Ceiling Tiles Market Size, Share & Industry Analysis, By Material Type (Mineral Wool, Metal, Gypsum, and Others), By Application (Residential, and Non-Residential), and Regional Forecast, 2024-2032

The global ceiling tiles market size was USD 7.55 billion in 2023 and is projected to grow from USD 8.14 billion in 2024 to USD 14.69 billion by 2032 at a CAGR of 7.6% during the forecast period (2024-2032). Asia Pacific dominated the ceiling tiles market with a market share of 37.88% in 2023. Moreover, the ceiling tiles market in the U.S. is projected to grow significantly, reaching an estimated value of USD 3.20 billion by 2032, driven by rising renovating activities in the region.

Ceiling tiles, also called ceiling panels, drop ceilings, and suspended ceilings, are low weighing construction materials used for covering ceilings. The tiles are placed within an aluminum grid, provide thermal insulation at some level, and are mainly designed for improving the acoustics and aesthetics of the room. These tiles are easy to customize based on sizes, designs, and coloration, making them highly demanding material in the construction industry. These types of tiles are primarily used in residential and commercial building applications such as hotels, retail shops, offices, medical institutions, and clinics. The growth in construction project activities is propelling the market.

The pandemic outbreak has slumped the manufacturing sector all over the globe, thus affecting the ceiling and roofing industry. This has led to the implementation of regulations halting all building & infrastructure projects, disrupting the demand-supply chain. The pause in infrastructure development activities created a drop in product demand, thus affecting the key market growth. According to GlobalABC, a drop of 6% is anticipated in the construction market in 2020 from the previous year, 2019. However, the market is recovering through packages provided to boost the economy for deep building renovation and newly constructed buildings. Moreover, government initiatives for healthcare facilities amid the COVID-19 are also benefiting the market.

Ceiling Tiles Market Trends

Increasing Development of Green Construction to Create More Growth Opportunities

Real estate financiers and investors are shaping and accelerating the focus on green buildings finance. This, along with consumer regards towards pollution and CO₂ emissions, is creating opportunities for green construction, which is driving the demand for a sustainable product. According to the IFC report, Green Buildings represent one of the largest global investment openings for coming years and is estimated to be US$ 24.7 trillion by 2030. The emerging-market cities of East Asia, the Pacific, and South Asia are the major investment potentials with a US$ 17.8 trillion value. Moreover, companies are adopting a decarbonization strategy for making zero-carbon buildings and innovating materials to further support the initiatives for sustainable construction solutions. Thus, the rising trend of green construction is creating opportunities for the market.

Ceiling Tiles Market Growth Factors

Increasing Commercial Construction Activities to Support Market Growth

Growing construction activities for commercial sectors such as hospitals & clinics, office buildings, educational institutions, and industrial complexes are driving this market. The increasing preference for thermal insulation, improving aesthetics, along with the high disposable economy growth within the consumers, is leading to the increasing demand for ceiling tiles. The changing commercial sector and use of tiles for enhancing the overall appearance of office structures are further driving the market growth. Moreover, the medical industry is rapidly growing, which in turn is resulting in the construction of hospitals, thus leading to product demand. The application for enhancing the look of the home and outer parts of residential buildings is also a major factor driving the market.

Growing Demand for Modular and Easy-To-Install Ceiling Tiles to Drive Market Growth

The product demand is being driven by the emergence of modular and easy-to-install ceiling tiles. The growth of the market is impacted due to various factors such as the emphasis on decorating interiors, industrial applications, and the need for thermal and acoustic insulation. Manufacturers are innovating in materials such as gypsum and mineral fibers to offer sustainable and aesthetically pleasing solutions. Metal ceiling tiles are gaining popularity for their acoustic performance and easy installation, especially in spaces such as car dealerships and retail stores. The market is anticipated to reach significant values, with projections indicating substantial growth driven by factors such as the development of infrastructure in countries including India and China. The expanding housing market in the U.S. and regulations promoting periodic upgrades in ceiling materials in the U.K. are additional factors driving segment growth.

Manufacturers are focusing on sustainability, offering products made from renewable materials and increasing R&D in bio-soluble mineral wool ceiling tiles to meet the demand for eco-friendly solutions. All above factors propel the market growth during the forecast period.

Restraining Factors

High Cost and Susceptibility to Damage is Affecting Market Growth

The overall process from manufacturing to installation of suspended tiles and supporting grids is expensive. The entire process has various factors that together make the price of ceiling tiles high, such as raw material prices, ceiling design, and skillful installation. Fluctuations and increases in any of these factors directly affect the market, thus acting as a high-risk factor. Moreover, these tiles are easily damageable by molds and water; thus, they need to be replaced frequently. The damage-prone nature and high cost of these tiles can lead to consumers shifting towards cheaper options, thus retraining the market.

Segmentation Analysis

By Material Type Analysis

Mineral Wool Segment to Remain Largest Material Type due to its Beneficial Properties

Based on material type, the market is segmented into mineral wool, metal, gypsum, and others.  

