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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Global Market For Blow Moulding Machines Recovers From The Crisis

The pandemic also caused a slump in the global market for blow moulding and blow moulding machines. The decline in sales in 2020 was over 7%. However, 2021 will see an increase of 3.9% for the global market, as a study by Interconnection Consulting shows.

China Is The Growth Engine

Blow moulding can be used to produce hollow plastic components. Important products include plastic bottles, plastic canisters, washing water containers, fuel tanks, etc. The global market for blow moulding & machinery is led by the China & Taiwan region, which accounts for about one fifth of total sales. China will continue to determine the dynamics of the global market in the coming years. The annual growth rate will be 8.6% in value until 2024, as this study shows. With the new 5-year plan, China will invest heavily in the construction of new hospitals and the expansion of medical care. At the same time, further urbanisation will be tackled, which will also benefit the blow moulding industry in many areas. Besides China, India is an important growth market for the industry. The market for blow moulding machines will increase by 4.2% this year, although the sales level of 2019 will not be reached again until 2022 at the earliest. The beverage sector in particular, with a share of around 48%, dominates the market in India. In terms of total sales, the USA & Canada region is the strongest in the world. But even there, the dynamic growth of the industry was abruptly halted by the pandemic. In the long term, however, the market for blow moulding machines will grow by 5.6% annually until 2024. The fastest-growing markets in the USA & Canada are the cosmetics sector, with  an annual growth of 8.2%, pharmaceuticals and food. In terms of machine types, stretch blow moulding machines (linear and rotary) dominate the market worldwide with 50.8%. This is followed by injection blow moulding machines with 21% of the total market and extrusion blow moulding machines with 18.2%. The blow moulding segment reached a market volume of €535.7 million in 2019. Here again, the China & Taiwan region leads with a 19.2% share of sales, followed by India (14.7%) and the USA & Canada region (13.5%). The strongest dynamics in this area can be seen in the Indian and African markets.

Tougher Competition for Market Leaders

The top ten companies worldwide hold about half of the total market (49.2%). Extrusion blow moulding machines were less affected by the crisis. Accordingly, manufacturers in this segment were also able to gain market share, such as Kautex. The Japanese injection stretch blow-moulding machine manufacturer Nissei was also able to strongly expand its market shares. The undisputed market leader, however, remains Krones. Other important manufacturers are SIPA or KHS Corpoplast.

Sustainability Is The Industry’s Key Topic

A major issue for the blow moulding industry is the global trend towards banning the use of single-use plastic materials and the focus on sustainability and recyclable plastic materials. Meanwhile, the trend against the production of single-use bottles and disposable products has reached almost all parts of the world. China bans single-use plastic in some provinces. In the USA, 95 state laws on plastic have been passed. In the EU, at least 25% of PET plastic bottles are to be be made of recycled plastic by 2025. By 2030, this mandatory target is to be raised to 30%. Nevertheless, the market for blow-moulded plastic will continue to grow, especially in the beverage market. “A steadily growing population in India, Africa and China, and the increasing middle class in these regions of the world are responsible for this increase,” explains Daniel Kollar, the author of the study.

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European Blow Moulding Industry On The Tough Road Back

The European blow moulding market lost 7.8% of its value last year due to the pandemic. A slight recovery is now forecast for 2021, with an increase of 3.2% compared to 2020, according to a study by Interconnection Consulting.

Blow moulding can be used to produce hollow plastic components. Important products are for example plastic bottles, plastic canisters, washing water containers, fuel tanks, etc. Even before the crisis, the European market had the weakest growth dynamics compared to all other regions worldwide. To make matters worse, the regions of Western and Southern Europe in particular were more severely affected by the pandemic than many other regions in the world and recorded a decline of 11.9% and 9.2% respectively. Consequently, the greatest momentum in the future will not come from these regions, but from the CEE region and Eastern Europe. In the CEE countries, the annual increase forecast until 2024 is 5.3%, with the study also predicting similar dynamics in Eastern Europe. For Western and Southern European countries, it will take at least until 2023 before the market level of 2019 is reached again. In terms of machine types, stretch blow moulding machines (linear and rotary) dominate the market across Europe with 60.9%. This is followed by extrusion blow moulding machines with around a quarter (22.5%) of the total market, and injection blow moulding machines with a share of around one-sixth of the total market. Extrusion blow moulding machines in particular were able to gain market share in 2020, as they lost less than other product segments with a decline in sales of 6.2%.

