Structural Insulated Panels Market

Structural Insulated Panels Market Outlook (2031)

The structural insulated panels market industry analysis that has revealed the past performance of the industry, which grew at the rate of 3.4% and generated US$ 380 Mn in 2020. Estimated growth rate is around 5% for the 2021 to 2031 period, and the market is likely to generate US$ 253.5 Mn absolute dollar opportunity in the same period.

Moreover, based on estimates, North American countries are anticipated to offer greater opportunities for structural insulated panel manufacturers as well as supplies over the coming years.

Key Insights Offered in Structural Insulated Panels Industry Survey:

• Market Estimates and Forecasts (2016-2031)
• Key Drivers and Restraints Shaping Market Growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Market Share Analysis
• Assessment by Product Grade / Formulation Standards
• Assessment of Import Price, Bulk Price, Contractual Price, Producer / Distributor Price
• Leading Export - Import Destinations
• COVID-19 Impact on Demand for Structural Insulated Panels and How to Navigate
• Recommendation on Key Winning Strategies

Consumption Analysis of Structural Insulated Panels from 2016 to 2020 Compared to Demand Outlook for 2021 to 2031

As per the structural insulated panels industry research by Fact.MR – a market research and competitive intelligence provider, historically, from 2016 to 2020, market value increased at 3.4% CAGR, where the United States, Germany, United Kingdom, Japan, and China held a significant share in the global market.

Constant surge in commercial and residential building construction has aggravated demand for structural insulated panels, which are being used in constructing roofs, ceilings, and exterior walls, to name a few. Owing to their superior insulation qualities, strength, low cost, and other numerous characteristics, structural insulated panels are sought for a wide range of applications in building construction.

Growing acceptance of structural insulated panels is projected to take demand growth at 5% CAGR over the next 10 years.

• The structural insulated panels market reached a valuation of US$ 380 Mn in 2020.
• Year-on-year revenue growth declined amid COVID-19; however, it remained positive owing to steep rise in demand in the last quarter of 2020.
• Fact.MR estimates that structural insulated panel revenue will grow 1.6X from 2021 to 2031, reaching nearly US$ 647 Mn in 2031.
• Demand for OSB structural insulated panels represented around 2/5 of total sales.
• In terms of insulation material, EPS structural insulated panels commanded over 70% of global revenue in 2020.
• Residential end use is projected to account for US$ 269 Mn by 2031.  
• Top 5 providers of structural insulated panels held 26% market share in 2020.

How Have Structured Insulated Panels Emerged as an Answer to the Needs for Energy-efficient Buildings?

According to Rocky Mountain Institute, over 120 Mn buildings use over 40% of the primary energy in the U.S. which is more than that used in industries and transportation. As per its report, energy costs in U.S. buildings exceed US$ 400 Bn every year, which is considered a waste as it is not helpful in the country’s GDP.

In order to save money and effort in energy generation, the country has been adapting to the usage of advanced materials in its energy efficient buildings, including structural insulated panels.

How is the Buzzword 'Climate Change' Helping Structural Insulated Panel Demand Swell?

The world is struggling with climate change due to various effects such as carbon emissions and greenhouse gas emissions due to excessive consumption of fossil fuel and temperature imbalance.

75% of existing buildings in Europe use fossil fuel energy for balancing the temperature, such as cooling or heating. It creates awareness among consumers as well as manufacturers, owing to which, they are focusing on ensuring that existing building are decarbonized and green buildings and houses are constructed that are sustainable and eco-friendly.

Structural insulated panels are considered the best material that provides proper insulation against various characteristics such as fire, temperature (heating or cooling), water, etc. Owing to this, demand for structural insulated panels is gaining traction and is projected to show a significant growth trajectory in future.

Why are Structural Insulated Panels Cost Effective for Manufacturers and Users Alike?

Structural insulated panels are constructed off-site in predefined or standard size and are finished and assembled on-site to build walls, roofs, floors, etc. This is an alternative to traditional building methods and provides fast construction at a comparatively lesser overall cost.

In addition, structural insulated panels provide safe construction, very low wastage of material, and benefits associated with the recovery of value due to the dismantling feature rather than demolition.

Which Region is Projected to Offer the Largest Opportunity for Structural Insulated Panel Manufacturers?

With the fastest growth of 10.6% CAGR, South Asia is projected to generate US$ 52 Mn absolute dollar opportunity over the forecast period.

Significant growth in urbanization and spurt in smart city projects in the region are projected to elevate demand for structural insulated panels.

Country-wise Insights

Will China's Ambition to Transform its Infrastructure Make it a Structural Insulated Panel Demand Hub?

China has not only been building new infrastructure but also rapidly transforming its existing infrastructure. While its smart city projects have been focusing on connectivity between structures, it has equal focus on energy conservation.

