Carpet and Carpet Tile Market Size, Share & Analysis | 2031

Report Description

Market Outlook:

The Global Carpet And Carpet Tile Market was estimated at USD 63,943.20 Million in 2022 and is anticipated to reach USD 1,04,585.45 Million by 2031, expanding at a CAGR of 5.8% during the forecast period.

Carpets are made from fibers twisted together into yarn by a process called plying. These fibers are then seamlessly stitched into the carpet backing to provide structural stability. Carpets are used for a various purpose such as making a floor comfortable when sitting on the floor and add decoration or color to the room. Carpet tile is a unique and versatile carpet style product commonly used for commercial applications. Carpet tiles are used as a substitute for carpet in almost any place without the need for unique customization. These tiles are easy to install & maintain, are long lasting, and have qualities similar to carpeting. Increasing consumer spending on home improvement and remodelling along with dynamic changes in consumer’s lifestyle surges the demand for luxurious and pleasing home products such as carpet and carpet tiles. The market growth and popularity is also driven by Covid-19 pandemic. The pandemic changed customer needs for home improvement products and started the trend of DIY (Do-It-Yourself). This factor fuels the global carpet and carpet tile market.

Macro-economic Factors

Increasing Construction Activities

Increasing expenditure on residential construction indicates a positive impact on the overall living spaces in residential houses. Flooring and associated products such as carpet and carpet tile are an integral part of residential construction projects, adding style, functionality, and comfort to interior spaces. This factor is positively impacting on the market.

According to Statistics Canada, residential construction investment in Canada increased for 11th consecutive months in March 2021, reaching 7.6% to USD 10.99 billion. Hence, the increase in investment in construction has resulted in the market growth. The demand for interior design services in the US is expanding, as a result of the need for improved public infrastructure.

Fluctuating Prices of Raw Materials

Many carpet and carpet tiles are made from materials such as nylon, polyester, and olefin. Price of these raw materials depends on various factors, including supply & demand, market conditions, natural disasters, geopolitical changes, and restrictions imposed by governments. Growing construction sector is driving the raw material costs.

The supply chain was affected by the impact of the pandemic on the transportation networks. This rise in construction demand, and thus the increase in material requirement had an impact on raw materials availability and pricing. Raw materials are needed for manufacturing products for customers. Thus, these resources are an essential component of the global economy and international trade.

Inflation

Inflation has an impact on the market growth. The small exporter of carpet and carpet tile have moved on to other ventures and are unable to pay wages to their employees, due to the ongoing economic downturn in the US and the UK. The price of raw materials has gone up due to inflation, which also raises the price of finished carpets. The increasing inflation affects the manufacturing and transportation cost, which further increases the overall production cost of carpet and carpet tile. This increased cost is anticipated to decreased the profit margins for manufacturers.

Market Dynamics

Market Driver- Increasing Consumer Spending on Home Improvements and Changing Lifestyle of Consumers

The COVID-19 pandemic has changed the global economic scenario in various ways. One of the significant changes was the changing consumer lifestyle and increased spending on home improvements & DIY (Do-It-Yourself) projects. The pandemic has changed customer needs for home improvement products. Thus, consumers are replacing conventional flooring with modern flooring solutions such as broadloom and carpet tiles. Homeowners are opting for projects that are budget-friendly, manageable, and adaptable to the economic climate. Moreover, consumers are spending heavily on home appliances, furnishings, and remodeling. The home improvement industry has grown tremendously over the years, due to the pandemic. The National Association of Realtors (NAR) reports that the number of professional home improvement projects were dropped during the pandemic; however, do-it-yourself renovations numbers soared. Furthermore, the home improvement budget increased due to the increased per capita income of consumers across the globe.

