Balco is active on the northern European market for balcony solutions, focusing largely on glazing, which is a niche market within the broader construction market. The balcony market involves primarily renovation of existing balconies and the installation of new balconies on existing properties, but also includes the installation of balconies during new construction of properties. The total balcony market on the markets on which Balco operates is estimated at SEK 35 billion.
Balco’s main markets are Sweden, Norway and Denmark. The value of the balcony markets in these countries was approximately SEK 5.6 billion in 2019, of which SEK 3.2 billion came from the renovation segment which is Balco’s focus segment.
In addition to the main markets, Balco is also active in Finland, Great Britain, the Netherlands and Germany (Other Markets) and has also recently made market efforts in Switzerland and Iceland. The total value of the balcony market in Other Markets was approximately SEK 26 billion in 2017, of which SEK 19 billion came from the renovation segment.
In a number of selectively chosen projects, Balco also manufactures, sells and installs maritime balconies, which are sold to cruise ships in Europe where Balco’s model is appropriate. The value of maritime balconies in Europe was SEK 1.1 billion in 2019.
Measured in market value, the balcony market reported average annual growth of 10.2% in Sweden, 5.8% in Norway and 4.6% in Denmark during the period 2015 – 2019. Year 2024 a market value of approximately SEK 4.2 billion is expected to be reached.
The total value for the renovation market of the Other Markets where Balco is active, i.e. Finland, Germany, Great Britain and the Netherlands, amounted to SEK 21 billion in 2019 and demonstrated an average rate of growth of 4.6% per year during the period 2015 – 2019. These markets are expected to report a market value of approximately SEK 25 billion in 2024.
The balcony market is broken down into two market segments: Renovation and New Construction, where the renovation segment accounts for approximately 90% of Balco’s sales.
” The total balcony market on the markets on which Balco operates is estimated at SEK 35 billion”.
Description of the market
The Nordic balcony market is characterized by national and regional differences regarding building standards, rules and regulations and materials – and design preferences. Finland has a long tradition and high market penetration of glazed balconies. In Sweden and Norway, open balconies are the most common solution, with increasing growth for glazed solutions where Balco sees a great deal of potential. Within the market segments, glazed balconies constitute a significant share of the renovation segment, but a smaller share of the new construction segment. In new construction, construction companies normally purchase open balconies from a third party, install a concrete plate themselves, and have the balcony suppliers carry out the installation of the railing solution.
The balcony market in the Nordic region is a fragmented one consisting of a small number of major companies that are vertically integrated in the value chain and which operate in several countries, and a number of smaller, local balcony installers, balcony manufacturers, and concrete renovation contractors. The balcony market can be broken down into two market segments: renovation and new construction, and into different customer segments. The customer segments on the market are broken down based on the type of property owner. In the renovation segment, there are three types of customer segments: tenant-owner associations, private landlords, and municipal housing. Construction companies are the only customer segment in new construction. There are significant differences between the customer segments since they have varying needs, requirements, and goals.
Balco is the leading company on the Nordic balcony market and is the market leader in Sweden and Norway and the second largest company on the market in Denmark.
Balco’s sales share per customer segment in%
The balcony market in the Nordic region is fragmented, consisting of a few large companies that are vertically integrated in the value chain and which conduct operations in several countries, and a number of smaller, local balcony installers, balcony manufacturers, and concrete renovation contractors.
Balco is the leading company on the Nordic balcony market and the market leader in Sweden and Norway and the second largest company on the market in Denmark. The company’s market share in 2019 in Sweden was 27%, in Norway 18%, and in Denmark 11%.