Structural Insulated Panels Market

• Growing green building initiatives to drive market growth

As per market dynamics, positive green building rules and standards for the use of building insulation materials to reduce overall energy consumption, as well as rising costs for constructing a  cold chain infrastructure, are predicted to boost the industry. Structural insulated panels (SIPs), which are lightweight, have a better external look, and can enhance a building's thermal performance, are anticipated to become widely used worldwide. According to the Federal Energy Policy Act of 2005, builders of new, energy-efficient homes built by the Federal Manufactured Homes Construction and Safety Standards are eligible for a tax credit of up to USD 2,000.

Thus such federal policy increases the number of green buildings. Construction sites get structural insulated panels that have been manufactured and are prepared for installation. With their resilience, fireproofing, and exceptional surface polish, metal sheets are becoming a desirable facing material. Insulated metal panels can also be applied directly to the exteriors of buildings because they come in several colors. The expanding construction industry is another factor driving the structural insulated panels market revenue.

With their capacity to save total construction time, structural insulated panels are frequently utilized in the construction of warehouses. As per market data, warehouses and last-mile delivery hubs are in high demand due to the e-commerce sector's expansion. Over 26 million eCommerce sites exist worldwide, and new ones are launched daily. Additionally, the development of regional data centers by well-known technological firms like Amazon, Alibaba, Google, and Microsoft is anticipated to expand the market size.

Figure1: Estimated retail sales through e-commerce from 2013 to 2023 in billion

Structural insulated panels are a widely used building material for cold storage facility construction because they are affordable, environmentally friendly, and long-lasting. Cold storage is essential for many industries, including food processing, food preparation, warehousing, and storage systems, as well as pharmaceutical and retail solutions. By 2023, 1,914 refrigeration storage companies will be operating in the US. The structural insulated panels industry is anticipated to grow as a result of the rise in demand for cold storage systems. Therefore, the trend of using cold storage has enhanced the  market CAGR in recent years.

Government policies and regulations aimed at promoting sustainable construction practices are pivotal drivers in the Global Structural Insulated Panels Market Industry. Many countries are implementing stricter building codes that mandate energy efficiency and sustainability in construction. These regulations often encourage the use of materials like SIPs, which comply with energy-efficient standards. For instance, various governments are offering incentives for builders who utilize eco-friendly materials, further propelling the market. As a result, the demand for SIPs is expected to grow, aligning with the projected CAGR of 6.53% from 2025 to 2035, indicating a robust future for the industry.

The versatility of structural insulated panels across multiple sectors is a key driver of the Global Structural Insulated Panels Market Industry. SIPs are not only utilized in residential construction but also find applications in commercial buildings, schools, and industrial facilities. Their adaptability to various architectural designs and ease of installation make them an attractive option for diverse construction projects. This broad applicability is likely to enhance market growth, as more sectors recognize the benefits of SIPs. The increasing demand for innovative building solutions across different industries suggests a promising outlook for the SIP market in the coming years.

The Global Structural Insulated Panels Market Industry experiences a notable increase in demand for energy-efficient building solutions. As energy costs continue to rise, builders and homeowners are increasingly seeking materials that offer superior insulation properties. Structural insulated panels (SIPs) provide excellent thermal performance, which can lead to significant energy savings over time. This trend is reflected in the projected market value of 9.68 USD Billion in 2024, with expectations to reach 19.4 USD Billion by 2035. The emphasis on sustainability and energy efficiency is likely to drive the adoption of SIPs in residential and commercial construction projects globally.

There is a growing awareness among consumers and builders regarding the benefits of sustainable construction practices, which significantly influences the Global Structural Insulated Panels Market Industry. As environmental concerns become more pronounced, stakeholders are increasingly prioritizing eco-friendly building materials. Structural insulated panels, known for their low environmental impact and high energy efficiency, are gaining traction in both residential and commercial sectors. This shift in consumer preference is expected to drive the market forward, aligning with the projected growth from 9.68 USD Billion in 2024 to 19.4 USD Billion by 2035, as more projects incorporate SIPs into their designs.

Technological innovations in the manufacturing processes of structural insulated panels are transforming the Global Structural Insulated Panels Market Industry. Advances in materials science and production techniques have led to the development of more durable and efficient SIPs. For example, the introduction of advanced adhesives and composite materials enhances the structural integrity and insulation properties of SIPs. These improvements not only increase the performance of SIPs but also reduce production costs, making them more accessible to builders. Consequently, the market is likely to benefit from these advancements, contributing to the anticipated growth trajectory over the next decade.

