The windows, doors and frames market comprises companies that develop and manufacture windows, exterior and interior doors as well as profiles and/or frames. As such, we segmented the European market into: (i) mixed, (ii) windows, (iii) doors and (iv) frames.

Overall, the European windows, doors and frames industry is characterised by a low degree of consolidation, with large geographical markets (e.g. Germany) being more fragmented than smaller ones (e.g. Scandinavian markets). Herein, consolidation drivers include continuous CAPEX and R&D requirements, need for customer proximity and economies of scale. Additionally, the processing of more complex materials (e.g. wood) requiring skilled labour and the associated worker deficit is expected to contribute to further consolidation in the near future.

Sponsor-led interest has been moderate, with ~32% of identified assets being backed by financial sponsors (April 2023). The main detractors for investors include low profitability, the underlying cyclicality of the industry, hurdles for international expansion and limited cash generation potential. However, the industry offers ample buy-and-build opportunities as well as two-way demand for new-build and replacement installations.

ESG topics mainly concern environmental and social matters. The generation of CO2 emissions in manufacturing processes is significant as natural resources and engineered materials (e.g. wood, metals, plastics) are processed. To limit their environmental impact, players extend the durability of products which indirectly contributes to the greater energy efficiency of buildings. Additionally, closed-loop recycling initiatives aim to recapture materials and use them in their product mix. In terms of social matters, players serve the basic need for safety in commercial and residential buildings through their product offerings.