Tougher Competition For Market Leaders

Accordingly, producers in the extrusion blow-moulding machine segment also gained market share, such as BBM. The Japanese injection stretch blow-moulding machine manufacturer Nissei was also able to strongly expand its market share in Europe. The undisputed market leader, however, remains Krones. The top ten companies in Europe hold more than half of the total market (57.9%).

Sustainability Is An Opportunity For Europe

A major issue for the blow-moulding industry is the global trend towards banning the use of single-use plastic materials and the focus on sustainability and recyclable plastic materials. Especially the highly developed industrialised countries in Europe – favoured by strict laws and regulations – are leading the way. In the EU, at least 25% of PET plastic bottles are to be made of recycled plastic by 2025. By 2030, this mandatory target is to be increased to 30%. “Big brands are being forced to minimise the use of non-recyclable single-use plastic materials,” explains Daniel Kollar, the author of the study. Increasingly strict laws are also leading to bioplastic packaging gaining more and more ground. However, due to the diversity in the material, new blow moulds as well as blow moulding machines are needed for processing, Kollar explains. “The trend is driving the development of the technology and the market.“

 

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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Facility Management in CEE on the Way to Maturity

The facility management market in the CEE countries Poland, Hungary, Czech Republic and Slovakia) will return to growth this year (+3.8% in value) after its stagnation in 2020 (+0.1%). For the forecast period 2020 to 2024, a yearly increase of 3.6% on average is expected, as shown in a study by Interconnection Consulting.

The trend towards outsourcing of corporate real estate management activities continues. In 2013, this share was 30%, in 2024 it will be 39%. This means that the market is still far behind the mature Western European markets. Developments in the area of external facilities vary from country to country.

Poland Weathered the Crisis Well

In Poland the market for facility management actually grew by 2.0% last year. However, considering growth of 3.7% and 3.9% for 2021 and 2022, the dynamics in the coming years will be far behind the years before the pandemic. The market volume in 2020 was €12.9 billion, taking up two-thirds of the total market volume of the CEE-4 countries. The commercial sector was the largest customer segment in Poland in 2020, with a share of 29.8%, ahead of industry (27.0%) and healthcare (14.6%). The Hungarian market fell by 1.7% in 2020. The market volume was €2.9 billion in 2020 and will already exceed the pre-pandemic level in 2021. The Hungarian facility management market will grow by 5.1% per year on average until 2024. The commercial sector is the most important customer segment, with a share of one-third of the total market, followed by the industrial sector (24.7%). The pandemic hit the market in the Czech Republic and Slovakia harder than Hungary and Poland. Both countries suffered severe setbacks with declines of 4.2 and 6.7%, respectively. The reason was a drop in interest in outsourcing during the pandemic and, especially in the Czech Republic, an extremely hard lockdown. However, a rapid rebound is also expected for the Czech Republic with growth rates of 3.7% p.a. until 2024. The largest customer segment in the Czech Republic is industry with more than one-third of the market volume. The commercial sector follows with around a quarter and then the healthcare sector with 11.5%. In Slovakia, the industrial sector has a share of 40%, followed by the commercial sector.

Increased Demand for Cleaning

Overall, facility management can be divided into three core areas (infrastructure services, technical services, business services). Infrastructure is the strongest segment in the CEE-4 countries with 49.5%. This segment includes cleaning, security, catering, gardening, reception, whereby the cleaning sector grew especially in Poland in 2020 due to the increasing demand for disinfection services and the cleaning of e.g. fan systems. The technical services sector (2020: 37.3%) will grow more dynamically in the coming years. “The reason for the increase in technical services is the rising cost of energy and, as a result, a great demand for effective energy management,” says Katarina Gajdova, the author of the study.

Foreign Companies are Leaving Hungary

For many facility managers from Western Europe who pushed their expansion abroad, the CEE market, which is still not very “mature”, became a popular playground. In 2019, however, some companies decided to leave the Hungarian market for different reasons. For example, the Hungarian real estate developer Wing Zrt. acquired Strabag PFS, and in the same year, the Danish company ISS also decided to turn its back on the Hungarian market. The operational business was to be bought by the second strongest company on the Hungarian market, B + N Reference Zrt, but the transaction is still being examined by the European competition control. Major players in the CEE market are Atalian, Securitas, ENGIE, Compass Group, Sodexo, Okin Facility.

