The Impact of Construction Trends on the Ceramic Tile Industry in Europe and Asia

Abstract This thesis explores the relationship between trends in the construction sector - disaggregated into residential, non-residential, and civil engineering segments- and the performance of the ceramic tile industry, focusing on production and consumption across Europe and Asia. As a key component of the construction materials market, the ceramic tile industry is closely influenced by construction activity, urbanization patterns, and investment cycles shaped by public policy. The research integrates a comprehensive literature review with empirical analysis using panel data econometrics. Macroeconomic indicators and sector-specific variables - including ceramic tile production, imports, exports, and consumption - are examined to identify correlations and causal relationships. Analytical methods include fixed effects and random effects models, with Hausman tests employed to determine the most statistically robust specifications. The results reveal that residential construction has the most significant and direct impact on ceramic tile demand. Non-residential construction also plays a vital role, particularly in commercial and institutional sectors. While civil engineering projects are not direct consumers of ceramic products, they influence demand indirectly by driving economic growth and urban development. Furthermore, regional contrasts emerge: Europe’s focus on renovation and sustainability fosters different market dynamics than Asia’s rapid urbanization and new construction boom.

This thesis explores the relationship between trends in the construction sector - disaggregated into residential, non-residential, and civil engineering segments- and the performance of the ceramic tile industry, focusing on production and consumption across Europe and Asia. As a key component of the construction materials market, the ceramic tile industry is closely influenced by construction activity, urbanization patterns, and investment cycles shaped by public policy. The research integrates a comprehensive literature review with empirical analysis using panel data econometrics. Macroeconomic indicators and sector-specific variables - including ceramic tile production, imports, exports, and consumption - are examined to identify correlations and causal relationships. Analytical methods include fixed effects and random effects models, with Hausman tests employed to determine the most statistically robust specifications. The results reveal that residential construction has the most significant and direct impact on ceramic tile demand. Non-residential construction also plays a vital role, particularly in commercial and institutional sectors. While civil engineering projects are not direct consumers of ceramic products, they influence demand indirectly by driving economic growth and urban development. Furthermore, regional contrasts emerge: Europe’s focus on renovation and sustainability fosters different market dynamics than Asia’s rapid urbanization and new construction boom.