Following Stable Dynamics, there's a Decline in the Market for Rainscreen Cladding

In 2023, the German market for rainscreen cladding, once a shining star in the European construction industry, experienced a significant decline. According to current data, the market saw a decrease of -18.1% in terms of quantity and -12.5% in terms of value. In absolute figures, the market dropped from 10.8 million square meters to 8.8 million square meters. This decline is directly attributed to challenging conditions in the construction sector, as building completions in Germany have decreased by 19.8%, as indicated by a study from Interconnection Consulting.

Several key factors contributed to this decline, including rising construction costs, limited availability of raw materials, high financing costs for construction projects and geopolitical uncertainties. These challenges have adversely affected the demand for facade cladding solutions in the country as a whole. The structure of the German facade cladding market traditionally featured a significant portion of the new construction sector, constituting 65% of the market. However, the recent downturn in this sector has disrupted market dynamics. The use of facade cladding is most common in non-residential construction, especially in office buildings, accounting for 74% of the market.

Shift in Market Positions with the United Kingdom

“For many years, Germany held the top position in terms of quantity among the top 8 European countries for rainscreen cladding (Germany, Austria, Switzerland, Italy, France, Spain, Poland and the United Kingdom). However, in 2023, Germany has ceded the lead to the United Kingdom, where the market is growing. Forecasts for 2024-2026 indicate that the United Kingdom will continue to outpace Germany in this market,” as explained by Julia Hrebenkova, the study’s author. In Germany, the average annual growth rate (CAGR) for the period 2023-2026 is expected to be 2.1% in terms of value but is projected to decrease by -1.6% in terms of quantity. Despite recent challenges, Germany still maintains a significant share of the European facade cladding market, accounting for 19.0% in terms of quantity among the top 8 countries.

The Aluminum Segment Continues to Lead

When analyzing the market’s product structure, it is evident that Germany has a strong share of aluminum cladding, making up 36.5% of the market. However, the High-Pressure Laminate (HPL) segment is expected to experience a significant decline of -29.7% in terms of quantity in 2023. This shift in preferences suggests a growing interest in more cost-effective aluminum cladding materials. Aluminum cladding strikes the right balance between material cost and its properties. With the rise in aluminum prices, there is no significant decrease in aluminum within the structure of all types (-2.8%). In terms of material sizes, larger panel formats, constituting 71.2% of the market, are preferred as they are more cost-effective per square meter.

18/10/2023

Copyright: Interconnection, Publication free of charge for coverage regarding the study and InterConnection Consulting.

Leading Companies trust in Interconnection Consulting

Admonter

At the IC Impulsworkhop "Sales Optimization" we appreciate not only the practical relevance, but also the eloquent language and the perfect rhetoric. The most important benefit for our company was the sales pipeline. Adrian Capellarie (Head of Sales Admonter Holzindustrie)

Deutscher Holzfertigbau Verband

Interconnection provides us with the prefabricated house study a plausible and veritable data basis for the analysis of the actual situation in the prefabricated house market and beyond for the assessment of the future market development. We are happy to use this interpreted data for our lobbying and everyday work.

Thomas Schäfer (Managing Director, Deutscher Holzfertigbau-Verband)

ELK

The prefabricated housing study by Interconnection Consulting shows a real picture of the actual market situation and forms a valuable basis for our strategic decisions.

Gerhard Schuller (CFO ELK)

Epson

EPSON is satisfied with the Interconnection's way of communication with the market and with clients. EPSON is also appriciate the Interconnection's continuous work trying to aim the report to be at the higher level. As a result, EPSON rely on Interconnection data, for the market of POS Printers and Systems.

T.Murakami (Brand Management, Seiko Epson Corporation)

Gaulhofer

I appreciate on the forum "Impulsworkshop Vertriebsoptimierung" the practical relevance of Peter Berger linked with his practical examples. I also liked the sovereign presentation style. The most important benefit was for me, on the one hand refresh of methods and also the sales management tools that were shown. Ing. Dietmar Hammer (Head of Product Management Gaulhofer)

Kontron

The most important benefit of the Impulsworkshop "sales optimization" was in my view the procedure of the definition of strengths and the entire sales process. Mr. Berger is very competent and professional. Fabian Freund (Sales Manager, Kontron Austria)

Österreichs Personaldienstleister

The sales management tool "Jobs Intelligence Austria" has become indispensable for many Austrian temporary staffing providers for fast and correct strategic management decisions as well as a daily support tool for hot leads for the sales team. Interconnection Consulting has consider individually to all user needs during development process and also convinces with fast response times during operation.

Dr. Gertraud Höltl (Generalsekretärin Österreichs Personal Dienstleister)

Saint Gobain

Long experience and deep understanding of the construciton industry markets make up the quality of the IC studies. Interconnection Consulting is a constant companion concerning the assessment of markets and helpful for decision-making.

Bernd Blümmers (Directeur General, Saint-Gobain Solar Systems, Central Europe, Aachen)

Salamander

Interconnection Consulting reports deliver a worthfull external perspective and are so a good contrast with regards to our internal market point of views.

Pedro Posada (CEO Salamander Industrial Products Spain)

Scandinavian Business Seating

The IC Report gives a very good overview of the Western European office furniture market, in a well-structured way. The data is helpful to better understand the market developments and drivers.

Beatrice Sotelo (Director Business Development , Scandinavian Business Seating)

Schneider Electric

Under a short time constraint, Interconnection was able to deliver an outstanding study that exceeded my expectation in terms of quality and market breadth. I highly recommend Interconnection to anyone in need of market research.

Jeff Canterberry (Director of Strategy and M&A, Schneider Electric)

Sodexo

When developing new market strategies, Interconnection is a trusted source we always come back to. Christian Frey (Marketing Manager CS DACH)

Do not hesitate to contact us

Please describe your needs or request a callback. We look forward to hearing from you and contact you immediately.

By submitting the request, you agree that your personal data in the database of the Interconnection Consulting Group will be stored until further notice and used for further processing and sending of information. The data will not be shared with third parties.

You can revoke your given declaration of consent with effect for the future here at any time here.