In 2023, the German market for rainscreen cladding, once a shining star in the European construction industry, experienced a significant decline. According to current data, the market saw a decrease of -18.1% in terms of quantity and -12.5% in terms of value. In absolute figures, the market dropped from 10.8 million square meters to 8.8 million square meters. This decline is directly attributed to challenging conditions in the construction sector, as building completions in Germany have decreased by 19.8%, as indicated by a study from Interconnection Consulting.

Several key factors contributed to this decline, including rising construction costs, limited availability of raw materials, high financing costs for construction projects and geopolitical uncertainties. These challenges have adversely affected the demand for facade cladding solutions in the country as a whole. The structure of the German facade cladding market traditionally featured a significant portion of the new construction sector, constituting 65% of the market. However, the recent downturn in this sector has disrupted market dynamics. The use of facade cladding is most common in non-residential construction, especially in office buildings, accounting for 74% of the market.

Shift in Market Positions with the United Kingdom

“For many years, Germany held the top position in terms of quantity among the top 8 European countries for rainscreen cladding (Germany, Austria, Switzerland, Italy, France, Spain, Poland and the United Kingdom). However, in 2023, Germany has ceded the lead to the United Kingdom, where the market is growing. Forecasts for 2024-2026 indicate that the United Kingdom will continue to outpace Germany in this market,” as explained by Julia Hrebenkova, the study’s author. In Germany, the average annual growth rate (CAGR) for the period 2023-2026 is expected to be 2.1% in terms of value but is projected to decrease by -1.6% in terms of quantity. Despite recent challenges, Germany still maintains a significant share of the European facade cladding market, accounting for 19.0% in terms of quantity among the top 8 countries.

The Aluminum Segment Continues to Lead

When analyzing the market’s product structure, it is evident that Germany has a strong share of aluminum cladding, making up 36.5% of the market. However, the High-Pressure Laminate (HPL) segment is expected to experience a significant decline of -29.7% in terms of quantity in 2023. This shift in preferences suggests a growing interest in more cost-effective aluminum cladding materials. Aluminum cladding strikes the right balance between material cost and its properties. With the rise in aluminum prices, there is no significant decrease in aluminum within the structure of all types (-2.8%). In terms of material sizes, larger panel formats, constituting 71.2% of the market, are preferred as they are more cost-effective per square meter.

18/10/2023

Copyright: Interconnection, Publication free of charge for coverage regarding the study and InterConnection Consulting.