May 23, 2024
External Wall Insulation Board

External Wall Insulation Board Market to Register Rapid Growth Thanks To Increasing Adoption of Energy Efficient Construction Materials

The external wall insulation board market consists of insulation materials that provide an energy-efficient protective barrier on building exteriors. External wall insulation boards are premium insulated panels composed primarily of extruded polystyrene with a reinforced cement backing. They aid thermal insulation, protect buildings from mechanical damage, and enhance overall aesthetics. Increasing investments in green buildings, strict regulations regarding energy conservation, and emphasis on reducing carbon footprint are fueling demand for external wall insulation boards.

The Global External Wall Insulation Board Market is estimated to be valued at US$ 7.87 BN in 2024 and is expected to exhibit a CAGR of 24% over the forecast period 2024 To 2031.

Key Takeaways

Key players operating in the External Wall Insulation Board Market are Etex Group, Elementia Materials, Everest Industries Limited, James Hardie Industries PLC, Johns Manville, Knauf Gips KG, Saint-Gobain, BetonWood Srl, Cembrit Holding A/S, HIL Limited, GAF, and NICHIHA Co. Ltd.
Rapid urbanization and the increasing need for residential and commercial infrastructure present lucrative opportunities for external wall insulation board manufacturers. Additionally, growth in renovation and retrofitting activities of old buildings provides an impetus to market demand.
Technological advancements in insulation materials such as vacuum insulation panels, aerogel, and phase change materials(PCMs) are expanding applications of external wall insulation boards and strengthening energy conservation.

Market Drivers

Stringent regulations regarding energy efficiency in buildings driven by initiatives like the Paris Agreement have accelerated the adoption of sustainable construction practices using products like external wall insulation boards. The insulated boards help new and existing structures meet prescribed insulation standards, reduce heating and cooling costs, lower carbon footprint, and gain green certification. Growing awareness about conservation of natural resources and mitigating environmental impact is a key driver propelling the external wall insulation board market.

Current Challenges in External Wall Insulation Board Market

The external wall insulation board market is facing various challenges currently. Rising raw material costs are putting pressure on manufacturers as prices of polymers, minerals, and other chemicals used in making insulation boards are increasing. Availability of raw materials is also becoming unpredictable due to global supply chain disruptions. Finding skilled labor for installation processes is another major hurdle as many construction firms are facing shortage of trained staff. Stringent environmental regulations around the use of petroleum-based insulation materials are forcing players to develop eco-friendly alternatives which requires heavy R&D investments.

SWOT Analysis

Strengths: External wall insulation provides effective thermal insulation and saves on energy costs. It improves indoor comfort levels and protects buildings from weathering.
Weaknesses: High initial installation cost compared to traditional insulation methods. Requires experienced fitters for proper application.
Opportunities: Growing awareness about energy efficiency is driving demand. Regulations on building codes offer impetus for usage.
Threats: Volatility in raw material prices can impact margins. Intense competition from substitute products like mineral wool.

Geographical Regions with Highest Market Value

Europe currently accounts for the largest share of the external wall insulation board market in terms of value. Countries like Germany, United Kingdom, France, Italy and Spain have established construction industries with focus on energy efficient buildings. Robust construction activities along with strict insulation standards are fueling product adoption.

Fastest Growing Geographical Region

Asia Pacific region is projected to expand at the fastest pace during the forecast period. This can be attributed to rapid urbanization and infrastructure development projects underway in major economies of China, India and Southeast Asia. Government schemes promoting green buildings along with rising disposable income are expected to drive stronger demand for insulation solutions like external wall boards in the coming years.

1. Source: Coherent Market Insights, Public sources, Desk research.
2. We have leveraged AI tools to mine information and compile it.