The Global "Structural Insulated Panels Market" is expected to grow at a high CAGR of 6.3% during the forecasting period (2022-2029).
A structural insulated panel is a prefabricated insulated structural element used in building walls, floors, and ceilings. Structural insulated panels provide superior and uniform insulation compared to traditional construction methods, offering 12–14% of energy savings. A structural insulated panel upon proper installation provides a more airtight dwelling, making a building more comfortable and quieter. Structural insulated panels currently gain a larger market share within the construction industry due to the increasing trend within the structural insulated panel industry for OSB-faced structural insulated panels.
The major factors driving the global structural insulated panel market demand are increasing construction activities focusing on energy-efficient buildings and rapid urbanization from emerging economies. For instance, the U.S. DOE Zero Energy Ready Home National Program has established standard criteria for the new building construction. The building codes have criteria to qualify in the national program initiatives by constructing energy-efficient buildings with efficiency between 40-50% as compared to other houses.
Advancements in the building technologies such as modular construction techniques and a hike in the prices of sheathing materials such as wood and plastic are the key factors expected to hamper the market growth.
The global structural insulated panels market is segmented based on insulting material type, property type, and end-user type.
Global structural insulated panels are sub-segmented into polystyrene, polyurethane, compressed straw core, and others based on insulating material type. Polystyrene insulating material is anticipated to gain significant market share over the forecasted period owing to the key advantages such as reduced carbon dioxide emission and low energy consumption. Houses made with structural insulated panels are capable of cutting down carbon emissions up to 6o-90 tons annually. Polystyrene building eliminates around 2-3 tons of carbon particles annually compared to the 2x dimensional timber houses. Compressed straw-core insulated panels demand is anticipated to grow higher over the forecast period due to the rising demand for eco-friendly construction materials as they are being manufactured from recycled waste agriculture straw.
In terms of end-user type, the market is sub-segmented into residential, commercial, institutional, and others. The residential segment is anticipated to be the major market due to its strong application across the residential segment with the zero-energy home (ZEH) concept. ZEH produces the same amount of renewable energy as it consumes on an annual basis. For instance, in 2017, California had more than 5,000 zero net single-family homes, according to a report from the Net-Zero Energy Coalition, which clearly indicates higher structural insulated panel penetration in these zero-energy homes.
The commercial segment is expected to gain a higher CAGR over the forecast due to the rapid expansion of the commercial building sector focusing on energy conservation, which will drive the structural insulated panels to demand. For instance, as per the Energy Information Administration (EIA) report in the US commercial buildings sector, energy consumption is expected to increase by 25% by 2030. Furthermore, creating demand for the energy conservation building, which will support the commercial structural insulated pan.
Geographically, the global structural insulated panels market is segmented into North America, South America, Asia-Pacific, Europe, and the Rest of the World. North America is the key market for the structural insulated panel as most constructions in countries such as the US and Canada are made up of wooden materials. For instance, in the US, government initiatives such as the Weatherization Assistance Program promoted thermal insulation, which helps in reducing the heating and cooling costs for low-income groups, augmented the overall regional business expansion of structural insulated panel manufacturers. Strong economic growth, growing population, increase in household formation, and low mortgage rates are expected to be the key factors aiding the growth in residential structural insulated panels in the region.
The Asia Pacific region is expected to exhibit the fastest growth over the forecast period owing to the massive potential lying in the construction industry. The construction industry in the Asia Pacific region is expected to outperform rapid urbanization and a growing population. Growing economies such as India and China are anticipated to flourish the structural insulated panel markets over the forecast period due to massive investments by the governments to develop public infrastructure and expand the residential construction sector. Rising infrastructure investments for supermarkets, offices, hotels, and houses using high thermal resistance materials will propel the regional industry landscape.
The global structural insulated panel market is highly fragmented, with no major player accounting for a prominent share in the global market. Most of the structural insulated panel manufacturing companies are forward integrated, i.e., they produce structural insulated panels and provide installations and maintenance services. Some of the key players include – Insulspan Inc, Korwall Industries, Energy Panel Structures Inc., Murus Company, [email protected] LLC, Foard Panel Inc., SIPCO Limited, Premier Building Systems, SIPTEC, and Gramatica SIPS International.
Aqua-Pak Industries, one of the prominent players in polystyrene foam box manufacturers, is enhancing its growth by undergoing acquisitions. For Instance, in September 2018, Aqua-Pak Industries Ltd. has intended to acquire the shares of the Mansonville Plastics Group of Companies, including First Choice Manufacturing Ltd., Mansonville Plastics (B.C.) Limited, and Korolite Engineered Panel Structures Ltd.
The increasing demand for structural insulated panels is driven by the increasing energy and construction costs and the ever-growing interest in eco-friendly buildings.
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