Structural Insulated Panels Market Summary
The global structural insulated panels market size was estimated at USD 11.17 billion in 2020 and is projected to reach USD 17.19 billion by 2028, growing at a CAGR of 5.5% from 2021 to 2028. Favorable green building standards and regulations for the adoption of building insulation materials for lowering the overall energy consumption, coupled with the growing investments in the development of cold chain infrastructure across the world are the key factors driving the market growth.
Key Market Trends & Insights
- North America dominated the structural insulated panels market with a revenue share of over 38.0% in 2020.
- By product, the polystyrene segment held the largest revenue share of over 72.0% in 2020.
- By application, the Walls & floors segment held the largest revenue share of around 46.0% in 2020.
Market Size & Forecast
- 2020 Market Size: USD 11.17 Billion
- 2028 Projected Market Size: USD 17.19 Billion
- CAGR (2021-2028): 5.5%
- North America: Largest market in 2020
Structural insulated panels (SIPs) are expected to gain wide acceptance globally as they are lightweight, have a better external appearance, and can improve the thermal performance of buildings. In the U.S., as per the Federal Energy Policy Act 2005, a tax credit of up to USD 2,000 is provided for builders of new energy-efficient homes that are constructed as per the standards of Federal Manufactured Homes Construction and Safety Standards.
In 2020, the polystyrene product segment led the U.S. structural insulated panels market owing to robust insulation property and cost-effectiveness of polystyrene. Growing investments in the renovation of old building structures are expected to drive future product demand within the U.S. market.
Structural insulated panels are widely used in the construction of warehouses owing to their ability to reduce the overall construction time. The growth of the e-commerce industry is generating a huge demand for warehouses and last-mile delivery hubs. In addition, the establishment of local data centers by major technology companies, such as Amazon, Alibaba, Google, and Microsoft, is projected to have a positive impact on the market growth.
Structural insulated panels are fabricated at manufacturing facilities and shipped to the job site in a ready-to-install state. Metal sheets are emerging as a preferred facing material owing to their durability, fireproof property, and superior surface finish. Moreover, insulated metal panels are available in a variety of colors, thus making them suitable for direct application on building exteriors.
Raw materials used for manufacturing structural insulated panels include Polyisocyanurate (PIR), Polyurethane (PU), Expanded Polystyrene (EPS), Extruded Polystyrene (XPS), and others. All these products are downstream derivatives of crude oil. Thus, the volatile pricing of crude oil in the international market is a serious restraint to the growth of this industry.
Product Insights
Polystyrene led the market and accounted for more than 72.0% share of the global revenue in 2020 and will retain the leading position throughout the forecast period. This growth can be credited to high demand for these products due to their cost-effectiveness and dust & moisture resistance. In addition, the tough and resilient surface of polystyrene offers a higher degree of puncture resistance and quakeproof property. However, the polyurethane segment is estimated to register the fastest CAGR from 2021 to 2028.
Polyurethane structural insulated panels are relatively more expensive than other product types, such as polystyrene and glass wool. These panels are widely preferred in the insulation of cold chain storages owing to their superior thermal insulation and vapor diffusion resistance properties. Thus, the growing emphasis on the development of cold chain infrastructures is expected to drive the product demand over the forecast period. The glass wool segment is expected to grow at a CAGR of 5.8% over the forecast period owing to superior thermal insulation, fire resistance, and noise insulation properties of glass wool.
Application Insights
Walls & floors led the market and accounted for more than 46.0% share of the global revenue in 2020. Growing awareness about the economic advantages of installing effective building insulation is driving the segment growth. Insulation of walls is one of the essential elements to enhance the energy efficiency of buildings. Insulated walls along with insulated floors create a protective envelope, which eliminates heat transfer from the external environment through conduction and convection radiation and thereby reduce the energy expenditure on heating or cooling of a building structure.
The product is widely used in the cold storage industry owing to its superior structural strength and insulation properties. SIPs find application in walls, ceilings, and roofs for cold storage, freezers, and food processing buildings and can also be retrofitted to the existing controlled environment structures, such as dry warehouse, where maintaining temperature and insulation values is of immense importance. The recent global pandemic has generated a significant product demand for the establishment of cold chain infrastructure to ensure the safety of the Covid-19 vaccines and ensure seamless last-mile delivery.
Regional Insights
North America dominated the market and accounted for over 38.0% share of global revenue in 2019. Increased demand from the residential sector, extensively developed cold chain and logistics industry, and the government initiatives to develop social infrastructure are some of the major factors responsible for the market growth in North America. Rising awareness regarding the benefits of insulation of building structures is expected to drive the market in the coming years.
The Asia Pacific is expected to be the fastest-growing regional market due to the rapid growth of the residential and commercial construction sectors and the adoption of various green building standards. The Middle East and Africa is expected to register a significant CAGR over the forecast period. The region imports majority of its food products from overseas owing to the dry climate and lack of rainfall. The UAE has emerged as the import and trading hub for food products in the region. As a result, it is witnessing growing investments in the establishment of cold storage and cold chain logistics, which drives the demand for structural insulated panels.
Key Companies & Market Share Insights
Major companies in the market are focusing on expanding their product portfolio by developing cost-effective insulation products with enhanced properties. The manufacturers are also engaged in the product installation through their network of certified contractors and installers. Installation of these systems needs expert services, which can affect the overall price. Companies invest significantly in R&D activities related to product manufacturing, supply, and installation, which results in dynamic market conditions. Some prominent players in the global structural insulated panels market include:
Metl-Span
Kingspan Group
PFB Corporation
Isopan
KPS Global
American Insulated Panel
Structural Panels Inc.
All Weather Insulated Panels
Ingreen Systems Corp.
Owens Corning