Global Structural Insulated Panels Market Size, Share, Growth Analysis, By Material(Expanded Polystyrene (EPS), Polyurethane (PUR)), By Application(Residential, Commercial) - Industry Forecast 2023-2030

Global Structural Insulated Panels Market size was valued at USD 13.4 Billion in 2022 and is poised to grow from USD 1046.19 Billion in 2023 to USD 1667.47 Billion by 2031, at a CAGR of 5.9% during the forecast period (2024-2031).

The global market is poised for significant growth driven by favourable green building standards and regulations focused on reducing overall energy consumption and promoting the use of building insulation materials. The increasing investments in cold chain infrastructure worldwide also contribute to market expansion. Structural Insulated Panels (SIPs) are expected to gain widespread acceptance globally due to their lightweight nature, improved external appearance, and ability to enhance the thermal performance of buildings. In the United States, the Federal Energy Policy Act of 2005 offers tax credits of up to USD 2,000 to builders constructing energy-efficient homes compliant with Federal Manufactured Homes Construction and Safety Standards, fuelling the demand for SIPs as renovations of old building structures increase in the U.S. market. The construction of warehouses benefits significantly from the use of structural insulated panels, reducing overall construction time. The exponential growth of the e-commerce industry, leading to a substantial demand for warehouses and last-mile delivery hubs, further contributes to market growth. The establishment of local data centers by major technology companies like Amazon, Alibaba, Google, and Microsoft also positively impacts the market. SIPs, manufactured at specialized facilities and delivered to construction sites in a ready-to-install state, are increasingly using metal sheets as facing materials due to their durability, fireproof properties, and superior surface finish. Insulated metal panels, available in various colors, are suitable for direct application on building exteriors. The production of structural insulated panels involves raw materials such as Polyisocyanurate (PIR), Polyurethane (PU), Expanded Polystyrene (EPS), Extruded Polystyrene (XPS), and others, derived from crude oil. This industry is susceptible to fluctuations in crude oil prices on the international market, posing a significant challenge to its growth.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Structural Insulated Panels Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Structural Insulated Panels Market Segmental Analysis

Global Structural Insulated Panels Market is segmented by material, application, and region. Based on material, the market can be segmented into expanded polystyrene (eps), polyurethane (pur), and glass wool. Based on application, the market is segmented into residential, commercial, and industrial. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Drivers of the Global Structural Insulated Panels Market

A significant catalyst for the global structural insulated panels (SIPs) market is the favorable implementation of green building standards and regulations on a global scale. These standards advocate for the adoption of building insulation materials, such as SIPs, as a strategy to curtail overall energy consumption within the construction sector. Emphasizing sustainability and energy efficiency, governments and regulatory authorities actively endorse the utilization of SIPs, thereby propelling market expansion and fostering opportunities for manufacturers and suppliers within the industry.

Restraints in the Global Structural Insulated Panels Market

A notable challenge confronting the global structural insulated panels (SIPs) market is the unpredictability in crude oil prices on the international market. SIPs are crafted from raw materials that are downstream derivatives of crude oil, including Polyisocyanurate (PIR), Polyurethane (PU), and Expanded Polystyrene (EPS). Oscillations in crude oil prices can lead to erratic pricing for these raw materials, consequently affecting the overall production costs and profitability of SIPs. The uncertainty associated with crude oil prices presents a hurdle to the growth and stability of the SIPs industry.

Market Trends of the Global Structural Insulated Panels Market

A significant trend in the global structural insulated panels (SIPs) market is the rising acceptance of SIPs in constructing energy-efficient and sustainable buildings. With increasing environmental awareness, builders and developers are actively seeking construction solutions that not only reduce energy consumption but also align with eco-friendly practices. SIPs stand out by providing outstanding thermal performance, enhanced insulation, and minimized air leakage, making them a compelling choice for projects prioritizing green building practices. The momentum towards sustainable construction, propelled by factors such as government regulations and consumer demand for energy-efficient homes, is anticipated to drive the growth of the SIPs market.