Structural Insulated Panels Market by Insulation Material (Expanded Polystyrene (EPS), Extruded Polystyrene (XPS), and Polyurethane), Facing Material (Oriented Strand Board (OSB), Magnesium Oxide Board (MgO), and Others), Application (Walls, Ceilings, and Floors), End-use (Residential and Commercial), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028

Global Structural Insulated Panels Market Analysis

The global structural insulated panels market size was $429.0 million in 2020 and is predicted to grow with a CAGR of 5.1%, by generating a revenue of $638.4 million by 2028.

Market Synopsis

Structural insulated panels (SIPs) market is gaining huge demand as the panels are widely used in the construction of walls, roofs, and floor. They are used as a replacement to traditional framing lumber and insulations owing to various benefits offered by SIPs. For instance, SIPs eliminate roof trusses, and they are superior to traditional wood framing as they are stronger and can handle dead loads of about 10 pounds per square foot (PSF). They can be combined with various building materials such as steel, wood, stone, tiles, brick, block, slate, glass, and others.

However, moisture resistance is one of the biggest limitations of structural insulated panels. For instance, SIPs can get damaged due to moisture. Hence, they need special care and protection. Hence, to install SIPs, additional panel or waterproof surface should be present which is anticipated to restrain the structural insulated panels market size in the upcoming years.

SIPs are known for their exceptional thermal performance due to which they offer airtightness and unrivaled insulation. Also, SIPs offer 50% more energy efficiency compared to traditional timber framing owing to minimal thermal bridging that helps in achieving net-zero ready building standards. These factors are anticipated to generate huge growth opportunities to boost the structural insulated panels market growth.

According to regional analysis, the North America structural insulated panels market accounted for $276.8 million in 2020 and is predicted to grow with a CAGR of 5.3% in the projected timeframe.

Structural Insulated Panels Overview

Structural insulated panels are engineered panels used for residential and light commercial construction. These panels comprise of insulating foam core that is placed in the middle of two structural facings mostly made up of oriented strand boards (OSBs). These SIPs are fabricated to fit any building design and they are manufactured under factory-controlled conditions. SIPs can be manufactured in various dimensions and sizes with the thickness ranging from 4 to 8 inches. Also, they can be manufactured in large sizes and dimensions bur it requires custom work and crane for installation. Manufacturing method, weighing the SIPs, and quality control during fabrication determine the longevity and performance of these panels.

COVID-19 Impact on Structural Insulated Panels Market

The COVID-19 pandemic had a major impact on structural insulated panels market globally. The coronavirus pandemic has led to lack of adequate housing facilities across the world. This is majorly owing to financial crisis led by pandemic and lack of adequate medical facilities to deal with the crisis. In addition, decline in residential construction activities owing to clampdown of construction activities and mass migration of labor owing to fear of contracting the COVID-19 virus have negatively impacted the structural insulated panels market demand. In addition, the demand for residential real estate had declined as majority of the homeowners cancelled or kept their purchase decision on hold owing to financial uncertainties caused by COVID-19 pandemic. SIPs are also used in light commercial construction activities. However, remote working triggered by pandemic has led to underutilization of office spaces that has led to decline in the demand for commercial construction. Due to these aspects, construction activities across several countries had stopped. Also, it has led to contraction in workloads as many construction activities were stopped for unprecedented time.               

Various initiatives implemented by structural insulated panel manufacturers in response to COVID-19 pandemic are helping society to recover from the crisis. For instance, in April 2020, Owens Corning, leading player in structural insulated panels market, introduced robust cleaning protocols, work from home policy, and regular health screening of employees. In addition, the company has extended its sick leave policy and provided additional healthcare benefits to protect the health of its employees during this crucial time. The COVID-19 pandemic has slowed down the demand for various company products across energy, construction, infrastructure, and construction sector. To deal with this, Owens Corning is proactively balancing its production activities across the region to meet the near-term demand.

Various Advantages Offered by Structural Insulated Panels (SIPs) to Drive the Market Growth

SIPs offer wide range of benefits to all levels of building design for builders, architects, designers, and even the residents. For instance, for architects, SIPs offer freedom to create custom and creative design without the restrictions of conventional building materials Also, architects can easily create full CAD assembly drawings while designing SIPs. For builders, the use of SIPs can reduce their construction time by two to three times. Also, for builders, the cost estimation becomes a simple process as no specialized tools are required, and less supervision is needed. For residents, SIPs offer various advantages such as reduced labor cost compared to traditional framing methods, the constructed buildings are airtight and free of drafts. Also, the constructed homes and buildings are quieter owing to soundproofing design of SIPs. SIPs are highly flexible due to which they can accommodate greater spans of walls compared to standard construction.

