Demand for wall coverings is predicted to rise 8.2% annually to reach $2.2 billion in 2015, according to a study by The Freedonia Group.

"This represents a dramatic improvement over the performance of the 2005- 2010 period, when demand for wall coverings fell sharply in the wake of the economic recession and the collapse of the U.S. construction market, particularly residential construction," the company said in a statement regarding the study, entitled "Wall Coverings."

The Cleveland-based industry market research firm projects demand for wall panel products to increase 9% annually to reach $1.2 billion in 2015. Sales of wall panels are forecast to benefit from an expected recovery in the residential construction markets as well as improved conditions in the nonresidential construction markets. The study projects laminate panels, in particular sheet panels, to continue to dominate demand with other products emerging in the market also.

The Freedonia Group predicts wallpaper demand to increase 7.3% annually to reach $480 million in 2015. The creation and marketing of new wallpaper products, such as wallpaper borders and custom wallpaper, are expected to rejuvenate a market that has been declining for the past decade. Advances in the application of wallpaper, such as making it easier to install and remove, is also expected to help increase demand and expand sales.