Sandwich Panels Market Outlook, 2030

Sandwich panels are composite materials consisting of two outer layers, typically made of metal, enclosing an insulating core such as polystyrene, polyurethane, or mineral wool. These panels offer excellent thermal insulation, soundproofing, and fire resistance, making them ideal for use in walls, roofs, and facades of buildings. Historically, sandwich panels gained prominence in the mid-20th century, particularly in industrial and commercial construction, due to their ease of installation and cost-effectiveness. Over time, their applications expanded into residential buildings, cold storage facilities, and even transportation sectors, owing to their versatility and performance characteristics.

The promotion and marketing of sandwich panels have evolved alongside their growing popularity, with manufacturers employing digital marketing strategies, participating in trade shows, and collaborating with architects and builders to showcase the benefits of sandwich panels. Educational campaigns highlighting their energy efficiency, sustainability, and cost savings have been central to these promotional efforts, while partnerships with construction firms and involvement in large-scale infrastructure projects have further bolstered market presence. In terms of policy and regulation, various standards and certifications govern the production and use of sandwich panels to ensure safety and performance.

In the United States, sandwich panels must comply with regulations set by the Occupational Safety and Health Administration (OSHA) for workplace safety, the Environmental Protection Agency (EPA) for environmental impact, and the Department of Transportation (DOT) for transportation standards. Similarly, international standards such as ISO 9001 for quality management systems and ISO 14001 for environmental management are often sought by manufacturers to demonstrate their commitment to quality and sustainability.

According to the research report “Global Sandwich Panels Market Outlook, 2030”, the Global Sandwich Panels market is projected to reach market size of USD 16.01 Billion by 2030 increasing from USD 9.78 Billion in 2024, growing with 8.74% CAGR by 2025-30. The primary opportunity for the market lies in the global emphasis on energy efficiency and sustainable construction practices. With growing awareness of environmental concerns and the need to minimize carbon footprints, there is a greater demand for building materials that provide improved insulation and contribute to energy conservation. Sandwich panels, with their thermal insulation qualities, are an ideal alternative for designing energy-efficient buildings.

As governments and companies across the globe implement stricter construction norms and regulations aimed at sustainability, the demand for these panels is likely to increase. Manufacturers in the market can capitalize on this trend by emphasizing the eco-friendliness of their products and connecting with the larger push towards green and sustainable construction technologies. The development of a new range of sandwich panels with improved performance efficiency will create a lucrative growth outlook for market growth in the long run.

For instance, in March 2024, Kingspan Holdings Limited announced that Terasteel S.A., the Romanian division of Kingspan Group, will soon open a new sandwich panels factory in Lehliu Gara, Calarasicounty, strengthening its market presence in Romania, Bulgaria, Moldova, and Ukraine. In addition, the initiatives by governments globally for the development of affordable housing projects, investments in warehouse facilities by companies, increasing demand for larger living spaces, and the development of high-rise residential buildings are the key trends propelling the surge in the development of new residential projects.

For instance, in June 2024, Coldxpress Refrigerated Transport VIC Pty Ltd. announced it would expand its operations by bringing sustainable cold storage solutions to its clients. The new facility in Rowville is being built as a prevailing 8000 square meters warehouse and ultimately will be a 12,000 pallet position cold storage facility featuring high-quality fire retardant insulated sandwich panels.

Market Drivers

• Demand for Energy-Efficient and Sustainable Construction Materials: The global push for energy-efficient and sustainable building solutions is a key driver of the sandwich panels market. Sandwich panels provide excellent thermal insulation, reducing energy consumption for heating and cooling in residential, commercial, and industrial buildings. Governments and developers increasingly prioritize green construction to meet sustainability goals, which drives the adoption of materials that are both energy-efficient and eco-friendly. The ability of sandwich panels to combine lightweight construction with high insulation performance makes them a preferred choice for modern architecture.
• Growth in Cold Chain Logistics and Commercial Infrastructure: The rapid expansion of cold chain logistics and commercial infrastructure, such as warehouses, food processing units, and refrigerated storage facilities, has significantly boosted demand for sandwich panels. These panels maintain controlled temperatures, ensuring product quality and safety, which is critical for industries dealing with perishable goods. The rise of e-commerce and global trade has further accelerated the need for cold storage facilities, driving the construction of buildings that rely heavily on insulated sandwich panels.

