News Article construction facades Poland Spectis
by Property Forum | Economy

Manufacturers of facade products were successful in generating a little over PLN 3.6 billion (€800 million) in revenue in 2020 in spite of slower activity in the building construction sector, especially in the non-residential segment, according to the findings presented in the report released by research company Spectis entitled “Facades and facade materials in Poland 2021-2026”.

The facade materials sector is highly fragmented. Out of 80 companies discussed in the report, fewer than 20 can be considered to post significant sales from facade materials (at least PLN 50 million). Total revenue generated by 80 producers of facade materials covered in the report amounted to almost PLN 23.5 billion (€5.3 billion, up by 4% y-o-y in nominal terms) in 2019, of which a mere PLN 3.2 billion (€720 million, nearly 14% of total revenue) was generated by facade products. This shows that facade products are relatively rarely the main business area for the companies presented in the report, in particular those from the steel or aluminium industries, or producers of products from mineral raw materials. Factoring in estimated revenue for all companies operating in the sector, the value of the facade materials market stood at PLN 3.6 billion (€800 million).

Importantly, despite a decline in market volume recorded in 2020, the market’s value did not change from the preceding year. Based on preliminary data, Spectis expects the value of the facade materials market to stay at a little over PLN 3.6 billion in 2020. In 2021, the market’s value is expected to decline slightly. Output generated by the facade materials sector should again reach PLN 3.6 billion in 2022 and then steadily grow to PLN 4 billion (€900 million) in 2025.

Spectis also expects the sector to grow faster than the market as a whole in the coming years. This is a natural effect of rising prices of raw materials, semi-finished, and soaring labour costs. Furthermore, the market steadily evolves towards products in the upper-price bracket, which represent a growing share and thus fuel the growth of the average market price.

For the purpose of the report, the market of facades and facade systems is defined as the production, or trading, in a wide range of building facade cladding. The sector presented in the report can be divided into four main categories: ventilated facades, ETICS facades (so-called external thermal insulation composite systems), facades made of sandwich panels and metal sheet, glass curtain facades.

The facade system market is equally driven by residential construction and non-residential construction, although it is noteworthy that they exert a significant effect on different segments of the facades market. ETICS facades are mostly used on residential buildings, while the remaining three types of facades are more common non-residential construction architecture.

The ETICS facades continue to be the largest market segment in terms of volume. It is particularly popular in the residential construction sector and in less prestigious non-residential buildings. A high share of upgrade works is a major factor behind the substantial volume of the ETICS segment in Poland. As far as non-residential buildings are concerned, facade types other than ETICS systems are used much more commonly.

The government-led Clean Air scheme can be a major factor fuelling the growth of the sector in the coming years. There are around 1.3 million households in Poland that suffer from fuel poverty, and 75% of these families live in single-family buildings, according to the programme. The amount of PLN 50 billion (€11 billion) will be required to upgrade around 1 million buildings.