After hitting its bottom in 2023, the market for Sandwich panel has rebounded and is experiencing stable development in 2024. Market projections show 1.1% increase in value sales in 2024, reaching EUR 3,910.5 million. Quantity sales represent 125.8 million square meters, nearly 0.2% above the overall result from 2023 according to a recent market report by Interconnection.  

Gently landing after turbulent times

Pole position does not guarantee success

Product group preferences

Dominance in segment trends

Market competition landscape

Last year, more than 2 billion meters were sold in Europe’s Top 20 markets as the market for Sanitary Pipes & Fittings suffers by the declining housing market and other problems. The long-term growth trend remains intact and surface heating and cooling will become more important in the next few years. Regarding the material types, metal pipes will see its market shares decline from 18.2% in 2021 to 15.9% in 2027, as the latest study by InterConnection Consulting shows.   Radiator Connection Pipes Have, Are and Will Lose Market Shares The Sanitary Pipes and Fittings market is segmented into surface heating and cooling, radiator connections, and hot and cold water installations. The market share for radiator connections is expected to decline from 25.5% in 2021 to 23.5% by 2027, driven by Europe’s shift to energy-efficient heating solutions. However, the surface heating segment may not see consistent gains across all countries. In Germany, for example, the number of radiators installed in renovations has increased recently due to cost and ease of installation, leading to a temporary rise in market share. Nevertheless, the long-term outlook for surface heating and cooling pipes is strong, with a projected market share of 36.5% by 2027 in Europe.   Plastic Pipes Are The Most Popular Choice Plastic pipes hold a dominant market share of approximately 46%, with slight growth expected in the coming years. Multilayer pipes are the biggest gainers, projected to increase their market share from 35.3% in 2021 to 37.0% by 2027. Conversely, metal pipes are expected to decline in relevance due to rising prices for materials like copper and steel. Within the plastic segment, PEX (Crosslinked Polyethylene) commands the largest share, primarily used for surface heating and cooling systems, while multilayer pipes are favored for radiator connections and hot and cold water installations. Regional variations are notable; for instance, plastic pipes account for only about 11% of the market in Germany due to concerns over water quality, compared to 36% in the Czech Republic for the same application.   The Majority of Pipes Are Bought First by Wholesalers Most companies prefer to sell their products through wholesalers and retailers, with indirect distribution channels dominating the market. In Russia, these channels account for 68% of sales, while in Poland, nearly 100%. The average market share across Europe is about 94%. This dominance is driven by the convenience of a "one-stop-shop" for installers, efficient supply chains in countries like Norway, and the strong market power of building product stores in Germany and Switzerland.     Producers of sanitary pipes and fittings should strategically pivot towards developing plastic and multilayer pipes, particularly in the surface heating and cooling segment, while considering regional preferences for these materials. Implementing customer loyalty and retention programs, alongside fostering direct relationships with installers, will enhance market share in this growing segment.

Interconnection Consulting, a leading market research institute, has published its latest study "Industrial Doors in Europe 2024,” which reveals that the industrial door market in Austria, Germany, and Switzerland continues its decline with -2.3% drop-in units sold and a -0.6% contraction in market value. The study highlights a stark contrast between the countries: while Germany and Austria face continued declines driven by economic uncertainty and ripple effects from related industries, Switzerland defies the trend, showing growth in both units sold and market value, driven by a robust economy and a dynamic construction sector. 2024 marks another year of decline for the industrial door market in the region, with economic headwinds from inflation, rising material costs, and a slowdown in construction projects. While the market has struggled to recover post-pandemic, growth is expected to resume by 2026, as the construction sector stabilizes and consumer confidence improves. By 2027, the market is projected to reach €892 million, growing at an average rate of 4.3% per year. The competitive landscape is further complicated by the influx of low-cost producers from Asia, which has intensified price competition, forcing European manufacturers to innovate and reduce costs. The poor performance of the construction sector has further exacerbated the market's struggles, as new projects have slowed, and major infrastructure developments remain on hold. The resulting price war, triggered by the entry of low-cost producers from Asia, has forced manufacturers to lower prices despite increasing raw material costs. This has squeezed profit margins, leading to tighter pricing strategies and a downward trend in the market. Despite these challenges, industrial door producers have shown resilience by doubling down on innovation. Companies are focusing on developing new materials and compounds that can reduce costs for consumers, while investing heavily in digital solutions. These innovations include smart access systems, advanced remote monitoring and automation via mobile devices, and security technologies that integrate facial recognition and artificial intelligence. In terms of market segmentation, sectional doors remain the market leader with a 58.0% share, followed by high-speed doors at 17.0% and rolling doors in third place. Steel continues to be the dominant material, making up 64.7% of the market, with an expected increase to 65.2% by 2027. Direct distribution channels maintain a commanding 86.9% share of the market, while renovation projects slightly outpace new installations, accounting for 50.4% of total sales. The dominance of large multinational companies like Hörmann, ASSA Abloy, Novoferm, Domoferm, Teckentrup, Condoor, and Ryterna is becoming more apparent, as these firms control 74.3% of the market. Their scale and resources allow them to weather economic downturns more effectively, maintaining market share through innovation and diversified product lines. In contrast, small and medium-sized companies have been hit harder by the crisis, struggling with tighter margins and fewer resources to compete in a price-sensitive market. These smaller players are focusing on technological advancements and product innovations to overcome the current slump. The findings are based on a comprehensive survey of over 2,200 producers, distributors, and industry experts across Austria, Germany, and Switzerland.

