The growing construction industry presents an opportunity for the expansion of the stone plastic composite flooring market. According to the Global Construction 2030 report, the global construction output is projected to grow 85% to $15.5 trillion worldwide by 2030. Rapid urbanization in developing countries such as India and China is expected to drive the demand for new residential and commercial infrastructure. This will subsequently increase the demand for premium flooring products such as SPC flooring. Its advantages such as water resistance, affordability, ease of maintenance over traditional flooring make it an ideal option for applications across residential as well as commercial construction sectors. Hence, significant investments in construction globally are likely to propel the stone plastic composite flooring market during the forecast period.

Porter’s Analysis

• Threat of new entrants: The threat of new entrants is moderate as the initial investments for production facilities and R&D is quite high. However, the availability of raw materials is fairly easy.
• Bargaining power of buyers: The bargaining power of buyers is high as the stone plastic composite flooring market has numerous national and international players providing a wide variety of options at different price points to the buyers.
• Bargaining power of suppliers: The bargaining power of suppliers is moderate as the key raw materials such as stone, plastic and other additives required are available frommultiple suppliers globally. However, suppliers may bargain for higher prices due to rising input costs.
• Threat of new substitutes: The threat of new substitutes is low as stone plastic composite flooring has a unique blend of attributes like durability, scratch and stain resistance which are not easily replicated by other flooring materials.
• Competitive rivalry: is high due to presence of numerous national and international players.

SWOT Analysis

• Strength: Stone plastic composite flooring offers attributes like durability, stain and scratch resistance along with ease of installation. SPC floors mimic the looks of other expensive flooring materials at lower costs.
• Weakness: SPC floors require specialized installation techniques. Initial costs are higher than other alternatives like laminate and vinyl floors. Regular wear and tear may reduce lifespan eventually.
• Opportunity: Rising income levels and changing consumer preferences towards low maintenance luxurious flooring drive the demand. Rapid growth of real estate and construction industries especially in developing economies offer significant opportunities.
• Threats: Volatility in raw material costs especially of plastic inputs may squeeze profits. Introduction of new advanced flooring materials posing substitutes also poses threat to existing market share.

Key Takeaways

The global stone plastic composite flooring market is expected to witness high growth supported by rising construction activities especially in Asia Pacific and Middle East and Africa regions.

The Asia Pacific region dominates the global SPC flooring market attributed to large population, rapid urbanization and increasing spending power in major economies like China and India.

Key players operating in the stone plastic composite flooring market are Shaw Industries Group Inc., Mohawk Industries Inc., Mannington Mills, Inc., Armstrong Flooring Inc., Tarkett S.A., Beauflor, Gerflor, Karndean Designflooring, Congoleum, and Novalis Innovative Flooring.