Markets
The total European market for windows, including Russia, is estimated to be worth almost EUR 30 billion. Approximately 25 percent of this market consists of wood-based windows. The proportion of wood-based windows has steadily increased over the past ten years. The market for exterior doors is valued at approximately EUR 3 billion.
The Nordic windows market is estimated to be worth approximately EUR 1.7 billion, with wood-based windows accounting for the majority at around 90 percent. The Nordic exterior door market is estimated to be worth just under EUR 200 million.
Market developments are controlled by the level of activity within renovation, remodelling and extension projects in the established property stock, as well as new constructions. Roughly two thirds of Inwido’s sales are related to the market for renovation, remodelling and extensions.
GDP growth, interest rates, real income trends and households’ confidence in the future are some of the key driving forces behind the development of the market for windows and doors. Regulations and policy instruments, such as laws on energy efficiency and the Swedish renovation, remodelling and extension subsidy, also affect the market.
European housing market
The independent research institute, Euroconstruct, studies the European market and divides it up into three different sectors: residential construction, non-residential construction and civil engineering, split into new construction and renovation.
The European market for residential construction (new construction and renovation) displayed healthy growth over a long period, from 1991 to 2007. The market declined by about 25 percent from 2008-2010 due to the financial crisis and recession. Euroconstruct is expecting this trend to turn in 2011, and that the total European market for residential construction will increase by a couple of percent.
Renovation market less affected
The impact of the recession and financial crisis on new construction and renovation projects in the European market has varied considerably. The market for new residential construction dropped by about 40 percent in 2010, from its peak in 2007. Meanwhile, the renovation market displayed a more stable trend, with a downturn of just 3 percent for the same period.
Major variations in Inwido’s markets
In 2010, the Nordic market for new residential construction and renovation rose by roughly 3 percent. Following a number of weak years, the residential market increased in Sweden, Norway and Finland. This upswing was partly due to the economic recovery, stronger financial markets and positive growth in the population. Market trends in these countries have been driven by both renovation and new construction. Meanwhile, the Danish market dropped by almost 10 percent due to imbalances in the property market.
The British housing market, chiefly new construction, dropped significantly during 2008 and 2009. The trend for new construction rose slightly in 2010, while the renovation market remained weak. The Irish residential market fell by over 70 percent in 2010 from its peak in 2006 as a consequence of the financial crisis and an overheated property market.
The Polish market for new residential construction soared during the years running up to the financial crisis, to then drop during 2009. In 2010, the market turned and grew by a couple of percent. The market is favoured by lower building costs and a healthy price level for new homes. At the same time, the market for renovation has been more stable, growing by 1-2 percent annually.
