Market- and Competition Analysis

Ernst Rumpeltes

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Ernst Rumpeltes, Senior Consultant, has been responsible for the preparation of studies and consulting projects at Interconnection Consutling since 2010. He is an expert in market intelligence, brand image analysis and customer behavior. Ernst Rumpeltes studied Business Administration at the Vienna University of Economics and Business.

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IC News

Renovation keeps raised floors afloat despite losses

After 2 years of sustained growth, the raised floor panels market has been affected by the COVID-crisis and is expected to experience a quantity loss -6,0% in 2020. Despite an increase in renovation, the fall in new non-residential projects, especially office/administration and commercial segment in the next 2 years will keep the market well below the 2019-level until 2023, as quantity growth will resume only in 2022 in most countries.



Wood and mineral panels most popular as premium solutions


The largest material segments for raised floor panels are mineral with 31,0% quantity shares, which are however falling a bit in part for a reduced availability of the raw material, and wood with 30,6%, which is expected to raise up to 31,1% up to 2023. Wood is already the biggest segment in France, Spain and Benelux, while mineral panels are above 40% in Italy and Germany.

Encapsulated steel is at 28,0% and is the dominant material in the UK market with 68% quantity shares, regaining some of the lost shares as aluminium prices stabilized in 2020.

Hollow floor is extremely popular in Germany with 22,0% quantity shares, but is losing relative to the other segments because of their reduced functionality, especially for office and data centers.



Public investment as silver lining?


Among the positive factors, more investments in healthcare and education by European government will help limit the losses in the next 3 years. Still, most panels are destined to offices and to commercial enterprises and new constructions for these segments will decline strongly in 2021 as new projects will be put on hold. At the same time, renovation of offices rose a bit in 2020 as companies take advantage of the temporary absence of workers during lockdown for restructuring internal areas.



European companies dominates the market


The European market is strongly concentrated, especially in the premium segment, with international and local players counting for 80% of the market and the TOP5 counting for 45% of the total market. Some acquisitions in the last few years increased market concentration further and created some bottleneck for raw materials, in particular for mineral panels. Among the main companies, there are Kingspan (mainly encapsulated steel), and 3 German players, Lindner, Knauf and Mero

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Blow Moulding Machines Plunge Through Crisis

In the long term, the market for blow moulding machines and blow moulds is in for stable worldwide growth. However, the pandemic is also causing a global slump in this sector, with sales down 5.9% in 2020. Overall, the pre-crisis market level is not expected to be reached again until 2022 at the earliest, as shown in a study by Interconnection Consulting.

China Leading Producer

The market for blow moulding machines will be affected by the worldwide economic impact of the pandemic in 2020, and will therefore also see a decline in market volume in all regions. The biggest falls are expected in Latin America (-11.6%), Southern Europe (-9.2%) and Western Europe (-8.4%). The worldwide sales volume for blow-moulding machines will decline from 3.1 billion euros last year to 2.9 billion euros in 2020. The global market is dominated by China & Taiwan, which account for around a fifth of the total market (21.0%). The second-largest market for blow-moulding machines is South & East Asia (14.4%), followed by the USA & Canada (13.9%). In 2019, the highest growth was achieved in the region South & East Asia with an increase of 11.9%, followed by India (+9.8%). The lowest growth was recorded in the regions Southern & Eastern Europe with +1.8% each in value terms. In terms of machine types, stretch blow moulding machines (linear and rotary) dominated the market with 57.3%. Blow moulding machines hold the second place with a share of around a quarter of the total market, followed by extrusion blow moulding machines with 17%. The blow-moulding segment reached a market volume of €568.9m in 2019. Here, too, China & Taiwan are in the lead with a share of 15.7%, followed by India (14.8%) and the region USA & Canada (13.5%). The strongest growth markets in this segment in 2019 were India (+9.0%) and Africa (+8.7%).

Sustainability is the Main Industry Issue

A key issue for the blow moulding industry is the global trend towards banning the use of disposable plastic materials and the focus on sustainability and recyclable plastic materials. Different regions of the world vary drastically in terms of reducing the use of plastics. The highly developed industrialised countries show a greater reduction in the use of plastics, mainly due to stricter laws and regulations. “Major brands have been forced to minimise the use of non-recyclable disposable plastic materials,” explains Daniel Kollar, author of the study.

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As stroller market shrinks, parents look for innovative solutions at reasonable prices

For the second year in a row, the European strollers market have decreased by -0,9% in 2019 as a recent study by Interconnection Consulting shows. Interconnection predicts that the market will loose on average -1,8% units per year until 2023, in part due to a strong decline in 2020 in part offset by an increase in 2021. Only in France and Northern Europe, the study recognized an increase in quantity sold, while the German and Spanish markets declined for the first time in the last 5 years and the UK market failed to rebound after a sluggish 2018.


Parents more sensitive to prices as competition intensifies

Average prices  failed to grow in 2019 for the first time since the 2010 crisis. Parents have become more sensitive to price differences in the high-end premium segment as competition to gain shares in this segment has increased in the last 3 years. The high-end segment (>1000) lost  shares again in 2019 in part due to the impact of second-hand market, while shares of strollers in the medium-range (250€-500€) have now reached 33,7% quantity shares.  The temporary fall in demand caused by the COVID-19 crisis is forcing producers to offer one-off sales in the first part of 2020. As a consequence, total turnover is expected to fall below 800 million Euros in the next 3 years.

Lighter, cabin-proofed stroller on the rise…  before and after COVID-19

The rise of ultra-light compact in the last few years has been astonishing and more companies are now offering this type of solution. Interconnection expects this segment to grow further in the long-term by taking shares from both compact and buggies, but the COVID19 crisis could reduce their  demand until  travel restrictions are lifted. “This crisis have been put a lot of pressure on the strollers industry in the first half of 2020 and has the potential to modify parents’ approach to mobility and their consumer preferences”.  Comfort is the product group with the largest share (42,8%) and overperformed in 2018, reflecting also the rising shares of multi-travel systems.

COVID19 favors the long-term rise of online sales

Growing trend for online sales set forth and this channel have now reached a market share of 25,8%. Their growth rate is expected to rise even stronger  in 2020, as the off-line channel has been heavily impacted by the current crisis in some countries were forced to restructure due to financial problems. Especially, sales through boutiques and mass market will keep declining in the next 3 years.  Market concentration have been decreasing in the last few years as some newcomers have gained shares and the trend has been confirmed in 2019 with the top 10 companies controlling now 35% of the total market. Three of the largest companies are Artsana, Britax and Dorel.

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Curtain Wall Market is Facing Difficult Times

The six most important markets for curtain walls in Europe (Germany, France, Spain, Great Britain, Italy and Poland) posted a decline in sales of 0.6% in 2019. Follwoing the most likely scenario, the COVID crisis will cause a sharp drop in sales this year (-4.5%). But even after that, the market will find it very difficult to get going, as shown in a study by Interconnection Consulting.

Ray of Hope in Two Years

The decline in sales across Europe – in the most likely scenario – will continue until 2022. While sales in the previous year were around 21.8 million square meters, they will most likely only make up 19.8 million square meters in 2023, as a low demand for new investments in the construction industry is expected until 2022. The developments caused by the crisis in the individual countries are all different. Italy will experience the largest decline in 2020 in the most likely scenario (-12.2%), followed by Great Britain (-9.9%), although it can be said that for both countries this is simply continuing their decline in sales. By far the largest market, Germany, will lose 3.8% of its sales volume this year, ending a long upward phase. On the other hand, France and Poland will actually end 2020 with a slight increase in sales. However, sales volumes in these countries will also decline sharply in the following years due to the consequences of the crisis.

Trending New Materials

In terms of materials, aluminum-glass holds the majority with a share of 82.6%, followed by steel-glass. While the steel segment continues to lose shares, aluminum will continue to expand its market position. However, the strongest trend can be seen in other materials, such as wood-aluminum or wood-glass systems. Alternative elements such as stone, ceramic or plastic are also being used more and more frequently.

