Southeast Asia Ceramic Tiles Market Research Report: Forecast (2024-2030)

Market Definition

Ceramic tiles are a type of flooring or wall covering material made from clay that is hardened and fired at high temperatures. They are popular for their durability, water resistance, and wide range of designs and colors. Ceramic tiles are commonly used in bathrooms, kitchens, and other areas where water exposure is common due to their easy maintenance and ability to withstand moisture. They are available in various sizes, finishes, and patterns, making them a versatile and attractive option for both residential and commercial spaces.

Market Insights & Projections: Southeast Asia Ceramic Tiles Market (2024-2030):

The market size of the Southeast Asia Ceramic Tiles industry size is valued at around USD 11.5 billion in 2024 and is is estimated to grow at a CAGR of around 7.58% during the forecast period, i.e., 2024-2030. The rapid growth of the travel and tourism industry and rising infrastructure developments across the region contributed to this growth.

Southeast Asia has been one of the hubs for global tourism due to the presence of a large number of tourist attractions like museums, temples, beaches, amusement parks, etc. The region has approximately 37 UNESCO World Heritage sites. Further, tourism accounted for approximately 12% of the entire GDP of the region before the pandemic in 2023 as per the Organization for Economic Co-operation and Development (OECD). Hence, the thriving tourism and hospitality industry has led to increased demand for high-quality ceramic tiles in hotels, resorts, restaurants, and other commercial establishments across the region.

Also, rising government initiatives such as the Build Build Build program, which includes large projects that address major bottlenecks, focusing on commercial infrastructural development projects including airports, railways, etc., are expected to propel the demand for ceramic tiles in the forthcoming years. According to the International Monetary Fund, the Philippines & Vietnam increased spending on large-scale projects in recent years. For instance, in 2022, Hyatt Hotels Corporation announced the opening of the Andaz Bali resort in Indonesia. The hotel consists of 149 guestrooms, including 18 Garden Villas & 4 Beach Villas, located in the Sanur, a village on the seaside in Bali, Indonesia. Henceforth, the rising government & private spending for infrastructural development is anticipated to enhance the demand for ceramic tiles during 2024-30.

New hotel construction in the region has been on the rise in the last few years in major countries in the region like Thailand, Malaysia, and Indonesia and more and more new projects are in the pipeline which will be completed in a couple of years. Hotels use ceramic tiles in areas like swimming pools, sauna rooms, bathrooms, and, kitchens among other spaces. This is expected to boost the demand for ceramic tiles in the region shortly.

Southeast Asia Ceramic Tiles Market Driver:

Rise in the Construction of Corporate Buildings Due to the Presence of Several Tax Heavens in the Region: The region has become a preferred location for multinational corporations to establish their headquarters and Business Process Outsourcing (BPO) and Shared Service Centers due to the presence of several tax haven nations such as Thailand, the Philippines, and Malaysia. Corporations do not have to pay heavy taxes that are otherwise applicable in any other regions across the globe. Moreover, the availability of inexpensive skilled workers in the region is also a big factor for corporations that are setting up their operations in Southeast Asia. The reason for the availability of an inexpensive skilled workforce is the low daily minimum wage rate for workers in the region. For instance, according to the Labor Ministry, in 2021, Thailand’s daily minimum wage throughout the country ranged from approximately USD 9 to 10. This resulted in the increasing number of MNCs in recent years.  As more and more MNCs register themselves in the region, this would lead to the construction of corporate offices or buildings, thus fueling the demand for ceramic tiles and resulting in rising the ceramic tiles market share during 2024-2030.

Southeast Asia Ceramic Tiles Market Opportunity:

Growing Inclination of Multinational Companies Towards Southeast Asia: Multinational companies from various sectors such as consumer goods, automobile, e-commerce, etc., are increasingly showing a growing inclination towards Southeast Asia. This is due to the region's effort to integrate their economies and attract foreign investment through ASEAN. With a fast-rising population and a global shift toward supply chain diversity, Southeast Asian countries offer an untapped consumer market in the coming years, becoming a significant portion of global consuming households. According to the World Economic Forum, nearly 76 million Indonesians will join the consumer class by 2030. Consequently, these factors are fostering the MNC’s shift towards Southeast Asian countries such as Vietnam, Singapore, Thailand, Malaysia, etc.  Thus, with the increasing investment in the region, there could be a substantial rise in infrastructure development, including residential and commercial projects. These projects could often require ceramic tiles for flooring and wall coverings, leading to market growth in the coming years.

Additionally, the region's proximity to China is attracting multinationals looking to diversify their supply chains and benefit from low-cost labor, especially amidst growing tensions between China and the USA.

• In 2022, Apple decided to move its MacBook production to Vietnam for the first time in 2023. This is due to the continuation of the company’s production base diversification away from China amid escalating tech tensions between Washington and Beijing.

This circumstance is driving a movement towards Southeast Asia, leading to an influx of multinational companies to the region. As a result, the market growth is expected to be positively impacted during the forecast period.

