Report

Global luxury vinyl tile market is projected to witness a CAGR of 11.86% during the forecast period 2024-2031, growing from USD 22.83 billion in 2023 to USD 55.96 billion in 2031. The global luxury vinyl tile (LVT) market is growing significantly due to increased consumer demand for durable, aesthetic, and sustainable flooring solutions. The growing interest among customers for LVT flooring due to its durability, ease of maintenance, and aesthetic appeal is increasing the demand in European countries, where homeowners, renovators, and businesses seek high-quality, long-lasting flooring solutions. Economic factors such as urbanization, renovation activities, and housing market trends contribute to the growth of the LVT market in Europe and North America. Urbanization drives the demand for flooring solutions and a rise in investments by public and private entities in commercial spaces and residential developments, while renovation projects in existing homes and buildings provide opportunities to market players for LVT flooring installation. The focus on sustainability shapes the LVT market as manufacturers launch environment-friendly products that consider recycled materials and environmentally friendly production processes. Technological advancements in manufacturing have improved luxury vinyl tiles' quality, which makes them more efficient for use in commercial real estate worldwide. The increasing awareness of modern, sustainable, and easy-to-maintain flooring options has led companies to develop new products. Companies in Europe have responded to this market trend by introducing a range of LVT flooring options that come in different styles and innovative features to cater to residential and commercial markets.
For instance, in 2024, Parador GmbH launched its new flooring collection, Perspectives 2024. Spanning across different flooring categories from engineered wood, vinyl, laminate, and Modular ONE, the collection offers a fantastic array of new decors and innovative technology. Inspired by different architectural themes, the collection consists of the Townhouse, Modern, Chalet, Penthouse, and Country. Made in Germany and Austria with quality at the fore, the Perspectives collection offers new formats, colors, technical enhancements, and new harmonious surface structures for a particularly authentic look and feel.
Non-Residential Construction to Fuel the Luxury Vinyl Tile Market Demand
Non-residential construction is a significant driving factor for the growth of the LVT market. Rapid urbanization and the expansion of the commercial sector are expected to drive the demand for durable and visually appealing flooring solutions across various sectors, including offices, retail stores, healthcare facilities, factories, industrial applications, and educational institutions. As these business segments evolve, the demand for flooring that combines longevity with aesthetic appeal will continue to grow. Open-concept office environments and new retail spaces use flexible floor coverings, which can be withstood while still retaining their aesthetic merits. This trend is likely to fuel the demand for luxury vinyl tiles, putting them at the top of the list of preferences for builders and factory owners looking to improve their spaces effectively.
For instance, in August 2024, Forbo Group collaborated with a pharmaceutical factory in Marburg, Germany, where high-performance luxury vinyl flooring solutions were integrated into their demanding environment. Forbo Flooring's cutting-edge materials are specifically designed to meet the pharmaceutical industry's stringent safety and hygiene standards, ensuring durability and operational efficiency throughout the facility. From cleanrooms to production areas, the company's flooring solutions enhance the functionality of these spaces and contribute to a healthier work environment. This project exemplifies the commitment of companies to innovation and quality, providing flooring solutions that cater to the unique needs of the commercial and industrial sectors and deliver safe and effective products.
Changes in Customer Preferences to Drive the Market Growth
Changes in customer preferences drive the growth of the global luxury vinyl tiles market. Homeowners and designers are seeking functional flooring solutions that contribute to the overall ambiance of the space. Luxury vinyl tiles are versatile in mimicking natural materials, offering superior durability and ease of maintenance, thus making them a good option for residential and commercial applications. As environmental awareness grows, consumers are becoming more conscious of selecting sustainable flooring options that do not compromise style and comfort. With the growing trends in the market, manufacturers are actively researching and developing eco-friendly luxury vinyl tile (LVT) designs that minimize environmental impact. This shift encourages companies manufacturing LVT to focus primarily on design appeal, which is a critical factor for buyers who prioritize specific aesthetics. As consumer awareness of sustainability increases, manufacturers invest time and resources into creating visually appealing products that align with eco-conscious values. By emphasizing innovative designs while ensuring minimal environmental damage, these companies aim to attract environmentally aware consumers who seek style and sustainability in their flooring choices. By focusing on comfort, luxury, and sustainability, manufacturers launched products to attract consumers looking for high-quality flooring solutions that reflect their lifestyles and values.
