Building Panels Market
Building Panels Market By Type (Concrete Panels, Vacuum Insulated Panels, Structural Insulated Panels, Wood Panels), By Raw Material (Concrete, Plastic, Metal, Wood, Silica), By Application (Residential, Non-residential), By End Use (Floors & Roofs, Walls, Columns & Beams, Staircases), & By Region - Global Market Insights 2023 to 2033
Analysis of Building Panels Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Building Panels Market Outlook (2023 to 2033)
Expanding at a CAGR of 6%, the global building panels market is expected to increase from a value of US$ 177.9 billion in 2023 to US$ 318.5 billion by the end of 2033. Rapidly increasing urbanization and industrialization across the globe are prime factors driving the sales of building panels for construction purposes.
Preformed construction panels known as building panels are utilized in both the residential and non-residential sectors. Both interior and exterior construction components can be covered with building panel systems. Such panels can be made from a range of materials, including metals, wood, concrete, and others. The production of building panels in a range of sizes and shapes allows for further usage in construction.
Compared to traditional construction techniques, building panels are more advantageous since they require less money, time, labour, and energy to construct. Also, building panels are superior to other conventional construction techniques because they are simple to assemble, which minimizes material waste.
Building panels are used in residential and non-residential applications.
- Use of building panels in the residential sector is expected to increase at a CAGR of 6.5% from 2023 to 2033.
Due to reasons such as the increasing global population and people's growing preference for single-family houses, sales of residential building panels are anticipated to rise during the projected period.
Homeowners utilize building panels in domestic settings as they require less cost to install and maintain. Wood is a crucial component of buildings; it is a lightweight material and simple to work with and repair, the construction industry in the western region of the globe makes high use of wooden panels. In addition, if produced sustainably, wood has the potential to be a CO2-neutral material since it absorbs as much carbon dioxide during growth as it emits during decomposition or burning.
Since logging and wood processing use very little energy in the manufacture of wood, it can be referred to as a ‘low energy building material’.
Metal building panels such as stainless steel panels, glass, fiber, or plastic are some of the building panels used in the non-residential sector. Demand for building panels from the non-residential sector is predicted to expand at a CAGR of 5.5% during the forecast period. Building solar panels on commercial structures is increasing healthily across the globe.
Commercial buildings have adequate room for installing a significant number of solar panels, and they can create enough solar energy to meet most of their electrical needs. Commercial solar panels are relatively maintenance-free and durable. After installation, the electricity produced on the system is completely free, and they have a lifespan of around 15 to 20 years.
Market Size (2023E)
US$ 177.9 Billion
Forecasted Market Value (2033F)
US$ 318.5 Billion
Global Market Growth Rate (2023 to 2033)
China Market Growth Rate (2023 to 2033)
Japan Market Growth Rate (2023 to 2033)
Germany Market Growth Rate (2023 to 2033)
Canada Market Growth Rate (2023 to 2033)
Key Companies Profiled
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Why are Sales of Building Panels Gaining Traction across the World?
“Rapidly Increasing Rate of Global Population and Urbanization”
In many regions across the world, the rate of population is growing rapidly. As a result, the need for residential and commercial space is increasing swiftly. A significant market driver for building panels is the growing rate of urbanization. A building panel system is included with the contemporary structure.
Amazing insulation capabilities are provided by the building panels. Depending on their use building panels are classified as low-cost building panels and premium building panels. Concrete, metal, wood, plastic, and more are types in which building panels are available. The features and use of panels change according to their material type. Heat resistance and considerable safety from natural disasters are provided by building panels. Compared to synthetic building panels, eco-friendly building panels are gaining popularity.
“Increasing Demand for Energy-efficient Building Panels”
Energy consumption has become a global issue, which is increasing a strong emphasis on energy conservation. The availability of high-quality building panels is expected to increase sales growth. High-quality building panels or premium building panels include advanced energy regulations and consumption features.
Demand for solar building panels is gaining traction. Solar panels are beneficial for builders as well as owners. Energy-saving elements of solar panels are boosting sales growth.
Building panels are becoming a cost-saving measure in the construction sector. Several ongoing research and development activities are generating several growth opportunities in the building panels market.
“Growing Use of Steel Panels in Industrial Sector”
Siding is the exterior covering or cladding of a home or any other agricultural or industrial building. The siding on construction sites can be made of stone or wood, but due to their longevity and low maintenance requirements, steel panels are becoming increasingly popular.
Siding is an application where corrugated steel panels are used due to their great tensile strength. They can be used for greater impacts and heavy loads due to their high tensile strength. The extended lifespan, ease of replacement, and low-cost, simple maintenance are some of the factors increasing demand for steel building panels.
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Which Factors May Hamper the Sales of Building Panels to Some Extent?
“High Budget Required to Purchase Building Panels in Bulk Quantity”
The price of building panels varies depending on their type. Although building panels costs are low, their use is reduced by some of the new verticals whose budget is low. They consider building panels as an additional cost to the construction process.
