Ceramic Tiles Market

Updated on : October 08, 2024

Ceramic Tiles Market

The global ceramic tiles market is valued at USD 194.2 billion in 2024 and is projected to reach USD 228.3 billion by 2030, growing at 2.7% cagr from 2024 to 2029. Ceramic tiles are made of clay, silica, dyes, and many other materials. They are thin, though some can be up to 20 mm thick. Raw materials are grounded and compressed through different methods and undergo several heating and cooling processes. The combination of different materials and manufacturing processes leads to the production of tiles with mixed characteristics. Fired clay is the most common and is obtained using the semi-dry pressing technique with one or more firings. The surface is coated, offering various colors and designs. Rapid urbanization and infrastructure development are increasing the demand for ceramic tiles in different construction projects. The durability of ceramic tiles makes them an ideal choice for the residential and commercial sectors. However, volatile raw material prices and environmental concerns can drive production costs and affect market stability. Fluctuations in raw material prices create financial uncertainty and are expected to restrain market growth. Technological advancements in tile manufacturing and rising demand for ceramic tiles in emerging markets are expected to create growth opportunities for companies in the ceramic tiles market. However, the natural gas crisis and intense competition are expected to be the challenges for the market players.

Attractive Opportunities for Players in Ceramic Tiles Market

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Ceramic Tiles Market Dynamics

Driver: Increasing investments in infrastructure development

The increasing investments in the infrastructure sector are expected to drive the growth of the ceramic tiles market. Governments of different countries are investing in developing and upgrading infrastructure, including residential, commercial, and public properties. These developments have increased the demand for ceramic tiles - a vital construction material.

As per the International Monetary Fund (IMF), it is estimated that the spending required to meet the sustainable development goals (SDGs) in 2030 will amount to USD 2.6 trillion, or 2.5% of the 2030 world GDP, in 121 emerging economies and low-income developing countries. Ceramic tiles are known for their versatility and durability. They are more sustainable than vinyl tiles and are available in various designs. These tiles are ideal for flooring and wall applications in different construction projects. The surge in infrastructure development has increased the need for high-quality tiles, boosting the growth of the ceramic tiles market.

Restraint: Volatile raw material prices

Different raw materials, such as clay and feldspar, are used to make ceramic tiles. Raw material prices fluctuate because of supply chain constraints in different regions, geopolitical tensions, war situations (the recent US sanctions on Russian goods), and the implementation of strict environmental regulations. Such scenarios lead to higher production costs. It is difficult for manufacturers to keep prices stable. Additionally, the increasing prices can squeeze profit margins, making it harder for firms to invest in new technologies and research.

Opportunity: High demand in Asia Pacific

According to the World Bank, new climate-smart infrastructure could cost low-income and middle-income countries almost 2–8% (USD 640 billion–USD 2.7 trillion) of GDP annually by 2030. The emerging markets are expected to account for most of the projected increase in infrastructure spending by 2050. Asia Pacific has witnessed expansion in its manufacturing capabilities and has a large skilled workforce. Besides, the region has an abundant base of raw materials. Hence, the region offers opportunities for ceramic tile manufacturers and suppliers looking to capitalize on the region’s increasing demand. 

Challenge: Natural Gas Crisis

The Russia–Ukraine war has affected many industries and sectors globally, including the ceramic tiles industry. The fluctuations and increased natural gas prices are the major challenges in the current scenario. Natural gas constitutes 30–40% of the production cost of ceramic tiles. Hence, it is a critical energy source for firing kilns. The increase in its price directly raises production costs. The ceramic tiles industry requires significant gas daily. Hence, the ceramic tile industry is becoming highly vulnerable to price volatility. The increased costs are expected to consequently raise the prices of ceramic tiles, reducing demand and squeezing the profit margins of manufacturers.

By type, porcelain to be fastest-growing segment during forecast period

Large-format tiles are gaining popularity in interior design. The size of slab tiles can be extended up to 5 x 10 ft. or more. Porcelain tiles are durable and known for their aesthetic appeal. Their large size reduces grout lines, thus creating a seamless and cohesive look. The combination of colors, patterns, and various benefits makes large-format porcelain tiles the fastest-growing segment in the ceramic tiles market.

