Exterior Insulation And Finish System (Eifs) Siding Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, UK, China, Germany, Canada - Size and Forecast 2024-2028

Exterior Insulation and Finish System Siding Market Size 2024-2028

The Exterior Insulation and Finish System Siding Market size is estimated to grow  by USD 69.5 billion at a CAGR of 10.88% between 2023 and 2028. The market is experiencing significant growth due to increasing demand for energy-efficient building solutions. EIFS siding offers excellent insulation properties, making it an attractive option for architects, builders, and homeowners seeking to reduce energy consumption and improve thermal performance. Furthermore, advancements in technology have led to the development of more durable and weather-resistant EIFS products, enhancing their appeal. However, the high cost of installation and maintenance remains a challenge for the market. Despite this, the market is expected to continue expanding as the benefits of EIFS siding become more widely recognized, particularly in regions with harsh climates. In summary, the EIFS siding market is driven by the demand for energy-efficient building solutions and technological advancements, while the high cost of installation and maintenance presents a challenge.

What will be the size of the EIFS Siding Market During the Forecast Period?

EIFS Siding Market Forecast 2024-2028

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Market Dynamics

Exterior Insulation and Finish Systems (EIFS) are an innovative building solution that combines thermal insulation, finish system, and protective barrier in one application. EIFS uses various insulation materials like Stone wool, Glass wool, Plastic foam, Hempcrete, and Insulation boards to provide effective thermal insulation. The market for EIFS is growing due to increasing energy codes and the International Building Code mandating better insulation in both Residential and Non-residential buildings. EIFS comprises several components, including Adhesives, Insulation boards, Base coats, Reinforcements, and Finish coats. Manufacturers like Adex Systems and Durock Alfacinf International offer various finishing systems to cater to diverse architectural requirements. EIFS's popularity is driven by its energy efficiency and reduced Greenhouse Gas (GHG) emissions. For instance, Expanded polystyrene (EPS) and Polymer-based (PB) insulation systems offer excellent insulation properties, while Hemp Crete, a green insulation material, is gaining traction due to its eco-friendly nature. EIFS's versatility and ability to reduce energy consumption make it a preferred choice for architects and builders. The market is expected to grow further as more stringent energy codes are implemented worldwide. Additionally, the use of Polymer-Modified (PM) adhesives, Tax credit policies, and advanced insulation technologies is expected to drive the market's growth. Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.

Key Market Driver- Increasing demand for energy-efficient building solutions

The demand for energy-efficient building solutions has led to a significant increase in the exterior insulation and finish system (EIFS) siding market. This cladding system provides insulation to buildings, resulting in reduced energy consumption, lower carbon emissions, and sustainable construction practices. Governments worldwide have implemented building codes and standards that require the use of energy-efficient materials, such as EIFS siding. For example, the European Union has set ambitious targets for energy consumption reduction in buildings, leading to an increased adoption of EIFS siding across residential, commercial, and industrial buildings.

Moreover, the demand for environmentally friendly buildings is fueled by the growing awareness of health and well-being, corporate sustainability goals, and potential cost savings, which can positively impact the EIFS siding market growth. Therefore, due to such factors, the global EIFS siding market is expected to grow during the forecast period. 

Significant Market Trends- Recent developments in EIFS siding

The global EIFS siding market is growing due to the recent developments by both regional and international players. Manufacturers of EIFS siding are adopting innovative and distributive strategies to increase their market share, which is expected to accelerate their revenue flow and expand their consumer base. These recent developments are giving players a competitive edge over their rivals by increasing their market shares.  For instance, in June 2022, BASF SE (BASF) announced the launch of Neopor BMB at the American Institute of Architects (AlA) Conference on Architecture in Chicago, IL.

In addition to standard Neopor qualities, the low-carbon, EPS rigid foam insulation solution provides additional environmental advantages. Neopor BMB production emits 60% less CO₂ than standard foam plastic insulation, and the material's carbon footprint is 90% lower than traditional Neopor. Therefore, such factors are expected to increase the demand for EIFS siding, which will drive the growth of the market during the forecast period.

Major Market Challenge- High cost of installation and maintenance

The global market for EIFS siding has been facing significant challenges due to its high installation and maintenance costs. This is a major concern for both commercial and residential property owners who opt for EIFS siding for its insulation and aesthetic appeal. The specialized expertise required for proper installation is one of the primary factors contributing to the high installation cost. Unlike traditional siding materials like vinyl or wood, EIFS siding requires specific training and skills. The cost of professional inspections and repairs further adds to the maintenance expenses for property owners.

In addition, regular inspections are necessary to prevent moisture-related issues, and hiring professionals to address any potential problems can be expensive. As a result, the accumulated maintenance expenses over time can make EIFS siding a costly investment for the owner which will impact the EIFS siding market expansion. These factors are expected to have a negative impact on the growth of the EIFS siding market during the forecast period.

