Structural Insulated Panels Market
Structural Insulated Panels Market Analysis By Facing Material (Oriented Strand Boards (OSB), Magnesium Oxide (MgO)), By Insulation Material (EPS, Glasswool, Polyurethane), By Application (Floors & Walls, Roofs, Cold Storage), By End Use (Residential, Commercial) & Region – Global Market Insights 2023 to 2033
Analysis of Structural Insulated Panels Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Structural Insulated Panels Market Outlook (2023 to 2033)
The global structural insulated panels market is valued at US$ 443.2 million in 2023 and is anticipated to reach a market size of US$ 728.8 million by 2033. The market has been forecasted to expand at a CAGR of 5.1% from 2023 to 2033 by Fact.MR.
- OSB structural panels are cheaper than other metal structural panels and provide almost the same characteristics, owing to which, a majority of consumers prefer oriented strand boards to construct walls and floors inside rooms.
- Oriented strand board (OSB) structural insulated panels currently account for 62% share of the global market.
High-performance building solutions utilized in the construction sector include structural insulated panels. Structural insulated panels are widely employed as insulators in the architecture and construction sectors.
An increase in global investments in energy-efficient infrastructure is the primary factor driving the market growth. The market for structural insulated panels is anticipated to expand during the projected period due to the rising demand for cold storage and the growing popularity of building energy-efficient and environmentally friendly structures.
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.
Structural insulated panels are widely used in the building of warehouses due to their capacity to save total construction time. Warehouses and last-mile delivery hubs are in high demand as a result of the e-Commerce sector's expansion. Additionally, the establishment of regional data centers by leading technology firms such as Amazon, Alibaba, and Google is anticipated to positively affect market expansion.
Structural insulated panels are constructed off-site in predefined or standard sizes 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.
The introduction of soundproof models and curved wall panels is promoting market expansion. These advanced structural insulated panels are extensively employed for stud framing and creating non-orthogonal wall designs.
Structural Insulated Panels Market Size (2023)
US$ 443.2 Million
Projected Market Value (2033)
US$ 728.8 Million
Global Market Growth Rate (2023 to 2033)
Market Share of Oriented Strand Boards (2023)
United Kingdom Market Size (2023)
US$ 21.7 Million
Market Share of Floors and Walls (2023)
Japan Market Size (2033)
US$ 31.3 Million
United States Market Growth Rate (2023 to 2033)
South Korea Market Size (2033)
US$ 23.3 Million
Key Companies Profiled
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Why are Structural Insulated Panels Gaining Popularity across Geographies?
“Ever-rising Demand for Cold Storage Systems”
Structural insulated panels are a widely utilized building material for cold storage facility construction because they are affordable, environmentally friendly, and long-lasting. For many industries, including food processing, food preparation, warehousing, and storage systems, as well as pharmaceutical and retail solutions, cold storage is an essential component. The market for structural insulated panels is anticipated to grow as a result of the rise in demand for cold storage systems.
“Increasing Need for Energy-efficient Solutions in Buildings”
- According to Rocky Mountain Institute, over 120 million buildings use over 40% of the primary energy in the United States which is more than that used in industries and transportation. As per its report, energy costs in the United States buildings exceed US$ 400 billion every year, which is considered a waste as it is not helpful to the country’s GDP.
The United States has been adapting to the usage of advanced materials in its energy-efficient buildings, including structural insulated panels to save money and effort in energy generation.
The market is anticipated to be driven by favorable green building standards and regulations for the adoption of building insulation materials for lowering overall energy consumption as well as growing investments in the creation of cold chain infrastructure globally. Structural insulated panels, which are lightweight, have a better exterior look, and may enhance a building's thermal efficiency, are anticipated to become widely used around the world.
“Growing Initiatives to Minimize Greenhouse Gas Emissions”
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 fuels and temperature imbalance. It creates awareness among consumers as well as manufacturers, owing to which, they are focusing on ensuring that existing buildings 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, and water. Owing to this, demand for structural insulated panels is gaining traction and is projected to show significant market growth over the coming years.
- The Department of Energy's (DOE) Building Technology Program set the objective of reducing residential consumption through the implementation of the Zero-energy Home concept. Structural insulated panels are in high demand due to the zero-energy home idea because they create an airtight building envelope that lowers the need for cooling and heating, contributing to energy saving.
What Can Hamper Increasing Sales of Structural Insulated Panels?
“High Cost of Raw Materials”
The primary factor anticipated to hinder the growth of the global structural insulated panel market during the projected period is the high cost of raw materials. A lack of understanding of advanced building technology and strict regulations on raw materials are the factors restraining market expansion.
High shipping expenses are hampering market expansion. Advancements in construction technology, such as modular construction, are probably going to impede the market's expansion.
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How Can New Market Entrants Settle Down in This Industry?
“Emerging Market Players Introducing Cost-effective Insulating Materials with Improved Features”
New companies are concentrating on producing sustainable products and cutting emissions. Aspiring market players are focusing their attention on producing cost-effective insulating materials with improved features to broaden their product line.