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Eastern Europe's Office Furniture Market Painstakingly Fights Its Way Back

After a dramatic decline of 17.7% in 2020, the office furniture market in Eastern Europe will slowly get back on track this year (+8.7%) and should be back to pre-crisis levels by 2023 from today’s perspective, a new study by Interconnection Consulting shows.

The impact of the pandemic on the countries of Eastern Europe was varying. The volume of business in the office furniture market in Ukraine fell by 22.9%, in Slovenia by only 10.9%. While Poland and Romania, in addition to Slovenia, came through the crisis relatively unscathed, the Czech Republic, Slovakia and Russia also lost about one fifth of their business last year. The concept of short-time work and home office was not as widespread in Eastern Europe as in Western Europe. Nevertheless, it can be assumed that the trend towards home office will also hit Eastern Europe and that in the future sales will show a higher segmentation or differentiation, states Katarina Gajdova, the author of the study.

Home Office as a Game Changer

Although many companies suffered sales losses of between 10 and 60%, they were mostly saved by government bailouts, so that the insolvency rate was hardly higher than in the pre-Corona period. However, this could lead all the more to structural crises in the industry after the crisis, as Gajdova fears. “Companies that do not meet the new requirements of the market in time could soon find themselves in trouble or be swallowed up by healthy companies,” she says. “In any case, we expect high dynamics in the M&A market,” Gajdova says. The study shows that companies with an established online sales service and companies in the luxury segment are more resistant to the changes in the market. The game changer responsible for this is primarily the home office. Another trend is customising, i.e. adapting products to individual customer needs.

Swivel Chairs Defy The Crisis

Swivel chairs hold a market share of about 25% in Eastern Europe with an expected turnover of 368 million euros, making them the product segment with the highest turnover, just ahead of office desks. Despite the high market share, sales of swivel chairs are growing faster than the industry average, which also has to do with the home office trend. An upswing in pandemic times was naturally experienced by partition systems, which will be the only product group to grow more strongly in 2021 (+11.6%) than swivel chairs (+10.9%), but still have a relatively low market share of 7.5%.  Overall, the ratio of private to public sector customers is 86 to 14. The top companies in the Eastern European market are, in alphabetical order: Antares, Balma, Felix, Flokk, Kinnarps, MDD, Nowy Styl, Steelcase, Techno/Ahrend.

The study examined the following markets: Bulgaria, Czech Republic, Slovakia, Hungary, Poland, Russia, Ukraine, Romania, Slovenia.

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Home Office Changes The Office Market

The office furniture market in Western Europe experienced a major slump last year due to the pandemic. Sales volumes plummeted by 19.5%. From 2021, the painstaking road to recovery will start. This year, the market will grow by 8%. However, the pre-crisis level will not be achieved again until the end of 2023. The trend towards home offices will plunge many producers into existential crises, as shown in a study by Interconnection Consulting.

The markets of Southern Europe in particular experienced huge crashes in 2020. Spain was hit the hardest with a decline of 26.0%. But also in Italy, France and Great Britain, the decline in the office furniture market was dramatic with more than 20%. This has also shaken up the country shares of the total office furniture market in Western Europe somewhat. The German market, with a share of 28.5%, is now almost as large as the second-placed British and third-placed French markets combined. Italy, a country of 60 million inhabitants, has been overtaken by Switzerland and holds about a quarter of Germany’s market volume this year. Spain has a market share of 5.8%, just ahead of Sweden.

Home Office As A Game Changer

The number of insolvencies did not increase in 2020 and 2021, despite high sales losses, due to the government’s cash injections. “However, this could change very soon for companies with structural problems,” Katarina Gajdova explains. In this context, the increased home office will develop as a game-changer. Companies that do not meet the new market requirements in time could soon find themselves in dire straits, which will also bring movement to the M&A market. Especially companies with an established online sales service as well as companies in the luxury segment are more resistant to the changes in the market, the study shows. In addition to home office, the study highlights the ever-increasing importance of online retailing, ergonomic solutions and the trend towards customising, i.e. adapting to individual customer interests.

