U.S. Ceiling Tiles Market Size, Share & Trends Analysis Report By Product (Gypsum, Metal, Mineral Wool), By Application (Commercial, Residential, Industrial), Competitive Landscape, And Segment Forecasts, 2019 - 2025

Report Overview

The U.S. ceiling tiles market size was valued at USD 1.53 billion in 2017 and is expected to register a CAGR of 9.6% over the forecast period. The major drivers of the U.S. construction industry are linked to the positive trends of the housing sector, which have been tracked over the past few years by analyzing consumers’ spending behavior and based on the increasing recruitment/employment in the construction industry. Prominent manufacturers in the market are focusing on increasing their product portfolio by launching low-VOC emitting and asbestos-free product lines.

The labor shortage in the country has proved to be a major challenge for construction firms. Newly launched tax plans are anticipated to impart more challenges to finance construction projects as they remove the tax-privileged status of private activity bonds. The U.S. construction industry is expanding gradually on account of economic revival post the global financial crisis. Growth of the residential sector, in terms of single-family housing, is anticipated to be a crucial factor for the overall market.

Rising population, strong economic condition, and low mortgage rates are some of the key factors boosting the residential sector. Concerns regarding affordability and accruing land, stringent lending standards, and a rise in land prices have hindered the facilitation of affordable housing schemes, thereby challenging the construction of single-family houses. The industry depicts a strong presence of numerous raw material suppliers that offer metals, mineral fibers, gypsum wood, and plastic for the construction industry. This has leveraged the bargaining power of raw materials for the past few years.

However, a high degree of backward integration of the business operation of key ceiling tile manufacturers is likely to hamper the supplier bargaining power over the years ahead. The scene across the U.S. construction sector is anticipated to change on account of different policies and regulations. While the commercial construction sector in the country is likely to revamp its pace over the forecast period, the demand for ceiling tiles is likely to move towards single-family housing and non-residential complexes. On a short-term plan, with the assumed pace of construction growth, manufacturers are likely to shift focus towards exporting rather than investing in the domestic market.

Key industry participants are implementing various strategies, such as the acquisition of business assets of raw material providers and product up-gradation by investing heavily in R&D. This scenario is anticipated to intensify the market rivalry over the coming years. Global manufacturers based in the U.S. are collaborating with regional market participants and distribution channels for business expansion purposes. This is also said to make the industry more competitive in the future. Labor shortages resulting from low participation among labor forces and surging construction volumes are likely to be prevalent across major markets, thereby driving the product costs.

Product Insights

Metal ceiling tiles are likely to be the fastest-growing product segment in the years to come. Metal ceilings offer a crisp, clean, and high-tech display of interiors, with a wide variety of optional colors. Among metal ceilings, the linear or modular layout provides dimensional flexibility, where sculptured and curved form can be easily achieved. Also, such tiles can have a variety of infills and perforations for sound absorption and attenuation. Furthermore, powder-coated metal ceilings provide tough finishing along with resistance to corrosion.

For medical areas that require a high level of cleanliness, finishing can be altered with added chemicals to protect against bio-contamination. The mineral wool segment accounted for USD 641 million in 2017 and is expected to be the second-fastest-growing segment over the forecast period. These tiles exhibit noise reduction characteristics and are widely used in commercial spaces that are exposed to noisy surroundings. The demand for these products is expected to increase substantially on account of performance attributes and recyclability.

A breakthrough in processing, to allow the incorporation of flux and rock with relatively small particle size, would open up ample possibilities for various alternative raw materials derived from metal smelting and minerals extraction. In states like Florida, which face extreme humid conditions, the use of powder coated and mineral wool infused tiles is a viable option. The composition of the product is also an important factor in triggering its demand. Gypsum is another major product that is likely to boost the overall market growth in the coming years.

Knauf, Saint-Gobain S.A., and USG Corporation are the key players that have a strong gypsum product portfolio. Gypsum, as a material for ceiling tiles, provides numerous benefits including reduced weight on structure and easy installation, maintenance, and repair. Most of the modern offices, especially the buildings that provide co-working spaces, across the country are attempting to enhance their aesthetics by installing colored gypsum boards. This factor is likely to augment the segment expansion in the coming years.

Application Insights

The commercial application segment accounted for a volume share of 91.1% in 2017. The rise in the construction activities of commercial sub-sectors, such as institutional buildings, office complexes, public buildings, and municipal corporations, is expected to boost the demand for building materials over the next couple of years. The residential application was the second-largest segment, in terms of volume, in 2017. Mineral fiber and metal panels are generally suitable for use in residential construction operations. The rise in the construction of green buildings in the country is likely to boost the demand for lightweight and eco-friendly ceiling tiles, thereby supporting the segment growth.

Moreover, due to the stringent VOC regulations and policies over building materials, such as asbestos sheets, carpet backing, and padding materials, the usage of low-VOC and lightweight ceiling tiles is expected to increase. Growing costs of new homes and altering lifestyles that require more spaces and living room have led different groups, such as baby boomers and millennials, to undertake measures and acquire new homes under affordable schemes.

Downsizing baby boomers are also leaning toward single-family rentals without using retirement cash for down payments. Changing consumer preferences, coupled with increasing options for decorative and soundproof interiors in commercial buildings, such as offices and business centers, are expected to promote the demand for various ceiling tiles in the country over the forecast period.

Key Companies & Market Share Insights

The industry is projected to expand at a robust growth rate over the forecast period. Rising residential construction activities coupled with the demand for green building materials has triggered the market growth making it more competitive. Existing industry participants have a strong foothold in the North America region with most of the headquarters and manufacturing units based in the U.S. and Canada. A high degree of backward and forward integration of prominent ceiling tile manufacturers has also intensified the market rivalry and competition. Companies are focusing on strengthening their product quality and enhancing their capabilities by recycling waste tiles.

For instance, Armstrong Ceiling Solutions set a new record by recycling approximately 142,000 square meters of tiles in 2016, which are now being utilized in manufacturing new mineral-based ceiling tiles. However, the unavailability of the skilled labor force is expected to prevail for a couple of years, forcing construction contractors to increase wage patterns altogether. Prominent manufacturers in the market include Armstrong World Industries, Inc.; ROCKWOOL International A/S; Knauf Gips KG; Hunter Douglas N.V.; and SAS International.

U.S. Ceiling Tiles Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the U.S. ceiling tiles market report based on product and application:

• Product Outlook (Volume, Million Square Meters; Revenue, USD Million, 2014 - 2025)

  • Mineral Wool

  • Metal

  • Gypsum

  • Others

• Application Outlook (Volume, Million Square Meters; Revenue, USD Million, 2014 - 2025)

  • Commercial

  • Residential

  • Industrial