The raised floor market is projected to expand from US$ 1,283.52 million in 2022 to US$ 1,842.65 million by 2028, reflecting a compound annual growth rate (CAGR) of 6.5% from 2023 to 2028.
Raised floor systems are utilized in various settings, including computer rooms, open office layouts, training and conference facilities, exhibition areas, and clean rooms. However, they are not suitable for slab-on-grade locations, wet environments like bathrooms and kitchens, laboratories, or mechanical equipment spaces. These systems offer a robust thermal mass base material for radiant heating, enhance the lateral stability and longevity of multistory buildings, lower construction expenses in high seismic zones, and are designed to be waterproof. Key players in this competitive landscape include Kingspan Group, CBI Europe, MERO-TSK International GmbH & Co. KG, and Pro Access Floors LLC.
The surge in data center establishments and new construction initiatives is significantly driving the growth of the raised floor market. The increasing need for raised floor systems across various applications, particularly in data centers, clean rooms, and office environments, is further propelling market expansion. Additionally, the rise of hyperscale data centers and the introduction of next-generation raised floor systems are anticipated to be notable trends influencing market growth during the forecast period.
Effects of the COVID-19 Pandemic on the Raised Floor Market
The COVID-19 pandemic had a profound effect on the global economy, disrupting business operations across numerous sectors at its peak in 2020. Factory closures, trade restrictions, and border lockdowns aimed at curbing the virus's spread severely limited company operations worldwide. This economic downturn adversely affected the construction industry globally, leading to a reduction in raised floor production. Nevertheless, as data centers are primary consumers of raised floor systems, demand began to recover gradually starting in 2021.
During the pandemic, data centers experienced notable growth due to heightened awareness of the advantages of cloud services among businesses, an increased need for secure and reliable IT infrastructures, and a rise in investments in local data centers globally. The scrutiny of IT budgets and a shift in corporate preferences towards usage-based payment models made data center services more appealing. The pandemic also saw a rise in remote work and online activities, which boosted the demand for data centers worldwide. For instance, Equinix, a leading global data center provider, reported a 9% revenue increase in the second quarter of 2020 compared to the same period the previous year. In 2020, Equinix invested US$55 million to establish its third data center in Osaka. Consequently, the growth of data centers during the COVID-19 pandemic is expected to stimulate the raised floor market.
Regionally, the Asia-Pacific (APAC) region dominated the global raised floor market in 2022, followed by Europe and North America. In APAC, a significant number of employees are working remotely or in collaborative environments, which is driving the demand for flexible and adaptable office spaces. Raised floors facilitate the easy reconfiguration of power and data services, thereby supporting the creation of versatile workspaces. China has initiated a national project to develop a data center system across eight cities, aiming to establish eight computing hubs and ten data center clusters, with plans to create an integrated data center system by 2025.
The overall size of the raised floor market has been determined through a combination of primary and secondary research methods. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the raised floor market. This approach also aids in providing an overview and forecast of the market size across all segments. Furthermore, numerous primary interviews have been conducted with industry stakeholders to validate the findings and obtain analytical insights. Participants in this process include vice presidents, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the raised floor market.