Office Dividers On The Up

It is precisely the trend towards home offices that has saved the swivel chair product segment, which is also the largest product group with an expected turnover of 1.7 billion euros. With an increase of 9.5%, the segment is also growing far above the industry average. Office desks follow with just under 1.6 billion euros. Naturally, partition systems experienced an upswing in pandemic times and will be the only product group to grow in the double-digit range in 2021. Overall, the ratio of private to public sector customers is 85 to 15. The top companies in the Western European market are, in alphabetical order: Antares, Balma, Felix, Flokk, Kinnarps, Kraft, MDD, Nowy Styl, Techno/Ahrend.

 

The study examined the following markets: Great Britain, Belgium, Denmark, Germany, Finland, France, Italy, the Netherlands, Norway, Austria, Spain, Sweden, Switzerland.

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Price Surge in the Sandwich Panel Market

The market for sandwich panels is experiencing a shortage in steel production as a result of the COVID crisis, which in turn leads to immense price increases. The market in the CEE countries Czech Republic, Slovakia and Poland is also affected by this. For 2021, Interconnection Consulting forecasts an increase in market volume in these countries of 32.1%, while sales volume will almost stagnate (+1.7%).

The experts are optimistic that the steel supply crisis will soon be over. A recovery in this regard is expected as early as 2022. The resulting drop in production costs will also lead to rising sales figures. In Poland, prices increased by almost 6% in the last quarter of 2020 alone. At the beginning of 2021, this trend continued at an exponential rate. Overall, Poland, like many other countries, showed a noticeable shortage of labour and reluctance to invest in new construction during the pandemic. This resulted in sandwich panel sales in 2020 falling back down to 2017 levels (-6.4%). By 2022, Interconnection expects a return to the level just before the crisis struck. The slump in the Czech Republic was not quite as severe in 2020, but while sales in Poland have rebounded strongly this year, the decline in the Czech Republic continues at an accelerated pace (-5.0%). The reason for the decline in sales is primarily the price increase for raw materials. The same applies to Slovakia, where sales have fallen by 4% this year.

Eco-Friendlier Materials Sought

Products with higher insulation and fire resistance, (e.g. mineral wool and thicker) are also on the rise due to EU regulations. There could also be a shift towards more ecological, such as halogen-free products, explains Katarina Gajdova, the author of the study. Overall, the study shows that steel dominates the market as a covering material with almost 98 percent. As a filling material, PUR/PIR (panels with synthetic insulation materials) dominate with about two-thirds of the market share. Mineral wool accounts for about one third. Important companies active in the CEE region are Balex Metal, Gor Stal, Kingspan and Ruuki.

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Price Increases Cause Turnover to Rise and Sales to Fall

The market for sandwich panels for thermal insulation of buildings was affected by high price increases during the pandemic, due to shortages in the steel sector. While the market volume in value terms will increase by 16% in Western Europe this year, sales will decline by 6% compared to last year, according to a study by Interconnection Consulting.

The pandemic saw a halt in the production and export of steel production, which mainly brought imports from China, the world’s largest steel producer, to a standstill and resulted in a shortage of the most important cladding material for sandwich panels. Experts expect the situation on the steel market to return to normal in 2022 and prices to move southwards again. The strongest price increases in 2020 were seen in Spain with +10% and France and Austria with +8% each. On a positive note however, the experts’ gloomiest forecasts, which expected prices to rise by 20 to 70%, were not fulfilled.

France Faces a Sharp Slump

While all the countries studied expect a positive turnover trend due to the enormous price increases, which will accelerate again in 2021, sales in all countries will drop sharply this year due to the shortage in the steel market and lower demand. In France, a slump of almost 11% is expected. In Spain, forecasts expect a decrease in sales of around 7%. Germany and Austria will lose about 5% of business. Italy will lose another 3% in sales this year after a 9% slump in 2020. “This is not helped by subsidy measures such as the Superbonus 110, which applies mainly to residential construction, where sandwich panels are not so popular,” explains Katarina Gajdova, the author of the study.