Housing Construction Will Collapse

The market share of property construction is 89.5%. With almost half of total sales, the office segment is the strongest customer segment. This is followed by retail (18.7%) and industry with 14.1%. The greatest losses are expected in residential construction, whose sales will fall by 8.3% this year. Around three quarters of the sales volume is used in new construction.

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Parents ready to pay more, while units sold keep falling a bit

The rise of more expensive type of seats (i-Size and Extended Convertibles) keep driving the overall value growth (+0,2% in 2019), but the new study by Interconnection predicts that the market will lose on average -1,1% units per year until 2023. Demand for safety seats have been relatively less impacted by the COVID-19 crisis than for stroller, but still  the aggregated market in the 7 major European markets is still forecasted to fall by 4-4% in 2020.

„Economy and premium segments are increasingly diverging in terms of product characteristics” explains Dr. Stefano Armandi, the author of the study.  Some parents are attracted to multi-year seats as an opportunity to buy only one seat per child and save money in the long-run. At the same, product innovations affecting the high-end segment, as i-Size and spinning and rotative seats, are becoming increasingly popular in the last 2 years.  For example, i-Size seats in the categories 0/0+ and 0+/1 cover now respectively 37,4% and 44,2% of each group’s shares and are already above that level in the medium and premium segment.


Multi-stage seats more popular in Southern Europe

In 2019 downward fall in quantity is mainly due to the negative performances of the Italian, Spanish and UK markets, where in the first 2 markets the rise of extended is reducing overall quantity, while in UK due to a mix of lower life births and economic uncertainty. The two biggest market, France and Germany, kept growing in 2019, but quantity sold will fall in 2020 due to the COVID-19 crisis.

As in 2018, Group 1 and Backless kept loosing shares, while Extended Convertibles are best performer. Despite a positive growth of +0,4%, first sign of a stabilizing trend for 1/2/3 started to emerge in 2019, while 2/3 keep growing benefitting from the fall of backless solutions. Group 0/0+ and Group 0+/1 have been falling in 2019 in total, but performances diverged a bit in each countries. Infant seats in Nordics and O+/1 in Germany are still growing, while both are losing strongly in Spain and Italy (due to Extended).  This trend will keep shaping markets in Europe for the next 3 years, with O+/1 loosing less than 0/0+ on average.


Product innovation as key for growing in shares

All price segments above 100€ kept growing again in 2019, but firms are offering bigger discounts in the early months of 2020 and this will lead to a short-term fall in average price. Still, the trend towards higher average prices will resume in the next 3 years.

‘Online only’ channel reached 21,7% in 2019 and will benefit from the COVID-19 crisis, taking shares away from boutiques and mass market. Also chain specialized dealers with their online shops will be able to defend their market shares and stabilize around 38,5%.This is also the main channel in most countries, with the exception of France.

As some of the main producers have been successfully introducing new innovative models, market concentration raised a bit in 2019 reaching a combined share of 70,3% for the top 10 companies. Among the Top 5, there are Team-Tex (Nania Group), Dorel and Britax, Cibex/Goodbaby and Allison Baby.

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Residential Race to the Bottom at it's Beginning

2020 will finally stop the longstanding upswing  of the construction industry due to the Corona-Crisis. For this year a decline of -2,7% of the residential construction activity is expected, which is only the beginning of the downward trend, as Interconnection Consulting shows in its latest report.   


Bottom will be reached by 2022 

Tightened hygiene- and safety regulations curb the residential building completions already in 2020. Furthermore, closed borders led the shortage of skilled workers on the construction sites which delay completions further. Short-time work and massive unemployment clearly have a negative effect on purchasing power and investment readiness of local households. Consequently investments in  homes are expected to decline leading to a drop of building permits in 2020 by 14,9% compared to the previous year which will obviously effect building completions within the upcoming years. While the downward trend in 2020 will be comparatively moderate, Interconnection’s forecasts for 2021 are drastic with a decline of -8,7%. Due to the delay between building permits and completions of residential buildings, completions are expected to hit the rock bottom by 2022 while in 2023 we can expect a recovery.


Urbanization further Rising 

Due to declined private incomes building completions of detached- and semidetached houses are expected to drop over proportional. While detached- and semidetached houses accounted for 29,0% of all completed dwellings in 2019 this share is expected to drop to 25,0% in 2020. Even though a slight recovery of this segment is expected, the big trend of urbanization continues regardless the corona-crisis. Consequently construction of apartments will further increase. Was the ratio between apartments and detached/semidetached houses 50:50 back in 2008 a significant shift towards apartments within the last ten years (71% to 29%).


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Outdoor venetian blinds hope for a rebound after COVID

Outdoor venetian blinds hope for a rebound after COVID

After years of sustained growth, the market for outdoor venetian blinds for the 7 major European markets (Germany, Austria, Switzerland, France, Spain, Italy and Poland) will suffer a setback in 2020 due to the impact of the COVID-19 crisis. The market will fall by -3,7%. In new study, Interconnection predicts that quantity sold will experience a gradual rebound in the next years, while the volume in 2025 will raise above the 2019-level in all markets analyzed.


DACH-Region Overrepresented

The popularity of outdoor venetian blinds as exterior sun protection element in the DACH-Region is well-known and strongly defines volume and trend for the whole European market. The German market is by far the biggest market with 49,6% shares,  followed by Switzerland and Austria. Still, it will take some years before Germany will reach the pre-crisis level. Rebound will be faster in some of the less mature and, at the same time, fastest-growing countries, as France and Spain. In 2019, the Spanish market grew by +5.3%. In Southern Europe venetian blinds have been struggling to take shares away from other, more traditional, sun protection elements, as wood and roller shutters. For example, the Italian market is less than 1/10th of the German one.

Fall in aluminium price could make blinds more competitive

A positive feedback on total volume sold could be lower prices for raw material, as ca. 90% of all venetian blinds are made of aluminium and price of aluminium had been growing stronger before the crisis. This could help producers to take advantage of the situation and help venetian blinds to become more competitive relative to alternative solutions. One of the reasons why average prices of blinds is relatively high is the motorization level which is dominant reaching 93% in France. Only in Poland only 64% of venetian blinds are sold with a motorization system.

More players, concentration declines

In the last 5 years more sun protection players have started to produce their own venetina blinds and, since 2017, Interconnection recorded a trend towards lower concentration among the top producers. Still, the Top 10 companies covered in 2019 59,8% of the total volume. Some of the Top 5 have lost shares in part because present only in the more mature markets. Roma and Hunter Douglas gained shares in 2019.

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Difficult Years Ahead for Fire Rated Doors

After a very promising start to the new year, the fire door industry in Western Europe experienced a major slump. In the first quarter of 2020, the market fell by 11.5 percent in value compared to 2019. For the full year, Interconnection Consulting expects a decline of 5.6% compared to the previous year. The market level of 2019 is not expected to be reached again until 2023.

Italy, Denmark and Sweden Will See Double-Digit Declines

In Germany, the largest market for fire rated doors in Europe, a decline of 7.4% is expected for the year as a whole, caused in large parts by the strong declines in non-residential construction. One of the strongest slumps in the EU is currently forecast for Italy (-10.1%), while the fire rated door market in the Benelux countries and Great Britain will lose 8.7% and 7.6% respectively. Scandinavia is also hard hit by the crisis and will lose a total of 9.6%, with the decline in Denmark and Sweden likely to be in the double digits.

Great Expectations for EN16034

The market has high expectations for the introduction of new standards for the harmonisation of directives within the EU and Turkey in order to guarantee fair conditions for the manufacturers. However, these changes, which came into force in November 2019, only affected exterior doors and sliding doors. “The outer doors in particular affect only a slight proportion of all fire rated doors and therefore the effects on price harmonisation are not yet as strong as desired,” explains Jan Hudak, the author of the study. However, this is one of the big goals to narrow the big price differences in different countries. Therefore, in the future, wooden doors with fire resistance of 90 and 120 minutes will dominate at the upper end of the price scale, while steel doors will remain dominant at the lower end of the resistance scale (30 min and 60 min).

