According to a study done by the Freedonia Group, demand for ceiling products is forecast to reach $2.4 billion on annual growth of 4.1% through 2021. This trend will be driven by office and commercial construction spending, as well as a shift toward higher quality products in the nonresidential market.
The Cleveland-based industry research firm reports residential demand for ceiling products is projected to advance 3.8% per year through 2021. This represents a continuing rebound from the contraction suffered between 2006 to 2016 from the housing crisis.
The new residential market will lead advances as housing completions rise from their 2016 levels. Area demand in the residential market for ceilings will remain flat over the forecast period as drywall remains the dominant ceiling covering in this market. While single-family homes account for most residential demand, as they make up the majority of housing space in the United States, ceiling products are used somewhat more intensively in multifamily dwellings, as they are often installed in common areas.
Office buildings, retail stores, schools, and hospitals are intensive users of ceiling products; increases in construction spending on such structures will promote value and area demand for ceiling products. Specialty products will be the fastest growing in the nonresidential market with 6.4% annual growth through 2021. According to analyst Matthew Hurley, “Products such as clouds, baffles, and stretch ceilings are better able to meet the modern office and commercial design trends than more traditional ceiling products.”
The full report is available at www.freedoniagroup.com for $5,300.