Mineral Wool Catches Up

Steel is the outstanding covering material for sandwich panels with a share of 93.5%. Aluminium is less popular among manufacturers and consumers due to its lower insulating power. When it comes to insulation material, the ecological orientation of products, such as halogen-free, is also becoming increasingly important, as Gajdova explains. Overall, synthetic insulation materials dominate the market with about 71%, but are losing a little market share to mineral wool, which accounts for about a quarter of the market. Important producers of sandwich panels in Western Europe include Brucha, Isopan, Lattonedil and Metecno. Earlier this year it was announced that the Irish company Kingspan, one of the largest players in the sandwich panel market in Europe, had bought the steel division of the Romanian group Teraplast.

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New Conservatory Instead of a Holiday Trip

The market for conservatories and patio roofs in Germany, Austria and Switzerland (DACH) was a big beneficiary of the Corona measures, as a study by Interconnection Consulting shows. In 2020, sales rose by a staggering 16.6% and the boom will continue this year (+13.8%). Austria and Germany even grew by more than 20% in 2020.

Investing in one’s own home became a popular sport during the pandemic. After moderate growth figures in the years before the pandemic, the growth of sales, as well as the turnover of conservatories and patio roofs in the DACH region exploded. The high savings due to travel restrictions and other restrictions on public life were poured into the home. Sales in the sector increased the most in Germany (+21.1%) and in Austria (+20.8%). The Swiss market increased by “only” 13.2% in comparison. “Swiss single-family homes very often have large living rooms and window fronts and therefore, on the one hand, an addition with a ceiling is not necessary and, on the other hand, it is often not even technically possible,” explains Daniel Kollar, the author of the study. For 2021, Interconnection expects growth to continue at a similar level. Many providers are already reporting full order books until September. From 2022, business is expected to decline significantly because people will use their money for travel and other pleasures again. Interconnection expects an average annual increase of 2.0% for Germany, 1.7% for Switzerland and 0.6% for Austria between 2020 and 2024.

Five Companies Share Half of the Total Market

The study takes into account conservatories and patio roofs from profile and system suppliers. Profile suppliers deliver profiles and planning systems to metal builders who produce finished conservatories from these semi-finished products. Important profile suppliers are Schüco and Heroal. System suppliers deliver completely finished systems to building element dealers and metal builders, who then install them at the end customer (e.g. Gardendreams, Aluxe). The products are mostly made of aluminium, more rarely of plastic or aluminium-wood combinations.  Overall, it can be said that patio roofs grew more last year than conservatories (13.4%), with sales growth of 17.3%. Patio roofs account for 82.1% of the total market. In the DACH countries, the market share of the top five suppliers for conservatories and patio roofs is 49.2%.

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Refrigerated Cabinets Hope for a Speedy Recovery

The European market for refrigerated cabinets declined by 5.6% last year, reaching a volume of €1.4 billion. However, the pre-crisis level is expected to be reached again as early as 2021, according to a new study by Interconnection Consulting.

The total market for refrigerated cabinets was 550,000 units sold last year. All markets had to accept declines. The Hungarian market was hit the hardest, with a drop of almost 20 per cent. The German market remains the largest market with a share of 21 per cent of the total market, but – like all other countries – suffered a decline of 5.4 per cent last year.

Remote Recorded Stronger Slump

Remote refrigerated cabinets, i.e. refrigerated cabinets connected via piping to a central compressor unit, dominated sales in 2020, especially in Western Europe, while the plug-in refrigerated cabinet segment still prevails in the CEE countries. Across all markets, the remote segment has already taken over the dominant position with a market share of 58.3%. In 2020, the decline in the remote segment was at 7.4%, greater than that of the plug-in segment, at three percent. Among remote and plug-in refrigeration units, wall-display versions formed the most popular and in-demand product group in 2020, with 60.1 and 70 per cent respectively, followed by refrigerated islands and impulse refrigeration units.

CO2 Refrigerants Slowly Catching Up

Western Europe is ahead of the CEE region in the introduction of CO2 refrigerants. In Germany, the share of CO2 refrigerants is already at 12 percent. Nevertheless, the refrigerant market is still dominated by hydrofluorocarbons with a share of 75 per cent. “The reason for this slow transition to natural refrigerants is the high cost of production, because switching to CO2 for example requires an investment in the entire refrigeration infrastructure, some of which is more complex than the systems already in place,” says Sasa Spiridinov, the author of the study.