Gloomy Outlook

The fall in demand in the first half of 2020 will be somewhat weakened from September due to the building permits already issued – which total around 3 billion euros. The two-digit decline figures that are expected by summer can thus be partially offset. Nevertheless, the gradual easing of measures to curb COVID-19 will only partially lead to recovery. The market for fire rated doors will not fully recover from the crisis until 2022.

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Curtain Wall Industry in Germany Will Only Recover Slowly

Sales of curtain walls increased in 2019 by 4.2% to 7.2 million square metres. In 2020, sales are set to decline by 3.8% due to COVID-19, as shown in a new study by Interconnection Consulting. The industry will only slowly recover from the effects of the pandemic by 2023.

In 2020, due to the consequences of the shutdown, sales will most likely decrease to 6.9 million square meters, as the study shows. By 2023, this value will increase slightly, up to 7.0 million square meters. The crisis is set to end the continuous growth of the industry in recent years. The industry recorded an increase from 6.0 to 7.2 million square meters in the five years between 2014 and 2019.

Wood on the Advance

Aluminum is the dominant product group with a share of 78.5% and is not set to lose any of this majority in the future with above-average market growth. Lower growth and thus falling market shares can be expected for steel-glass combinations. The strongest upward trend is the wood-glass combination. „The advantages of the trend-material, like sustainability aspects and easy handling contribute to the rise of this material group. In addition, wood is renewable and resistant and has very good thermal insulation, ”explains Daniel Kollar, the author of the study.

Trade and Industry are Catching Up

The strongest sales segment by far for curtain walls is the office segment with a share of 43.2%, followed by the retail segment with 21.5% and industry. Only then comes the residential segment, which so far only accounts for 12.3% of total sales. This proportion will not increase until 2023. On the contrary, the residential segment will continue to lose shares, while the retail and office sectors will see the largest growth rates until 2023.

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Flüssigkeitsabdichtungen von Baukonjunktur eingedämmt

Der Markt für Flüssigkeitsabdichtung in Europa stieg im letzten Jahr um 4,5% in Menge, wird jedoch bis 2022 nur noch mit einer durchschnittlichen Rate von 1,5% jährlich weiterwachsen, was vor allem dem Rückgang in der Dynamik am Bausektor geschuldet ist, wie eine Studie von Interconnection Consulting zeigt.  


Polymerdichtungen sind große Gewinner

Das große Thema in der Branche sind derzeit die flüssigen Polymerdichtungen, die auch das wichtigste Produktsegment mit einem Marktanteil von 40,2% darstellen und weiterhin an Anteilen hinzugewinnen. Dies hat vor allem damit zu tun, dass das Material schnell aushärtet, mit nationalen Standards und Bauvorschriften vereinbar ist. Auch die langen Garantiezeiten von zehn bis 20 Jahre sprechen sehr oft für dieses Produktsegment, erklärt Julia Tarasenko, Autorin der Studie. Andere Produkte, wie das Bitumensegment, müssen dabei dementsprechend Verluste bei den Marktanteilen in Kauf nehmen.


Parkhäuser als große Zukunftshoffnung

Den größten Absatz für Flüssigkeitsabdichtungen generierte der Bereich Balkone/Terrassen und die Flachdächer, die gemeinsam rund 36 Prozent der Nachfrage stellten. Jedoch sind es vor allem die Bereiche Parkhäuser und Industriegebäude, die die größte Hoffnung der Industrie darstellen, mit einem erwarteten durchschnittlichen Wachstum von 2,5 respektive 2,1% jährlich bis 2022.


Polen mit größtem Wachstum

Deutschland ist zwar der mit Abstand größte Markt für Flüssigkeitsabdichtungen, jedoch ist Polen der Markt mit dem stärksten Wachstum. Bis 2022 wird der polnische Markt mit einer durchschnittlichen Geschwindigkeit von 5,7% jährlich weiterwachsen und dabei ein Marktvolumen von 374,4 Mio Euro erreichen. Die wichtigsten europäischen Hersteller sind Trifflex, Sika, Köster, BASF, MC-Bauchemie, Saint -Gobain, Soprema, Kemper, Krypton Chemical.

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InterConnection at the Research & Results 2019

The market research fair Research & Results will again open its doors on the 23th-24th of October in Munich.

Visit us at our booth 270 in hall 2. We will gladly inform you about our innovative and practice-oriented methods in the B2B and B2C segment and also offer you great workshops on exciting topics such as the following.


Our Workshops

‘Who once lies…’ – implicit methods as the Royal Road of Market Research

Wednesday, 23th of October at 1.15-1.45 pm; Room 1

Consumers lie. Not intended, but especially then, when they are explicitly asked about their preferences, buying motives or purchase wishes. Lies, however, have short legs, so implicit approaches help to make unconscious buying drivers measurable and reveal true buying motives and attitudes. In this workshop we will show you the best implicit methods that have been proved to be effective in practice, with practical applications around brand perception, product design and advertising impact.


  Presentation request


B2B Market Intelligence – Tools for better Market Performance

Thursday, 24th October at 12.30-1.00 pm; Room 7

Market research is facing special challenges when it comes to B2B industries. Traditional market research topics such as the analysis of buying behaviors are much more complex due to various persons involved as part of the buying center. Market analysis need to consider multistage distribution structures and the high relevance of direct sales. Market selection projects are not only restricted to regional respectively industry related markets but industry overlapping application possibilities. This presentation shows business related B2B-Market Intelligence Tools for a better market performance.


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Outsourcing of Facility Management in CEE is on the Rise

The facility management market in the CEE countries Poland, the Czech Republic and Slovakia saw an increase of 2.8% in 2018. Over the next few years, the market is expected to continue to grow steadily. By 2022, the industry’s average annual growth lies at 2.5%. With a forecast annual growth of 6.2%, facility services in particular are contributing to the good prospects, shown in a new study by Interconnection Consulting.

The good economic situation has driven the outsourcing of facility management services, which has lead to an increase in all of the industry’s growth in external facility management, while the internal area is faced with stagnation. (CAGR 17-22: Ext.:6.2% vs. Int .: 0.3%). Interconnection expects growth of 6.3% in external facility management in 2019 as well. The market volume for external services will rise to 16.5 billion euros. The industry in total has a turnover of 46.2 billion euros.

Technical Services are Catching Up

Infrastructural services dominate and occupy the largest market share of 49.3%. In this category, cleaning (35.6%) and safety (32.3%) set the tone. “In the area of ​​infrastructural services in particular, FM 4.0 will become the internet of things, as simple service categories will soon provide solutions that are less labor-intensive,” says Jan Hudak, author of the study. As a result, technical services account for 38.1% and the commercial sector for 12.6%, with the highest growth rates (7.0% and 6.6%, respectively). The reason for the significant increase in technical services is the rising cost of energy, which increases the demand for effective energy management.

Company Purchases Imminent

The largest customer group for the business are office buildings with a share of 29.4% closely followed by the industrial sector at 28.0%. The highest growth rates are expected in the Sports & Entertainment division, which will increase by 12.9% compared to the previous year. Due to the range of services in facility management, the market is very fragmented. The top ten companies in the industry hold a joint market share of only 7.4%. These companies are, however, on the verge of expanding through mergers and acquisitions, to increase their offer and thus also to drive market consolidation. Important players in CEE are Compass, Okin, Clar System, Sodexo and Bilfinger.

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Market for floor heatings benefits from rising construction of detached houses

The market for floor heatings in the DACH-region not only benefits from the construction boom but also from rising popularity of surface heatings. In 2018 sales increased by 4,2 percent compared to the previous year. Until 2021 it can be expected that the market will reach a level of 27,9 mil. square meters representing an annual average growth (CAGR) of 0,9% – as growth dynamic will slow down significantly from 2019.

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Government investments help Facility Management

In 2018, Facility Management achieved a market volume of €89.0 Billion, which is a 3.2% increase compared to the previous year. A CAGR of 3.2 expected by 2021, as shown in a new study by Interconnection Consulting.