To know more about global structural insulated panels market drivers, get in touch with our analysts here.

Poor Moisture Resistance and Pest Resistance to Restrain the Market Growth

SIPs have poor moisture resistance due to which they require special care and installation of waterproof surface or additional panel is recommended. Also, SIPs require proper pest protection and panels must be treated with proper pesticides. Due to excellent air-tightness, SIPs require proper ventilation system otherwise the health of residents will be compromised. Proper planning & pre-ordering is necessary as SIPs are hard to fit in a ready home. SIPs are relatively new in the regions namely Asia-Pacific and Europe due to which finding competent or professional builders can be a difficult task. These factors are projected to restrain the structural insulated panels market share in the upcoming years.

Role of Structural Insulated Panels (SIPs) in Supporting Green Construction to Generate Enormous Growth Opportunities

SIPs are known for their sustainability, and they are widely used for offsite construction methods. For instance, as SIPs are fully constructed in a controlled environment, it minimizes the materials sent to the construction site and reduces the amount of waste. As SIPs incorporate high precision manufacturing process with intelligent inventory system, the material usage is optimized. This helps in reducing the harmful carbon emissions and consumes less energy compared to traditional construction materials like steel, masonry, concrete, and others. Also, buildings constructed using SIPs facilitate effective carbon storage as sequestered carbon is efficiently trapped within the timber building materials. Buildings usually account for 30% of energy consumption and 60% of electricity consumption. Hence, incorporating airtight SIP system helps in regulating humidity, heating, and cooling of the interiors. These factors are anticipated to drive the excellent opportunities to boost the structural insulated panels market demand during the analysis timeframe.

To know more about global structural insulated panels market opportunities, get in touch with our analysts here.

Source: Research Dive Analysis

The expanded polystyrene (EPS) sub-type is anticipated to have a dominant market share and generate a revenue of $531.2 million by 2028, growing from $350.2 million in 2020. EPS is most widely used type of foam board insulation which is closed-cell type of insulation. This type of insulation offers an R-value of R-4 to R-5 per inch of thickness. Also, these types of panels are available in various sizes ranging from 4 and 24 feet in width. These types of panels have wide range of applications across construction sector where it is used for void filling, packaging application, cavity wall, duct & floor insulation, and packaging application. For instance, high density panels are used for floor raising and insulation applications. Low density panels are widely used in packaging applications owing to their excellent resistance. These panels are customizable and can be manufactured with different densities based on client requirements. EPS structural insulated panels have high strength and excellent durability that make them ideal for roofing and walls.

Source: Research Dive Analysis

The oriented strand board (OSB) structural insulated panels sub-segment is anticipated to have a dominant market share and generate a revenue of $427.0 million by 2028, growing from $279.8 million in 2020. Oriented strand board (OSB) is inexpensive, and it is readily available. Due to this, it is widely used for roof covering, wall sheathing, and floor underlayment for both residential and commercial applications. OSB offers both insulation value and structural strength to the wall. It helps in building system which is extremely energy-efficient, strong, and cost-effective. It has high strength-to-weight ratios. In addition, OSBs are known for high durability, longevity, shear strength, and dimensional stability. Also, these panels can resist deflection, delamination, distortion, and warping. OSB sheets are easy to install and handle owing to their light weight. OSB facilitates sustainable building construction as the wood fibers required for manufacturing of OSB are grown in sustainable tree farms and forests. The quality of OSB remains consistent throughout the panel as it is manufactured in huge, continuous mats, and there are no gaps or voids.

Source: Research Dive Analysis

Walls sub-segment is anticipated to have a dominant market share and generate a revenue of $382.3 million by 2028, growing from $250.5 million in 2020. Structural insulated panels (SIPs) are widely used in the construction of walls as they are structurally superior compared to wood framing, stronger, and less susceptible to shifting. The use of SIPs in construction of walls offers 50% more energy efficiency compared to traditional framing. Also, SIPs can be combined with other building materials such as stone, tiles, wood, steel, block, brick, and others. With SIPs equivalent, U-values can be achieved with the construction of thinner walls. Also, it has excellent load bearing capacity, lateral strength, water resistance properties, resistance to mold, and highest R-value/inch. These factors are anticipated to drive walls sub-segment market growth in the upcoming years.