High capital investments are necessary for the purchase of building panels in bulk quantity. Thus, to reduce excess costs some of the new builders avoid using building panels in the construction process. Also, on the other hand, strict rules on the use of adhesives and chemicals are expected to hinder sales growth.
What is the Demand Outlook for Building Panels in the United States?
“Rapidly Growing Construction Sector in the Country”
The United States is expected to hold a dominating position in the North American market due to huge building projects. Spending on private construction is increasing in the country. Thus, the rapidly developing construction industry is boosting sales of building panels.
- According to the United States Census Bureau in November 2021, the United States construction industry was valued at a total of US$ 1625.88 billion. Also, the non-residential construction sector in the United States was valued at US$ 820.538 billion, which is 3.4% larger than it was in last year.
- January 2023: The United States Department of Transportation stated, that a total of US$ 5 billion would be invested in nine massive development projects around the country. The government declared that nine megaprojects totalling US$ 1.2 billion would be built owing to the National Infrastructure Project Assistance (Mega) discretionary grant program.
What is Boosting the Sales of Solar Panels in Germany?
“Increasing Demand for Renewable Systems”
Easy installation and flexible systems are boosting the demand for solar panels in Germany. By 2030, nuclear and coal power will be completely phased out of Germany's electrical mix, according to plans developed by the country's new government. Three out of six operational nuclear reactors were shut down in 2021.
In the past ten years, coal-fired power generation has decreased as well. The current government still intends to entirely phase out coal power generation to decarbonize all energy applications. These actions create a huge opportunity for renewable energy.
The rate of rooftop solar power plants has increased steadily across the country, and the projects' investment costs have decreased over time. Thus, all such aspects are driving sales of solar panels in Germany.
- According to the Fraunhofer Institute for Solar Energy Systems, ground-mounted, rooftop (south), and rooftop (east-west) systems together made up the 60.07 GW total installed power capacity of solar PVs in Germany in 2020.
How is Demand for Building Panels Evolving in China?
“High Use of Wood Panels in China”
Demand for wood-based panels is rising in the Asia Pacific region as a result of growing infrastructure projects and growing preference for wooden furniture in countries such as India, China, and Japan. Sales of building panels in China are expected to increase at a CAGR of 7.5% during the forecast period.
- With yearly production amounting to over 315 million cubic meters last year, China is the world's largest producer of wood-based panels, according to the China Timber and Wood Products Distribution Association.
- According to the same source, with a production value of 201 million cubic meters, plywood manufacturing represented the greatest portion of the country's total wood-based panel production. Moreover, 63 million cubic meters of fiberboard and 33 million cubic meters of particleboard were produced respectively last year.
Why are Structural Insulated Panels Widely Utilized?
“Dissembling Quality & Minimum Raw Material Waste”
Concrete panels, vacuum insulated panels, structural insulated panels, and wood panels are some of the types of building panels. Demand for structural insulated panels is expected to rise healthily during the forecast period.
High-performance building technologies called structural insulated panels are employed in construction applications. For residential and light commercial establishments, structural insulated panels are utilized in building ceilings, walls, and floors.
A structural insulated panel is a sandwich-structured composite made of two layers of structural board and an insulating layer of the stiff core, making it far more energy efficient than conventional building materials and improving temperature control.
To build walls, roofs, floors, and other structures, structural insulated panels are built off-site in predetermined or conventional sizes before being finished and put together. This offers quick construction at a relatively lower overall cost as an alternative to standard building techniques. Also, because they may be disassembled rather than demolished, structural insulated panels offer benefits related to the recovery of value and safe construction with very little material waste.
According to Fact.MR, a market research and competitive intelligence provider, some of the key players in the building panels market are Armstrong World Industries, Inc., Atlas Engineered Products Ltd., Arpa Industriale SpA, and Apex Steel Pty., Ltd. Leading companies in the building panels market are investing in R&D activities related to manufacturing of product, supply, installations, and designs to earn more.
- In June 2022, Owens Corning announced that it had acquired WearDeck, a Florida-based producer of composite decking and structural lumber. With the acquisition, Owens Corning would increase its knowledge of both commercial and residential applications while strengthening its offering of weather-resistant decking and structural lumber.
- The goal of the agreement between Kingspan Group and H2 Green Steel, which was announced in April 2021, was to cut the carbon emissions from Kingspan's insulated panel products by 45%.
Key Segments of Building Panels Industry Research
By Type :
- Concrete Panels
- Vacuum Insulated Panels
- Structural Insulated Panels
- Wood Panels
By Raw Material :
By Application :
By End Use :
- Floors & Roofs
- Columns & Beams
By Region :
- North America
- Latin America
- East Asia
- South Asia & Oceania
- FAQs -
The global building panels market is valued at US$ 177.9 billion by 2023.
Worldwide demand for building panels is predicted to reach US$ 318.5 billion by 2033.
Sales of building panels are expected to increase at a CAGR of 6% from 2023 to 2033.
Popular building panel materials are concrete, plastic, metal, wood, and silica.
Strict rules on the use of chemicals and high bulk quantity prices are factors that could hamper product sales growth.