Market Challenges

• Fluctuating Raw Material Prices and Supply Chain Constraints: One of the significant challenges facing the sandwich panels market is the volatility in raw material prices, particularly steel, aluminum, and core insulation materials like polyurethane or polystyrene. These fluctuations impact production costs and profit margins for manufacturers. Additionally, supply chain disruptions can delay the procurement of raw materials, affecting the timely delivery of construction projects. Companies must carefully manage costs and logistics to remain competitive in this dynamic market.
• Regulatory Compliance and Limited Awareness in Emerging Markets: Sandwich panel manufacturers must comply with strict regulations regarding fire safety, energy efficiency, and environmental standards, which can vary across regions. Adhering to these regulations requires continuous investment in research and innovation, creating additional costs for businesses. In many emerging markets, awareness of the benefits of advanced building materials is still limited, which slows adoption. Educating end users and contractors about the advantages of sandwich panels is essential for market expansion in these regions.

Market Trends

• Advancements in Manufacturing Technologies: Technological advancements in sandwich panel production, such as automated manufacturing and precision cutting methods, are improving efficiency and reducing production costs. Enhanced quality control and faster production timelines enable manufacturers to meet increasing demand, especially in modular and prefabricated construction projects. The ability to produce panels in varying sizes and configurations is also supporting the growth of customized construction solutions.
• Shift Towards Polyurethane (PU) Panels: Polyurethane panels are becoming increasingly popular due to their superior thermal insulation and fire-resistant properties compared to traditional materials. PU panels provide higher energy efficiency and better compliance with modern building codes, making them suitable for residential, commercial, and industrial projects. This trend reflects a broader market shift toward premium, high-performance sandwich panels.Expanded Polystyrene (EPS) core material is leading in the global sandwich panels industry due to its optimal combination of lightweight, cost-effectiveness, thermal insulation properties, and ease of processing.

Expanded Polystyrene (EPS) has emerged as the dominant core material in the global sandwich panels industry primarily because it offers an exceptional balance between performance, cost, and versatility. One of the most critical factors driving its adoption is its lightweight nature, which significantly reduces the overall weight of sandwich panels without compromising structural integrity. This characteristic not only simplifies handling, transportation, and installation but also reduces the load on building structures, making it particularly suitable for applications in construction, cold storage, and modular building segments.

In addition to being lightweight, EPS provides excellent thermal insulation due to its closed-cell structure, which minimizes heat transfer and enhances energy efficiency in buildings and industrial facilities. This property aligns with the growing emphasis on energy conservation and green building initiatives worldwide. Moreover, EPS is highly cost-effective compared to alternative core materials such as polyurethane (PU) or polyisocyanurate (PIR), making it an attractive choice for mass-market applications where affordability is a key consideration. The ease of processing and compatibility with various facing materials like galvanized steel, aluminum, and fiber-reinforced composites further strengthens its market position.

EPS can be easily molded and cut into different shapes and sizes, allowing manufacturers to produce sandwich panels tailored to specific requirements, from cold storage facilities and industrial warehouses to commercial buildings and residential projects. Another significant driver is its fire-retardant grades, which meet stringent safety regulations in many regions, addressing one of the primary concerns associated with polymer-based core materials.

Steel is the leading facing material in the global sandwich panels industry due to its superior strength, durability, versatility, and cost-effectiveness, which make it ideal for a wide range of construction and industrial applications.

