Structural Insulated Panels Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, China, Germany, UK, India - Size and Forecast 2024-2028

Structural Insulated Panels Market Size 2024-2028

The structural insulated panels market size is forecast to increase by USD 18.85 billion at a CAGR of 9.32% between 2023 and 2028.

• The market is witnessing significant growth due to the rising demand for energy-efficient and sustainable construction materials In the US. SIPs, which consist of an insulating core sandwiched between two structural facings, are gaining popularity in various applications, including cold chain storage, greenhouses, and residential and commercial construction. Expanded polystyrene (EPS) and oriented strand board (OSB) are commonly used materials for the insulating core. One of the key drivers for the SIPs market is the increasing adoption of green building practices. SIPs offer excellent insulation properties, reducing the need for additional insulation materials and contributing to energy savings.
• Moreover, the use of SIPs in cold storage applications, such as cold chain and food storage facilities, is on the rise due to their ability to maintain consistent temperatures. However, high material costs, particularly for crude oil-based raw materials like EPS, pose a challenge to the market growth. Steel, glass, and other traditional construction materials continue to be competitive alternatives, limiting the market's expansion. Nevertheless, the advantages of SIPs, such as their lightweight and durable nature, make them an attractive option for construction projects seeking to minimize energy consumption and improve overall efficiency.

What will be the Size of the Structural Insulated Panels Market During the Forecast Period?

Request Free Sample

• The market encompasses the production and supply of insulated panels used in both residential and commercial construction. This market experiences consistent growth due to increasing global population demands for energy-efficient and sustainable building solutions. SIPs are utilized in various sectors, including food processing and cold chain infrastructure, as well as green building initiatives. With a focus on reducing energy consumption, tax credits and incentives for energy-efficient construction further boost market expansion. In the residential sector, SIPs offer cost-effective and efficient insulation solutions, reducing construction time and enhancing durability. For commercial applications, SIPs are utilized in warehouses, cold storage facilities, data centers, and manufacturing facilities.
• SIPs come in various forms, such as expanded polystyrene, polyurethane insulated panels, and glass wool, each with unique insulation properties. Competitive insights reveal that SIPs offer advantages over traditional insulation materials, including metal sheets, in terms of energy efficiency, insulation property, and fireproof property. Polyisocyanurate and polyurethane are popular choices for their high R-values and cost-effectiveness. Renovation projects also benefit from due to their ease of installation and ability to retrofit existing structures. Overall, the market is poised for continued growth as the demand for energy-efficient and sustainable building solutions increases.

How is this Structural Insulated Panels Industry segmented and which is the largest segment?

The industry 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.

• Application
  • Walls and floors
  • Roof
  • Cold storage
• Product
  • Polystyrene
  • Polyurethane
  • Glass wool
  • Others
• Geography
  • North America
    • US
  • Europe
    • Germany
    • UK
  • APAC
    • China
    • India
  • Middle East and Africa
  • South America

By Application Insights

• The walls and floors segment is estimated to witness significant growth during the forecast period.

Structural Insulated Panels (SIPs) have gained significant traction In the construction industry due to their effectiveness in enhancing a building's thermal performance. In 2023, the walls and floors segment led the market with the largest revenue share, driven by the increasing awareness of energy efficiency and the financial benefits of installing insulation. SIPs, which consist of insulating foam sandwiched between two structural facers, offer several advantages, including lightweight design, improved aesthetics, and better insulation properties. These panels prevent heat transmission through conduction, convection, and radiation, thereby reducing the energy consumption for heating or cooling buildings. The market growth in this segment is further fueled by the rising demand for energy-efficient structures in both residential and commercial sectors.

