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.

Vienna, October 2025 – Despite a cooling housing market, Europe’s underfloor heating (UFH) industry continues to heat up. In 2024, more than 106 million square meters of UFH systems were sold across Europe’s top 13 markets, which represents a fall of 8.2% compared to the previous year. While short-term sales were impacted by the construction downturn, long-term growth remains intact. Policies such as the European Green Deal and the shift toward low-emission, energy-efficient buildings continue to support the market. The residential segment is expected to slightly lose share to non-residential applications, as the latest study by InterConnection Consulting shows.   Germany Still Leads – Poland and the UK Catch Up   Germany remains Europe’s largest UFH market, accounting for nearly 20% of total sales, but is facing the steepest decline due to the ongoing housing crisis. In contrast, Poland and Great Britain are gaining market shares. Poland’s expansion is fueled by new construction, while the UK market is driven by renovation projects. Poland is even set to overtake France as the continent’s second-largest market.   Hydronic Systems Dominate, Electric Gains in Select Regions   Hydronic (water-based) UFH systems dominate Europe with an 87.4% share, but regional variations remain strong. Electric systems are most popular in Poland with a market share of 26.8%, followed by France, Great Britain, and Czechia. In contrast, Italy, Spain, Belgium, and the Netherlands are almost entirely hydronic markets. Hydronic systems’ ability to provide both heating and cooling gives them an advantage, especially in southern climates. As subsidy programs across Europe mainly target heat pump installations, UFH systems benefit indirectly. Consequently, no major shift between hydronic and electric systems is expected in the coming years.   Top 10 Players Control 41% of the Market   The Top 10 system producers account for 41.2% of total market turnover, with the remainder split among numerous component and regional suppliers. Leading European players include Danfoss, Kermi, LK Pex, Oventrop, Purmo, Rehau, Roth, Uponor, Wavin, and Zewotherm. Notable regional brands include ALB Sistemas and Polytherm in Spain, RWC and Polypipe in the UK, and Therminon and Magnum Heating in the Netherlands. Key component suppliers include Bachl, Hirsch, and Recticel Insulation for insulation materials.

After a challenging year for the construction industry, the global window market is showing the first signs of recovery. In 2024, total market volume reached 448.8 million window units, marking a decline of 1.1%, while manufacturers’ revenues fell by 1.7% to €81.1 billion. The outlook for 2025 is cautiously optimistic: market volume is expected to grow by 1.9% to 457.5 million units. However, this would still leave the market slightly below the 2022 level, according to a new study conducted by Interconnection Consulting. High Interest Rates and Geopolitical Tensions Slow Recovery Global recovery remains muted, held back by elevated construction interest rates, geopolitical uncertainty, and the U.S. trade policies under Donald Trump. In Central and Eastern Europe (CEE), market volumes dropped by 6.2% in 2024 to 13.4 million units, following an even sharper decline of 11.2% in 2023. Poland was among the hardest hit (–8.6%), followed by the Czech Republic–Slovakia region (–8.0%). Persistently high borrowing costs, rising construction expenses, and the ongoing Ukraine conflict continue to dampen both investor confidence and demand. A further contraction is anticipated for 2025. Western Europe faced a similarly difficult environment. High financing costs and surging energy prices drove an 8.0% decline in 2023 (to 63.6 million units) and a further 6.0% fall in 2024 (to 59.8 million units). No clear turnaround is expected before 2026. By contrast, the combined U.S. and Canadian window market performed comparatively well, growing by 2.9% in 2024. However, growth is expected to slow in 2025. Asia on the Rise While construction activity in Western and Eastern Europe weakened significantly in 2023 and 2024, window markets in Asia recorded robust growth. India (+6.2% by volume) and Southeast Asia (+5.9%) were among the world’s fastest-growing window markets in 2024. In India, rapid urbanization, rising incomes, and targeted government housing programs are driving residential construction. A major catalyst is the “Pradhan Mantri Awas Yojana” (PMAY) initiative launched in 2015, which aims to provide “Housing for All”, enabling millions of people to own their homes. In contrast, the Chinese window market stagnated in 2024, mainly due to waning investor and consumer confidence. Contributing factors include declining new-home rental prices, high debt levels among property developers, and stricter government regulations on borrowing. An interest rate cut by the People’s Bank of China in early January 2025 is expected to stimulate construction activity in the second half of the year. However, investor confidence may remain fragile amid ongoing trade tensions between the U.S. and China, explains Laszlo Barla, the author of the study. Metal and PVC Dominate the Global Market Metal windows, with 194.4 million units in 2024, represent the largest product segment, followed by PVC windows with 182.7 million units. Wooden windows account for 54.3 million units worldwide, while hybrid combinations (wood/aluminum or PVC/aluminum) and other window types (such as fiberglass windows in the U.S. and Canada) together total 17.4 million units. Metal windows slightly increased their market share, as non-residential construction outperformed the residential segment in several regions. Additionally, markets with a high share of metal windows—particularly in Asia—grew more strongly than regions dominated by PVC, such as the CIS countries, the Middle East, and CEE.

The European market for Cooling Ceilings and Chilled Beams recorded its second consecutive year of decline in 2024, with unit sales falling by -4.4% and market value contracting by -1.8%, according to the new IC Market Tracking Cooling Ceilings and Chilled Beams study published by Interconnection Consulting, which covers Belgium, France, Germany, Italy, the Netherlands, Poland, and the United Kingdom. This downward trend is mainly the result of the slowdown in the construction industry, the termination of public subsidy programs for renovation in Europe, the prevailing political and economic uncertainty, and the still limited penetration of these solutions. Among the analyzed countries, Germany, France, and the UK represent the largest markets. In the German market, unit sales dropped by -3.8% in 2024 due to the poor performance of the construction sector and the stagnation of the national economy. France experienced the sharpest contraction, falling by -8.4% as economic weakness pushed the industry towards more traditional and cost-effective solutions while freezing numerous building projects. Meanwhile, the UK also declined, with unit sales contracting by -3.1% as a result of reduced public investment and the scarcity of new construction activity. In 2025, the market is expected to keep shrinking, pushing producers to strengthen marketing and positioning with architects and contractors. Growth is projected to resume in 2026 (+2.5% in unit sales), supported by new EU sustainability regulations. By 2028, the market should reach EUR 724.5 million. “The industry has strong opportunities but must improve its image. Environmental awareness, long-term cost benefits, and rising fossil energy prices create fertile ground for growth. Producers are working to reach decision makers,” said Rubén Rodríguez, Market Analyst at Interconnection Consulting. Metal continues to dominate the product mix, accounting for 47.9% of all units sold, while offices remain the most common application segment, representing 55.1% of installations. The industry remains relatively concentrated, with the ten leading companies—Aquatherm, Barcol Air, Frenger Systemen, Interalu, Jaga, Lindner, Schmid, Swegon, Variotherm, and Zehnder—listed in alphabetical order, controlling 61.1% of the market, though local producers continue to play a significant role in their respective countries.