The External Wall Insulation Board Market is estimated to be valued at US$ 8.46 billion in 2023 and is expected to exhibit a CAGR of 8.4% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
The External Wall Insulation Board market is driven by increasing energy efficiency initiatives and the growing construction industry. These boards provide excellent thermal insulation and moisture resistance, making them ideal for external wall insulation systems in residential and commercial buildings. The demand for these boards is rising due to the need for energy-efficient solutions and the desire to reduce carbon emissions. The market offers various types of insulation boards, including expanded polystyrene (EPS), extruded polystyrene (XPS), and mineral wool. These boards are extensively used in new construction projects as well as retrofitting existing buildings.
The growth of the External Wall Insulation Board market is primarily driven by two key drivers. Firstly, increasing energy efficiency initiatives by governments worldwide are fueling the demand for these boards. Governments are actively promoting energy-saving solutions to reduce carbon emissions and combat climate change. Secondly, the growing construction industry, especially in emerging economies, is creating a significant demand for external wall insulation boards. Rapid urbanization and infrastructure development projects are driving the need for energy-efficient building materials. These drivers are expected to propel the market growth during the forecast period.
The external wall insulation board market can be segmented based on material type, application, and region. In terms of material type, the dominating segment is the Expanded Polystyrene (EPS) segment. This is due to its excellent insulation properties, cost-effectiveness, and easy installation process. EPS boards are widely used in residential and commercial buildings for improving energy efficiency and reducing heating and cooling costs. Other materials such as Mineral Wool and Polyurethane (PUR) also have a significant market share but are relatively less dominant compared to EPS.
Political: The government regulations and policies related to energy efficiency and sustainable construction practices have a significant impact on the external wall insulation board market. Stringent building codes and incentives provided by governments to promote energy-efficient buildings can drive the demand for insulation boards.
Economic: The economic factors such as disposable income, construction industry growth, and urbanization play a crucial role in the market growth. As the economy develops, the demand for energy-efficient buildings and renovation projects increases, thereby boosting the market for external wall insulation boards.
Social: The growing awareness among consumers regarding energy efficiency and environmental sustainability has led to an increased preference for insulation boards. Additionally, changing lifestyles and the desire to improve living comfort have further fueled the demand for insulation boards.
Technological: Advancements in technology have led to the development of innovative insulation board materials with enhanced properties such as fire resistance, moisture resistance, and durability. These technological advancements have further expanded the application scope of external wall insulation boards.
The Global External Wall Insulation Board Market size is expected to witness high growth, exhibiting a Compound Annual Growth Rate (CAGR) of 8.4% over the forecast period. This growth can be attributed to the increasing demand for energy-efficient buildings and renovation projects globally. The construction industry’s rapid growth, especially in emerging economies, is driving the market.
In terms of regional analysis, Asia Pacific is the fastest-growing and dominating region in the external wall insulation board market. This can be attributed to the expanding construction industry, rising disposable income, and government initiatives to promote energy-efficient buildings in countries like China, India, and Japan.
Key players operating in the external wall insulation board market include Saint-Gobain, Kingspan, Rockwool, BASF, Johns Manville, Knauf Insulation, Owens Corning, Paroc, Dow Building Solutions, and GAF Materials. These key players offer a wide range of insulation board products and have a strong presence in the market, contributing to significant market share.
Overall, the global external wall insulation board market is expected to experience significant growth in the coming years, driven by factors such as increasing demand for energy-efficient buildings, government initiatives, and advancements in insulation board technology.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it