After a further slight decline of 2.1% in 2021, the window industry will compensate for the pandemic-related losses with above-average growth rates in the next few years, this is shown by a current study by Interconnection Consulting, which was presented at the second Vienna Window Congress.
Renovation Sector with Better Development
The pandemic does not have too great an impact on the total volume of the industry, but on the redistribution of market shares in the individual business segments. Overall, it can be seen across regions that the new construction segment in the window industry has suffered greater damage from the pandemic than the renovation sector.
The new construction segment falls by 4.8% to 23.2 million window units in 2020. The renovation segment, on the other hand, shows only a moderate decline of 2.1%. For 2021 this gap will even widen. While the new construction segment will decline again by 6.8 due to the drop in building permits last year, the renovation sector will even increase a little (0.7%). Overall, the renovation sector is more dominant in Southern Europe than in any other region of Western Europe, with a market share of around 75%.
In the DACH region it is lowest at 53%. A comparison between residential and non-residential construction shows that residential construction is coming through the crisis better (forecast: 2021: -0.3%). Non-residential construction, on the other hand, has to adapt to the changes in work and society (home office and online shopping) with a corresponding drop in demand and a decline of around 6% in 2021.
DACH Region Despite the Crisis
Even though the overall market for Western Europe shows only a slight decline in the overall result, the developments in the individual regions are very different. The DACH region (Germany, Austria, Switzerland) came out of the crisis almost unscathed and even achieved a slight plus (+1.5%) in 2020. This means that the DACH region was also the only region in Western Europe whose window sector also achieved a plus in the crisis year 2020. The renovation sector in particular more than made up for the losses in the new construction segment.
Home renovation became something like a new trend that replaced holiday spending – Frederik Lehner explained in his presentation.
The strongest decline with -10% was recorded in the UK & Ireland region due to the low willingness to invest on the part of private and institutional investors. The window industry in Southern Europe (Italy, Spain, Portugal) is also coming through the crisis very well. The overall market level of 2019 is expected to be reached there already this year. State aid for renovations, such as the super bonus in Italy with tax relief of 110%, should help the sector to get through the crisis well.
Different Regions Prefer Different Windows
In Northern Europe (Denmark, Sweden, Norway, Finland) and Southern Europe, people prefer windows with wood/metal and metal frames (64.6% and 47.4% respectively), while in the DACH region and Great Britain & Ireland they prefer PVC windows. The DACH region and Northern Europe rely on triple glazing with a share of more than three quarters each, while in the France & Benelux region, for example, the share of double glazing is around 90%. The remaining regions also predominantly rely on windows with double glazing.