Steel has established itself as the dominant facing material in the global sandwich panels industry because it offers an unparalleled combination of mechanical strength, longevity, and adaptability, making it suitable for a diverse array of applications from industrial warehouses and cold storage units to commercial buildings and infrastructure projects. One of the most critical advantages of steel facings is their high structural strength, which enhances the load-bearing capacity and rigidity of sandwich panels, allowing them to support heavy insulation cores and resist deformation under mechanical stress.

This makes steel-faced panels highly reliable for construction in both low-rise and high-rise buildings as well as modular and prefabricated structures. In addition to mechanical robustness, steel offers excellent durability, providing resistance to wear, impact, and harsh environmental conditions such as wind, rain, UV radiation, and temperature fluctuations. These properties significantly extend the service life of panels, reducing maintenance costs and enhancing the overall lifecycle value.

Another key factor driving the popularity of steel facings is their versatility: steel can be coated with a range of protective layers, including zinc, polyester, and PVDF coatings, to improve corrosion resistance, aesthetic appeal, and fire resistance, ensuring compliance with regional safety and building standards. Cost-effectiveness is also a major driver, as steel is widely available, relatively inexpensive compared to alternative metals like aluminum, and compatible with large-scale manufacturing processes, which allows producers to offer high-quality sandwich panels at competitive prices.

Wall applications are leading in the global sandwich panels industry due to the panels’ superior thermal insulation, structural strength, quick installation, and cost-effectiveness, making them highly suitable for building envelopes in commercial, industrial, and residential construction.

Wall applications dominate the global sandwich panels market because these panels provide an ideal combination of performance, efficiency, and convenience for constructing building envelopes. One of the primary reasons is their exceptional thermal insulation properties, which help maintain stable indoor temperatures, reduce energy consumption, and enhance occupant comfort in commercial, industrial, and residential buildings. This feature is particularly valuable in sectors like cold storage, food processing, and refrigerated warehouses, where strict temperature control is critical.

Sandwich panels also offer significant structural strength despite being lightweight, allowing them to serve as both load-bearing and non-load-bearing walls in modular and conventional construction, which reduces the need for additional structural materials and lowers overall construction costs. Another factor driving the dominance of wall applications is the ease and speed of installation. Prefabricated panels can be quickly assembled on-site, minimizing labor requirements, shortening construction timelines, and enabling faster project completion. This efficiency is especially beneficial in large-scale industrial facilities, commercial complexes, and urban housing projects where time and resource optimization are key.

Additionally, wall panels provide fire resistance, moisture protection, sound insulation, and durability against environmental elements, making them suitable for a wide range of climatic conditions and regulatory standards worldwide. The versatility of sandwich panels in wall applications allows them to accommodate various facing materials, such as steel or aluminum, and different core materials, including EPS, PU, or PIR, giving designers and engineers flexibility in addressing both functional and aesthetic requirements.

The industrial end-user segment is leading in the global sandwich panels industry due to high demand from manufacturing, warehousing, cold storage, and food processing facilities that require cost-effective, durable, and thermally efficient building solutions.

The industrial sector dominates the global sandwich panels market because industrial facilities consistently demand building solutions that combine durability, insulation, speed of construction, and cost efficiency, all of which sandwich panels provide effectively. Industrial applications, including warehouses, manufacturing plants, distribution centers, and cold storage facilities, require walls, roofs, and partitions that can withstand mechanical stress, resist environmental wear, and maintain controlled indoor climates. Thermal insulation is particularly critical for food processing plants, cold storage units, and pharmaceutical facilities, where precise temperature maintenance is essential for product quality and regulatory compliance.

Sandwich panels offer high thermal performance with minimal thickness, making them an ideal choice for these environments while reducing energy costs associated with heating or cooling large industrial spaces. Additionally, the lightweight yet structurally robust nature of sandwich panels allows for easier handling, quicker installation, and reduced foundation loads compared to traditional construction materials, enabling faster project completion and minimizing operational downtime an important factor in time-sensitive industrial operations.

