The Growing External Wall Insulation Board Market to Attain a Valuation of $7.87 Billion By 2024

 

External Wall Insulation Board Market

External wall insulation is a construction technique that increases the thickness of the walls from the outside of the building by adding an insulated layer. It enhances thermal insulation, reduces energy bills, minimizes moisture damage and growth of mold and mildew. Key benefits include improved energy efficiency, fire safety, weather resistance and indoor air quality.

The global external wall insulation board market is estimated to be valued at US$ 7.87 billion in 2024 and is expected to exhibit a CAGR of 24% over the forecast period 2024 to 2031.

The Global External Wall Insulation Board Market is driven by the need for thermal insulation and sustainable construction. Rising consumer preference for eco-friendly green buildings is a major opportunity for market growth. Key players operating in the external wall insulation board market include 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.

Key Takeaways

Key players: Etex Group, Elementia Materials and Everest Industries Limited account for over 30% market share led by their innovative product portfolio and global presence. James Hardie Industries PLC is expected to grow at a CAGR of 22% during the forecast period driven by its R&D investments.
Growing demand: Rising consumer inclination towards energy efficient buildings, especially in Europe and North America will continue to drive demand till 2031. thermal insulation requirements in cold regions will further accelerate market growth.
Technological advancement: Focus on developing novel insulation materials like aerogel, vacuum insulated panels and phase change materials allow minimal thickness and optimize insulation properties. Drone-based infrared scanning enhance quality control and on-site inspection process.

Market Trends

Sustainable construction is the major trend led by stringent green building codes and emissions norms. Modular construction techniques using prefabricated insulation panels are gaining popularity due to reduced installation time.
Policies by EU such as Energy Performance of Buildings Directive have increased renovations of old buildings in Europe using exterior wall insulation systems.

Market Opportunities

Emerging economies in Asia Pacific and Middle East are expected to drive highest growth by 2028 owing to rapid urbanization and infrastructure development.
Digital twin and BIM based project management provides real-time monitoring, reduces errors and optimizes material usage thus offering gains to construction players.

Impact of COVID-19 on External Wall Insulation Board Market Growth

The COVID-19 pandemic has impacted the growth of the external wall insulation board market. During the peak of lockdowns in 2020 and early 2021, construction activities were halted which led to decline in demand for external wall insulation boards. Supply chain disruptions also affected the availability of raw materials required to manufacture these boards. With closure of manufacturing facilities, production was suspended bringing down sales. However, as restrictions have eased in 2021, construction projects have resumed gradually. While demand is reviving, high material costs due to shortages and delayed projects are hampering the market growth. For a quick recovery, manufacturers will need to focus on efficient production planning, local sourcing and investment in R&D to develop cost-effective and sustainable products. Digital marketing techniques can boost online sales until the situation normalizes. Overall, the external wall insulation board market is expected to bounce back over the forecast period riding on government incentives for infrastructure development and green building initiatives.

Europe Region Concentrated for External Wall Insulation Board Market

Europe accounts for the largest share of the global external wall insulation board market in terms of value. Countries like Germany, UK, France and Italy are major consumers due to stringent energy efficiency norms and awareness about thermal insulation. The regional market is driven by rising retrofitting activities of old buildings and new constructions adhering to near-zero energy standards. Europe has witnessed a growth of specialized insulation contractors and installers enhancing the installation process of external wall insulation systems. Manufacturers are focused on customer-specific solutions and customized offerings to strengthen their presence. With government focus on sustainability through policies promoting green refurbishments, the Europe region will continue dominating the external wall insulation board market.

Asia Pacific Emerging as the Fastest Growing Region

The Asia Pacific region is expected to witness the fastest growth in the external wall insulation board market owing to rapid urbanization and improving construction spending. China and India constitute a major part of the rising demand due to their huge populations and economic development. Initiatives for smart cities and green buildings and growing focus on thermal efficiency of residential and commercial buildings offer high growth opportunities. Local players as well as global brands are enhancing their manufacturing footprints in Asia Pacific. Besides, favourable business conditions and reduced production costs attract foreign investments. With the construction sector gaining momentum, Asia Pacific will evolve as a key market for external wall insulation boards in the upcoming years.

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