US Ceilings

US Ceilings

US demand for ceiling products is forecast to rise 2.1% per year to $2.7 billion, reaching 1.6 billion square feet in 2028. This rate of growth will represent a deceleration as ceiling product prices moderate from a high base caused by supply chain disruptions and high raw material costs. Growth will be derived from a rebound in area demand as:

• commercial building construction improves following a poor pandemic-related performance
• increasing concerns over aesthetics and sound control in building spaces encourage the use of ceiling products in structures that did not previously have them

Market value will be supported by the increasing use of higher value products such as high noise reduction coefficient (NRC) tile and tiles made from metal or wood.

Improving Commercial Building Market Drives Gains

The commercial building market – by far the larger of the two ceiling product markets – will drive demand gains as commercial building construction improves after pandemic related weakness:

• Office construction will increase as employees continue to return to offices full-time or in a hybrid format. For building owners with vacancies, renovations (including the replacement or installation of ceiling products) will allow them to compete in what has remained a difficult market for existing office space.
• The construction of hotels and other types of lodging will rise as travel and tourism surpass pre-pandemic levels. Market value for ceilings will also be supported by the increasing use of higher value ceiling products – such as wood or metal tile – to impart an upscale aesthetic to attract customers.
• Healthcare construction will be boosted by an increase in medical care, due in part to the US’ large aging population. Many healthcare facilities also rely on higher quality, costlier ceiling products that help to reduce noise transmission between rooms and reverberation time within rooms to improve speech intelligibility.

Open Plenum Design Offers Both Competition & Opportunities for Ceiling Products

The popularity of open plenum (or open deck) design has served as a restraint on ceiling products, specifically ceiling tiles and suspension systems. This design trend has moved from factories and warehouses (where cost and performance dictated its usage) to a variety of commercial buildings and residential structures due to its industrial aesthetic and its functionality (e.g., greater air circulation), which have led some to prefer it to either ceiling tiles or drywall.

However, open plenum design does offer opportunities for some ceiling products, primarily clouds and baffles. These products are able to improve the acoustics in a space that uses open plenum design, an important feature for restaurants, offices, or lobbies. They can also impart a different, and perhaps more desirable, aesthetic from structures where the upper areas have been left exposed.

Study Description

This Freedonia industry study analyzes the $2.5 billion US ceilings industry. It presents historical demand data (2013, 2018, and 2023) and forecasts (2028 and 2033) by product (ceiling tiles, suspension systems, specialty products) and market (residential, nonresidential. Annual historical data and forecasts are also provided from 2020 to 2027. The study also evaluates company market share and competitive analysis on industry competitors including Armstrong World Industries, Knauf (USG), Saint-Gobain (CertainTeed), and ROCKWOOL (Rockfon).