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The structural insulated panels market is estimated to grow by USD 16.26 billion at a CAGR of 8.77% between 2022 and 2027. The rising demand for green building materials is driven by increased awareness of environmental issues and the need for sustainable construction practices. The robust growth of the construction sector, particularly in emerging markets, is also fueling demand for green building materials as builders and developers seek to meet green building standards and certifications. Additionally, the increasing focus on energy-efficient materials is driving innovation in the industry, leading to the development of new and more efficient building materials.
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This report extensively covers market segmentation by application (walls and floors, cold storage, and roof), product (polystyrene, polyurethane, glass wool, and others), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market share growth by the walls and floors segment will be significant during the forecast period. In 2022, 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 197.66 million in 2017. 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 31% 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 in 2022, 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. However, with increasing awareness and emphasis on sustainable construction practices, the SIPs market is poised for significant growth, especially in applications like cold storage systems and structural insulated panels for buildings. Our researchers analyzed the data with 2022 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 report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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 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.
These panels are known for their excellent insulation properties and load-bearing capacity, which are key factors driving their adoption. The Manufacturing of structural insulated panels involves the use of materials like metal sheets, Oriented Strand Boards (OSB), and Polyurethane (PU), which contribute to their structural integrity. Insights into product variations and thicknesses help meet diverse construction requirements. XPS (Extruded Polystyrene) is a common material used in SIPs, further enhancing their insulation capabilities. Overall, the market for SIPs is dynamic and evolving, driven by technological advancements and innovations in building materials. In the realm of construction, the demand for efficient building insulation materials is on the rise, driven by the imperative to reduce energy consumption and optimize construction time. Cold chain infrastructure, critical for preserving temperature-sensitive products during storage and transport, also relies heavily on effective insulation solutions. In this context, Expanded Polystyrene (EPS) emerges as a prominent insulation material, renowned for its exceptional insulation property and versatility in various applications.
The significance of insulation materials in modern construction cannot be overstated. Beyond providing thermal comfort and energy efficiency, insulation plays a pivotal role in mitigating heat loss or gain, thereby reducing energy consumption and operational costs. EPS, characterized by its lightweight structure and high insulation property, has gained traction as a preferred choice for insulation in buildings, cold chain infrastructure, and beyond. The construction industry, with its emphasis on sustainability and resource efficiency, is increasingly turning towards structural insulated panels (SIPs) to streamline construction processes and enhance building performance. SIPs, composed of EPS cores sandwiched between oriented strand board (OSB) or other facing materials, offer superior insulation properties and structural integrity, resulting in reduced construction time and increased energy efficiency. Moreover, the global structural insulated panels market is witnessing significant growth, driven by the escalating demand for energy-efficient building solutions and the growing awareness of environmental sustainability. Governments and organizations worldwide are allocating funds towards initiatives aimed at promoting the adoption of sustainable construction practices, further fueling the market expansion.
Efficient building insulation not only reduces energy consumption but also contributes to environmental conservation by lowering greenhouse gas emissions. By investing in advanced insulation materials such as EPS and embracing innovative construction techniques like SIPs, stakeholders in the construction industry can achieve substantial energy savings and enhance building performance while minimizing the environmental footprint. In conclusion, the evolution of building insulation materials and the adoption of advanced technologies like SIPs are revolutionizing the construction landscape, making buildings more energy-efficient, sustainable, and cost-effective. With a focus on insulation property and energy conservation, the global construction industry is poised to usher in a new era of efficient and environmentally conscious building practices.
Market Scope |
|
Report Coverage |
Details |
Page number |
152 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.77% |
Market growth 2023-2027 |
USD 16.26 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.91 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
APAC at 31% |
Key countries |
US, China, India, Germany, and UK |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
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, Kingspan Group Plc, KPS Global LLC, Metl Span, Owens Corning, PFB Corp., Premier building systems, Rautaruukki Corp., Structural Panels Inc., T. Clear Corp., and Isopan Spa |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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. |
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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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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