Structural insulated panels market is expected to witness significant growth on account of its rising demand for residential constructions. The product has the ability to deliver sustainable, affordable and cost-effective housings solutions, which is expected to propel their demand in the residential sector over the forecast period. These panels are also gaining demand for commercial buildings as they have optimum cost and are lightweight. Furthermore, initiatives taken by the industry players to improve product quality in terms of strength, impact and load resistance and durability is expected to have a positive impact on the market growth over the projected period.
The product is a sandwich structure composed of various materials including plywood, sheet metal, cement, oriented strand board or magnesium oxide boards, with a plastic core of materials including extruded polystyrene foam, polyurethane foam, and expanded polystyrene foam. The product has a higher price as compared to traditional wood products for construction application. However, the houses made of structural insulated panels offer better insulation properties, thus reducing the overall cost associated with cooling and heating systems. Rising consumer awareness regarding the long-term cost benefits associated with the product is expected to drive industry growth over the forecast period.
The industry can be segmented on the basis of product types as glass wool panels, expanded polystyrene panels (EPS) and rigid polyurethane panels. EPS panels are expected to gain significant growth over the projected period on account of their reduced carbon dioxide emission and low energy consumption properties. Increasing stringent regulations on the construction sector to limit the adverse impacts on the environment is likely to propel demand for the product. Glass wood insulated panels offer superior sound-proofing, lightweight, excellent elasticity, and non-combustibility, which is likely to drive their demand. These panels are expected to gain wide application scope in high-grade buildings, ceilings, and air conduits.
In terms of application, the industry can be divided into walls, roof, and floors. Walls have been emerged as the largest end-use for the product, accounting for over 60% of the total demand in 2017. Growing demand for these panels for noise control and to avoid air leakages coupled with rising demand for energy efficient building walls is expected to have a positive impact on the industry growth.
In terms of end-use is the industry is segmented as residential and commercial constructions. Residential construction is expected to be the largest application owing to higher product penetration in this segment. Commercial segment is expected to gain higher growth over the projected period, on account of the rapid growth of commercial buildings including offices, shopping malls, hospitals, and educational institutes.
North America is expected to be a key market for the product as a majority of the constructions in the region are made using wooden materials. Government initiatives encouraging the use of environment friendly building construction materials are expected to have a positive impact on industry growth. In the U.S., the product demand in a residential application is expected to be derived through increasing single-family housing constructions. Growing population, strong economic growth, increase in household formation, and low mortgage rates are expected to be the key factors aiding the growth in residential construction in the country. The aforementioned factors are expected to propel demand for structural insulated panels.
The government of UK has established various energy-efficiency legislation and initiatives, such as Energy Company Obligation (ECO), in order to reduce the overall carbon emission, which, in turn, is projected to propel the demand for structural insulated panels. Rising consumer awareness regarding the ability of the product to increase the energy efficiency of a structure is anticipated to boost the product demand over the forecast period. However, increasing product prices on account of hike in wood and plastic prices are expected to hamper industry growth.
The Asia Pacific is expected to exhibit the fastest growth over the forecast period owing to the massive potential of the construction industry in the region. The construction industry in the Asia Pacific is expected to outperform on account of rising per capita income, rapid urbanization, and growing population. The economies including India and China are anticipated to flourish over the forecast period on account of massive investments by various governments for the development of public infrastructure and the expansion of residential construction sector, which is expected to benefit the structural insulated panels market.
The key industry players in the market include Kingspan Group, Metecno, ArcelorMittal, Eagle Panel Systems Inc., Murus Structural Insulated Panels and Manni Group S.p.A.
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