Southeast Asia Ceramic Tiles Market Challenge:

Competition From Alternative Flooring Options Such as Luxury Vinyl And Engineered Hardwood:  Luxury vinyl tiles are more budget-friendly as compared to ceramic tiles and the installation process of ceramic tiles can be more labor-intensive and time-consuming, involving grouting and sealing. These engineered hardwoods offer a wide range of design options that mimic the appearance of several natural materials, including wood and stone. This gives consumers more choices in terms of aesthetics, which can affect the demand for traditional ceramic tiles that have a limited range of designs. Furthermore, in recent years consumers have become increasingly concerned about the environmental impact of their choices. Engineered hardwood is considered more sustainable than traditional hardwood flooring. Similarly, luxury vinyl can be perceived as environmentally friendly due to its potentially lower energy consumption during manufacturing and transportation compared to ceramic tiles. Hence the rising competition from alternative flooring options in the market of South East Asia affects the demand for ceramic tiles in the forthcoming years.

Southeast Asia Ceramic Tiles Market Trend:

Adoption of Digital Printing Technology in Ceramic Tile Production: The integration of digital printing technology in the manufacturing process has become a prominent ceramic tile market trend with significant implications for the industry. The major market players like RAK Ceramics, SCG, Mohawk, etc., in the region, are increasingly adopting this technology. This cutting-edge technology has transformed the way ceramic tiles are designed and produced, enabling manufacturers to create intricate and lifelike designs, patterns, and textures that were previously challenging or impossible to achieve with conventional methods. Additionally, digital printing offers unparalleled customization options, allowing consumers to personalize their tiles according to their unique preferences and interior design requirements. 

Moreover, growing environmental consciousness among customers and rapid growth of green building demand in the region is resulting growing demand for digitally printed ceramic tiles. Therefore, the integration of digital printing technology in ceramic tile manufacturing is fueling market growth by enhancing product offerings, meeting consumer preferences for customization, and catering to the rising demand for eco-friendly solutions in the context of green building initiatives.

Southeast Asia Ceramic Tiles Market (2024-2030): Segmentation Analysis

The Southeast Asia Ceramic Tiles Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2028 at the global, regional, and national levels. Based on the analysis, the market has been further classified as:

Based on Type:

• Glazed
• Unglazed
• Others

Glazed ceramic tiles are a popular choice in the construction and interior design industries due to their aesthetic appeal, durability, and versatility. They are widely used for both residential and commercial applications, including flooring, walls, countertops, and decorative elements. The majority of the demand for glazed tiles is generated by the commercial sector as these tiles are more durable as compared to other flooring materials like stone, granite, and wood. Moreover, Southeast Asia is expected to continue growing due to urbanization, rising disposable income, and increased focus on interior aesthetics. Manufacturers that provide innovative designs, and high-quality products, are further expected to escalate the market growth during 2024-2030.

Based on Demand Type:

• New Construction
• Renovation and Replacement

Renovation and replacement would account for the major share of the Southeast Asia Ceramic Tiles Market in the forecast period. Ceramic tiles are widely used for renovation and replacement purposes in residential and commercial properties across the region. In recent times the region has been witnessing an increasing trend for home renovations. This is mainly due to rising disposable income in countries like Malaysia, Thailand, and Singapore. The increase in disposable income has elevated a substantial amount of people from poor to middle class. These middle-class people are spending a good portion of their income on home renovations as owning a property is an expensive process. This increased spending on renovations is fueling the growth of the ceramic tiles market as these tiles are the most durable and affordable flooring option present in the market.

Southeast Asia Ceramic Tiles Market (2024-2030): Regional Analysis

Geographically, the Southeast Asia Ceramic Tiles Market expands across:

• Indonesia
• Vietnam
• Malaysia
• Singapore
• Thailand
• The Philippines
• Rest of Southeast Asia

Indonesia is likely to hold a major share of the market during the forecast period owing to infrastructure development, the expansion of the real estate sector, and increased public and private investments. The country is witnessing sewer growth in infrastructure development driven by a combination of key factors aimed at boosting the country's economic growth and improving its citizens’ overall quality of life.

• In 2022, the government of Indonesia announced an ambitious plan for 2020 to 2024, with more than USD 400 billion allocated to hundreds of projects. The investment will be directed towards various sectors, including transportation, energy, waste-to-energy facilities, and the development of a new capital city.

This would accelerate the growth of various infrastructures in the country, and turn into the market growth forecast period.

Furthermore, the Indonesian government aims to become one of the world's top ten economies by 2025 through its Master Plan for Acceleration and Expansion of Indonesia's Economic Development (MP3EI). This long-term program involves collaboration between the central government, local governments, state-owned enterprises, and the private sector. Private companies play a crucial role in this plan, particularly through Public-Private Partnership (PPP) schemes, where they are expected to provide most of the financing. Therefore, the infrastructure development and focus on sustainability driven by the MP3EI are expected to create a favorable market environment for the ceramic tiles market in Indonesia in the upcoming years.

Southeast Asia Ceramic Tiles Industry Development:

• 2022: Platinum Ceramics launched a major plant modernization project aimed at increasing productivity and improving the quality of its products. It made a partnership with System Ceramics for the technological advancements of the project.

Gain a Competitive Edge with Our Southeast Asia Ceramic Tiles Market Report

• Southeast Asia Ceramic Tiles Market Report by Markntel Advisors provides a detailed & thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Southeast Asia Ceramic Tiles Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.