The development in Facility Management (real estate services) reflects the economic situation of a region. In the Nordic countries, subsidies and investments in the energy sector and sustainability benefit growth, resulting in a growth of 4.1% across all countries (Denmark, Norway, Sweden, Finland) in 2018. Italy, on the other hand, still faces stagnation and instability in the financial sector, which in turn affects spending on external facility services. Last year the industry grew by 1.6%. However, the development of new projects and regained confidence will enable higher growth prospects (+ 3.1% per year) until 2021. The Benelux countries have a stable market with the same growth. For the past three years, the market rose by an average of 2.9% annually.

Infrastructure Services Moving Ahead

The facility management services can be divided into three categories – technical services, infrastructural services (catering, security, reception, gardening …) and the commercial sector. Infrastructure services make up the largest share at 53.6%. Growth in this sector was 3.5%. In Italy especially, cleaning and security as sectors enjoyed strong growth rates of 4.2% and 4.7%, respectively. Overall, technical services account for 34.2% of the market. In the Nordic countries, the technical sector has a disproportionate share of 38.2%, due to the high importance of and dependence on fossil fuels in countries like Norway.  Commercial services hold a share of 12.2%. The best growth prospects are in the technical sector, which is expected to increase by an average of 4.1% for the next few years. The commercial sector however is faced with the bleak prospect of a 0.7% annual decline over the next few years.

The State Drives Business

Office space/department stores are the largest customer segment with a share of 18.4%, followed by government & education at 16.5% and industry at 16.2%. The state sector (government institutions, education, health care) is particularly strong in Italy and the Nordic countries and accounts for a total of €29 Billion in the countries we surveyed. The top ten companies retain a market share of 14.1%, which shows that there are many local suppliers in the game and that consolidation is imminent.

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Despite Increased Prices Sandwich Panels Still in Demand

The most striking development in the market for sandwich panels in recent years was the extraordinary price increase in 2017, caused by a production shortage in PIR and PUR raw materials.  For the countries analyzed (Germany, Austria, France, Italy and Poland)  the market was valued at 2,1 Bio Eur  in 2018 and projected to expand over the forecast period at an annual compound rate of 3.2% to reach more than 2.3 Bio Eur  in 2021. Despite the existence of alternatives in facade construction and thermal insulation, the demand for sandwich panels has been rising every year.

Germany and Italy are by far the biggest market for sandwich panels  in Europe which are set to increase at an annual compound growth rate of around  2.1% and 3.3% respectively until 2021. Synthetic foam core panels still make up the majority of the market, accounting for 26.9% share, but mineral wool core segment has a higher growth expectation expanding at a compound annual growth rate of  3.3% from 2017 to 2021. The latter’s price disadvantage has all but disappeared in the last two years. The trend in favor of mineral wool is due to strengthening of fire protection regulations. At the same time, mineral wool-cored panels require the use of thicker panels caused by higher thermal conductivity.

Relatively simple installation

The cover sheets are overwhelmingly made up of steel. Corrosion protection technology has improved massively, so aluminium’s lighter weight is now it’s only selling position. When it comes to insulation thickness, the thick panels (>100 mm) will certainly go up due to mandatory compliance with energy standards. This segment is set to grow on average by 4.4% annually. Interconnection Consulting expects the market to keep a stable growing pace due to sandwich panels’ relatively short installation time and consequently cost optimization, improved properties and highly dependence on growing number of new manufacturing objects, warehouses, storage and those which need renovation.

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Refrigerated Furniture Market in Europe is on a Steady Rise

The market for refrigerated cabinets in Europe’s top six markets (Germany, UK, France, Italy, Belgium & Netherlands, Poland) will increase by 3,3% this year. By 2021, the refrigeration market will see moderate growth of 2,9% per year continuing it’s steady rise as more markets try to reduce their emissions by investing in new refrigerated cabinets.

Best Growth Registered in Italy

The total market value in the examined markets was 1.156 billion euros in 2017. The biggest market is Germany with a value of € 275,8 million. In terms of growth potential, Interconnection expects Italy to make big steps forward with average growth of 4,0% annually until 2021. The reason for this is the recovering economy and higher demand for replacement of outdated refrigeration cabinets, which was often postponed due to the political and economic crisis. In France, on the other hand, economic stagnation has begun. Even the increase in the number of new grocery stores, the market is advancing just a mild 1,4%.

Surprising Negative Performance of the Polish Market 

Although Poland shines with good macroeconomic indicators, the countrys market for refrigerated cabinets reported negative growth. Stagnating investment in new commercial buildings and a renovation have created problems for the refrigeration market. While non-residential construction is not getting under way in Poland, this area has grown in Belgium and the Netherlands. In the next few years, the growth in the later countries will be 2,5% per year. The UK, in turn, is struggling with Brexit, which particularly badly affected by the replacement market. Therefore, growth will be only 0,4% in volume by 2021.

Remote Gaining Shares

The trend in Europe is moving strongly towards remote refrigeration cabinets. This segment has a share of 58,4% and stable growth (+ 3,3%), while plug-in refrigerating cabinets only achieved a weak growth (+ 0,4%) in 2017. This trend will continue in the future, as the number of large discount grocery stores increase. This sector usually chooses the remote cabinet version, explains Sasa Spiridonov, the author of the study. Convection cooling accounts for 73,3% of the total market compared to gravity cooling (26,7%). The segment of refrigerating cabinets with temperatures above 0°C accounts for 66,6%, followed by freezer cabinets (27,3%) and reversible cabinets (include both ranges – negative and positive temperatures) at 6,1%. The market is dominated by the big companies. In Italy alone, Epta, Arneg, ISA and De Rigo alone account for more than a third (34,3%) of the total market.


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Two-thirds of German Window Dealers Give Automatic Discounts

A mystery shopping test conducted by Interconnection Consulting revealed that 66% of dealers offset their high window prices by offering automatic discounts. Overall, there are large price differences among the 20 window brands surveyed. There also happen to be geographic price differences. Southern Germans, for example, have to dig deeper into their pockets when purchasing windows than their compatriots in the north.


With an average price of EUR 342.70, Northern Germany has the least expensive PVC windows on offer. Far more expensive are the Southeast and Southwest regions, where average prices for PVC windows are 10% and 18% higher, respectively. However, the most expensive region in this segment is the East (EUR 408.30). In the wood/aluminum window segment, the highest average price of EUR 704.60 can be found in the Southwest, followed by the West, the Southeast, and the North at EUR 655.90.


Installation Most Expensive in the East

For comparable wood/aluminum windows (1000 x 1400), the price difference between the cheapest and most expensive providers is 100%. “You’re not just paying for security features or good heat values, you’re also paying for the brand,” explains Viorica Jeler, author of the study. In the case of PVC lift-and-slide doors, the average price was EUR 3,405 and thus significantly lower than in Austria (EUR 4,280). The mystery shopping test also inquired about installation prices. The average price in Germany was EUR 2,557, slightly higher than in Austria (EUR 2,274). Interestingly, the cost of installation was highest in the East (EUR 3,096) and lowest in the West (EUR 2,007). Regarding window suppliers, many of them offset their high installation prices by offering generous discounts. Around two-thirds of the dealers (66%) grant automatic discounts.


Safety Pays Off

Features like lockable handles that increase window safety generally go hand-in-hand with higher prices. Compared to standard models, prices for safety windows are on average roughly one-third higher. In Austria, customers pay significantly more, namely 61.1%, for safety windows than for standard models. Interestingly enough, increased safety in wood-aluminum windows is much more expensive than with PVC windows. “This is just one indication that there are still many price potentials to be exploited in the German window market, in spite of what one often hears that the customer is only interested in the price,” explains Viorica Jeler, author of the study.

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Product Diversification in Western Europe Boosts Thermoplastic Industry

The European market for the use of polyethylene terephthalate (PET) machines and molds has been expanding at a constant pace in recent years. In 2017, growth hit 2.2%, for a market volume of EUR 610 million. Such vitality is expected to increase in 2018. Interconnection Consulting anticipates a growth of 4.1% in value and 3.2% in volume.


