After several years of post-pandemic adjustment, the European acoustic ceiling market is displaying sharply contrasting regional dynamics. In 2024, the combined market across seven major European countries reached approximately 106 million m², with total revenues of €2.0 billion. While aggregate volume growth remained modest at 0.4%, individual markets show stark divergence: Southern European markets demonstrated solid mid-single-digit growth, Western European markets posted mixed results, and Northern markets faced contraction. The outlook through 2028 reveals continued bifurcation driven by renovation activity, fire safety regulations, and material innovation, according to a new study conducted by Interconnection Consulting.

Market Polarization: Growth Champions vs. Contraction

Regional performance in 2024 varied dramatically across Europe. Spain led with high single-digit value growth, supported by robust private-sector activity in commercial, office, and hospitality projects. As one interviewee noted, “After years of slowdown, the market woke up, especially in hotels and offices, where design and acoustics became part of the same conversation.” Italy and France also posted solid mid-single-digit value growth. The UK showed resilient mid-single-digit value expansion despite modest volume growth, with industry participants reporting specialty segments growing 20-25% annually. As one expert emphasized: “The very high demand for the aluminum timber effect has never been seen before.” In contrast, Germany experienced volume and value contraction in 2024, facing headwinds from reduced new-build activity and postponed public building projects. The Nordics faced the sharpest adjustment with mid-single-digit value decline and a more pronounced volume contraction. However, interviewed experts across affected markets note that fundamentals remain resilient, with one respondent explaining, “It’s a pause rather than a collapse, projects are delayed, not cancelled.”

Southern Europe Drives 2024 Growth

The growth momentum in Southern European markets reflects post-pandemic recovery and design-driven renovation investments. Spain’s performance was particularly strong, driven by private-sector investments and hospitality upgrades. Italy’s steady expansion is supported by continuing public infrastructure investments and renovation activity. France maintained positive growth in 2024, benefiting from Olympic-related projects and solid renovation activity, though the market is now entering a correction phase for 2025. As one respondent explained, “2023 and 2024 were good years thanks to large public and event projects, but 2025 is clearly slower.” The UK demonstrated value growth outpacing volume expansion, indicating successful premiumization and product mix shifts toward higher-value specialty solutions.

Mineral-Based and Metal Systems Lead Material Mix

Material composition across the European market reveals mineral-based solutions (including mineral fibre and drywall perforated systems) as the clear market backbone, representing over three-quarters of total installations. Metal systems, while accounting for a smaller volume share, demonstrate significantly higher value contribution due to premium pricing and fire-safety compliance requirements. Wood-based solutions show the strongest growth dynamics, driven by aesthetic appeal and increasing residential segment demand. As one manufacturer commented, “Clients are asking for solutions that look less technical and more part of the interior design.” Average selling prices vary considerably by material category, with wood and metal systems commanding premium pricing while mineral-based products remain cost-competitive, reflecting the market’s bifurcation between high-volume commodity segments and rapidly growing specialty categories.

Renovation Dominates End-Market Applications

One of the study’s most significant findings is that renovation projects now represent the majority of total European acoustic ceiling installations, substantially outweighing new construction. This structural shift is particularly pronounced in mature Northern European markets. As one expert noted, “Public and office renovations are keeping the market alive, even when new construction slows down.” Geographic bifurcation within countries is also evident, as one participant explained: “In London everything is renovated, while in other regions/countryside they are new construction.” Office buildings lead end-market applications, followed by commercial spaces, healthcare facilities, and education sectors. The leisure segment demonstrates notable growth potential driven by hospitality sector investments, while industrial applications remain a steady contributor to overall demand.

Modular Systems Retain Dominance Amid Design Evolution

Modular and grid systems continue to dominate the European market, representing approximately 74% of total installations due to their cost-effectiveness, accessibility, and maintenance advantages. However, design-focused segments are gaining ground, with baffles and suspended systems accounting for nearly 13% of the market and seamless solutions (both tiles and attached systems) combining for approximately 13% of installations. The shift toward design-driven solutions is particularly pronounced in premium segments and renovation projects, where architects increasingly specify integrated, monolithic ceiling solutions. Distribution channel analysis reveals a balanced structure, with direct sales representing the largest channel at approximately 36% of volume, followed by building suppliers stores, wholesale channels, and specialized retailers. This diversified distribution architecture reflects varying market maturity levels and specification cultures across European regions.

Pricing Stabilizes After Sharp 2023-2024 Increases

After significant price increases during 2023-2024, the market is entering a period of moderation. The divergence between volume and value growth rates in 2024—with value growth of 1.4% substantially outpacing volume growth of 0.4%—reflects both pricing power and product mix effects. Across material categories, price growth in 2024 averaged low single digits, with most materials showing year-over-year increases of 1-2%, though specialty products like wood solid systems maintained slightly higher pricing power. As one respondent summarized, “It’s not just about sound absorption anymore. It’s about creating comfortable, sustainable, and visually appealing spaces.” Looking ahead, most markets are forecasting continued low single-digit annual price growth in 2025, reflecting controlled inflation and easing raw material pressures. This pricing stabilization, combined with expected volume recovery in most markets, is projected to support healthy value growth across Europe through 2028, with continued premiumization trends driving value growth above volume expansion.

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%.