Market Driver- Surge in Construction Activities and Rapid Urbanization

Urbanization is the process of population movement from rural to urban areas. It is a global phenomenon that has increased significantly in recent years. This rapid urbanization has a significant impact on the construction industry and is expected to continue in the coming years. The demand for new construction projects such as offices, residential homes, and infrastructure increases with the growing urban population. These construction projects require various types of remodeling solutions and other furnishing products such as carpets, broadloom, and carpet tiles. Urbanization led to the development of smart cities, which use technology to improve urban living. Thus, incorporating technology into the building interior and development of smart cities further boost the demand for soft flooring solutions, such as carpet and carpet tiles.

Urbanization leads to an increased demand for green spaces and the need to preserve natural habitats. However, these carpets and carpet tiles are manufactured using sustainable and recycled materials, which protects the environment. Thus, rising construction activities in both developed and emerging nations increase the demand for carpets and carpet tiles.

Market Restraint- High Initial Cost Associated with Luxurious Carpet and Carpet Tile

High initial production costs associated with luxurious carpets and carpet tiles restrain the market. High initial capital and costs are required for manufacturing carpet and carpet tiles. The high cost of installing various types of machines, such as tufting machines and hand tufting machines. It often requires significant investments, infrastructure, and labor, which impacts the overall pricing of carpets. Labor-intensive work, expensive & fluctuating prices of raw materials such as silk, weaving costs, and transportation costs are the major factors that impact the overall price of carpet and carpet tiles. Hand-tufted carpets are labor and time-consuming.

Market Opportunity- Increasing Focus on Sustainable and Eco-friendly Carpets

The carpet industry has come a long way and experienced a dynamic shift from traditional or conventional carpets, which are made from animal hides and woven by hand, to modern carpets and carpet tiles that are manufactured with the help of sustainable and recyclable materials. The carpet industry has come under scrutiny, due to its lack of sustainable actions. In 2014, the US carpet industry produced 11.7 billion square feet of carpet and rugs. Discarded carpets make up to 3.5% of all waste in the US landfills. The vast majority of carpets are still thrown away, and only 5% of carpets that is recycled. However, in recent years, the carpet industry across the globe has been adapting to the demand for sustainable products and focusing on the circular economy. Many carpet manufacturers achieved success in making sustainable carpets. Nowadays, architects, designers, and end-users prefer environmentally friendly building materials, which provide ample growth opportunities for carpet manufacturers to innovate products in sustainable ways. The carpet industry has made significant progress in reducing the environmental footprint of carpet, including landfill diversion, carbon dioxide emissions, energy consumption, and waste generation.

Scope of the Report  

The report on the global Carpet and Carpet Tile market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Segmental Outlook

On the basis of type of machine, the carpet and carpet tile market is divided into hand tufting machine and commercial machine. The commercial machine segment is segmented into tufting machine, needle punch machine, and weaving machine. The hand tufting machine segment held market share of 31.9% in 2022. Hand tufting allows for significantly higher yields than production using conventional weaving machines. The commercial machine segment is expected to hold market share of 70.8% in 2031, at a CAGR of 6.1% during the forecast period. Technological advancements in the manufacturing of carpet in developed and developing regions allows this segment to grow significantly.

Based on product type, the market is bifurcated into carpet and carpet tile. The carpet segment is divided into tufted, woven, needle-punched, knotted, and others. The carpet tile segment is divided into tufted, woven, needle-punched, and others. The carpet segment held 79.8% share of the market in 2022. Carpet is a traditional floor covering product, which gained significant traction as many years and are used for commercial and residential spaces. The carpet tile segment is expected to hold 23.2% share of the market in 2031 at a CAGR of 7.4% during the forecast period. Carpet tiles are gaining popularity due to its pleasing aesthetic look and ease of maintenance and servicing.

In terms of shape, the market is segregated into square, rectangle, and others. The rectangle segment held 48.7% share of the market in 2022. Traditional carpets are generally found in rectangular shape, which helps a room or office to look big and attractive. These carpets are often used in commercial spaces or offices. The square segment is expected to hold 41.5% share of the market in 2031. Carpet tiles are commonly found in square shapes and are easy to install or replace.

