualizer, which allows users to select preferred room layouts and design them using the company's full range of products. The tool offers four room layout options tailored to retail spaces, offices, healthcare, and education sectors. As VR technology enables customers to virtually visualize and experience different products and design combinations, its widespread adoption is anticipated in the future, presenting significant market opportunities during the forecast period.

Major Challenge

Volatility in raw material prices is a major challenge that affects market expansion. The prices of raw materials used in the manufacturing of flooring products, including wood, ceramics, and vinyl, have been steadily rising due to a demand-supply imbalance, and this is a major challenge hindering market growth. The US, a major exporter of lumber, is unable to meet the growing demand from markets like China and Southeast Asian countries. Trade disputes between the US and Canada regarding lumber imports have further contributed to the surge in lumber prices, resulting in increased transportation and labor costs.

Further, the prices of ceramics and vinyl have also been affected by tight supplies of key raw materials. As the construction industry grows and the demand for products increases, the supply-demand imbalance is expected to persist in the coming years. Consequently, the rising prices of raw materials and associated costs pose significant challenges for the market during the forecast period.

Segmentation by End-User, Type, and Geography

The market is witnessing significant growth, driven by various factors such as the expansion of emerging economies and the rise of the middle class, leading to increased spending on renovation and modernization projects. Moreover, consumer awareness regarding the importance of durable and aesthetically pleasing flooring options has fueled demand, especially in sectors like the tourism industry and hospitality industry. Manufacturers and suppliers are focusing on developing innovative flooring solutions that not only meet the demands of modern consumers but also address concerns such as waste disposal during installation, demolition, and use of environmentally friendly adhesives. Resilient flooring material is gaining popularity due to its durability and long lifespan, capable of withstanding high levels of foot traffic with minimal maintenance requirements. The replacement market for flooring is also seeing growth as older properties seek upgrades to newer, more resilient flooring options. Overall, the flooring market is characterized by a diverse range of products catering to various industries and consumer preferences, with a focus on sustainability, durability, and aesthetics.

End-user Analysis 

The market share by the residential segment will be significant during the forecast years. The global population is expected to grow rapidly in the coming years, leading to increased residential construction activities. Urbanization is a key driver, particularly in densely populated regions like APAC, MEA, and South America. Rural-to-urban migration further supports the demand for new residential units, especially in urban areas. Multifamily housing projects are becoming popular in developing economies, creating the need for new residential projects.

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The residential segment accounted for USD 140.83 billion in 2018. Around 70% of residential properties opt for carpeting as their primary choice. The demand is expected to rise due to the growing number of residential construction activities. Single-family housing projects will continue to dominate, particularly in APAC and MEA, where a significant increase in new residential units is projected. APAC is anticipated to account for more than 60% of global new housing unit developments, driven by factors such as declining average household size and increasing interest in urban residential projects. The interest in residential projects in urban areas will fuel the growth of the residential building and construction industry in developing economies, consequently driving the global market during the forecast period.

Type Analysis 

Non-resilient flooring holds the largest market share during the forecast period. In both residential and commercial construction, non-resilient options like wood and ceramic have long been preferred despite their higher costs for both products and upkeep. These choices endure due to their durability, visual appeal, and specific functionalities. Wood flooring excels in temperature adaptation, while ceramic tiles boast superior water resistance. However, challenges arise in sourcing materials, with constraints on oak timber exports from countries like Russia, Ukraine, and Croatia. Market dynamics favor alternatives such as LVT, porcelain tiles, bamboo, and cork, which offer recyclable solutions and intense competition, potentially leading to a slow growth trajectory for the segment.

Region Analysis

APAC is estimated to contribute 48% to the growth of the global market during the projection period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.

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APAC dominates the market due to robust residential and commercial construction. China, India, and Japan are key contributors. Though China's economic slowdown affects construction, other Southeast Asian countries show potential for growth. Non-resilient like wood, stone, and ceramic drive the market, offering durability and climate suitability. Resilient products and carpets are niche segments. Technology advancements and awareness of alternatives like laminates and LVT are growing. Performance sectors like education and healthcare contribute to market growth. APAC's flooring market is expected to expand rapidly, driven by construction and innovative solutions. The tourism sector and rising living standards further boost demand.

Key Companies

Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.

• Armstrong World Industries Inc.: The company offers floor covering such as luxury vinyl tile flooring which is designed with high durability and can withstand heat and moisture, thus resistant to mold and mildew making it comfortable for those who face dust allergies.

The report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including: 

Beaulieu International Group, Belysse Group nv, CLASSEN Group, Forbo Management SA, Gerflor Group, Interface Inc., ITOCHU Corp., James Halstead plc, Kahrs, Kajaria Ceramics Ltd., Karndean, Kingspan Group Plc, Kronospan Ltd., LX Holdings Corp., M. KAINDL GMBH, Mannington Mills Inc., Milliken and Co., Mohawk Industries Inc., Nature Flooring, Orient Bell Ltd., PORCELANOSA Grupo AIE, RPM International Inc., Shaw Industries Group Inc., TOLI Corp., Tarkett, The Dixie Group Inc., Responsive Industries Ltd., and Congoleum Corp.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market report predicts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• End-user Outlook 
  • Residential
  • Non-residential

• Type Outlook
  • Non-resilient flooring
  • Resilient flooring
  • Soft cover flooring

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview:

The global flooring market is driven by various factors, including the demand for residential buildings, commercial buildings, and industrial buildings. The construction and infrastructure development sectors play a crucial role in driving the market growth. Flooring materials such as wood, vinyl, carpet fibers, ceramics, and resins are widely used in various applications, including infrastructure projects, transportation systems, airports, and public spaces. However, the market faces challenges such as raw material price fluctuations, which impact the profitability and competitiveness of flooring companies. Emerging economies, driven by urbanization and a growing middle class, offer significant opportunities for growth in the market.

Moreover, the renovation and modernization activities, coupled with increasing consumer awareness and growth in the tourism and hospitality industries, further contribute to market expansion. Manufacturers and suppliers are focusing on sustainable practices, including waste disposal and recycling, to address environmental concerns. The non-residential flooring market is also witnessing growth due to urbanization, industrialization, and investments in commercial buildings, offices, hotels, hospitals, and government infrastructure.

However, the flooring industry relies on various raw materials such as wood, vinyl, carpet fibers, ceramics, and resins, with options like linoleum and rubber for specific needs. These materials vary in durability and resistance to scratches, stains, and dents, catering to different end-use industries and benefiting from government and private investments.

Market Scope
Report Coverage	Details
Page number	167
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 5.9%
Market Growth 2024-2028	USD 84.98 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	4.9
Regional analysis	APAC, North America, Europe, Middle East and Africa, and South America
Performing market contribution	APAC at 48%
Key countries	US, China, India, Indonesia, and UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Armstrong World Industries Inc., Beaulieu International Group, Belysse Group nv, CLASSEN Group, Forbo Management SA, Gerflor Group, Interface Inc., ITOCHU Corp., James Halstead plc, Kahrs, Kajaria Ceramics Ltd., Karndean, Kingspan Group Plc, Kronospan Ltd., LX Holdings Corp., M. KAINDL GMBH, Mannington Mills Inc., Milliken and Co., Mohawk Industries Inc., Nature Flooring, Orient Bell Ltd., PORCELANOSA Grupo AIE, RPM International Inc., Shaw Industries Group Inc., TOLI Corp., Tarkett, The Dixie Group Inc., Responsive Industries Ltd., and Congoleum Corp.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the market size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across APAC, North America, Europe, Middle East and Africa, and South America
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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