In 2018 the market for exterior doors in Western Europe is set to experience the kind of gains it has not seen in years.
. Up to the year 2021, growth will fall off slightly, with a CAGR of 3.4% in value, according to a study by Interconnection Consulting. Economic growth, consumer expenditure, investments, and the solid development in the construction sector are the driving forces behind the good prospects in the exterior door market.
New Construction Sector with Better Development
In Germany, the 2018 market is on course to increase by 3.7%. The country’s population growth means that 350,000 to 400,000 apartments must be built annually, which is more than the current output of 263,000 units.
In Germany, subsidized housing currently falls short of demand, but is still a driving force in the exterior door market.
Explains Laszlo Barla, author of the study.
Although Great Britain is still struggling with the repercussions of Brexit, it will be able to spring back somewhat with gains in both sales (+0.5%) and revenue (+1.5%) after a poor showing last year. In fact, the rate of growth is expected to increase slightly in the coming years. In France, the market is aiming to gain 7.3%. Both economic growth and the number of newly constructed buildings will continue their upward trend.
Even Italy saw strong market gains of 5.2% in 2018, with newly constructed buildings accounting for the growth. By comparison, the renovation market, which constitutes nearly three-fourths of overall business, will increase by only 3.3%. In Spain, growth is currently at 3.8% by value. Interconnection is expecting the Spanish market to have an annual average growth rate of 3.6% through 2021.
PVC Growing
PVC has gained in market shares in Western Europe in recent years on account of its use in subsidized housing and its comparative value. The market share of PVC is thereby on course to hit 26.3% by 2021. In 2012, this figure was only 23.9%.
By comparison, wood is expected to lose shares over the same period and end up in third place behind PVC. Aluminum still continues to be the market leader and will increase its market share to 28.8% by 2021. Aluminum is especially the largest segment across the region of Germany, Austria, and Switzerland, where it garners a market share of 36.5%.
In Great Britain and Ireland, by contrast, PVC is the big winner, with a share of 38.2%. Yet in the Scandinavian countries, wood is the favored material, with a market share of 39.7%.
Residential Buildings the Core Segment
Residential buildings is the largest market segment since non-residential buildings also employ other types of doors such as industrial doors, revolving doors, etc. In Germany, Austria, Switzerland, France, and the Benelux countries, the market share of residential buildings comes to roughly 75%.
In the remaining Western European regions, the residential market share is approximately 66%. In Southern Europe and Great Britain, the renovation market traditionally plays a larger role than new constructions on account of the longer service life.