Beverage Industry Spikes Demand

Germany, Italy, and France are the largest markets in the production of PET machines and molds. The rising demand in the food and beverage packaging industry (from a total market volume of EUR 610 million in 2017, the beverage industry accounted for EUR 347.9 million and the food industry for EUR 83.4 million), along with the growing consumer awareness regarding recycling, will continue to expand the market. The beverage market will continue to defend its share of roughly 60% of the market through 2021. Following the food market, with a share of 14.3%, the largest markets are cosmetics (9.4%) and pharmaceutics (6.8%).


Largest Growth in Western Europe

On account of its population growth, Western Europe is the fastest growing market, with a growth rate of 5.4%, followed by Eastern Europe (4.5%), Northwestern Europe (3.5%), and Central Europe (3.1%). Considering that the population in Eastern Europe is actually slightly declining, though increasing in Western Europe by roughly 9.0%, it is clear that individual demand in Eastern Europe has risen sharply, according to Viorica Jeler, author of the study. The largest producers in the PET mold market hail from Germany, Italy, and France.


Regions analyzed:

Northwestern Europe (UK, Ireland, Norway, Sweden, Finland, Denmark, Iceland)

Western Europe (France, Belgium, the Netherlands, Luxembourg)

Central Europe (Germany, Austria, Switzerland)

Eastern Europe (Poland, Hungary, the Czech Republic, Slovenia, Slovakia, the Baltics, Bulgaria, Russia, the Ukraine, CIS)

Southern Europe (Spain, Portugal, Greece, Italy)

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Outsourcing Galvanizes Facility Services

The market for external facility services in Austria will increase by 4.5% in 2018. The boom in office building services in particular is behind the industry’s significant growth in market volume. This trend will lead to a further increase in external real estate services in the future as well. The industry is thus expected to see an average annual increase of 4.6% to the year 2021

Offices Stepping on the Gas

The market for external facility management services will increase to nearly EUR 6.7 billion by 2021, thereby overtaking internal services to an ever greater degree. There are several reasons for this. Companies themselves promote outsourcing as they focus on their core business across all their divisions. New technologies require new types of maintenance and care, even if only a portion of the providers offer these options. With an increase of 6.2%, the customer segment office buildings was the driving force behind external real estate services in 2017. Such momentum is particularly striking since the segment clearly underperformed in the previous years. As a result of this vitality, offices have not only been able to catch up with industry’s rate of growth, but have actually overtaken it (6.2% to 4.6%).

Technical Services Catching Up

Once again, technical services outperformed all others, notching an increase of 6.3%. The tremendous need can be explained by both the continued outsourcing of services and the increase in production, trade, and logistics in the booming economy. Over the long term, technical services will see revenue growth at the expense of the currently dominant infrastructural services. The developments of infrastructural services’ sub-segments were quite varied. While office cleaning/janitorial grew strongly (+4.6%), catering managed a plus of only 3.2%. Growth in security, the other high-volume sub-segment, was also a sub-par 3.3%. “Since 2016, contracts have been expiring that were made during the refugee crisis,” explains Tobias Stickelberger, author of the study. Yet the general need for security has by no means diminished among customers. However, job qualifications have become more stringent, and so not every job can be carried out as requested because the staff is lacking, Stickelberger explains. The largest sub-segment in infrastructure management continues to be commercial cleaning, with a volume of EUR 1.7 billion, followed by security (EUR 652 million) and catering (EUR 608 million). The share of infrastructure services currently stands at 61.0%, ahead of technical services (32.7%) and entrepreneurial services (6.4%).


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Outsourcing is the Turbo Engine for Facility Services in Germany

On account of the ongoing outsourcing of real estate services, growth in the external facility services sector will continue to far exceed inflation in the future. A new study by Interconnection Consulting foresees an average annual growth of 4.3% until 2021. For the first time, turnover in technical facility services in Germany was higher than that of infrastructural facility services.

Technical Services on the Rise

The overall market for external facility services in Germany succeeded in breaking the EUR 60 billion mark for the first time (EUR 60.3 billion). Since 2013, infrastructural and technical services in Germany have been roughly equal. However, on account of lower growth in 2017, infrastructural services are, for the first time, less valuable than technical services, which saw an increase of 5.6% in the previous year. Technological advances make infrastructure maintenance of a given property less labor-intensive and thus cheaper, and yet providers cannot just conjure up a slew of new services. Such is not the case in technical services, explains Tobias Stickelberger, author of the study. “Despite general deindustrialization, the advancement in the mechanization of buildings and facilities ends up generating increased revenue in this sector.”

Outsourcing the Driving Force Behind External Services

The market for external facility management services of all providers will expand to over EUR 71 billion by 2021. Companies tend to focus on their core business especially during difficult economic times and therefore outsource facility services. So it is not surprising that the outsourcing rate in 2017 was 56.87%. By comparison, the rate was under 50% in 2012. Overall, the external market increased by 4.7%, but the overall market for facility management (external plus internal) only by 2.1%.

Bitter Price War

The customer segment industry witnessed a growth of 5.0%, making it the leading segment ahead of transport at 5.1% and trade at 4.8%. 16.5% of all services were generated in the newly formed German states and Berlin, whereby the vitality (+4.3%) appears to be flattening again somewhat. Facility services providers complain of shorter contracts and the frequent need to renegotiate prices. “Even well-known providers are hardly able to distinguish themselves enough from the pack to make the price of secondary importance,” explains Stickelberger. Customers who advertise each maintenance group individually and negotiate strictly according to price are common. The top five companies hold 9.4% of the total market. The top ten have a share of 14.86%.


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China Continues to Fuel Hot Runner Systems

On account of the positive economic trends in Europe and China, global sales in the hot runner systems market grew by 8.2% in 2017. However, the intensifying trade war between China and the USA, as well as the EU, is dampening prospects. According to a study by Interconnection, average annual growth through 2021 is expected to be only 5.7%. Overall, the global market volume was EUR 2.4 billion.


Quality Standards on the Rise in China

In spite of the strong growth, the times of double-digit growth rates in the hot runner systems market seem to be a thing of the past. Markets such as Central Europe and the USA have matured to a point that impedes high-level growth. China was once again the clear driving force in the market, with an 11.8% growth rate and a market volume of EUR 735 million. With a 30.7% share of global sales, China thus remains the largest market for hot runner systems – and its dominance is only expected to increase. The Chinese market is benefiting from both lower production costs and rising quality standards. The growth in China is being fueled to a large extent by the auto industry, though it is not just a matter of production. China is also witnessing a rising demand for cars due to an increase in disposable income. So it is not surprising that rising production costs are forcing production to drift more and more to India from China.


Protectionism Helping the US Auto Industry

The North American market grew 6.2% in 2017, a slight increase over the previous year. The market volume was EUR 432.6 million. Nonetheless, the slowing economic trends are showing all the signs of a saturated market. Even if the current economic conditions are sound, forecasts have been downgraded on account of Trump’s protectionist policies. And yet the US auto industry is actually expected to benefit from Trump’s protectionism and will remain the driving force behind the hot runner sector. Interconnection forecasts a 4.8% average annual growth in the sector through 2021.


Eastern Europe Compensates for Brexit

In Europe, the market volume in 2017 was EUR 639.1 million following an uptick in growth to 6.3%. The economic boom in Eastern, Central, and Southern Europe was thereby able to more than make up for the weak developments in Great Britain, which has been stagnating on account of Brexit. Eastern Europe’s growth in 2017 was 8.1% and will continue to stimulate European growth. Average annual growth through 2021 is expected to be 5.9%. In Europe as well, the market for hot runner systems is also being fueled by the auto industry. The higher production volume in Eastern and Southern Europe, along with the increasing number of new car models, is responsible for the upsurge in the industry.



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Sealings and Fillers Benefit from Rise in Construction

The European sealing and filler market (sealants, adhesives, PU foams, joint sealing tapes) increased in value by 9.6% in 2018, reaching a market volume of EUR 1.2 billion. Driven by the increase in the construction industry, the market is expected to maintain its momentum in the coming years. According to a new study by Interconnection Consulting, the industry in the surveyed countries (Germany, Austria, Switzerland, France, the Benelux region, and Italy) will increase in value at an average rate of 9.0% until 2021.

