Market Research Report
Global Exterior Insulated Finishing System Market - 2020-2027
|Global Exterior Insulated Finishing System Market - 2020-2027|
Published: February 19, 2021
Content info: 180 Pages
Delivery time: 2 business days
An exterior insulated finishing system is a collaborative approach of non-load bearing wall cladding systems, which supports exterior wall parts with water-resisting, insulated, decorative, and finished surfaces. These exterior insulated finishing systems are abbreviated as EIFS systems that are primarily used on houses, apartments, corporate office parks, commercial units, government buildings, and condominiums. These systems deliver strong insulation to the exterior wall by insulation material plaster like covering. Most of these advanced systems prevent water penetration into the structures. They are usually produced from lightweight and synthetic materials.
The global exterior insulated finishing system market size was worth US$ XX billion in 2019 and further predicted to reach US$ XX billion by 2027, at a CAGR of XX% during the forecast period (2020-2027).
The exterior insulated finishing system market is primarily driven by the increasing demand from residential and non-residential construction for thermal insulation solutions to prevent water penetration in the building structure. Moreover, the introduction of stringent regulations to reduce greenhouse gas emissions and the availability of strict building energy codes drive the exterior insulated finishing system market growth. However, the exterior insulated finishing system market is hindered by the availability of green insulation materials worldwide.
Growth in demand for low energy consumption
The growing middle-class consumer population worldwide is creating demand for improved home cooling and heating services. This demand is increasing the energy consumption cost and the production need globally. The US Department of Energy (DOE) report stated that over 40% of the energy consumed is lost due to air infiltration. This air infiltrates the home in drafts through walls, floors, roofs, sockets, windows, and doorways. This is true in new houses and in old houses and buildings that have a large renovation area. The rising insulation materials are expected to reduce the HVAC operating costs by 50%-70% in home and commercial buildings. Also, it will reduce the monthly utility bills by increasing the insulation level in an under-insulated home. It is also typically perceived that energy saved by insulation is less than fabrication energy (energy utilized in using these products) of the material. Such factors will drive the growth of the exterior insulated finishing system in the coming years.
Rising availability of green insulation material will hinder the growth
In the exterior insulated finishing system market, the conventional materials used include stone wool, glass wool, and plastic foam. However, the availability of green insulation material known as hempcrete acts as a restraint for the market's growth. Hempcrete is a mixture of hemp fibers and cement-like binders that can be used for building thermal insulation. It is a crop cultivated in both temperate and tropical climates and absorbs CO2 during its growth process, making it environmentally friendly. Hempcrete has increasingly become popular in Europe among building professionals and engineers. It provides resistance to heat and manages moisture in buildings. Thus, its availability acts as a restraint for the exterior insulated finishing system's market growth during the forecast period.
COVID-19 Impact Analysis
COVID-19 pandemic affected the global economy in many terms, such as directly affecting production and demand, supply chain disruption, and financial impact. COVID-19 has directly impacted the manufacturers' supply chain worldwide and shut down the production facilities to minimize the risk of virus spread. The lockdown policies also have widely impacted the new demand opportunities for the exterior insulated finishing system. However, the construction industry's relaunch and further reforms to boost production are further expected to minimize the COVID-19 impact on the demand and consumption of the exterior insulated finishing system worldwide.
Based on the product type, the exterior insulated finishing system market has been classified into PB (polymer-based) and PM (polymer-modified).
PB (polymer-based) segment accounted for the highest market share in the global market
The PB (polymer-based) segment is estimated to lead the market with the largest market share as well as expected to grow at the highest CAGR in the exterior insulated finishing system market in the coming years. PB (polymer-based) offers high thermal insulation and is cost-effective compared to PM (polymer-modified). Also, it typically consists of closed expanded polystyrene (EPS) and can be either adhesively or mechanically attached to the sheathing. PB (polymer-based) EIFS can incorporate additional layers of reinforcing mesh & base coat to achieve higher impact resistance to improve the overall efficiency.
Based on the application, the exterior insulated finishing system market has been classified into residential and non-residential.
Non-residential segment dominated the global exterior insulated finishing system market in 2019
The non-residential industrial application has widely increased the market sizing for the exterior insulated finishing system market throughout the forecast period. These systems are used in both residential and non-residential applications, and its utility includes providing water resistance and thermal insulation. The non-residential segment is projected to have a larger share and dominate the global market during the forecast period. Moreover, the residential application segment is expected to play a vital role in developing the market landscape and grow at the second-highest rate in the exterior insulated finishing system market near the forecast period.
Based on geography, the study analyzes the exterior insulated finishing system market in the global market, including Europe, North America, Asia-Pacific, South America, and the Middle East & Africa.
Europe leads the global market throughout the forecast period
In 2019, Europe emerged as the leading market in the global exterior insulated finishing system market. The region delivers potential growth opportunities due to the wide presence of developed countries and a rise in the demand for thermal insulation projects to better the European Nations. Countries such as Poland and Italy are projected to be emerging markets for thermal insulation products such as exterior insulated finishing systems (EIFS). Also, the growth of residential and non-residential construction, followed by the rising demand for thermal insulation techniques, are driving the growth of the product in the domestic market during the forecast period. Moreover, the growing population and economic development policies are additional factors driving the region's market growth. However, the availability of green insulation materials and strict government standards are restraining the market growth.
However, Asia Pacific is expected to grow at the highest pace in the global exterior insulated finishing system market due to rising investment in the thermal insulations for the construction projects and other projects to reduce the water penetrating risk.
The exterior insulated finishing system market is highly competitive, owing to the presence of big food brands. The key exterior insulated finishing system players that are contributing to the growth of the global market include BASF, Saint-Gobain, Wacker Chemie AG, Sto SE & Co KGaA, Owen Corning, Dryvit Systems Inc., Master Wall, Inc., Parex USA, Inc., Rmax, MUHU (China) Co., Ltd, Brd New Materials Co., Ltd, Hangzhou Hanyang Technology Co., Ltd, Shandong Head Co., Ltd, and Qingdao Sdgeo Material Co., Ltd., among others. The major players are adopting expansion strategies and new product launches for global growth in the exterior insulated finishing system market.
Overview: BASF SE engages in the manufacturing and distribution of chemical products around the world. It primarily operates various business segments worldwide, namely, chemicals, industrial solutions, materials, surface technologies, agricultural solutions, nutrition & care, and others. The company is headquartered in Ludwigshafen am Rhein, Germany, and was founded on April 6, 1865.
Product Portfolio: The company's portfolio comprises petrochemicals, monomers, intermediates, dispersions & pigments, care chemicals, nutrition & health products, performance chemicals, catalysts, construction chemicals, coatings, performance materials, fungicides, herbicides, insecticides, and functional crop care products.
The global exterior insulated finishing system market report would provide access to an approx. 69 market data table, 66 figures, and 254 pages.
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