Polish Suppliers on the Rise

The market for refrigeration systems remains highly concentrated. Italian producers such as Arneg, Epta, De Rigo dominate the market together with Carrier and AHT. However, Polish producers in particular, such as JBG2 or ES-Systems, are gaining market share with cheaper refrigeration solutions compared to the market leaders.

The study examined the following markets: Germany, Italy, UK, France, Benelux, Austria, Czech Republic, Slovakia, Hungary, Norway, Sweden, Croatia, Poland.

 

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COVID forced a thriving sector to decline, but growth will resume soon

Only a prolonged pandemic could have weakened demand for professional coffee machines, as worldwide out-of-home consumption of coffee had been on steady growth trend for the last 10 years in almost all the 16 regions covered by this global report. Lockdown measures and travel restrictions have severely impacted all customer segments, in particular hotels and restaurants, and the worldwide market declined in 2020 by ca. 20% in terms of new machines sold. Interconnection predicts that demand will resume soon and in the next 3 years the global market will grow by a yearly average of 5,6%.

 

Europe severely hit, but downfall experienced in all regions

In Europe all major markets (Benelux, France, Germany, Italy, Nordics, Spain, and UK) lost combined 23,0% in quantity. Interconnection detected a slightly better performance in Germany and Nordics, while, at the same time, countries like Italy, Spain, and France suffered the most.

Outside Europe demand fell less on average, around 14%, but still high if compared with their performance of the last 5 years. For example, the Chinese market, which had been growing on an average around 30% in the last 3 years declined due to the COVID crisis, despite overperfoming with a fall of -3,3% in quantity. Other best performers have been East and South-East Asia, where coffee consumption is becoming more popular especially among younger generation.

 

Higher growth for collective/ event catering expected after the crisis

 

Rapid expansion of coffee houses has been observed especially in less mature markets where coffee consumption is clearly associated with a less traditional, more cosmopolitan lifestyle. A growing segment until the pandemic, collective and event catering lost more than 30% in 2020 because of home office and cancellation of indoor events. However, this segment will start regain market shares in the next 3 years.

 

Strong demand for touchless solutions and cloud computing

All product types have been negatively affected by the crisis, but fully automatic performed better than  semiautomatic and reached 49,8% quantity shares in 2020. Interconnection predicts that both groups will start to recover in the next 3 years and regain the lost ground with an average growth of 6,0% and 5,2% respectively. Average prices are on the rise and are expected to grow further mainly because of technological innovation, in particular, cloud computing, remote control and touchless solutions. Among the major global players, there are Cimbali, Evoca Group, Franke and WMF.

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Market for Liquid Waterproofing Will Recover from Mid 2021

The European market for liquid waterproofing is being hit hard by the crisis. This year the industry has to expect a decline of 5.9%, as a new study by Interconnection Consulting shows. However, this will not be the bottom yet, as a further decline of 8.2% is expected for 2021. From today’s point of view signs of a recovery will only be visible in the second half of next year.

Different Speeds of Recovery

The liquid waterproofing market is not predicted to fully recover until 2023. The study shows that in 2023, the European market will grow by 11% in value terms. Between 2020 and 2023, Russia will show the highest growth rate of all countries according to current estimates. The largest market for liquid waterproofing is Germany. Germany is also in for a positive future, with an expected average annual growth rate of 2.0% until 2023. The outlook is somewhat more pessimistic for France or Italy, which will not reach pre-crisis levels until 2023. However, this is mainly due to the fact that there was already a decline in construction activity in these countries in 2019.

Polymer Seals in the Lead

Liquid polymer is the preferred waterproofing material in Europe, with a share of 60.1%, placing it far ahead of bitumen and cement. Within the group of polymeric waterproofing, PMMA or acrylic glass is the strongest product. It is also the product with the highest growth, due to the trend towards solution-free products. Overall, however, the market is very diverse. In Italy, bitumen products dominate with a share of 48 percent. Residential construction is the most important customer segment in Europe with a market share of around 50 percent, with a slight upward trend.

Diversification Pays Off

Competition in the industry is very high, especially among the market leaders, but there is still enough room for smaller companies, explains Julia Tarasenko, the author of the study. During the pandemic, it was evident that companies with strong diversification, both in terms of products and markets, were most successful in overcoming the crisis and in many cases were even able to avoid declining sales. Overall, the market share of the top ten companies increased considerably from 49.9% to 52.1% compared to the previous year. Some of the most important companies are Triflex, Sika, Mapei, StoCretec, Soprema, Weber, Remmers, Evonik, BASF and MC Bauchemie.