Nearly 60% of total sales in Europe are generated in the non-residential building segment. In terms of value, however, price increases, which must be passed on to the customer due to increased raw material costs, are also a major driving force. Germany is by far the largest market for joint sealants in Europe, which is expected to grow at an annual rate of roughly 9.5% and reach EUR 547.2 million by 2021. France, the next largest market, had a share in value of over 25.0% of total sales in 2018.


Sealants Dominate

Sealants, accounting for 45.6% of total value in 2018, were the strongest product group on the market. It is dominated by silicones, whose share in terms of value accounted for 56.2%. Nevertheless, the market share of silicones is decreasing in favor of hybrids/MS polymers. “Industry insiders feel that hybrids, which will pick up the market share losses in the silicon segment, have great potential in the European marketplace,” states Julia Tarasenko, author of the study. The second largest product group is joint sealing tapes. Adhesives are close behind, though, with a share of 23%. They also stand a good chance of further increasing their market share. Until the year 2021, their projected average growth will be 10.0%, which is higher than the industry average. Joint sealants are largely employed in the window and door segment, which garners a share of 26.9%, followed by sanitary engineering and flooring. In addition to these applications, roofing, curtain wall facades, EIFS, HVAC, drywall and other applications were each analyzed, separately for indoor and outdoor use.


Green Trend Increases Market Concentration

As the study shows, market concentration is likely to increase in the sealing and filler market in Europe’s top 6 regions. This is because companies need resources for research and development in order to keep up with the current “green trends” and to meet the corresponding regulatory requirements. The Italian market is already considered to be very saturated. As a result, local market players are having a tougher time expanding and are forced to either focus on other products and solutions, or to implement new solutions and technological innovations in order to gain market share from competitors.There is an abundance of companies in the European market for joint sealants, whereby the main players include Arkema Group, DOW Chemicals, EGO Sealants, Griffon, Henkel, Herrmann Otto, Mapei, Otto Chemie, Sika, Soudal, Tremco Illbruck etc.

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Hohes Wachstum für Fugenabdichtungen im DACH-Raum

Der Markt für Fugenabdichtungen (Dichtstoffe, Klebstoffe, Schäume, Fugen- Dichtbänder) im DACH-Raum  hat 2018 einen wertmäßigen Anstieg von 10,1% verzeichnet und hält nun bei einem Marktvolumen von 487 Mio. Euro. Getrieben durch den Anstieg in der Hochbauindustrie soll der Markt auch in den nächsten Jahren die Dynamik beibehalten. Bis 2021 wird das durchschnittliche Wachstum 9,2% jährlich betragen, wie eine neue Studie von Interconnection Consulting zeigt.

Deutschland wächst am stärksten

Neben der starken Bautätigkeit stellen in Deutschland auch Preissteigerungen einen wesentlichen Treiber dar, die aufgrund gestiegener Rohstoffkosten an den Kunden weitergegeben werden müssen. Dies führt zu einem CAGR von 9,5% und einem prognostizierten Marktvolumen von 547,2 Mio. Euro bis zum Jahr 2021. Mit 46,1% sind die Dichtstoffe die stärkste Produktgruppe in Deutschland. Vor allem durch den Preisanstieg von Silikonen haben im Bereich der Dichtstoffe Hybride das größte Wachstumspotential. Klebstoffe sind die zweitgrößte Produktgruppe, die mit einem Anteil von 23,9% dicht gefolgt werden von den PU-Schäumen (22,7%).

Schweiz und Österreich mit ähnlicher Entwicklung

Auch in Österreich sind es hauptsächlich die Preisanstiege, die zu einer deutlichen Steigerung des Umsatzes beitragen (CAGR bis 2021 7,3%). In Österreich sind Klebstoffe mit einem Marktanteil von 35,2% die umsatzstärkste Produktgruppe, gefolgt von Dichtstoffen mit 30,1%. Danach folgen die PU-Schäume mit 27,2%. Ähnliches wie in Österreich gilt für die Schweiz, wo das CAGR bis 2021 6,5% beträgt. In der Schweiz sind die Dichtstoffe mit einem Anteil von 36,1% die wichtigste Produktgruppe. Danach folgen Klebstoffe mit 23,6% und PU-Schäume mit 21,3%.

Grüne Wende verstärkt Marktkonzentration

Die Marktkonzentration bei Fugenabdichtungen wird, wie auch in Gesamteuropa in der DACH-Region zunehmen. Denn die immer höheren Ressourcen die notwendig werden um Forschungs- und Entwicklungsaktivitäten durchzuführen, um mit den aktuellen „grünen Formulierungstrends“ Schritt zu halten und die einschlägigen regulatorischen Anforderungen zu erfüllen, werden vor allem größere Unternehmen bevorzugen. Die wichtigsten Unternehmen in der Branche sind Sika, Soudal, Tremco Ilbruck, Hermann Otto, Arkema Group EGO Dichtstoffe, Henkel, PCI.

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Finestre in Italia 2019

Percezione del mercato delle finestre italiane attraverso agevolazioni fiscali

A causa degli incentivi fiscali del governo, i quali stanno dando i suoi frutti soprattutto nel settore delle ristrutturazioni, il mercato delle finestre in Italia crescerà del 4,4% nel 2019, secondo un recente studio di Interconnection Consulting. Complessivamente, lo scorso anno il mercato delle finestre ha raggiunto un volume di 1,57 miliardi di euro. Nei prossimi tre anni, si prevede che il mercato italiano delle finestre avrà una crescita annua del 2,7%, dovuta soprattutto all’incremento nel settore delle costruzioni.
Il settore delle ristrutturazioni è particolarmente vantaggioso
Lo Stato italiano assegna alle famiglie uno sgravio fiscale del 50% in caso di ristrutturazione. Inoltre, la fiducia nel settore delle costruzioni e delle finestre è alimentata anche dalla promessa di un cosiddetto “eco-bonus”. Ciò permette alle famiglie di avere un alleggerimento fiscale del 60-65% in caso di ristrutturazione delle loro case. D’altronde il settore abitativo continua a guidare il mercato delle finestre avendo una crescita media prevista del 6,4% entro il 2022, con una quota di ristrutturazione pari all’83,8%.
Il PVC prende il comando
Nel 2017, per la prima volta in Italia sono state vendute più finestre in PVC che finestre in metallo. Sei anni prima, le vendite di finestre in PVC erano dietro a quelle di metallo e legno, che erano tradizionalmente i componenti della produzione vetraria italiana. La tendenza del 2018, nella quale vede la quota di finestre in PVC al 36,9% e il metallo solo al 30,6%, continuerà con molto probabilitá anche in futuro. Nel 2022, Interconnection stima che la quota di mercato del PVC arriverá al 40,9%, quella del metallo si abbasserá al 29,1%, e le finestre in legno si aggireranno intorno al 15,6%. “Questa tendenza è dovuta alla richiesta di materiali più economici e all’ingresso sul mercato dei produttori di finestre polacchi”, spiega Vito Graziano, autore dello studio. Mentre in altre parti dell’Europa occidentale le combinazioni stanno vivendo una ripresa, in Italia il PVC/Metallo (+ 0,9%) e Legno/Metallo (+ 1,3%) continueranno a perdere quote di mercato nel 2019, con una crescita bassa.
Fornitori dall’Europa dell’Est con prezzi più bassi
I produttori dell’Europa orientale, in particolare, beneficiano della forte domanda di finestre in PVC. L’azienda polacca Eko-Okna, entrata nel mercato europeo come un grande principiante, è cresciuta lo scorso anno di circa il 40% ed è molto ben rappresentata in Italia. L’arrivo di molti produttori dall’est ha anche abbassato i prezzi delle finestre in PVC, facendo registrare un abbassamento intorno al 2,4% nel 2018. D’altra parte, combinazioni come PVC/Metallo sperimenteranno un aumento sostanziale dei prezzi. Difatti, entro il 2022 i prezzi di questo segmento aumenteranno dell’1,6% l’anno.