For instance, in May 2024, Tarkett Group launched True to Form, a new collection of premium Contour luxury vinyl tiles. Combining the durability of Contour construction with genuine wood and stone visuals, True to Form embodies the beauty and strength of elements found in the natural world. Tarkett meticulously curated a stunning portfolio of 64 colors across exclusive wood and stone designs. Dependably on product innovation and design for Tarkett North America.
Residential Real Estate to Hold the Largest Market Share
The residential real estate market leads to the share of the global luxury vinyl tile market as more homeowners seek to embrace modern and durable flooring solutions. With more people investing in their living spaces, high-quality flooring that is beautiful and functional has become very popular. Homeowners' demand increases with the growing awareness of the merits of vinyl tiles, which are cost-effective and low maintenance LVT. It is an attractive substitute for traditional flooring materials such as wood and stone as it offers additional durability and ease of maintenance. LVT appeals to multifaceted use in all homes and can be installed in kitchens, bathrooms, or living rooms where it resists moisture, thereby making it comfortable for people to clean. As of today, the remodeling of previously existing homes increases demands on luxury vinyl tiles to redesign their interiors with designs. The wide range of innovative tiles available in the market provides consumers with a range of options to choose from, from modern to traditional styles, giving LVT an edge in the residential market.
For instance, in November 2023, Mohawk Industries, Inc. announced the launch of Taking Root, an LVT collection featuring three biophilic-inspired Transfiguration styles, MycoTexture, and Zone Lines. This collection depicts how LVTs can make the interior beautiful yet connected to nature. The versatility of LVT allows it to be used in various spaces within a wider range of spaces, including living, kitchens, and bathrooms.
North America to Dominate the Global Luxury Vinyl Tile Market Share
North America dominates the global luxury vinyl tile market, driven by a surge in remodeling and construction activities across residential and commercial sectors. The region has witnessed significant growth, with increasing investments in real estate and a rising demand for aesthetically pleasing and durable flooring solutions. Additionally, the growing emphasis on sustainability prompted manufacturers to adopt eco-friendly practices that appeal to environmentally conscious consumers. The residential segment is particularly strong, as homeowners seek versatile flooring that mimics natural materials while providing durability and ease of maintenance. North America continues to see demand for tiles that deliver form and features that appeal to buyers seeking innovative products and quality that older homes often lacked, unless extensive renovations are undertaken.
For instance, in August 2024, according to the US Government Census, privately owned housing construction projects stood at a seasonally adjusted annual rate of 1,356,000. This is 9.6 percent above the revised July estimate of 1,237,000 and 3.9 percent above the August 2023 rate of 1,305,000, which shows the rising trends of new housing construction. This upward trajectory reflects increasing demand for homes as more people seek new homes, signaling a robust recovery in the housing market for the construction of residential projects.
Future Market Scenario (2024 � 2031F)
� Rising government and consumer attention to realizing sustainable construction practices will increase demand for eco-friendly tiles, including luxury vinyl tiles.
� Innovations in digital printing technology are transforming the luxury vinyl tiles market, allowing for greater customization and aesthetic appeal. The ability to create intricate designs and textures will expand the application of tiles beyond traditional uses.
� Moderate growth is anticipated in European markets as consumer investments in home renovations continue to rise, supported by an increasing focus on aesthetics and sustainability.
� Rapid urbanization in emerging markets will stimulate demand for new building solutions to accommodate growing populations.
Key Players Landscape and Outlook
The market is characterized by the existence of several well-known firms such as Parador GmbH, Tarkett Group, and Forbo Group. These companies control a large portion of the market, have a wide product portfolio, and have a global presence. In addition, the market comprises small to mid-sized competitors that sell a limited variety of items, which are self-publishing organizations. The market's major companies have a significant impact as most of them have extensive global networks through which they can reach their massive client bases. To drive revenue growth and strengthen their positions in the Asian, European, and North American markets, key players in the market, particularly in this region, are focusing on strategic initiatives such as acquisitions, new collection launches, and partnerships.
For instance, in March 2024, AHF Products, a leading manufacturer of hard surface flooring for residential and commercial interiors, introduces Unfazed Luxury Vinyl Flooring into its Parterre brand. Made in the United States, in Lancaster, Pa., Unfazed provides the ultimate flexibility in a durable, minimal maintenance design.
For instance, in August 2023, Responsive Industries Limited secured orders from Indian Railways for the Vande Bharat Project, introducing vinyl flooring for railway coaches and conventional coaches.