Europe Facade Market - Growth, Trends, Covid-19 Impact, and Forecast (2023-2028)

The size of Europe Façade market is USD 53.1 billion in the current year and is anticipated to register a CAGR of over 3.51 % during the forecast period.

Key Highlights

• Covid-19 has hard hit on the construction sector in Europe, resulting in project delays, labor shortages, and halts in some places due to the pandemic restrictions. Later after easing restrictions, the construction sector recovered by more than 20% in May 2020. Thus, the recovered residential and commercial projects further bolstered the utilization of façade products.
• Façade installation is gaining traction in Europe, which is driven by increasing concern towards energy efficiency, and external beautification aspects. In addition, green facade adoption is increasing in Europe, to increase green spaces, and reduce heat emissions. In October 2022, the King Baudouin Foundation planned to fund more than EUR 500,000 (USD 534,175) to support 11 projects to green the public space by creating vertical gardens on the facades of public buildings throughout Belgium. In addition, more than 28 projects were submitted for greening the outer walls of hospitals, town halls, libraries, cultural centers, sports facilities, swimming pools, museums, theatres, libraries, and community centers, out of which nearly 11 projects were selected.
• Moreover, Germany is emerging as a hotspot with increasing commercial and residential constructions and creating opportunities for façade suppliers across the country. Moreover, the country’s government also encouraged technological innovations in the façade market, for instance, Germany’s Fraunhofer Center for Silicon Photovoltaics (CSP) and the University of Applied Sciences, Technology and Business (HTWK), developed a solar façade, with PV elements which can be tilted to capture more sunlight. Thus, the growing innovations are expected to create more opportunities for façade manufacturers in the region.

Europe Facade Market Trends

The Growing Commercial Sector is Driving the Facades Installation

European countries are focusing on building commercial buildings and office spaces that are energy efficient. In the upcoming years, it is anticipated that increased spending on the renovation of aging office buildings would increase demand for façade installations. A growing need for aesthetic appearance in commercial buildings has emerged in recent years, which has fuelled the expansion of the façade market in the region.

Moreover, the growing commercial construction creates a huge opportunity for façade manufacturers in the region. For instance, in 2021, the European region witnessed many commercial projects, such as the construction of a mixed-use complex comprising six towers ranging from eight to 40 stories in London, the Quartier Grand Central Mixed-Use Development project in Flingern, Althan Quartier Mixed-Use Complex spread across 2.4 hectares area with a total gross floor area of 130,000 square meters in Austria, City Office Building construction in Norway which involves in the construction of 11-story office building across 103,000 square meters area.

Moreover, as per industry experts, more than 5.7 million sqm of new office space were completed at the end of 2022, and a further 5.1 million sqm of development is planned in 2023. These new projects require many façade installations, thus boosting the façade manufacturing sector. Moreover, in 2021, office space take-up witnessed a growth rate of 20% when compared to the previous year.

Germany Witnessing Lucrative Growth in Façade Market

Germany is experiencing a significant number of construction projects, and the country is widely focusing on external wall beautification and energy efficiency factors, these factors are driving the installation of the facades in the country. In addition, the country’s capital Berlin initiated municipal construction programs, which include planned residential areas, diverse new cultural projects, and demolishing aged structures. Also, Berlin’s contemporary architecture is unveiling new ideas on building concepts, forms, and facades. However, Cube Berlin smart office building, Axel Springer campus, Labels Berlin, Jewish Museum, etc. are some of the major façade projects in the country.

Moreover, in 2021, Germany witnessed façade greening on high-rise buildings. This initiation was driven by growing concern about reducing heat emissions, extreme inner-city temperatures, and a lack of green spaces. In order to reduce increasing temperatures various urban planning measures are currently being developed and applied. One of these developments is the greening of building roofs and, more recently, building facades. In addition, façade greening is particularly suitable for high-rise buildings, as they have a lot of vertical space. The rising temperatures across the country will boost the façade greening technology.

Meanwhile, in 2022, the country witnessed a significant number of commercial projects across Berlin, Duesseldorf, Hesse, etc. As a capital city, Berlin became a hotspot for various commercial projects. In Q1 2022, the DIE AG Ostendstraße project was started, and more than USD 1,200 million were invested in this project, which is expected to be completed by 2027. In addition, Maxfrei-Quartier Mixed-Use Development, Messeeingang Sparda Bank Tower Mixed-Use Complex, Elements Mixed-Use Development, etc. are some of the major office projects across the country. Moreover, in H1 2022, Berlin's office take-up amounted to 364,000 square meters. Thus, the growing commercial and residential sectors in Germany are expected to drive the façade market.

Europe Facade Market Competitor Analysis

The report covers major players operating in the Europe facade market. The market is highly fragmented and competitive, with large companies claiming significant market share. Moreover, several key players engage in collaborations, innovations, business expansion, awards, and joint ventures, and other strategies to improve their product footprint and remain competitive in the market. Furthermore, some of the major players in the market include Alliance Facades, Alucraft Ltd, EOS Framing Limited, Saint-Gobain S.A., etc.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support