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Southeast Asia Defies the US-Chinese Trade War

The market for curtain wall facades in Southeast Asia will reach a volume of $ 2.55 billion this year, which equates to a sales volume of 13.6 million square metres. In the ASEAN countries that were examined (Indonesia, Philippines, Thailand, Malaysia, Singapore and Vietnam), the curtain wall market will continue to gain momentum over the next few years. This is shown in a study conducted by Interconnection Consulting.

Urbanisation is Driving the Market

The market for curtain wall facades will increase by 6.9% per annum for a total volume of $ 3.1 billion until 2022. Progressing urbanisation, the development of the construction sector, industrialisation and regarding mainly Thailand and the Philippines tourism, are the main factors behind this sustainable growth. Indonesia and the Philippines are not only the most populous countries in the ASEAN economic area, but also the ones with the strongest growth. Vietnam is also one of the fastest-growing economies, with average growth of 6.8% annually until 2022. In this case, it is the relocation of factories from China to Vietnam that has lead to an increased demand. Malaysia, too, is showing no signs of slower growth, while Singapore and Thailand will be sluggish in the future. “According to our analysis, we can say that the ASEAN economy is currently heavily influenced by local economic development programs and the complicated dynamics of the US-China trade war,” said Vito Graziano, the author of the study.

Average Prices are Rising

As far as the materials used are concerned, the market is clearly dominated by aluminum-glass facades, with a share of 85.1%. Expert interviews show that this material remains the clear frontrunner because of its strength, durability and cost-effectiveness. Accordingly, steel and glass constructions only account for 8%. Overall, the new construction sector has a share of 85.7%, while the renovation sector hardly plays a role. Office buildings are the largest sales segment with a share of almost 30 percent. Of the three most important facade types, element facades show the biggest potential for growth, ahead  of post & beam facades and window ribbons. Although average prices have been stable in the past, they are steadily rising as a result of the US-China trade war.


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Strong Fragmentation of the Cold Rooms Market in 2019

The cold rooms market in Germany, Italy, Spain, France, UK, Benelux and Austria recorded an increase in both quantity and value sales of 3.7% and 2.7% respectively. This upward trend is not expected to continue over the forecast period due to the overall stagnation of economy in the euro area. The market is expected to see an annual average growth rate of below 1% over the next three years, reflecting the economic situation in the EU and the expected forecast of gross domestic product (GDP) which is forecast to expand by 1.1% in 2020 and by 1.2 % in 2021.

German Cold Rooms Market Leading Sales in 2019

The total market for cold rooms in the Europe Top 7 (Germany, Italy, Spain, France, Benelux, UK and Austria) experienced an increase of 2.7% in terms of quantity sales, reaching 103,550 cold rooms sold in 2019, while the value sales reached EUR 368.1 million, experiencing an increase of 3.7%. The German market was the biggest in 2019 in terms of quantity sales, accounting for a 25.2% recording an increase of nearly 3%. The market was strongly influenced by the growth within the small cold rooms segment (<20 m³). This segment recorded a strong increase in 2019 of 4.9%. On the other hand the 100-400m³ segment recorded a decrease of 2.8%. This particular trend towards the small cold rooms in Germany is expected to continue over the forecast period. This segment is expected to see an average annual growth of around 1% over the forecast period, while the 100-400m³ is expecting to see a negative development. Both segments will strongly be influenced by the expected slowdown of the retail industry in Germany. The second best market in terms of quantity sales in 2019 was UK which accounted for 18.2%, followed by France with 14.6%, Italy with 13.4%, Spain which accounted for 12.3% and Benelux with around 10%.

Food Processing Industry Generating the Strongest Demand for Cold Rooms

In 2019 the food processing industry was creating the strongest demand for cold rooms in Europe with around 40% of the total number of cold rooms sold in 2019, followed by food service industry with 35.9%, while the specialized food retail industry accounted for a share of around 24%. The food processing industry is a mature sector which is experiencing a turbulent period due to the growing global demands for food safety, increasing food insecurity and consumer demand for higher quality and sustainability; however its importance in creating a strong demand for cold rooms is not expected to diminish over the forecast period.

Strong Trend Towards Customized Cold Rooms

In 2019 factory built cold rooms accounted for 28.4% of the total number of cold rooms sold, while customized i.e built on site cold rooms accounted for 71.6%.

The market is rapidly moving towards customized cold rooms and this trend is expected to reach its peak in 2022. The reason for this particular trend should be seen in meeting the demands of consumers (customization based on real needs and space) and price pressure. Control of installation quality for cold rooms built on site is not that strict, compared to factory built cold rooms.

Strong Fragmentation of the Market in 2019

In 2019 the cold rooms market was quite fragmented with domestic players holding the strongest positions. On the national level the market concentration is very high. In Germany for the Top 10 companies accounted for 76.9% of the total sales, in Italy even stronger 81.2%, France 77.1%, UK 70.2% and Spain 76.0%. However, when it comes to the total market (surveyed countries) the market concentration is not that strong. The Top 10 companies account for 48.2% of the total volume sales, indicating how strong the fragmentation of the market actually is, and that none of the companies established enough influence to move the industry in a particular direction.

The Industry is Facing Challenges

Whilst high costs and instability are likely to cause friction and potentially stop businesses from taking risks, the increase and variation in consumer demand continues to fuel the industry. The cold rooms market is set to see a modest increase over the forecast period at an annual average growth rate of around 1% to reach EUR 364.8 million in 2022.

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Early recovery in sight for office furniture

Thanks to the positive development in the service sector in Asia, the world market for office furniture grew by 6.6% in 2019. However, the corona pandemic is bound to cause the office furniture market to suffer a severe relapse in 2020 and sink by 10.4%, as a new report by Interconnection Consulting shows. By 2023, the market volume is expected to rise again to EUR 59.4 billion, while this figure amounted to 55.6 billion in 2019.

Like the pandemic itself, the damage to the office furniture business affects all regions of the world. This includes important market drivers such as new business registrations and the variation in the number of employees in the tertiary sector, as well as the GDP forecasts of the employment contracts, which are among the auspices of the market slump in different countries.


India defies the crisis

With a high business registration rate and an extremely high number workforce in the service sector, India is posited to keep negative effects of the crisis within certain limits this year (-3.9%).  All other world regions are forecast to go through a heavy two-digit decrease in their total markets as of 2020. Despite a fall of -10.7%, China will remain the largest market for office furniture with a world share of 27.5%. The USA comes second with around a quarter of the worldwide market volume. Western Europe follows in at the third place with a share of 15.5%.

Partition systems are coming up

Swivel chairs represent the dominant office furniture segment and account for a total of 27.5% of global sales. This will remain the state of things for the near future. With an average annual increase of 4.0% between 2019 and 2023, this product group will quickly recover from the brief slump of this year. The future looks even more optimistic for office partition systems, which have become the new must-have in the office scene due to the pandemic. This area will see the strongest percentage growth. After swivel chairs, office tables are the second largest product segment worldwide with 21.5%. It is reportedly the largest product group in the United States, Canada, Latin America and Australia. Lounge sofas and conference tables will naturally lose market share in order to avoid unnecessary personal contacts in everyday office life.

One region towers over everyone

The office furniture market is dominated by producers from the United States. These old-school manufacturers cluster around the State of Michigan. The most prominent of them currently occupy four of the top five placements in the TOP 5 world office furniture suppliers, thus accounting for almost a fifth of the world production. They are followed by Asian producers from China, Korea and Japan, making up the Top 10. Overall, it can be seen that the market concentration is rising slightly.

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Severe crash, quick recovery on the market for suspended ceilings

The market for suspended ceilings in the top 7 regions of Europe (Germany, the Netherlands, Great Britain, Italy, Spain, France, Russia) experienced an abrupt fall of 10.0% this year due to the COVID 19 crisis. Interconnection’s forecast shows that market volume will not return to pre-crisis levels until 2022.

