Structural Insulated Panels Industry
The global structural insulated panels (SIPs) market was valued at USD 11.17 billion in 2020 and is projected to grow at a compound annual growth rate (CAGR) of 5.5% from 2021 to 2028. The primary drivers of this growth include favorable green building standards and regulations that promote the use of building insulation materials to reduce overall energy consumption. Additionally, increasing investments in the development of cold chain infrastructure worldwide are expected to boost market expansion. Structural insulated panels are gaining widespread acceptance due to their lightweight nature, improved external appearance, and ability to enhance the thermal performance of buildings. For instance, in the U.S., the Federal Energy Policy Act of 2005 offers a tax credit of up to USD 2,000 to builders who construct new energy-efficient homes that meet Federal Manufactured Homes Construction and Safety Standards.
In 2020, the polystyrene product segment dominated the U.S. SIPs market, primarily due to the strong insulation properties and cost-effectiveness of polystyrene. The rising investments in the renovation of aging building structures are also expected to drive future demand for structural insulated panels in the U.S. market.
SIPs are particularly popular in the construction of warehouses due to their ability to significantly reduce construction time. The rapid growth of the e-commerce industry has created a high demand for warehouses and last-mile delivery hubs. Additionally, the expansion of local data centers by leading technology companies like Amazon, Alibaba, Google, and Microsoft is anticipated to further drive the growth of the structural insulated panels market, as these centers require insulated facilities for optimal energy efficiency and climate control.
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Product Insights
Polystyrene Dominance:
- Polystyrene led the market, accounting for over 72.0% of global revenue in 2020, and is expected to maintain its leading position throughout the forecast period.
- This dominance can be attributed to the high demand for polystyrene products due to their cost-effectiveness and resistance to dust and moisture.
- Polystyrene's tough and resilient surface provides higher puncture resistance and quakeproof properties, further driving its popularity in the market.
Polyurethane Segment Growth:
- While polyurethane structural insulated panels are more expensive compared to other types like polystyrene and glass wool, they are projected to register the fastest compound annual growth rate (CAGR) from 2021 to 2028.
- These panels are widely used in cold chain storage insulation due to their superior thermal insulation and vapor diffusion resistance properties.
- The rising focus on cold chain infrastructure development is expected to significantly boost demand for polyurethane panels during the forecast period.
Glass Wool Segment Performance:
- The glass wool segment is anticipated to grow at a CAGR of 5.8% over the forecast period.
- Glass wool is favored for its excellent thermal insulation, fire resistance, and noise insulation properties, making it a popular choice in various applications.
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