Decorative Panels Market Is Estimated To Witness High Growth Owing To Rapid Urbanization

  • Ronak Shah
  • U.S.A
  • January 15, 2025

The Decorative Panels Market is estimated to be valued at US$ 25.67 Bn in 2024 and is expected to exhibit a CAGR of 23.5% over the forecast period 2024- 2031, as highlighted in a new report published by Coherent Market Insights’The growth of the global decorative panels market is primarily driven by rapid urbanization around the world.

According to the UN, more than 68% of the world population is expected to live in urban areas by 2050. Rapid urbanization is generating substantial demand for residential and commercial construction activities. Decorative panels such as wooden panels find widespread application in interior construction of homes, malls, offices and other structures. Secondly, the increasing spending on home improvement and remodeling activities is also fueling market growth. Consumers are increasingly opting for aesthetically appealing decorative paneling solutions to enhance the aesthetic appeal of their homes.

Key Market Trends: The rising popularity of laminated decorative panels is one of the key trends being witnessed in the market. Laminated panels combine attractive decorative paper with moisture resistant resin to offer scratch and wear resistance. They do not get damaged by water and are thus ideal for use in high moisture areas such as bathrooms and kitchens. Furthermore, the demand for customizable decorative panels is also growing. Manufacturers are offering a wide variety of textures, styles and finishes of decorative panels to suit diverse consumer preferences. Customers can personalize decorative panels as per the theme, style and color scheme of their rooms.

Decorative Panels Market Opportunity: The decorative panels market is expected to witness significant growth owing to increasing residential construction activities across the globe. Decorative panels such as laminates, wood, and stone panels are widely used in residential constructions for flooring, wall, and ceiling applications. According to recent estimates, the global housing construction sector witnessed around 4-5% growth during 2019-2021. Rapid urbanization and rising disposable income levels are encouraging more people to invest in homes, thereby driving the demand for decorative construction materials like panels. Moreover, rising consumer preference for aesthetically appealing interiors is also propelling the sales of premium and customized decorative panel solutions in the residential segment.

The market is further supported by the growth in home renovation and remodeling activities. As consumer lifestyles and preferences evolve rapidly, many existing homes require renovations and makeovers after certain intervals. Decorative panels allow homeowners to revamp the look of floors, walls, counters, and furniture at affordable prices. Stone, laminate, and thermally fused boards are some commonly used panel types for remodeling bathrooms, kitchens, and other areas. The trend of frequent interior makeovers is expected to continue in the coming years, thus generating significant recurring demand for decorative panel solutions.

Key Market Takeaways: On the basis of type, the laminate segment is expected to dominate the market, accounting for over 30% of the total share by 2031. This is attributed to the panel’s superior properties such as high durability, scratch and stain resistance, and aesthetic appeal at affordable costs.

In terms of application, the flooring segment captured the largest share of 40% in 2021. Growing construction and infrastructure development works are driving the consumption of decorative panels for flooring applications across residential and commercial sectors.

North America is dominating the global decorative panels market and is anticipated to account for more than 30% share by 2031. Growing residential remodeling activities along with rising disposable incomes are propelling the market growth in the region.

Competitor Insights: Some of the prominent players operating in the global decorative panels market include BELLOTTI., Duratex, GreenPly Industries Limited, Metro-Dek, and Norbord Inc. Strategic partnerships and new product launches are among the key strategies adopted by these companies to strengthen their market position.

Recent Developments: In August, Eco Panels launched their PlantBased line featuring panels composed of 80% rapidly renewable bamboo and sugarcane fibers bonded with a biobased resin. The low-emission panels sequester carbon from the atmosphere during production and help reduce reliance on non-renewable resources like oil-based polymers. According to Mike Brown, Eco Panels CEO, early customer feedback on the appearance and performance of the PlantBased line has been very positive as demand grows for sustainably sourced interior finishes. More information in full report.

Summary

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