According to the latest IC Market Forecast Global Flooring 2024 by Interconnection Consulting, the global flooring industry is set to grow by 3.9% in units sold by 2025. However, growth is uneven: Asia is projected to expand by 5.6%, supported by strong economic performance, a thriving construction sector, and the international expansion of its producers. Meanwhile, the Middle East is expected to grow by 6.9%, fueled by economic stability, a construction boom, and increasing demand for high-end flooring. In contrast, Europe and the U.S. will decline by -1.8% and -3.2%, respectively, due to weak construction activity and economic uncertainty. This shift underscores the growing dominance of emerging markets in the global industry and the relative stagnation of more established regions.

Competitive Pressures and Industry Challenges

Asian manufacturers are increasing their global market share with aggressive pricing, pressuring Western producers to focus on efficiency, automation, and digitalization. According to industry leaders and CEOs, labor shortages, high energy costs, and supply chain disruptions are major challenges. Companies are responding with workforce training, renewable energy investments, and improved logistics, though a full market recovery is not expected until 2026. Sustainability is gaining traction, particularly in Europe and North America, but remains a secondary priority for many players. Only 35.9% of industry respondents identify it as a key driver, reflecting slower regulatory adoption in other regions.

Shifting Market Dynamics and Product Trends

Ceramic tiles remain the dominant flooring category, holding a 44.4% market share in 2024, followed by elastic floor coverings (17.0%) and laminate (12.0%). While laminate is gaining traction (+5.2% by 2025) due to its affordability and easy installation, parquet and solid wood remain stagnant (+0.4%). The rise of DIY culture is also driving demand for modular flooring solutions, including click-and-lock systems, as more consumers seek cost-effective and easy-to-install options. Additionally, hybrid flooring solutions that combine the benefits of different materials are becoming increasingly popular, particularly in residential applications.

Top 10 Global Flooring Companies Hold 35% of the Market

The world’s top 10 flooring companies—Armstrong Group, Boen, Bruce, Egger, Gerflor, Lamosa Group, Mohawk, Shaw Floors, Swiss Krono, and Tarkett (Alphabetically Ordered) —collectively control 35% of the global market. However, concentration varies by segment, with LVT reaching 42% in Europe and wood/parquet up to 32%. Despite this market share concentration, the industry remains highly fragmented in many regions, with a significant number of local and regional players competing for market share

Future Outlook: Adapting to Market Shifts

With the flooring market closely tied to construction, recovery depends on sector growth. Unlike energy-efficient materials, flooring lacks strong public subsidies, making it more vulnerable to downturns. By 2026, the market is expected to reach a value of €141.58 billion, favoring companies that optimize operations and adapt to shifting trends.

Link to the report

27/02/2025

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