The flexibility of sandwich panels to incorporate different core materials such as EPS, PU, or PIR and various facing options like steel or aluminum further enhances their suitability for diverse industrial needs, including fire resistance, moisture protection, and sound insulation. Cost-effectiveness is another major driver; sandwich panels reduce construction and maintenance expenses over the building lifecycle, providing a strong return on investment for industrial operators.

Moreover, the global trend toward modular and prefabricated construction in the industrial sector amplifies the demand for sandwich panels, as they can be easily fabricated off-site and rapidly assembled on-site, reducing labor costs and ensuring uniform quality. Asia Pacific is leading the global sandwich panels industry due to rapid industrialization, urbanization, growing construction and cold storage sectors, and rising demand for cost-effective, energy-efficient building solutions.

The Asia Pacific region dominates the global sandwich panels market because it combines strong economic growth, rapid urbanization, and expanding industrial and commercial infrastructure, which collectively drive high demand for efficient and versatile construction materials. Countries such as China, India, Japan, South Korea, and Southeast Asian nations are witnessing extensive growth in industrial facilities, warehouses, commercial buildings, and cold storage units, all of which heavily rely on sandwich panels for walls and roofing due to their thermal insulation, structural strength, and ease of installation.

Industrial expansion, particularly in manufacturing, logistics, and food processing, fuels the need for energy-efficient and durable building materials, while the growing e-commerce and retail sectors increase demand for large-scale warehouses and distribution centers. Urbanization and residential construction are also on the rise, prompting developers to adopt lightweight, prefabricated, and cost-effective solutions like sandwich panels to accelerate project completion while controlling costs.

The region benefits from the presence of a well-established manufacturing base for sandwich panels, coupled with the availability of raw materials like steel and polymer cores such as EPS, PU, and PIR, which ensures consistent supply and competitive pricing. Government initiatives promoting industrial parks, smart cities, and cold chain infrastructure further boost market growth by encouraging the adoption of modern construction technologies.

Additionally, rising environmental awareness and energy efficiency regulations in the region drive preference for thermally efficient sandwich panels that contribute to reduced energy consumption and lower operational costs. The availability of skilled labor, advanced fabrication techniques, and supportive logistics infrastructure facilitates rapid deployment of sandwich panels across urban and industrial projects.

• In August 2024, Rautaruukki Corporation partnered with Logicenters to develop a logistics center in Tampere, Finland. The facility will utilize innovative Ruukki LowCarbon products, including 10,000 square meters of sandwich panels made from next-generation SSAB Zero steel and 500 square meters of design profiles crafted from SSAB Fossil-free steel.
• In May 2024, Assan Panel A.S. revealed plans to build its first manufacturing facility at Freeport East in the United Kingdom, with an investment of USD 48 million. The plant is expected to be operational by Autumn 2025, producing sandwich panels with PIR, mineral wool, or polyurethane.
• In October 2022, Kingspan acquired Invespane, a mineral wool-based sandwich panel producer. The strategic acquisition of Invespanel into Kingspan will create an opportunity to complement their product offerings in sandwich panels for different applications.
• In November 2021, Industrial Engineering Company for Construction and Development (ICON) received an offer from Kingspan Insulated Panels seeking a collaboration in manufacturing sandwich panels.
• In September 2021, L&L Products launched a new FST aircraft interior edge and core filler compound. L&L Reinforce L-9060 brings a new approach to fill and reinforce aerospace interior sandwich panels by providing a solution to improve the traditional manual process of other two-component honeycomb panel reinforcements.
• In December 2020, ArcelorMittal Construction acquired a Llentab company. The acquisition included the Kungshamn panel production line in Sweden, which produces mineral wool (MiWo) panels for steel buildings. This acquisition would help the company increase its manufacturing capability in the region.