By region, the study provides market insights into Europe, North America, Asia-Pacific, and the Rest of the World. Asia-Pacific's structural insulated panels market accounted for USD 3,386.06 million in 2021 and is expected to exhibit a significant CAGR of 42.6 percent growth during the study period. As per market forecast, the introduction of Energy Conservation Building Codes (ECBC) in nations like India is anticipated to fuel structural insulated panels market revenue growth significantly. Additionally, as packaged and processed food demand rises in the region's nations, the need for cold storage facilities also rises, boosting structural insulated panels market expansion.

With the numerous benefits the material offers in this application, growth in the e-Commerce sector is also raising demand for warehouses, which is predicted to enhance the utilization of structural insulated panels. Moreover, China's structural insulated panels market held the largest share, and the Indian structural insulated panels market was the fastest-growing market in the Asia-Pacific region.

Furthermore, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: STRUCTURAL INSULATED PANELS MARKET SHARE BY REGION 2021 (%)Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

North American structural insulated panels market accounts for the second-largest share. The use of structural insulated panels is anticipated to rise due to supportive incentives offered by the governments of various nations in the region, such as tax incentives for energy efficiency upgrades in commercial buildings to encourage the development of energy-efficient buildings. It is anticipated that structural insulated panels will continue to increase due to rising government measures to reduce greenhouse gas emissions and conserve energy in homes and businesses.

For instance, the Department of Energy's Building Technology Program seeks to reduce domestic energy use by adopting Zero-Energy Homes (ZEH), which is anticipated to support demand for structural insulated panels.

Europe's structural insulated panels market accounts for the third-largest market share. In Europe, structural insulated panels (SIPs) are very common because they make it easier to develop passive structures that use zero energy. As per market statistics, around 2,600 structures in Germany will have received green building certification as of 2022. Additionally, SIPs can be utilized to build perimeter walls, interior load-bearing walls, and non-load-bearing partition walls. The SIP-built modern homes are renowned for their structural strength and lightweight.

The German structural insulated panels market held the largest share, and the UK structural insulated panels market was the fastest-growing market in the European region.

The structural insulated panels market will keep growing due to market players investing heavily in R&D to broaden their product offerings. With significant market developments, including new product releases, contractual agreements, mergers & acquisitions, increased investments, and collaboration with other organizations, market participants engage in various strategic initiatives to expand their worldwide footprint. According to the market competitive landscape, players must provide products at fair prices if they want to grow and thrive in the market.

Local manufacturing to cut operational costs is one of the main business methods used by the structural insulated panels industry to serve customers and grow the market sector. Thie industry has recently provided some of the most important advantages to medicine. Market major players, such as Kingspan Group (Ireland), Metecno (Italy), Italpannelli SRL (Italy), Alubel SpA (Italy), and others, support R&D initiatives to increase market demand.

Kingspan Group is a  innovator of high-performance insulation and building envelope solutions. The company's five business segments are insulated panels, insulation boards, light & air, water & energy, and data & flooring. Its insulated panels business section manufactures various structural insulated panels. The company's primary focus is on its production capabilities, intending to improve and innovate its manufacturing methods and procedures to attract new clients for its insulation panel products. For instance, in April 2021, Kingspan Group announced a collaboration with H2 Green Steel to reduce carbon emissions from Kingspan's insulated panel products by 45%.

Kingspan aims to be a single-digit minority shareholder in the long run, alongside a group of forward-thinking investors that want to catalyze the shift to low-carbon steel. Kingspan's investment also shows the company's aim to enter into a long-term supply deal with H2GS to provide a significant portion of the company's future steel needs.

Owens Corning is a corporation based in the United States that develops and manufactures insulation, roofing, fiberglass composites, and related materials and products. It is the largest producer of fiberglass composites in the world. It was founded in 1935 by two large American glassworks, Corning Glass Works and Owens-Illinois. For instance, in August 2020, Owens Corning introduced a new product range called FOAMULAR NGX (Next Generation Extruded). Foam products in the new FOAMULAR NGX range reduce  Warming Potential (GWP) by 90% without affecting product performance.

The new product line's excellent performance and sustainability are expanding its favor as a material that allows for more aesthetic expression, durability, and performance among architects, engineers, and contractors.