Southern Europe hit the hardest

The forecast numbers for this year are like an omen for the industry. As expected, the southern European countries are being hit the hardest by the crisis not only in terms of health but also economically. The Italian and Spanish markets for suspended ceilings plummeted by 12.0% and 12.8%, respectively. In the UK, the expected decrease amounts to 10.9% and in Russia the same figure is posited to be higher than 11.1%. In Russia, recovery will take a little longer than in the Western European countries, and therefore the market level there is expected to achieve pre-crisis levels in 2022 only.

In Rome, do as Romans do

Office buildings were the strongest area of ​​application in 2019 with a 26.5% market share, ahead of commercial applications, standing at 20%. “The COVID crisis could also lead to shifts there. For instance, owing to smart working, companies will need less office space per employee,” stated Vito Graziano, author of the report. However, there are also country-specific differences in the areas of ​​application. The share of the industry segment in Germany amounts to 23.1%, while it stays consistently below 10% in all other markets examined. In France, the healthcare sector records a disproportionately high share of 18.2%. In terms of materials, the cheap plasterboard gets the lion’s share with over a third of the total market, followed by mineral fibers and metal. An emerging material is veneer wood, which will continue to experience strong growth in the years to come in spite of the crisis. Plank ceilings represent the largest product segment with a share of 35.0%.

Strong market concentration

The market concentration varies greatly between countries. While the markets in Germany and the Netherlands are very concentrated, the markets in Italy and Spain are rather fragmented. Nevertheless, the European market for suspended ceilings is dominated by a few corporate conglomerates from Germany, France and the Benelux countries. The market share of the top 5 companies in Europe amounts to 48.6%.


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Dynamic economy in Southeast Asia is making a quick comeback

The market for curtain walls in the ASEAN countries (Singapore, Malaysia, Indonesia, the Philippines, Vietnam, Thailand) is bound to plummet by 9.6% this year due to the COVID-19 crisis. However, the market will recover very quickly and by 2022 will have already exceeded the pre-crisis market volume, as a new report by Interconnection Consulting shows.

Good conditions for a quick rebound

The integration of the ASEAN region into the global industrialization process, as well as into global tourism and the construction sector, offers strong impulses for the construction industry. The wave of urbanization is also a strong driver of the construction industry and is even more dominant in the ASEAN countries than in Europe or the USA. These factors are decisive for the construction industry and thus also the market for curtain walls to keep going faster than e.g. in Europe.

Vietnam benefits from the trade war

Indonesia and the Philippines are not only the most populous ASEAN countries, but also the most dynamic markets, recording an astounding growth level. Indonesia is also the largest market for curtain walls in the ASEAN region with a share of 32.5%. Vietnam benefits from the trade war between China and the United States, as many foreign factories move from China to Vietnam to avoid trade tariffs. Therefore, despite Corona, the industry growth in Vietnam will average 2.4% annually over the next few years until 2022. By contrast, while Singapore and Thailand have poorer growth prospects, Malaysia has stable growth prospects.

Smart working instead of office presence

The most important material type is reportedly aluminum glass, with a lion’s share of 84.3%. Above all, it is the cost efficiency that speaks for aluminum and against e.g. Steel / glass, which only has a market share of 8.0%. The largest application area for curtain walls is office buildings with a share of 32.8%. In contrast to many other regions, the residential sector (e.g. apartments) remains a very important segment for curtain walls in Southeast Asia at 27.2% of the total. There could also be shifts in favor of co-working spaces in the future. “There will be more smart working and it is likely that there will be less office space for the same number of employees,” stated Vito Graziano, author of the report. Furthermore, it can be expected that the new development of hotels will only progress very slowly in the next few years due to setbacks in tourism.

Downward trend in raw material prices strengthens margins

Overall, the renovation sector makes up a small chunk of the market with around 15% of the total volume. Conversely, new construction makes up for a share of 85.7%, and this trend will not change in the next few years. But the corona crisis also has immediate positive effects for producers: in the wake of the corona crisis, raw material prices are on a downward trend worldwide, which should strengthen the margins of facade manufacturers overall.

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Loader Cranes Soon Return to Growth

The world market for loader cranes is expected to decline by 9.4% this year. However, a new study by Interconnection Consulting expects a fast recovery of the industry. The market volume is expected to return to pre-crisis levels in 2023.

The market for loader cranes is very dependent on the GDP in the individual countries as well as on the construction industry. The picture is heterogeneous in the individual regions of the world. While the US and Europe have seen strong growth in residential construction in recent years, Japan and Australia have seen a negative development in this sector. Other countries, such as China or Brazil, have increased their output, especially in the non-residential construction sector. Overall, the construction projects worldwide caused the market for loader cranes to grow by an average of 2.3 annually between 2016 and 2019. The largest market for loader cranes is Europe with a share of 30.2%, ahead of the USA with 21.1% and China with 17.4%. Like many other regions, the European market is expected to shrink this year in the double-digit range, as are China (-11.3%), Australia and Japan. The US is doing slightly better, with an expected decline of less than seven percent.

Different Speeds

The post-crisis renaissance of the European market will take place in different regions at different speeds. Germany will recover fastest. By 2023, the market volume there will already have reached a significantly higher level than before the crisis. In France, however, the catching-up process will take longer. Between 2020 and 2023 the market there will decline by -3.1% per year on average.

Kuckle Booms Dominate

Kuckle booms are the dominant product group with a market share of 85.8%. The other two important product groups are recycling cranes with a market share of 7.6% and timber cranes. On top of their dominance, the kuckle boom cranes are also the product group with the highest growth rate. Kuckle boom cranes are set to grow by 2.8% per year in value until 2023. The boom for this segment can be seen all over the world. Th sales share of this product is above 80 percent in all regions of the world. Cranes with a height of 10-20 metres are the strongest segment with a sales volume of 36.5%. This height is even more dominant  in China than in most other regions of the world, where this segment accounts for almost three quarters of all cranes. By comparison, the share of this segment in Europe is only 22.8%, holding the third place. Here, cranes up to a height of 10 metres hold first place with around a third of sales.

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Trend reversal through partition walls

The economic crisis will hit the office furniture market hard worldwide. For this year, a new study by Interconnection Consulting predicts a decline of 15.1% in value. The study expects the market to increase from EUR 47 billion (2020) to EUR 59 billion by 2023.

India as a market of hope for better times

In Europe, the office market will shrink by around a quarter (-23.7%) in 2020, making it the region with the strongest relative loss worldwide. China, the region with the highest market volume, will shrink by a comparatively moderate 11.3% this year. The second largest market in the world is the USA, where the loss will be 16.9%. In addition to the economic development of a country, the office furniture market also depends on the development of the number of workers in the tertiary sector (service sector), as well as on the dynamics of business start-ups. India in particular has therefore been a promising market for industry in recent years, where both the number of workers and the number of newly opened companies have risen sharply. The office furniture market in India was also able to achieve growth of 10.5% in 2019.

Partition walls in the fast lane

Swivel chairs remain the dominant product group with a volume of 13.0 billion euros, ahead of office desks (5.17 billion euros) and storage materials. Swivel chairs take the leading position especially in the Eurasia zone. In the USA and Australia it is again the office desks that lead the market. The highest growth potential worldwide is not surprisingly recorded by room divider systems, which can expect an average growth of 4.8% between 2019 and 2023. In the lounge segment, it is the lounge seats that lead the market compared to lounge sofas with a share of exactly two thirds. In Europe, the proportion of lounge seats is particularly high at 81 percent. On the other side of the spectrum is the US. There the proportion of lounge seats is 61.4%.

Office cluster in Michigan dominates the world market

The traditional stronghold of the office market industry is in the Michigan region in the USA. The companies based there such as Steelcase, Herman Miller, Haworth and HNI were and will remain the leading force in the world market. Together they come to a share of 20.3%. Overall, the top ten companies take up 28.1% of the total global market.

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Leading Companies trust in Interconnection Consulting


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)


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 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)


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)


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 ZAIS has become indispensable for many Austrian temporary staffing providers for fast and correct sales management decisions. A tailor-made online cockpit provides comprehensive monthly figures and data on temporary work and the labor market in Austria, while at the same time impressing with its overview and intuitive user guidance. 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)


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)


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

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