European Window Growth

In the years 2000 to 2003 there was a steady market decline both in terms of quantity as well as value in the Western European window market. After decreases of up to 4.6% one had to speak of a crisis in the window market. In 2003 an improved economic situation provided the basis for positive development in the following years, and so one can make forecasts for positive growth rates in 2004. This positive trend will last until 2006.

Alongside the overall economic influence factors, growth of the PVC-window as well as composite windows has been responsible for this development. With a slightly less than 37% material share, the segment of PVC-windows is the leading material segment in Western Europe and will continue to increase its share in the next few years. In contrast, metal windows will decline slightly while wood windows which had a share of 26.2% in 2003 will experience an even larger decrease. With a share of 7.2%, the composite window segment is still small, but it has good potential for the future.

In a comparison of Western European countries one can see large differences in terms of frame materials. The leading PVC-regions are the UK & Ireland, France and the DACH-Region (Germany, Austria, Switzerland) with market shares of more than 50%. In contrast in Spain & Portugal the leading material segment is metal with a market share of more than 80%. Italy and Northern Europe remain, with market shares between 40% and 50%, the leading wood window regions. The Benelux countries are somewhat divided – for example, Belgium with a significantly higher metal share than the Netherlands and Luxemburg.

When one observes the distribution of the total market of Western European countries in terms of value, one can see a clear decline in the DACH-region (Germany, Austria and Switzerland). Driven by the German recession, the market share in this region decreased to 26.7% of the total Western European market – a further decrease to 25% is expected by 2006.

UK & Ireland could, in contrast, increase their combined share to 23.6% in 2003 – by 2006 this share will increase to over 24.4%. Spain & Portugal are showing a similar trend with a current market share of almost 9%.

A relatively constant market development in comparison to the European total market can be seen in the following regions:

Benelux countries, Northern Europe, Italy and France even though the domestic economy shows various changes. The market shares of the Benelux countries (8.1%), Northern Europe (5.9%), Italy (11%) and France (16%) will not change significantly in the survey period.

In the UK & Ireland a market growth in value of 3.9% is forecast for the year 2004. In terms of material segments the wood segment will perform best with a three year growth of 10% by 2006.

The replacement window market is still showing an upturn Europe-wide. In 2002, 55.9% of all window units were used in renovation work, in 2006 it will be 57.5%. In the UK and Ireland the renovation share already reached 73.7% in 2003. The driving forces remain the market for refurbishment and strong sales techniques to ‘replace the replacements’. But new construction should not be forgotten – the economic trend shows good development regarding building permits, and it is up to the strategies developed by the window manufacturers to provide this segment with the suitable innovations, service and, most importantly, the right advertising campaign.

IC-Market Tracking – Windows in Europe is a detailed market- and branch analysis of the European market. It includes market figures in terms of quantity and value for the years 1997-2003 and development forecasts till 2006, detailed sales and turnover figures as well as the market shares of the Top-150 providers in Europe. The markets in Great Britain, Ireland, Norway, Sweden, Denmark, Finland, France, Belgium, the Netherlands, Luxemburg, Germany, Austria, Switzerland, Italy, Spain and Portugal are studied.

IC-Market Tracking – Windows in Europe, September 2004, 1200pp, price from Euro 2,900 per region to E 7,950 for the complete study. Contact Alex Schurian, tel. +43(1)5854623-13, e-mail: schurian@ interconnectionconsulting.com