- HTK Synergie, a German start-up, creates moveable partition walls for office buildings that provide transparency and flexibility. The walls arrive at building sites airtight to avoid contamination and use insulating glass components with widths ranging from 32 to 136 mm. Additionally, drying agents inside the unique profiles prevent moisture from entering the insulating glass. Their insulating walls, in contrast to conventional partition walls, provide both privacy and safety from fire risks.
What is the Market Scenario for Structural Insulated Panels in the United States?
“Increase in Government Initiatives to Reduce Residential Energy Consumption”
- Currently, the United States market is valued at US$ 132.5 million and is expected to reach US$ 219.4 million by the end of 2033.
The need for structural insulated panels in residential and commercial construction is primarily driven by growing trends toward sustainable construction, green buildings, and aesthetically pleasing architecture. Another reason for promoting the usage of structural insulated panels is strict government rules addressing greenhouse gas emissions.
An increase in government initiatives to reduce residential energy consumption is driving market expansion. Growing energy efficiency rules and construction requirements and a rise in private construction spending are boosting market growth.
Why are Sales of Structural Insulated Panels Rising Steadily in the United Kingdom?
“Substantial Rise in Construction Activities”
- Demand for structural insulated panels in the United Kingdom is set to rise at a CAGR of 4.4% from 2023 to 2033.
Growing acceptance of modern technologies, a rise in construction activities, and government backing for environmentally friendly and energy-efficient building practices are supporting market growth in the country. It is projected that the commercial accessibility of the panels and the easy installation processes provided by the major providers will accelerate market expansion in the United Kingdom.
What’s Attracting Structural Insulated Panel Companies to South Korea?
“Highly Established Cold Chain and Logistics Sector”
- The market in South Korea is valued at US$ 17.3 million in 2023.
The market in South Korea is driven by the rapid expansion of the residential and commercial construction industries and a rise in government programs to build social infrastructure. A highly established cold chain and logistics sector boosting the demand for structural insulated panels in the country.
Will Japan Be an Opportune Market for Structural Insulated Panel Providers?
“Rapid Rise in Smart City Projects”
- The market in Japan is expected to progress at a CAGR of 3.7% over the projection period.
Rapid urbanization and a rise in smart city projects in the country are projected to elevate the demand for structural insulated panels. Market growth is attributed to an increase in office, hospital, and commercial buildings with more energy-efficient solutions. The demand for structural insulated panels is anticipated to be driven by renovations of existing residential structures.
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Why is Demand for Oriented Strand Boards Increasing at a Noteworthy Pace?
“Oriented Strand Boards Preferred Due to Their Excellent Load-bearing Capabilities”
By facing material, the market is segmented into oriented strand boards (OSB) and magnesium oxide (MgO).
Demand for oriented strand board (OSB) structural insulated panels is expected to rise at a CAGR of 6.1% over the forecast period.
Oriented strand boards 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 loads. Due to their excellent load-bearing capabilities, they are extensively used in the construction industry.
Which Application Accounts for the Most Prominent Market Share?
“Rising Need for Higher Thermal Performance Boosting Use of Structural Insulated Panels on Floors & Walls”
Based on application, the market is segmented into floors and walls, roofs, and cold storage. Floors and walls hold for 46% share of the global market.
The use of structural insulated panels on floors and walls is implemented by most end users, as these are basic applications. One of the key components to improving a building's energy efficiency is wall insulation. The market for structural insulated panels is expanding due to the rising need for higher thermal performance and increased energy efficiency in buildings, which is also fueling demand for wall insulation.
A protective envelope is created by insulated walls and floors, which prevent heat transmission from the outside environment through conduction and convection radiation and lower the energy needed to heat or cool a building structure. Wall construction may be completed more quickly because structural insulated panel walls and floors are precisely planned and built offsite, which reduces the need for additional labor during installation.
Key companies are focusing on entering into long-term contracts with builders and large construction houses. They are focusing on new developments, quality control, product standards, and supply chain management to increase their revenue. Top market players are investing in R&D projects, including the creation, distribution, and installation of products.
For instance :
- 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 United States.
Key Segments of Structural Insulated Panels Industry Research
By Facing Material :
- Oriented Strand Boards (OSB)
- Magnesium Oxide (MgO)
By Insulation Material :
By Application :
- Floors and Walls
- Cold Storage
By End Use :
By Region :
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
- FAQs -
The global structural insulated panels market stands at a value of US$ 443.2 million in 2023.
Sales of structural insulated panels are forecasted to increase at a CAGR of 5.1% through 2033.
Floors & walls, roofs, and cold storage are the leading applications of structural insulated panels.
Sales of structural insulated panels in South Korea are predicted to rise at a CAGR of 3% over the next ten years.
Owens Corning, Kingspan Group, and PFB Corporation are the top suppliers of structural insulated panels.