Market Trends of Europe Roofing Tiles Industry
Consistent Growth of the Residential Segment
- The usage of roofing tiles for residential applications is increasing because they can reduce the overall heat transfer into the attic space by almost 70%, compared to an asphalt shingle roof. Roofing tiles are available for various types of residences, including single-family homes, townhomes, condominiums, and apartment buildings. The installation of roofing tiles in residential applications is one of the most cost-effective choices due to their long lifespan.
- Strong demand from various European countries makes residential construction one of the significant markets in Europe. The UK Government, under NPIF, is planning to invest GBP 23 billion (~USD 28.37 billion) in housing, science and innovation, transport, and a 5G network over the next five years, of which around GBP 7.2 billion (~USD 8.88 billion) has been allocated to the construction of new homes and GBP 4 billion (~USD 4.93 billion) for infrastructure.
- As per the European Commission, under its Housing First Plan (Le Logement D'abord), the French government announced tax waivers. Under the budget, the housing tax was entirely removed for 80% of French households. With regard to the remaining 20%, the country's wealthiest households, there was a gradual decrease in this tax rate from 2021, followed by a complete cessation of housing tax by 2023.
- According to Spain's National Statistics Institute (INE), the net household construction is anticipated to increase at an average pace of around 135,000 units every year from 2019 to 2025. Thus, the residential construction sector is expected to grow significantly over the latter period of the forecast period.
- According to Groupe BPCE, there has been an increase in the number of residential buildings under construction in 2022, which is forecasted to reach 381 thousand units from 346 thousand units in 2021, in France. The residential construction for acquisition purposes surpassed construction work for private rental, subsidized rental, and social rental with impressive numbers, standing at 173 thousand units in 2021. The residential construction for acquisition is expected to stay dominant reaching 183 thousand units in 2022.
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Germany to Dominate the Market
- The German economy is the largest in Europe and the fifth-largest in the world. In line with the country's construction industry growth, the demand for roofing tiles will likely increase over the coming years.
- In October 2021, the construction of 29,597 dwellings was permitted in Germany. Building permits from January to October 2021 increased by 4.2% compared to the same period in the previous year.
- Additionally, as of December 2021, turnover in building completion work increased by 9.1% in the third quarter of 2021 compared to the previous year's third quarter, as reported by the Federal Statistical Office (Destatis).
- According to the Federal Statistical Office (Destatis), in 2021, the construction of 380,914 dwellings was permitted in Germany, registering an increase of 3.3% or 12,325 building permits compared with 2020. Furthermore, the annual turnover in the main construction industry in 2021 was up by 1% compared to the previous year.
- Furthermore, the new German Social Democrat government is focusing heavily on the housing crisis in the country. The government is creating an entirely new ministry to supervise its housing plans. The government has pledged more than 400,000 new housing units every year from 2022, 100,000 of which will be publicly subsidized. This is expected to fuel the demand for roofing tiles from the residential segment.
- The commercial construction sector in Germany is expected to witness significant growth prospects during the forecast period. The sales in 2022 are likely to reach EUR 53.3 billion (~USD 56.78 billion) which is likely to be supported by increased real disposable incomes, and numerous investments by the European Union and the German government.
- According to Statistisches Bundesamt, the overall revenue of the building construction industry in Germany has increased by 45.88 billion, reaching EUR 98.98 billion (USD 105 billion) in 2021. Construction of commercial buildings generated about 41% of the revenues, compared to 32% from the public and road sectors in 2021. Residential buildings experienced the biggest growth of any type, increasing by 16.53 billion.
- Such factors are expected to drive the construction industry in the country, which, in turn, is likely to drive the roofing tiles market through the forecast period.
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