Raised Access Flooring Market - Global Outlook and Forecast 2020-2025

INDUSTRY INSIGHTS

The global raised access flooring market size to cross USD 900 million by 2025, growing at a CAGR of over 2% during the forecast period. The usage of raised access flooring technology is increasing due to the growth in the construction market. The optimal use of floor space is one of the primary reasons for the growth of this technology. The increase in building permits for private residential houses and the growth of commercial construction are key factors influencing the market significantly. The demand for raised access floor is also stemming from retrofit projects, which is expected to aid the global raised access floor market during the forecast period.

The increase in the number of data center projects is another contributor to the raised access flooring market growth. The US, China, Germany, India, Japan, UK, and Singapore were the most preferred locations for the development of hyperscale data centers in 2019. More than 70 hyperscale data centers were opened or under construction in 2019. Moreover, the US alone is likely to add around 30 hyperscale data center facilities by 2023. For instance, GIGA Data Centers opened a 60 MW data center facility in North Carolina, the US in 2019. Apple announced its plan to invest $10 billion in data centers across the US in the next five years in December 2018. Hence, increased investments from hyperscale service providers are expected to benefit raised access flooring manufacturers.

SNIPPETS

• The growth of the fabrication industry in Taiwan and Southeast Asia has accelerated the growth of the market in APAC
• The US, Germany, the Netherlands, and France remain significant markets due to the technological innovations in office workspaces, commercial building, and data center industries
• The airport demand for raised access floor technology is expected to grow as several airports are being renovated. China is expected to have a high potential for raised access tiles as the number of airports is likely to reach over 400 by 2035.
• The commercial building floor space is projected to reach 126.1 billion square feet by 2050, which is an increase of 39% from 2017.
• Chipboard core and calcium sulfate board floor panels are expected to lead the demand in the European region.

RAISED ACCESS FLOORING MARKET SEGMENTATION

This research report includes detailed segmentation by

• Type
• End-user
• Geography

INSIGHTS BY TYPE

A steel-based raised access floor is witnessing major demand as it offers high durability and can accommodate major types of floor finishing. The market for steel-based panels is leading as the availability of steel as raw material is in abundance. The demand for steel panels is expected to grow further as they are the first choice among first-time users. The segment is also growing because steel panels prevent deformation, thereby easing calibration. The demand from renovation construction is also high for steel panel flooring. However, the volatility in steel is a restraining factor for the market. The US government’s decision to impose a tariff of 25% and 10% on steel and aluminum, respectively, sourced from China is likely to hamper the growth of the steel concretes.

The application of calcium sulfate boards is growing as they offer benefits such as fire and moisture resistance, better acoustic performance, and recyclability. Calcium Sulfate boards have a higher resistance to moisture than other major substitutes – the chipboard panels. The APAC region is expected to witness the highest growth during the forecast period. On account of the F60 rating, the popularity of calcium sulfate is increasing in Europe and North America.

INSIGHTS BY END-USER

The raised access floor technology is finding increasing application in data centers across the world. The increasing internet penetration in countries such as the US and Canada is growing. This rate is likely to increase further as the adoption of smartphones and handheld connected devices is increasing, thereby increasing data consumption. The data growth is also attributed to technological advancements in the past decade, such as cloud computing, big data, and the internet of things (IoT). Hence, the increased data consumption is leading to development data centers, which, in turn, increase the demand for raised access floors.

Commercial office real estate remains a major construction activity in the overall urban development. The growth in office spaces has increased globally, with some regions exhibiting rapid progress on account of their economic growth. For instance, in India, during H1 2019, the office space leasing crossed 30 million square feet, which was an increase of around 40% than 2018. The increasing need for office spaces with low maintenance cost and highly sustainable facilities is expected to increase the demand for raised access floor during the forecast period.

Several construction companies are increasingly developing sustainable buildings. Access floors help in energy savings, reduce waste, and enable cost savings. Better-quality thermal control, improved acoustics, enhanced ventilation, and indoor air quality are some of the benefits of air distribution under the raised access floor. A raised access floor is an ideal choice for the low energy business. Hence, the growth in the construction of commercial and residential buildings is expected to drive the market.

INSIGHTS BY GEOGRAPHY

A large part of demand in North America comes from new construction projects that are expected to drive the raised access flooring market. The demand for raised access floor in the region is driven by the massive size of end-user industries such as data centers; commercial enterprises such as retail, semiconductor, aerospace; and sizeable public utility centers. The region stands as a leader in innovative manufacturing practices, reinforced by comprehensive product development with an emphasis on energy-efficiency, reduced lifecycle costs, and sustainability. The growth in the general commercial construction demand and the high availability of low-cost labor has boosted the growth in the APAC region. The major drivers in the APAC region include the growth of data centers market on account of the growing number of internet users, the increased use of social media, and high smartphone penetration, the increased adoption of public cloud and hybrid cloud services, and the need for enterprises to migrate from server rooms to data centers.

The European raised access flooring market is strong in Western Europe, where the data center footprint is high, especially in the Netherlands, the UK, France, and Germany. The market in Southern Europe is expected to grow steadily. The construction market in Europe is more agile in adopting new technologies than the US. Office spaces, utility centers, and commercial buildings in key cities with high construction activities make use of floor panels. The European region has a significant number of trade agreements that favor trade liberalization and help seamless sourcing, with reduced complexity with respect to duties and taxes on floor panels, and floor finishes products. 

INSIGHTS BY VENDORS

The global market is highly fragmented, with no major vendors having a significant share. The market is characterized by vendors that are application-specific, product-specific, or multiple-service providers at any point in time. The selection criteria mainly depend on access to raw material, pricing models, and portfolios. The competitive landscape of the industry is scattered across different geographical regions and flooring type variations. The market is divided into developing and developed regions, with a high variation in the demand and supply ratio. The market is in a nascent stage of growth. The growth is expected to be majorly driven by data centers and office spaces. The competition is currently stiff in the data center and workspace segments, as several companies are looking to gain the first-mover advantage.

The raised access flooring market research report includes in-depth coverage of the detailed analysis with market dynamics, revenue, and forecast insights for the following segments:

Segmentation by Type

• Steel Concrete
• Calcium Sulfate Board
• Chipboard Core
• Others

By End-user 

• Data Centers
• Commercial Buildings
• Office Workplaces
• Command Centers
• Others

By Geography

• North America
• US
• Canada
• Europe
• France
• Germany
• UK
• Italy
• Spain
• APAC
• China
• Japan
• South Korea
• India
• Australia
• Middle East & Africa
• South Africa
• Turkey
• Saudi Arabia
• Israel
• Latin America
• Mexico
• Brazil
• Colombia
• Chile