Under the green building initiative, district level governments have been making significant efforts in terms of encouragement and financial incentives. Shanghai’s Changing District, for instance, has recently offered US$ 3.34 Mn subsidies to help builders make their buildings more efficient.

These initiatives and efforts are expected to elevate demand for green building materials, including structural insulated panels, in the country.  

Category-wise Insights

Which Application of Structural Insulated Panels Accounts for Largest Market Share?

Floor and wall application accounted for over 46% of structural insulated panel demand in 2020. Use of structural insulated panels on floors and walls are implemented by most end users, as they are basic applications.

Moreover, in the recent past, demand has increased for cold storage applications owing to their cost-cutting advantage.  

Why is Demand for OSB Structural Insulated Panels Increasing?

Oriented strand board (OSB) structural insulated panels account for nearly 61% of the market share in the facing material segment.

OSBs are a strong, versatile, and lightweight wood product that can be used in numerous applications such as walls, roofs, etc. They are also used as web material in structural insulated panels that can resist seismic and wind load.

OSB structural panels are cheaper than other metal structural panels and provide almost the same characteristics, owing to which, majority of consumers prefer OSBs to construct walls and floors inside rooms.

The aforementioned factors are increasing demand for OSB structural insulated panels, which is expected to grow in revenue by 2X over the coming 10 years.

How Has COVID-19 Impacted Overall Demand for Structural Insulated Panels?

The global market for structural insulated panels experienced a decline of 1.3% in 2020, owing to worldwide shutdown of production activities.

With the easing of pandemic restrictions, demand for steel, the most important material for structural insulated panels, increased rapidly. As a result, steel prices have risen tremendously and touched the benchmark price of US$ 1,176/ton for hot-rolled steel in May 2021.

These soaring prices are increasing manufacturing cost and decreasing profits of steel-consuming industries. Owing to this ripple effect, profit margins of structural insulated panel manufacturers, installers, and contractors have declined. 

However, the construction industry is showing V-shape recovery, which is generating hope among structural insulated panel suppliers. The market is expected to experience normal growth over the coming years and generate around US$ 253 Mn absolute dollar opportunity by 2031.

Competitive Analysis

The structural insulated panels market is fragmented in nature, where companies are focusing on entering into long-term contracts with builders and large construction houses.

• In July 2021, Owens Corning acquired Vliepa GmbH, which specializes in printing, finishing and coating of papers, films, and nonwovens for building material industry. With this acquisition, Owens will be able to expand its global operations and better serve the European market.
• In April 2021, Kingspan Group announced a partnership with H2 Green Steel, under which, the focus will be to reduce Kingspan's insulated panel products’ carbon emissions by 45%.
• In June 2021, Kingspan group partnered with Technological University Dublin (TU Dublin) to support the construction of the university’s innovative design and construct centre.
• In March 2021, Kingspan group entered into an agreement to acquire Logstor for nearly US$ 300 Mn, through which, the company will be able to make a strong presence in the European, North American, and Middle Eastern markets.
• In September 2019, All Weather Insulated Panels (AWIP) expanded its manufacturing unit in East Stroudsburg, Pennsylvania, a strategic geographic location that will cater to the needs of existing customers, and the company will be able to establish itself in the eastern region of the United States.

Some of the recent developments related to companies offering structural insulated panels have been tracked by the team of Fact.MR, which are available in the available in the full report.

Structured Insulated Panels Market Report Scope

Attribute	Details
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Market Analysis	Units for Volume and US$ Mn for Value
Key Regions Covered	North America Latin America Europe East Asia South Asia Oceania MEA
Key Countries Covered	United States Canada Brazil Mexico Germany United Kingdom France Italy BENELUX China Japan South Korea India Malaysia Singapore Australia New Zealand Turkey South Africa GCC Countries
Key Market Segments Covered	Facing Material Insulation Material Application End Use Region
Key Companies Profiled	Owens Corning Kingspan Group PFB Corporation Alubel SpA Enercept, Inc. Foard Panel Inc. Extreme Panel Technologies, Inc. T. Clear Corporation Premier SIPs ACME Panel Company Metl-Span KPS Global Isopan American Insulated Panel Structural Panels Inc. All Weather Insulated Panels Ingreen Systems Corp.
Pricing	Available upon Request

Market Segments Covered in Structural Insulated Panels Industry Research

• By Facing Material

  • Oriented Strand Board (OSB) Structural Insulated Panels
  • Magnesium Oxide (MgO) Board Structural Insulated Panels
  • Other Facing Materials

• By Insulation Material

  • EPS Structural Insulated Panels
  • Glasswool Structural Insulated Panels
  • Polyurethane Structural Insulated Panels
  • Other Insulation Material Based Structural Insulated Panels

• By Application

  • Structural Insulated Panels for Floors and Walls
  • Structural Insulated Panels for Roofs
  • Structural Insulated Panels for Cold Storage

• By End Use

  • Structural Insulated Panels for Residential Use
  • Structural Insulated Panels for Commercial Use