SIPs are also gaining popularity in cold chain infrastructure, food processing, and warehouses due to their excellent insulation properties. Additionally, the use of SIPs in green building initiatives and data centers contributes to their increasing adoption. The cost-effectiveness, durability, and fireproof properties of SIPs make them a preferred choice for renovation projects and the construction of manufacturing facilities and cold storage facilities. Technological firms and building standards continue to innovate, leading to the development of advanced insulation materials like polyisocyanurate, polyurethane, and extruded polystyrene. Despite the crude oil pricing volatility, the market for SIPs is expected to grow steadily during the forecast period.

Get a glance at the market report of share of various segments Request Free Sample

The Walls and floors segment was valued at USD 12.17 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

• 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.

For more insights on the market share of various regions, Request Free Sample

Another region offering significant growth opportunities to companies is North America. The market in North America experienced significant growth in 2023, driven by the residential and commercial construction sectors. The housing sector's increasing demand for energy-efficient and cost-effective insulation solutions, coupled with the expansion of cold chain infrastructure and food processing industries, fueled market growth. In the commercial sector, the construction of data centers, manufacturing facilities, and warehouses further boosted demand for SIPs. The U.S. Government's focus on green building initiatives and energy consumption reduction targets also contributed to the market's expansion. SIPs' insulation properties, durability, and fireproof features make them an attractive option for both residential and commercial applications.

The market's competitive landscape includes key players like Owens Corning, offering polyurethane and extruded polystyrene insulated panels, and Pharmaceutical Solutions. The market's cost-effectiveness, construction time advantages, and building standards compliance make SIPs a preferred choice for insulation materials In the region. The construction industry's recovery from the COVID-19 pandemic's impact is expected to continue driving demand for SIPs In the coming years.

Market Dynamics

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.

What are the key market drivers leading to the rise In the adoption of Structural Insulated Panels Industry?

Rising demand for green building construction materials is the key driver of the market.

• The market is experiencing notable growth due to the increasing focus on energy efficiency and sustainability in both residential and commercial construction. With the expanding world population and the subsequent demand for new housing and commercial structures, the need for insulation materials that offer superior insulation properties and cost-effectiveness is becoming increasingly important. Structural insulated panels, which consist of Expanded Polystyrene or Polyurethane insulation sandwiched between two layers of structural facers, are gaining popularity due to their ability to provide excellent thermal insulation, reduce energy consumption, and contribute to the overall energy efficiency of buildings. Moreover, the growing trend towards green building initiatives and the implementation of stringent building standards are driving the demand for insulation materials that meet green building standards.
• The market is expected to grow significantly during the forecast period due to the increasing number of cold chain infrastructure projects, including food processing and cold storage facilities, as well as the expansion of data centers, manufacturing facilities, and warehouses. The durability and fireproof properties of structural insulated panels make them an attractive option for these applications. Competitive insights suggest that the market for insulation materials, including structural insulated panels, is highly competitive, with key players offering a range of products, including Polyisocyanurate, Polyurethane, and Extruded Polystyrene. The cost-effectiveness and energy efficiency of these insulation materials, along with their ability to meet building standards and regulatory requirements, are key factors driving their adoption in both the residential and commercial sectors.

What are the market trends shaping the Structural Insulated Panels Industry?

The rising popularity of lightweight and durable panels is the upcoming market trend.

• The market is experiencing significant growth due to the increasing demand for durable and lightweight insulation solutions with superior thermal properties. This trend is particularly evident In the construction industry, where the need for acoustic and thermal insulation is on the rise, especially in developing economies such as China and India. The construction of commercial and residential buildings that can withstand extreme environmental conditions is also driving market growth. In the commercial sector, cold chain infrastructure for food processing and pharmaceutical solutions, as well as warehouses and cold storage facilities, are major consumers of SIPs. Energy consumption concerns and the adoption of green building initiatives are further boosting the market.
• SIPs, including those made from Expanded Polystyrene (XPS), Polyurethane Insulated Panels, Glass Wool, Polyisocyanurate, and Polyurethane, offer cost-effective and energy-efficient insulation solutions for both residential and commercial sectors. The market is also witnessing technological advancements, with companies focusing on developing insulation materials that meet the latest building standards. The durability and fireproof properties of SIPs, as well as their ability to reduce construction time, make them an attractive option for renovation projects, data centers, manufacturing facilities, and other applications. Despite the cost-effectiveness of SIPs, crude oil pricing can impact their production and availability. Overall, the market for SIPs is expected to continue growing due to their insulation properties, energy efficiency, and the increasing demand for sustainable construction solutions.

