Commercial Sales Dominate U.S. Ceiling Market, but Untapped Residential Opportunities Remain

August 2019

In 2018, the U.S. commercial market for ceilings totaled 92 percent of value demand, a share that is projected to remain consistent going forward, according to a new Freedonia Group study. However, while baffles, clouds and other costly, high-performance ceiling products keep commercial sales high, design innovation and evolving consumer trends are turning traditionally commercial-only products like ceiling tiles into must-have items for homeowners:

  • Increasingly, low-cost ceiling tiles can mimic the look and texture of higher-value materials such as metal and wood. These products are particularly favored for dining rooms, kitchens, apartment lobbies and other showcase rooms where a distinctive, high-end look can make a big impression.
     
  • The acoustic performance of ceiling products is providing additional residential sales opportunities for applications such as home theaters and media rooms.
     
  • Design trends favoring a more custom look are also creating opportunities for ceiling tiles on non-ceiling surfaces, such as walls.

Communicating the benefits of ceiling products in residential applications will be key for manufacturers and distributors looking to increase their penetration. For example, the most successful marketing campaigns will show the use of ceiling tiles in new, surprising locations such as walls; highlight products’ ease-of-use and ability to resemble high-end products; and emphasize the performance benefits of ceiling products, such as the insulative properties that help to reduce energy costs and improve interior acoustics.
    
More information regarding the “Ceilings” study is here: https://www.freedoniagroup.com/industry-study/ceilings-3719.htm.