Structural Insulated Panels Industry Overview

The global structural insulated panels (SIPs) market reached a valuation of USD 11.17 billion in 2020 and is anticipated to expand at a compound annual growth rate (CAGR) of 5.5% from 2021 to 2028. Key factors driving this growth include supportive green building standards and energy-efficient regulations, which encourage the adoption of building insulation materials to reduce overall energy consumption. In addition, rising investments in the development of cold chain infrastructure worldwide are fueling demand for SIPs. Structural insulated panels are becoming widely accepted due to their lightweight construction, appealing exterior finish, and enhanced thermal performance, which help improve building efficiency. In the U.S., for instance, 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 following Federal Manufactured Homes Construction and Safety Standards, boosting SIPs adoption.

In 2020, the U.S. structural insulated panels market saw the polystyrene product segment in the lead, primarily because of the material’s strong insulation properties and cost-effectiveness. This segment’s growth is further supported by significant investments in renovating older building structures, which is expected to sustain demand for SIPs in the U.S. market.

SIPs are particularly popular for constructing warehouses, as they can substantially reduce construction times. The e-commerce industry’s rapid expansion is creating a high demand for warehouses and last-mile delivery hubs to meet increased consumer demand. Additionally, the establishment of local data centers by major tech firms like Amazon, Alibaba, Google, and Microsoft is projected to positively influence SIP market growth, as these centers also require efficient construction solutions.

Manufactured offsite, SIPs are shipped to construction sites in a ready-to-install state, allowing for quick and easy assembly. Among facing materials, metal sheets are gaining preference due to their durability, fire-resistant properties, and high-quality surface finish. Furthermore, insulated metal panels are available in various colors, making them a versatile option for direct application on building exteriors and enhancing aesthetic appeal.

The raw materials used in SIP manufacturing include Polyisocyanurate (PIR), Polyurethane (PU), Expanded Polystyrene (EPS), Extruded Polystyrene (XPS), and other similar products. These materials are derived from crude oil, making the industry vulnerable to the volatility of crude oil prices in the global market. This fluctuation in raw material costs presents a notable challenge for the SIP industry’s growth and stability.

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Regional Insights:

In 2019, North America led the global structural insulated panels market, capturing over 38.0% of total revenue. This dominance is attributed to several key factors:

• High demand from the residential sector, as more homeowners and builders opt for insulated panels to improve energy efficiency and reduce heating and cooling costs.
• An extensively developed cold chain and logistics infrastructure, which has increased the need for insulated panels to maintain controlled temperatures in warehouses and storage facilities.
• Government initiatives supporting social infrastructure projects, including affordable housing and energy-efficient public buildings, which further drive SIP demand in North America.
• Increasing awareness of the benefits of insulating building structures to reduce energy consumption, which is expected to sustain market growth in the region in the coming years.

The Asia Pacific region is projected to be the fastest-growing market for structural insulated panels due to:

• Rapid expansion in both residential and commercial construction sectors, as countries in this region experience urbanization and population growth.
• Growing adoption of various green building standards aimed at improving energy efficiency, particularly in markets such as China, India, and Southeast Asia.
• Rising investments in modern, energy-efficient construction technologies, which drive the demand for SIPs in this region.

The Middle East and Africa region is anticipated to register a significant compound annual growth rate (CAGR) throughout the forecast period due to:

• Heavy reliance on food imports from overseas, resulting from the region’s arid climate and limited agricultural output.
• The UAE’s emergence as a key import and trading hub for food products within the Middle East, fostering investments in cold storage and cold chain logistics facilities.
• Increased demand for structural insulated panels to support temperature-controlled storage solutions, which are critical for preserving food products in the region’s harsh climate.

Browse through Grand View Research's  Green Building Materials Industry Research Reports.

• The global expanded polystyrene market was valued at USD 10.18 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 8.59% from 2023 to 2030.
• The global polyurethane market size was estimated at USD 78.07 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 4.5% from 2024 to 2030.

Key Structural Insulated Panels Company 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

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