What challenges does the Structural Insulated Panels Industry face during its growth?

High material costs hinder the market growth is a key challenge affecting the industry growth.

• Structural insulated panels (SIPs) are a cost-effective insulation solution for both the Residential and Commercial Sectors, offering superior insulation properties compared to traditional insulation materials. SIPs consist of an outer skin of structural grade oriented strand board or gypsum sheathing sandwiched around a core of insulating foam. The most commonly used foam types are polyurethane and expanded polystyrene. The global population growth and increasing demand for energy-efficient buildings have fueled the adoption of SIPs in Green Building Initiatives. SIPs are particularly popular in Cold Chain Infrastructure applications such as Food Processing, Cold Storage, and Warehouses due to their excellent insulation properties and energy efficiency.
• In the Residential Sector, SIPs offer faster Construction Time and lower Energy Consumption compared to traditional insulation methods. In the Commercial Sector, SIPs are used in Data Centers, Manufacturing Facilities, and Walls, Floors, and Roofs of buildings. Despite their advantages, the high initial cost of SIPs is a significant barrier to their widespread adoption, especially in large-scale projects like high-rise buildings. The rising costs of raw materials, such as Polyurethane, Polyisocyanurate (PIR), Polystyrene, and Glass Wool, are driving up the price of SIPs. SIPs are labor-intensive to manufacture, which raises their production costs. However, their durability, fireproof property, and cost-effectiveness over the long term make them an attractive option for renovation projects and new construction.

Exclusive Customer Landscape

The market forecasting 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 market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

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

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• 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.
• T. Clear Corp.

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 industry 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.

Research Analyst Overview

The market encompasses a broad range of insulation solutions utilized in both residential and commercial construction projects. These panels, which consist of insulating foam sandwiched between two structural facings, offer several advantages over traditional insulation materials. In the construction industry, SIPs have gained popularity due to their energy efficiency and cost-effectiveness. With the increasing focus on reducing energy consumption and minimizing environmental impact, SIPs have become a preferred choice for green building initiatives in both the residential and commercial sectors. The global population growth and the resulting demand for infrastructure development have led to an increase In the demand for SIPs in various applications.

Furthermore, SIPs are extensively used in cold chain infrastructure, such as cold storage facilities and food processing plants, to maintain optimal temperatures and ensure product quality. Moreover, SIPs are also widely adopted In the construction of warehouses and other industrial buildings, where energy efficiency and quick construction times are essential. In addition, the use of SIPs in data centers and manufacturing facilities has gained traction due to their excellent insulation properties and durability. Competitive insights suggest that SIPs made from expanded polystyrene (EPS), polyurethane, and polyisocyanurate are the most commonly used insulation materials In the market. These materials offer excellent insulation properties, cost-effectiveness, and ease of installation.

Moreover, SIPs are also used in renovation projects due to their ability to provide excellent insulation while minimizing the need for extensive structural modifications. Furthermore, their fireproof property makes them an ideal choice for applications where fire safety is a concern, such as in high-rise buildings and hospitals. Technological firms have also shown interest in SIPs due to their potential to reduce energy consumption and improve building standards. The use of SIPs in building insulation materials has led to the development of advanced insulation systems that offer superior energy efficiency and durability. The cost-effectiveness of SIPs, coupled with their versatility and ease of installation, makes them an attractive option for construction projects.

Request Free Sample

What are the Key Data Covered in this Structural Insulated Panels Market Research and Growth Report?

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

We can help! Our analysts can customize this structural insulated panels market research report to meet your requirements.

Get in touch