The study examined the following markets: Austria, Belgium, France, Germany, Italy, Netherlands, Poland, Russia, Spain, Switzerland, United Kingdom, Rest of Europe.

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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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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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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.

 

  Presentation request

 

 

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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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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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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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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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Renovation Cushions Crisis in Garage Doors a Little

The market for garage doors in Austria has experienced an upswing in recent years. However, the Austrian construction crisis resulting from the COVID 19 crisis will also affect the market for garage doors (2020: -3.7%). A new study by Interconnection Consulting shows a slightly negative prognosis for the years after 2020.

Renovation as a Glimmer of Hope

Interconnection assumes that the market for garage doors in Austria will only grow by an average of 1.0% per year until 2023. The renovation market, however, is profitable for the major European manufacturers in Austria. After all, garage doors in Austria are changed twice as often on average as in neighbouring countries. Thanks to the crisis, the renovation segment is becoming even more important. The share of this segment rose to almost 70 percent (67.1%) of the total market during the crisis. Before the crisis, the share was around 65%.

Steel and Sectional Doors Dominate

Steel accounts for the majority of garage doors in Austria, with a share of 86.7%. Aluminium is the second most used material with 8.2%. Whereby the share of aluminium is growing particularly in the area of up-and-over and folding doors. Wood represents an elegant but also expensive niche and therefore only accounts for a share of 2.9%. 82.7% of all garage doors are sectional doors.  “This product group has proven itself to be practical and convenient for many years, and is also no more expensive than rolling and folding doors,” explains Vito Graziano, the author of the study. However, up-and-over doors will develop best after the crisis. As a result of the crisis, average prices have also fallen a little, by -1.3%.

High Market Concentration

The Austrian market is characterised by a high concentration of the top 5, with top 5 companies accounting for around four fifths of the total market. The top ranks are occupied by European players.  Domestic companies have mainly created niches in their original federal states, often by marketing their products via direct distribution. Together, however, they account for less than 15 percent of the market.

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Eastern Europe is Reliable Market for Profile Machines

The global market for profile machines for window and door production was €896.9 million in 2020, 0.7% lower than in 2019. This market experienced strong growth in the last few years before the pandemic and was not hit as hard as other sectors. The market will also catch up quickly once the crisis is over, as a new study by Interconnection Consulting shows. 

Europe Leads the Way out of the Crisis

The global market for profile machines for window and door production is linked to the sales situation and the development of the window market. In Europe, the CEE region has seen itself as a motor for the industry in recent years. The region is responsible for 30.1% of the global output of profile machines. The growth of the industry in this region was up to ten per cent in the years before Corona, also due to the demand for PVC machines from Germany. In 2019, the CEE region displayed a growth of around seven per cent. While the outlook for the European markets is good even after the crisis with good expected growth rates, the other side of the Atlantic is in for less rosy times. Growth in the NAFTA region as well as in Latin America will be less dynamic than in Europe. In Asia, China is the clear market leader with a share of over 70 per cent. The young market for profile machines in Asia is still dominated by local manufacturers. Growth rates in the Asia-Pacific region were 7.2% in 2019, the highest in the world. The market there benefits not only from cheaper production costs, but also from rising quality standards and network effects between window and profile manufacturers. Of the three machine types (PVC, aluminium, steel), PVC has the greatest growth potential for the future and the largest market share with over 60 percent. One driver for PVC profile machines is the Chinese window market, where PVC is the most popular window frame material.

New Global Players from China

The market for profile machines is highly concentrated. The top ten companies worldwide occupy more than 50 percent (56.9%) of the world market. The market is dominated by European companies and here again mainly by German companies like Urban, Rotox, Schirmer and Italian companies like Voilàp, FOM Group or Graf Synergy, the Italian PVC specialist. Apart from other big European players, there are only US companies and Turkish manufacturers that are involved in the world market. Also in China, after dominating their local market, some manufacturers are trying to jump into the global market like Zhongwang or Xingfa, which will make competition tougher worldwide in the future.

 

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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 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)

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)

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