Mineral wool is made from mineral fiber, fiberglass, or ceramic fiber and accounted for the dominant ceiling tiles market share in 2023. The high demand can be attributed to the benefitting properties such as lightweight and thermal insulation, making it the ideal material for tiles for ceiling applications in institutions and offices. The metal segment includes tiles made from steel and aluminum. These are used in both commercial and residential sectors due to the sturdiness, durability, and long shelf life of the material, and thus driving the segment growth.

The gypsum segment is expected to grow the fastest during the industry forecast period. Tiles made from gypsum are easy to reinstall and repair. Hence, the product has a high preference from various end-use industries for improving the aesthetic of the structure. The others segment includes plastic tiles, wood tiles, and composite tiles. Varying consumer preference for the use of material for ceiling to increase the outer appeal is leading to the demand for the product and further propelling the ceiling tiles market growth.

By Application Analysis

Non-residential Segment Accounted for Larger Market Share owing to Product Demand from Commercial Spaces

Based on application, the market is categorized into residential and non-residential.

The non-residential segment was the larger application for ceiling tiles. In this application segment, the tiles are used in hospitals, educational institutions, retail stores, and corporate offices. The growth in construction activities owing to the rising urbanization and government infrastructure projects is leading to product demand. Moreover, the growing economies such as China, India, and Brazil are investing in the development of the construction industry, thus supporting the market growth.

The residential segment is expected to have significant growth, which can be attributed to the rising housing sector to support the growing population. The improving lifestyle of consumers due to growing disposable income is causing a shift for high-end products and lifestyles. Moreover, government investment in housing projects for the ever-growing population has surged the consumption of tiles for ceiling applications.

Regional Insights

The market size in Asia Pacific stood at USD 2.86 billion in 2023. The region is set to account for the highest value in the global market during the forecast period. The growth in this region can be attributed to the economic development and rising population. A majority of the population in the region are moving to urban cities and areas due to the growth of the commercial sector. This has generated high product demand from both commercial and residential applications.

North America is experiencing substantial growth from 2024 to 2032 due to rising renovating activities in the region. Consumers are focusing on improving their living situations through renovations, thus surging product consumption. In addition, technological advancements in the region are also supporting companies in providing sustainable suspended tile solutions to appeal to consumers.

Europe is expected to grow significantly due to growing construction activities for infrastructure development. This, along with favorable regulations from the European government to improve medical and healthcare institutions, is further boosting product demand.

Latin America, the Middle East, and Africa are economically developing regions that are supporting the construction industry's growth. The region's abundant raw materials make it easy for manufacturers to produce their products. This, along with improving the consumer's lifestyle, is leading to high consumption of the product to fulfill the consumer demand for modernized housing and offices. 

List of Key Companies in The Ceiling Tiles Market

Acquisition and Establishing New Production Facilities by Major Companies to Strengthen Positions

Some of the leading players in the market are Armstrong World Industries, ROCKWOOL International A/S, Knauf Gips KG, and Saint-Gobain Gyproc. Armstrong World Industries provides a wide variety of solutions in home and commercial applications for walls, ceilings, and floors. Moreover, ROCKWOOL International A/S provides different types such as mineral wool, wood, metal, and others. Companies that are profiled have adopted strategies such as improving global presence through capacity expansion and new product development to gain a competitive advantage in the global market.

LIST OF KEY COMPANIES PROFILED:

• Armstrong World Industries (U.S.)


• ROCKWOOL International A/S (Denmark)


• Knauf Gips KG (Germany)


• Saint - Gobain Gyproc (France)


• USG Corporation (U.S.)


• CertainTeed (U.S.)


• Odenwald Faserplattenwerk GmbH (Germany)


• SAS International (U.K.)


• Georgia-Pacific (U.S.)


• Hunter Douglas (Netherlands)

KEY INDUSTRY DEVELOPMENTS:

• July 2021 – Saint-Gobain Gyproc launched a new product namely Gyprex L in the ceiling tile category. According to the company, the product has been manufactured with a 100% recyclable gypsum core. Furthermore, the tiles require low maintenance and provide a degree of sound insulation. The new product launch helped company to enhance their product portfolio in the ceiling tiles market.


• January 2021 – Saint-Gobain Gyproc announced the launch of a manufacturing facility for ceiling tiles in India. The facility has 21,000 sq. ft., strategically located for servicing the market of gypsum ceiling tiles across India and helping minimize the carbon footprint and material availability.


• October 2020 – Armstrong World Industries, Inc., one of the leaders in residential and commercial ceilings, suspension systems, and walls, announced a new product, 24/7 Defend product portfolio for healthier and safe spaces with cleaner air. The portfolio includes the AirAssure ceiling systems, provides self-seal to ceiling grid for preventing air leakage, and in-ceiling (UV-C) air purification system.

REPORT COVERAGE

The global market research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, applications, and types. The report also offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the market's growth over recent years.

Report Scope & Segmentation