On the basis of texture, the market is classified as loop pile, cut pile, and loop pile & cut pile combinations. The cut pile segment held 48.5% share of the market in 2022. cut pile carpets have been the top choice by home owners for over 50 years. Cut pile carpet contains a twist, which helps it to stand up and resist matting and crushing. However, these carpets generate more waste than loop pile carpets. The loop pile carpet segment is expected to hold 27.9% share of the market in 2031. Loop pile carpets are much softer than cut pile carpets and are more environment friendly.

On the basis of material, the carpet and carpet tile market is divided into nylon, olefin (polypropylene), polyester, wool, acrylic, cotton, silk, and others. The nylon segment held 33.3% share of the market in 2022 and is expected to hold 37.9% share of the market in 2031. Nylon is highly used in carpet and carpet tiles, due to its highly elastic properties, high abrasion resistance, and outstanding tensile strength.

Based on end-use, the market is segmented into commercial, residential and mobility. The residential segment held 51.6% share of the market in 2022 and is expected to hold market share of 49.7% in 2031, due to the growing trend of using carpets and carpet tile in the home, enhancing the décor with unique patterns and colors. The commercial segment is expected to expand at a CAGR of 6.8% during the forecast period. Growing demand for this product in commercial spaces is due to its ability to insulate, create attractive, and versatile accents. The mobility segment is expected to hold market share of 9.5% in 2031, due to the expansion of automotive, aircraft, railway, and other sectors.

On the basis of distribution channel, the global carpet & carpet tile market is bifurcated into online and direct sales and wholesalers/distributors. The online segment is divided into e-commerce website and company websites. The online segment held 24.1% share of the market in 2022. Carpet purchasing over online or e-commerce platforms offers more price transparency than a physical store. Therefore, it is a modern way to shop, as the prices can be kept low, through rational handling and large purchases.

Regional Outlook

On the basis of region, the global Carpet and Carpet Tile market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

The market in Asia Pacific is projected to expand at a CAGR of 9.0% during the forecast period. This growth is attributed to rising urbanization and industrialization in developing economies such as India, China, and Japan. These countries provide significant growth opportunities in the carpet and carpet tile market, due to the expanding residential and commercial construction activities and rising population.

North America held 40.1% share of the global market in 2022. Expanding construction and infrastructure sectors and the presence of key manufacturers of carpet and carpet tiles such as Mohawk and Shaw Industries are boosting the market in the region.

Recent Developments

• On June, 2022, MOHAWK CARPET, LLC. announced that it has entered into an agreement to purchase the Vitromex ceramic tile business from Grupo Industrial Saltillo (GIS) for approximately USD 293 Mn in cash. The transaction is expected to close in the second half of 2022 and is subject to the approval of GIS’s shareholders, and customary government approvals and closing conditions. The Vitromex business is expected to be accretive to Mohawk's earnings.

• On July 14, 2023, Bentley Mills recently launched LuxFeltTM Cushion Tile—the latest addition to its growing line of sustainable product offerings as the company continues to set the standard for environmental excellence, social responsibility, and product design and performance. PVC-free and 100% recyclable, the PET cushion backing contains up to 90% post-consumer content, increasing customers’ carpet backing options while decreasing embodied carbon impact per square yard.

• On November 24, 2021, Engineered Floors LLC. become the first manufacturer in the US who purchase a Hymmen Jupiter digital printing line. The company also signed a license agreement with i4F for digital printing technologies. Hymmen digital printing technologies produce the world’s most advanced flooring and are exclusively available through an i4F license.

Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global Carpet and Carpet Tile Market

• Historical, Current, and Projected Market Size in terms of Value

• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered

• Industry Drivers, Restraints, and Opportunities Covered in the Study

• Recent Industry Trends and Developments

• Competitive Landscape & Strategies of Key Players

• Neutral Perspective on Global Carpet and Carpet Tile Market Performance