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The structural insulated panels market is estimated to grow by USD 18.85 billion at a CAGR of 9.32% between 2023 and 2028. The market is experiencing significant growth, driven by the rising demand for smart buildings. SIPs, known for their energy efficiency and insulation properties, align with the global push towards green building practices. Additionally, the increasing popularity of lightweight interactive flat panels in the construction industry is fueling market growth. However, high material costs remain a challenge for market expansion. Manufacturers and suppliers are exploring cost-effective production methods and collaborating with governments and industry bodies to promote the adoption of SIPs in large-scale projects. Overall, the SIPs market is poised for continued growth, driven by these trends and the ongoing shift towards sustainable and efficient building solutions.
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The market share growth by the walls and floors segment will be significant during the forecast period. The walls and floors segment dominated the market with the largest share of global revenue.
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The walls and floors segment was valued at USD 12.16 billion in 2018. The segment is expanding as a result of rising public knowledge of the financial benefits of installing effective building insulation. One of the key components for improving a building's energy efficiency is wall insulation. Insulated walls and floors create a protective envelope, which prevents heat transmission from the outside environment through conduction and convection radiation and lowers the energy needed to heat or cool a building structure. Structural insulated panels are lightweight, have a better external look, and can enhance a building's thermal performance. All these advantages will propel the market growth in this segment during the forecast period.
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APAC is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
North America dominated the global market, with the largest market share and a high CAGR. Rising demand from the housing sector, the highly developed cold chain and logistics industries, and government initiatives to develop social housing and other infrastructure are some of the major drivers of market growth in North America. The growing awareness of the benefits of insulated building construction is also expected to drive the growth of the market in the coming years.
The market is driven by the demand for energy-efficient buildings in both residential and commercial construction. SIPs offer superior thermal performance and insulation properties, meeting stringent green building standards. They are manufactured using materials such as Expanded Polystyrene (EPS) and Extruded Polystyrene (XPS), providing lightweight and high-strength construction solutions. Despite these benefits, challenges such as labor shortages and regulatory constraints exist. The market is expanding rapidly, driven by advancements in building insulation materials that improve energy consumption and construction time. Structural insulated panels offer superior insulation properties compared to traditional load bearing materials. Key components include polyurethane (PU), oriented strand boards, and metal sheets, which enhance both surface finish and durability. Stud framing and various thicknesses of panels are available to meet specific construction needs. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising demand for green building construction materials is notably driving the market growth. Green buildings have become increasingly popular due to their environmental advantages, offering benefits such as reduced stress on structural materials, improved water and energy efficiency, better indoor air quality, and lower operational costs compared to conventional buildings.
The structural insulation panels market is expected to experience significant growth in response to increasing demand for green buildings. This growth will be driven by stricter government regulations and initiatives in the construction sector, rising environmental concerns, and greater awareness of the benefits of green buildings. This trend is evident in various projects, including those involving cold storage, building technologies, modular construction, and innovative building walls, all contributing to the increasing demand for green buildings.The demand for green buildings is expected to rise substantially due to their contributions to improved indoor air quality, energy conservation, and material efficiency, thereby acting as a major driver for the global market in the forecast period.
The rising popularity of lightweight and durable panels is an emerging trend in the market. Growing demand for durable and lightweight solutions with extreme durability and better thermal insulation properties will drive market growth during the forecast period.
The growing demand for sound and thermal insulation from the construction industry in developing economies such as China and India is expected to increase the demand for high-quality polymers. In addition, the construction of durable commercial and residential buildings that can easily withstand extreme external environmental factors should also contribute to market growth during the forecast period.
High material costs are a major challenge impeding market growth. Structural insulation panels are more expensive than conventional insulation materials, which limits their use in large projects such as apartment buildings. But compared to traditional polystyrene insulation, these panels offer almost ten times the performance and return on investment.
