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Construction Crisis Slows Window Market Growth in Central and Eastern Europe


Construction Crisis Slows Window Market Growth in Central and Eastern Europe

photo Interconnection | Construction Crisis Slows Window Market Growth in Central and Eastern Europe

In 2023, window sales declined by 13.5% compared to 2022. Sales in the surveyed markets of Poland, Czech Republic, Slovakia, and Hungary fell from 10.6 million to 9.0 million window units. Due to the ongoing crisis in the new construction sector, the window market is not expected to recover until 2025, according to a study by Interconnection Consulting.

This year, a further decline of 7.1% in the window market is expected in the surveyed markets. The primary reason for the market downturn is the crisis in new construction, which accounts for over 60% of window sales. The forecast indicates a 15.7% decrease in the construction of single-family and two-family houses for 2024. 

Negative trends are also expected in the multi-family housing and non-residential construction sectors in 2024. Overall, the decline in new construction completions is projected to be nearly 10% in 2024. Inflation and high interest rates have led to significant declines, particularly in residential construction, which represents 61.3% of the window market’s customer segment. In 2024, the market decline in the residential segment is expected to be more pronounced than in the non-residential segment (-9.5% vs. -3.7%). 

The state measures already decided to recover the construction industry will only take effect in 2025 and lead to growth in the window market – explains Julia Hrebenkova, the author of the study.

Hungary Takes a Nosedive

All four surveyed countries experienced a sales decline in 2023, which will continue into the following year. However, the extent of the decline varies. The Hungarian window market plummeted by 26.7% last year. The massive declines are due to the high inflation rate of 17% and the EU’s decision to withhold part of its funding. Compared to Hungary, the market decline in Poland, where the economy is in a state of stagflation, is moderate at -9.3%.

PVC Dominates the Market

In all four countries, PVC is the most popular material in the window market, with a market share of 72.4%. Despite their double average price, metal windows have increased their market share from 13.8% to 14.4%. Wood windows, although not the most expensive option, are losing market share due to more demanding maintenance requirements. More expensive windows made of combined materials such as PVC/Metal and Wood/Metal are not in high demand in the four surveyed markets.

Fragmented Window Markets

The top 10 manufacturers in the window market in the surveyed countries have a combined market share of only 22.4% by quantity. However, market concentration varies among the surveyed markets. The top 10 manufacturers cover 27.8% of the window market in Poland, while the top ten manufacturers in the Czech Republic account for 54.2%. The key players in alphabetical order are AdamS, Dobroplast, Drutex, Eko-Okna, KNS, Oknoplast, Sonarol, Ri okna, Window Holding, and Wisniowski.

#MarketIntelligence, #Windows

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