Global Recovery Not Expected Until 2025 Worldwide profile machinery market, which experienced slight growth in 2023, is set to face serious stagnation in 2024, despite a slight increase in total market volume from EUR 1.02 billion to EUR 1.03 billion. The minimal growth is overshadowed by the challenging economic climate, driven by the war's impact and inflationary pressures, leaving the market stuck in neutral. According to a recent study by Interconnection, a 3.3% global recovery isn’t anticipated until 2025, offering little immediate hope for the industry. Soaring Prices Crush Investment Sentiment The profile machinery sector, especially for profile bar machining centres, has been hit hard by rapidly rising prices, with some industry leaders hiking prices by 15% during 2022-2023. The sharp price increases have stalled demand, with profile bar machining centres still accounting for 47% of the total market value in 2023. Other segments, like cutting machinery (20%) and screwing and drilling machinery (just 2%), are faring even worse, facing anemic demand. Despite Central Europe’s dominance, holding 26% of global market sales, the region is unlikely to experience any real recovery until 2025. Rampant inflation, high-interest rates, and a lack of governmental support have created a toxic investment environment across Europe, mirroring the situation in Germany. Aluminium Takes Over as Other Materials Struggle to Compete In 2023, aluminium machinery dominated the profile machinery market, accounting for 56% of global sales, and this trend shows no signs of slowing. With EUR 878.4 million in total sales across PVC, steel, and aluminium equipment, the aluminium segment continues to grow due to its superior material properties — lightweight, corrosion-resistant, and highly recyclable. Aluminium's sustainability and versatility make it a top choice in construction, automotive, and aerospace industries, pushing its demand far ahead of competitors like PVC and steel. The Americas are leading the charge, with 67% of the market dominated by aluminium machinery, while Europe maintains over 50%. PVC’s demand fluctuates with the construction industry, and steel machinery remains niche due to its heavier weight and lower recyclability, struggling to gain traction despite some companies investing in its future. A Grim Outlook Until 2025 Despite minor growth in 2023 and 2024, the CAGR for profile machinery until 2027 is expected to hit 2.9%, with PVC machinery sales projected to reach EUR 404.5 million. Steel equipment remains a niche market, though some industry players are making small, forward-looking investments. Aluminium’s continued dominance, driven by its widespread use and eco-friendly appeal, will keep it at the forefront of the market, securing over 50% of sales through 2025 and beyond. However, for the industry to truly break free from its stagnation, major economic shifts are required, alongside global recovery efforts expected in 2025. Market Concentration Poses Challenges The global profile machinery market remains highly concentrated, with just a handful of companies controlling most of the sales. European giants like Voilàp, FOM, Urban, Graf, Rotox, Schirmer, and Stürtz dominate, yet they reported a difficult 2023. The situation is mirrored outside Europe as well: Turkish companies Kaban, Murat, and Yilmaz are making moves into Latin America and Africa, while maintaining a strong grip in the Middle East. Meanwhile, APAC manufacturers like Tianchen and Parker are emerging as global forces after years of dominating their local markets. The USA, typically a promising market, is also showing strength with local producers like Joseph and Pro-Line, though the current global climate has impacted even this market’s potential. Conclusion Despite 2023’s initial growth surge, the profile machinery market is in deep trouble. Spiraling costs, weak investment sentiment, and harsh economic conditions have left the sector on life support. Until 2025’s projected recovery, driven largely by aluminium demand, the market will remain in a holding pattern, with only slight incremental growth expected. The future of the industry depends on global economic stabilization — and time is running out. 20/03/2024 Copyright: Interconnection, free of charge for publication in the context of reporting on the study mentioned and IC Consulting.