The trend in recent years to cut corners in fire security in order to make living more affordable by reducing construction costs is now being reconsidered following the fire in Greenfell Tower in London. Many countries have since tightened fire regulations. As a result, the market for fire barriers and fire protection coatings in Germany, Austria, Switzerland, and Poland is expected to grow in value by 5.4% annually through 2021. According to a study by Interconnection Consulting, growth last year hit 6.5%.

Poland the Powerhouse

The fastest growing market among the countries analyzed is Poland, with an anticipated average growth rate in value of 6.4% through 2021. New regulations guaranteeing an improvement in fire security in newly constructed buildings, along with a humming construction market, are at the root of the sector’s positive growth curve in Poland. Meanwhile, Germany, expected to grow by 5.3% over the same period, is also investing more in fire protection measures, a development coinciding with a construction boom that led to a growth of 7.1% in 2017. In Austria, the uptick in construction, especially in the non-residential sector, is expected to result in an average growth of 4.0% through 2021. The industrial sector, along with renovation, is actually showing greater potential than new construction. Construction in Switzerland is also on the rise, resulting in a projected average growth of 3.4% through 2021. On account of the 2015 regulations governing fire safety for structures made of wood, this sector is on track to attain the highest growth rates in Switzerland. Overall, new construction, with an average growth rate of 4.0%, will generate the highest growth rates.

New Construction Outdoes Renovations

Fire barriers and fire protection coatings are most often employed in the area of ventilation ducts, beams, and heating, with an average market share of 39.1%, followed by electro with 38.3% and sanitary segment with 22.6%.The sector receives 59.9% of its total sales in the area of new construction.

Fire Protection Boards the #1

Fire protection boards are the largest product group, with a value-based market share of 32.7%, and are dominant in all four countries analyzed (Germany 31.3%, Austria 32,4%, Switzerland 36.2%, and Poland 36.0%). “We expect fire protection boards to have the strongest growth potential, especially due to the new regulations in Poland,” explains Katarina Gajdova, author of the study. The second largest product group is fire protection coatings, with 18.5%, whereby fire protection coatings for steel account for 62.1% of this product group. Firestop collars and bandages are in third place with a share of 16.9%. The fast growing product group is firestop blocks and plugs, with a growth of 8,9% last year (CAGR 17-21 5.8%), followed by firestop foams and sealants (CAGR 17-21 5.5%) and firestop collars and bandages (CAGR 17-21 5.5%).

 Diverse Market Concentration

The market concentration in the four markets analyzed is relatively diverse. In Poland, the top ten companies control just half (49.3%) of the total market. In Germany, the ten biggest players garner roughly two-thirds (64.4%) of the market. Yet the dominance of the big players is even greater in Switzerland (78.8%) and Austria (83.7%). The top companies are Promat, Hilti, Rockwool, Knauf, Zapp Zimmermann, SVT, Würth, Rolf Kuhn, Doyma, and Sika.

09/11/2018

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