By application, flooring segment to hold largest market share during forecast period

The flooring application segment is expected to dominate the ceramic tiles market during the forecast period. Among the other tile types, ceramic tiles are the most durable option for this application. Floor tiles can be easily maintained and are wear & tear free. These attributes make them perfect for high-traffic areas. Floor tiles come in different options and are versatile. Thus, they suit the needs of any aesthetic and design, while others have exciting finishes for functional necessity. In addition, ceramic tiles are well-suited for areas requiring water and stain resistance. (homes, offices, or industries).

By end-use sector, residential segment to dominate market during forecast period

Residential construction (individual/family living, single-family homes, detached homes, duplexes, triplexes, flats, apartments, townhouses, housing cooperatives, and condominiums) requires aesthetic and cost-effective flooring solutions.

The residential segment is expected to dominate the ceramic tiles market during the forecast period as many regions and countries are witnessing an increase in construction and remodeling activities due to rise in migration of people to cities and increased focus on improving aesthetics.

Asia Pacific dominated global ceramic tiles market in 2023

Asia Pacific dominated the ceramic tiles market in 2023, driven by increased construction and remodeling activities. Key regional countries, such as India, Indonesia, Vietnam, and China, serve as primary hubs for ceramic tile manufacturing. In India, according to the Reserve Bank of India (RBI),  Infrastructure Investment Trusts and Real Estate Investment Trusts (REITs) have collectively invested USD 15.60 billion in government-led infrastructure initiatives over the past four years. Such massive investments promote the growth of the ceramic tiles market in the region.

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Ceramic Tiles Market Players

The ceramic tiles market includes key manufacturers such as Mohawk Industries Inc. (US), Grupo Lamosa (Mexico), Pamesa Ceramica (Spain), RAK Ceramics (UAE), Siam Cement Public Company Limited (Thailand), Kajaria Ceramics (India), and Ceramica Carmelo Fior (Brazil). Expansions, collaborations, and deals are the major strategies adopted by key players to boost their positions in the ceramic tiles market. A major focus has been laid on expansions.

Ceramic Tiles Market Scope

This research report categorizes the ceramic tiles market based on type, application, end-use sector, finish, construction type, and region

Ceramic tiles market by Type:

• Porcelain
• Ceramic

Ceramic tiles market by Application:

• Flooring
• Internal Walls
• External Walls
• Others

Ceramic tiles market by End-use sector:

• Residential
• Non-residential

Ceramic tiles market by Finish:

• Matt
• Gloss

Ceramic tiles market by Construction type:

• New construction
• Renovation

Ceramic tiles market by Region:

• Asia Pacific (APAC)
• Europe
• North America
• Middle East & Africa
• South America

Recent Developments

• Mohawk Industries signed an agreement to purchase the Vitromex ceramic tile business for USD 293 million in June 2022.
• In August 2021, Grupo Lamosa acquired Grupo Roca’s tile division. Group Roca is an established global ceramic tile company with operations in Spain and the Americas.
• In November 2021, RAK Ceramics collaborated with ELIE SAAB and launched its ELIE SAAB bathroom and surface collections in Dubai.
• In September 2021, Pamesa Ceramica acquired Azuliber. Azuliber is not merely a large tile manufacturer; it operates six factories—Cerámicas Myr, Azulejera Alcorense, Click Cerámica, Valentia Ceramics, Oset, and Azulejos Plaza. Together, these facilities house a dozen kilns, collectively producing 3 million square meters of tiles per month, amounting to an impressive annual output of 36 million square meters.
• In October 2022, Grupo Lamosa signed an agreement to acquire Baldocer. Baldocer manufactures, designs, and sells ceramic floor and wall tiles. As a 100% Spanish-owned business with over 25 years of history, Baldocer is one of the leading players in the ceramic tile market.
• In November 2022, RAK Ceramics created the “Imagine Your Space” metaverse experience. This digital space enhances the customer experience by enabling users to discover the most innovative collections.

Frequently Asked Questions (FAQ):

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