Source: Research Dive Analysis

The residential sub-segment is anticipated to have a dominant market share and generate a revenue of $542.7 million by 2028, growing from $357.1 million in 2020. SIPs are widely used in residential construction owing to their exceptional thermal performance, good indoor quality, sustainability, and faster construction with less labor. For instance, excellent indoor air quality is offered by airtight building envelope that helps in limiting indoor air and helps in controlling ventilation. This helps in filtering out allergens and contaminants. SIPs are highly energy-efficient and contribute towards lowering the carbon emissions. Also, SIPs require less energy for manufacturing compared to traditional method and also have lower embodied energy. As SIP roofs and walls are precisely designed and manufactured offsite, the building can be quickly assembled onsite and can be made watertight within few days. This helps in reducing the manufacturing time and labor expenses.

Source: Research Dive Analysis

The Market for Structural Insulated Panels in North America to be the Most Dominant

The North America structural insulated panels market accounted $276.8 million in 2020 and is projected to grow with a CAGR of 5.3%. North America structural insulated panels market demand is driven by properties such as excellent thermal performance, high strength, and high speed of installation compared to traditional timber frame construction method. As the energy prices are soaring high, the demand for energy conservation and high-performance building panels has increased rapidly in recent years. As homes built using SIPs are safe, cost-effective, and highly energy-efficient, their popularity in North America region has increased rapidly. Some of the popular structural insulated panel projects in the U.S. are SIP Moor House, located in Dallas Texas, Multi-Use SIP Community Center, located in Los Banos, California, Benihana SIP Restaurant, located in Downey, California, and SIP Seaquarium Miami FL, located in Key Biscayne, Florida. Similarly, in Canada, the SIP projects are popular in Alberta and British Columbia.

The Market for Structural Insulated Panels in Europe to be the Fastest Growing

The Europe structural insulated panels market accounted $82.8 million in 2020 and is projected to grow with a CAGR of 5.8%. Structural insulated panels (SIPs) are quite popular in Europe as they facilitate the construction of passive buildings with new zero energy. Also, SIPs can be used in the construction of non-loadbearing partition walls, interior loadbearing, and for the construction of perimeter walls. Also, SIPs offer design flexibility as the panels arrive at site in cut-to-size manner that are ready for immediate installation. This helps in reducing the construction time and the labor cost. The modern houses built from SIP are lightweight and known for their structural strength. Some of the popular projects built with SIPs in Europe are Niewbouw schuurwoning dhr. STAR (Netherlands), constructed in 2018, Storen Pluss Hytte (Norway), constructed in 2019, and many others.

Competitive Scenario in the Global Structural Insulated Panels Market

Partnership and new project are common strategies followed by major market players.

Source: Research Dive Analysis

Some of the leading structural insulated panels market players are Owens Corning, Kingspan Group, Enercept, Inc., Alubel SpA, American Insulated Panel Company (AIP), Premier Building Systems, Inc., Extreme Panel Technologies, Inc., T. Clear Corporation, ACME Panel Company, and Ingreen Systems Corp.

Porter’s Five Forces Analysis for the Global Structural Insulated Panels Market:

• Bargaining Power of Suppliers: The manufacturers of structural insulated panels (SIPs) are dependent on raw material suppliers for procuring various raw materials such as wood-composite boards, insulation panels, and facing materials. Hence, suppliers hold high bargaining power. 
  Thus, the bargaining power of suppliers is high.
• Bargaining Power of Buyers: The number of buyers in structural insulated panels market are increasing gradually. However, the SIPs market size is majorly dominated by North America region and number of buyers is moderate in number. 
  Thus, buyer’s bargaining power will be moderate.
• Threat of New Entrants: The new entrants entering in structural insulated panels industry are focusing on business expansion and initiatives such as partnership to increase their market presence. Despite huge potential, this market is emerging slowly outside North America. 
  Thus, the threat of the new entrants is moderate.
• Threat of Substitutes: There are alternatives available namely spray foam which is easy to apply and can be used for floor insulation, cavity walls insulation, and attic insulation. Also, it can be used to heatproof your home and can cover hard-to-reach parts of your home. 
  Thus, the threat of substitutes is high.
• Competitive Rivalry in the Market: The companies operating in this market are focusing on acquiring new structural insulated panels projects, investments, and growing their consumer base. 
  Therefore, competitive rivalry in the market is high.