Market Segmentation

By Type

The market share growth by the polymer-based segment will be significant during the forecast period. In recent years, the use of the polymer-based (PB) segment in the exterior insulation and finish system (EIFS) siding market has gained significant growth. This trend can be attributed to the various advantages that polymer-based materials offer compared with those of traditional EIFS siding.

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The polymer-based segment was the largest and was valued at USD 44.50 billion in 2018.  When it comes to installation and versatility, PB offers significant advantages over other options. EIFS sidings are lightweight and easy to install, which reduces labor and construction time compared to traditional EIFS siding. Additionally, PB can be applied to a variety of substrates, including concrete, masonry, and wood. This flexibility allows architects and builders to incorporate EIFS into a wide range of architectural designs and construction projects. Furthermore, PB EIFS can contribute to improved fire safety. Many EIFS sidings are formulated with fire-resistant additives, providing an additional layer of protection in case of fire incidents. This feature is especially important in high-rise buildings or areas with strict fire safety regulations. Therefore, the above-mentioned advantages are expected to increase the demand for PB EIFS, which will drive the growth of the polymer-based (PB) segment in the global EIFS siding market during the forecast period.

By End-user

Based on end-users, the market has been segmented into non-residential and residential. The non-residential?segment will account for the largest share of this segment.? The non-residential sector plays a vital role in the exterior insulation and finish system (EIFS) siding market worldwide. External insulation and finish systems (EIFS) are commonly used in commercial, institutional, and industrial buildings. EIFS offers flexibility, allowing businesses to showcase their unique architectural design while still enjoying the practical benefits of EIFS siding. As a result, the abovementioned advantages are projected to boost the demand for EIFS siding in the non-residential segment, which will drive the growth of the non-residential sector in the global EIFS siding market during the forecast period.

By Region

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North America is estimated to contribute 32% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The North American exterior insulation and finish system siding market is expected to experience significant growth in the foreseeable future due to the rapid expansion of commercial and residential projects. The government's support for infrastructure development is one of the key drivers behind the growth of the EIFS siding market in North America.

Moreover, Canada, Mexico, and the United States are some of the primary countries that are contributing significantly to the growth of the regional EIFS siding market, mainly due to the refurbishment of old infrastructure. Furthermore, the policies and regulations established by the Occupational Safety and Health Administration (OSHA), a U.S. government labor agency, are expected to contribute to the growth of the regional EIFS siding market during the forecast period.

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Adex Systems Inc. - The company offers EIFS siding such as expanded polystyrene EPS insulation and ADEX Exterior Insulation Finish Systems EIFS.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

Adex Systems Inc., Al Moallam, BASF SE, Compagnie de Saint Gobain, EIFS Armour, Groover Roofing and Siding Inc., Heartland Companies, Martin Borchert Co., Master Wall Inc., Omega Products International Inc., Owens Corning, Poly Molding LLC, ROCKWOOL International AS, RPM International Inc., Sika AG, Sto SE and Co. KGaA, Terraco Holdings Ltd., Wacker Chemie AG, Western Stucco Co., and Durabond Products Ltd.

Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Type Outlook
  • Polymer-based
  • Polymer-modified

• End-user Outlook
  • Non-residential
  • Residential

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile 
    • Brazil
    • Argentina 
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview

Exterior Insulation and Finish Systems (EIFS) have gained popularity in the construction industry due to their thermal insulation properties and aesthetic appeal. These systems consist of insulation boards, adhesives, reinforcements, base coats, and finish coats. The insulation material used in EIFS includes Stone wool, Glass wool, Plastic foam, Hempcrete, and EPS (Expanded Polystyrene). Hempcrete and Hempcrete-based EIFS have emerged as eco-friendly alternatives due to their low carbon footprint and ability to reduce Greenhouse Gas (GHG) emissions. Hempcrete is made from hemp fibers and a cement-like binder, making it a sustainable insulation material. Manufacturers of EIFS, such as Adex Systems and Durock Alfacinf International, offer various finishing systems to cater to the preferences of architects and builders.

Furthermore, energy codes and Green building standards have made thermal insulation a priority, leading to an increase in demand for EIFS in both Residential and Non-residential buildings. Insulation boards come in various types, including Polymer-based (PB) and Polymer-Modified (PM). Adhesives used in EIFS are essential for bonding the insulation boards and reinforcements to the substrate. The National Laboratory developed a new finishing system for residential buildings that uses an innovative adhesive to reduce greenhouse gases emitted by traditional component. Base coats provide a smooth surface for the application of finish coats, which enhance the appearance and durability of the EIFS. Rebates and incentives offered by National Laboratories and government bodies for using energy-efficient insulation materials further boost the market growth of EIFS. Overall, EIFS is a versatile and effective solution for insulating buildings while reducing energy consumption and environmental impact.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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