Structural Insulated Panels Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Key Highlights

• Over the next five to ten years, the market is likely to be driven by the growing demand from the construction industry and the growing number of uses in cold storage.
• On the other hand, improvements in building technologies, like modular construction, are likely to slow the growth of the market.
• But the demand for green buildings is growing, which could be a chance for the market to grow.
• North America had the most of the market, mostly because there were more building projects in Canada and Mexico.

Structural Insulated Panels Market Trends

Increasing Demand from Building Walls

• Structural insulated wall panels are generally available in thicknesses of 4-1/2 inches and 6-1/2 inches. It is possible to make curved wall panels, but for non-orthogonal shapes, it is often better to use stud framing instead.
• The total volume of the panels used as structural insulated wall panels is much higher than the volume used as structural insulated roof panels.
• Also, oriented strand boards are a cost-effective alternative for home construction. As per the National Association of Certified Home Inspectors (NACHI), OSB costs USD 700 less than wood for a typical 2400-square-foot home.
• The building and construction industry is currently thriving in several emerging economies. China has planned an investment of USD 1.43 trillion in major construction projects until 2025. According to the National Development and Reform Commission (NDRC), the Shanghai plan includes an investment of USD 38.7 billion, whereas Guangzhou signed 16 new infrastructure projects with an investment of USD 8.09 billion.
• In 2021, new home construction output in the U.S. private sector reached over USD 776 billion, which increased from USD 628.9 billion in 2020.
• The Japanese construction industry is expected to bloom as the country will host the 2025 World Expo in Osaka, Japan. In 2023 and 2027, respectively, the Yaesu redevelopment project and a 61-story, 390 meter-tall office tower will be finished.
• In 2022, Germany announced a USD 3.08 billion NeuConnect interconnector project connecting Germany with the United Kingdom, which is scheduled to be completed by 2028. The European Investment Bank will contribute USD 406.5 million to the project.
• So, these things are likely to increase the demand for building walls over the next few years.

North America to Dominate the Market

• The North American region dominated the global market share. The US construction industry has witnessed an increase in private construction spending over the years.
• According to the US Census Bureau, the total construction output in the United States was estimated at USD 1625.88 billion in November 2021. Also, non-residential construction in the US was estimated to be worth USD 820.538 billion, which is 3.4% more than it was during the same time last year.
• In January 2023, the U.S. Department of Transportation announced the investment of a total of USD 5 billion for nine mega-construction projects across the country. The National Infrastructure Project Assistance (Mega) discretionary grant program gave USD 1.2 billion to build these nine mega projects, which was announced by the government.
• Furthermore, the Canadian construction industry is witnessing growth in a few major cities, such as Toronto, Montreal, and Vancouver. In these cities, developers are registering good profits on investment, mainly with high-density residential projects. The most important places for construction are Toronto and Montreal, which bring in about 25% of the total revenue. ​
• StatCan says that investments in building construction in Canada went up by 1.2% to USD 18.0 billion in November 2021, after going up by 1.6% to USD 17.8 billion in October 2021. This drove construction work and increased demand for structural insulated panels.
• These factors are driving the consumption of structural insulated panels in the region.

Structural Insulated Panels Market Competitor Analysis

Additional benefits of purchasing the report:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support