The window market in the top 5 countries in Europe (Germany, UK, France, Italy, Spain) could increase its sales by 9.9% to around 49 million window units in 2021. This year, after a strong first six months, there has been a significant deceleration in momentum since the third quarter, according to a new study by Interconnection Consulting. A decline in sales overall is expected in 2023 in the countries studied.

Residential construction is slowing in Europe as the impact of higher interest rates reduces housing affordability. This is leading to a decline in window sales, which will be around 3% next year. However, this downturn is taking place from a very high level, as Laszlo Barla, author of the study explains. Added to this are sharply rising construction and energy prices as well as limited availability of raw materials.

Germany’s Window Market Slows Down

The largest market for windows is Germany, with 15.5 million units sold last year, accounting for nearly one-third of the total sales of all countries studied. While the overall market of the countries studied will still grow 2.6% in volume this year, Germany’s window market will stagnate as early as 2022. For example, the suspension of the KfW subsidy programs for energy-efficient buildings at the beginning of the year caused uncertainty in the residential construction market, which led to reduced construction activity. The countries in the south of Europe with Italy, Spain and France will still achieve an increase in sales in 2022, but it is already apparent this fall that construction starts are declining significantly, which will not have an impact on completions and therefore also on the window market until 2023. In the UK, catch-up effects will ensure somewhat higher growth figures until 2022, so that the window market will approach its pre-Brexit level again. However, the UK window market will in all likelihood not be able to escape a decline in sales in 2023 either, as the outlook for the UK economy as a whole is rather gloomy for the near future. The Bank of England, for example, expects a recession by the end of 2023.

PVC Windows Dominate the Market

Due to the decline in new construction, the renovation sector shows greater growth momentum and ensures that the decline is not sharper. Overall, the renovation sector accounts for 66.1% of the market. The residential construction sector accounts for around 70% of the total volume of the industry. Plastic windows are the dominant segment, accounting for almost 50% of sales. Metal comes to 30% and wood to 13.2%. The countries with the highest PVC share in residential construction are Great Britain with 73.5%, ahead of France with 63.5%. In contrast, metal windows are very popular in Spain with a share of almost 58%. However, it is also evident in Spain that plastic windows have shown the strongest growth in recent years and are therefore gaining market share. Over 16 million window units with triple glazing were sold last year. Most of the sales in this segment came from Germany. In the other countries surveyed, the market share for triple glazing is mostly well below 15%.

02/11/2022

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