The prices of various raw materials such as stone wool, polyurethane, polyisocyanurate (PIR), polystyrene, and phenolic foam are increasing, which is driving up the prices of structural insulation boards. The production of these panels is labor-intensive, which increases their production costs compared to more common materials. However, due to its favorable properties, polyurethane is the most commonly used core material in structural insulated panels. Due to this, the higher cost of structural insulation panels limits their use in large-scale applications, which slows down the growth of the global market during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
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.
Acme Panel - The company is primarily engaged in the distribution of rough, dressed, and finished lumber, plywood, reconstituted wood fiber products, doors and windows, and their frames and other wood or metal millwork. The key offerings of the company include structural insulated panels.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The market is driven by the increasing focus on energy efficiency codes and building specifications. SIPs, often made from materials like EPS (Expanded Polystyrene) or OSB (Oriented Strand Board), offer superior insulation properties compared to traditional methods. They find application in various sectors, such as green buildings, warehouses, and cold storage applications, due to their sustainability, flexibility, recyclability, and durability. Despite their benefits, challenges like building regulations and lack of awareness persist. However, with advancements in manufacturing and construction technologies, SIPs are becoming a preferred choice for energy-efficient and quick construction projects, especially in mega-construction ventures.
The Structural Insulated Panels (SIPs) market is witnessing significant growth due to its adoption in various industries, including residential construction and commercial sectors. With the world population projected to reach 9.7 billion by 2050, the need for energy-efficient and cost-effective construction solutions is more critical than ever. SIPs, made of polyurethane insulated panels sandwiched between two structural facers, offer a solution that meets these requirements. In the residential sector, SIPs are gaining popularity due to their energy efficiency, cost-effectiveness, and ease of installation. In the commercial sector, they are used in cold storage facilities, food processing industries, pharmaceutical solutions, and manufacturing facilities. Green building initiatives, such as LEED and BREEAM, have also contributed to the market's growth by promoting the use of sustainable building materials. Competitive insights reveal that technological firms are investing in research and development to improve the fireproof properties of SIPs. The market's growth is further fueled by tax credits and incentives offered by governments to promote energy-efficient construction. However, crude oil pricing and raw material availability may impact the market's growth. In conclusion, the Structural Insulated Panels market is poised for continued growth, offering fireproof, energy-efficient, and cost-effective solutions for residential and commercial sectors.
Additionally, the use of these panels is crucial for cold chain infrastructure and cold storage systems, optimizing temperature control and efficiency. Investment in funds for high-quality facing materials ensures robust performance in both residential and commercial applications, making them a valuable choice for modern construction projects. Product insights reveal that the choice of facing material significantly impacts the insulation property of structural panels, while load bearing material determines the overall strength and durability of the construction. The market is witnessing significant growth driven by the rising demand for Green & energy-efficient buildings. They are ideal for various applications including walls & floors, roofs, and curved wall panels, providing structural integrity and thermal efficiency. SIPs are increasingly used in mega-construction projects, last-mile delivery hubs, and local data centers due to their quick construction and environmental benefits. The market is also driven by factors such as the renovation of old building structures and the demand for modern surface finishes. The market is influenced by various factors that contribute to its growth and development. The market encompasses a wide range of aspects, including the external appearance and facing materials used in SIPs, which play a crucial role in the aesthetic appeal and durability of structures. Adequate funding is essential for the growth of the market, enabling research, development, and manufacturing of SIPs.
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Market Scope |
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Report Coverage |
Details |
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Page number |
157 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 9.32% |
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Market growth 2024-2028 |
USD 18.85 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
8.32 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 34% |
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Key countries |
US, China, Germany, UK, and India |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Acme Panel, All Weather Insulated Panels, Alubel Spa, American Insulated Panel, ArcelorMittal SA, Balex Metal Sp zoo, Enercept Inc., Extreme Panel Technologies, Foard Panel, InGreen Building Systems, Isopan Spa, Kingspan Group Plc, KPS Global LLC, Metl Span, Owens Corning, PFB Corp., Premier building systems, Rautaruukki Corp., Structural Panels Inc., and T. Clear Corp. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Market Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for Market forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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