After several years of volatility, Europe’s ETICS (External Thermal Insulation Composite Systems, also known as EIFS) market reached its low point in 2025, driven by a sharp slowdown in construction and renovation, high financing costs, and cautious investment decisions. Installed volumes fell to 238.5 million m² (–2.9% year-on-year), while market value declined by –1.9% to €10.7 billion.

Looking ahead, the market is expected to recover gradually rather than rebound sharply. By 2029, ETICS demand is forecast to reach 255.8 million m², with market value rising to €12.2 billion, representing a CAGR of 1.8% in volume and 3.4% in value between 2025 and 2029. These findings come from the new IC Market Tracking: ETICS/EIFS in Europe by Interconnection Consulting, covering 16 European countries.

Market performance in 2025 varied widely. Spain (+4.2%), the Czech Republic (+3.9%), and Romania (+1.3%) continued to grow, supported by renovation activity and improving sentiment. In contrast, strong declines were recorded in the Nordic countries (–15.9%), the UK (–8.7%), and Belgium (–6.9%). Europe’s largest markets—Poland, Germany, and France—also contracted, though more moderately, softening the overall downturn.

From a product perspective, EPS remained the leading insulation material, accounting for 59.9% of ETICS volume in 2025, despite a gradual decline in share. Mineral wool strengthened its position to 34.2%, supported by fire-safety requirements and its growing use in multi-family and public buildings. Other materials, including XPS, remain niche. Plaster-based finishes continued to dominate, representing 77.2% of installations due to their cost efficiency and installer familiarity.

Renovation remained the main demand driver, accounting for 54.7% of total volumes, while residential applications represented 70.0% of demand. Distribution continued to rely heavily on indirect sales channels (74.7%), underlining the role of local installers and distributors.

At the same time, ETICS faces increasing competition from alternative façade solutions. “Rainscreen and ventilated façades are gaining ground in several countries, particularly in new construction and higher-end renovation,” says Juan Carraha, market analyst at Interconnection Consulting, “meaning ETICS is no longer the default solution everywhere.”

Despite these challenges, the competitive landscape remained largely stable. In 2025, the top ten manufacturers accounted for 60.2% of total market value, slightly up from 2024. The leading players are Atlas, Baumit, DAW, Fassa Bortolo, Knauf, Mapei, ROCKWOOL, Saint-Gobain, Sika, and Sto.

Overall, 2025 confirms that Europe’s ETICS market has entered a more mature phase. While gradual recovery is expected, the era of easy, volume-driven growth is over. Future success will depend on targeting the right markets, stronger differentiation, and positioning ETICS effectively within an increasingly diverse façade landscape.

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