According to MarketsAndMarket, the modular flooring market by product type (flexible LVT, rigid LVT, carpet tiles, polyolefin, rubber, ceramic), end-use (workplace, education, healthcare, retail, household), and region (North America, APAC, MEA, Europe, RoW) - Global Forecast to 2026", is estimated to reach USD 72.5 billion by 2026, at a CAGR of 5.8% between 2021 and 2026.

The driving factors for the growth of the modular flooring market include investments in the construction industry, along with an increase in renovation and remodeling activities. The growing demand from emerging economies and the expansion of the organized retail sector create growth opportunities for the market.

Some of the prominent key players are:

- Mohawk Industries (USA)

- Shaw Industries (USA)

- Tarkett (France)

- Armstrong Flooring (USA)

- Forbo (Switzerland)

- Gerflor (France)

Opportunity: Increasing investments in the construction industry

Infrastructure spending is a key factor for regional economies. As a result, capital and infrastructure project expenditures are expected to increase significantly over the next decade. The USA, China, Japan, Germany, Australia, Canada, India, Indonesia, Brazil, and Spain are investing substantial amounts in the construction industry to achieve rapid and sustained economic growth.

Sufficient investments in infrastructure are essential for modernizing and commercializing economic activities. Additionally, annual construction investments have steadily increased since 2015, boosting the German construction industry.

Rapid urbanization in emerging markets such as China, India, Brazil, Malaysia, and Indonesia is increasing spending on vital infrastructure sectors such as hospitality, healthcare, retail, and transportation.

Segment evolution

The carpet tile segment among other product types is expected to dominate the modular flooring market during the forecast period.

Carpet tile flooring is a type of flooring that can be used as an alternative to the more commonly used broadloom carpet. These offer the warmth and comfort expected from carpet and are available in pre-sized squares and planks, patterns, and materials.

Modular carpet tiles are four times more efficient compared to broadloom carpet. Modular tiles are not only easy to install but also much easier to store and even easier to replace with the same color and design after years of use.

Carpet tiles are gaining popularity in commercial environments such as restaurants, retail stores, and the hospitality sector, as well as in the residential segment. They are easy to maintain, install, and offer unique designs for a comfortable environment. They allow for quicker installation along with waste reduction.

The acoustic characteristics of carpet tiles allow their use in areas where sound insulation is required. This flooring material is gaining popularity due to its cost-effectiveness, durability, and range of aesthetic designs, thanks to the integration of new technologies.

APAC is the largest market for modular flooring

Asia Pacific accounted for the largest share of 34.29% of the modular flooring market, in terms of value, in 2020. Asia Pacific is the fastest-growing market for modular flooring. The market in Asia Pacific is driven by increasing demand from China and India.

Asia Pacific and Europe have well-established markets for modular flooring, resulting in slower growth in these regions compared to the Asia Pacific region.

Growth in the Asia Pacific region is driven by population growth, increasing disposable income, rising renovation and remodeling activities, and growing investments in the residential and commercial sectors. (Photo: Freepik)