Extruded Polystyrene Insulation Materials Market size is forecast to reach $7.21 billion by 2025, after growing at a CAGR of 5.60% during 2020-2025. Extruded polystyrene (XPS) is a polystyrene foam obtained through the extrusion process. XPS systems use air as an insulating material and form a closely packed structure, which exhibits excellent moisture-resistant properties. Owing to the development of XPS without the use of fluorochlorohydrocarbons is anticipated to create growth opportunities for extruded polystyrene Insulation Materials market in future.
Key Takeaways
- Asia-Pacific is expected to dominate due to surge in infrastructural development activities that include construction of highways and rail networks and increase in construction of building and houses to accommodate growing urban population.
- Rise in demand from non-residential construction sector is expected to drive the growth of extruded polystyrene Insulation Materials market.
- The presence of toxic chemicals in polystyrene is expected to restrain the market growth.
By Application - Segment Analysis
Non-Residential Construction segment held a significant share in extruded polystyrene Insulation Materials market in 2019, growing at a CAGR of 5.73% during the forecast period. The energy lost through buildings’ foundation accounts for a huge percentage when compared with the other parts of the building such as roofs or walls. Thus, foundation in the construction segment requires heavy insulation in order to prevent energy losses and to keep the moisture from penetrating into the foundation. The XPS not only saves energy used for cooling/heating but it also strengthens the overall infrastructure owing to its various properties such as high compressive strength and moisture resistance.
Construction sector which was already reeling with multiple challenges from lack of capital and credit avenues to insolvencies, multiple frauds and regulatory burden under the Environment Laws and the Real Estate (Regulation and Development) Act, 2016, is now marred by the Covid 19 pandemic, with no likely relief in sight.
Geography- Segment Analysis
Asia Pacific dominated the extruded polystyrene Insulation Materials market with a share of more than 42%, followed by North America and Europe. This is primarily because of higher demand from the construction sector due to a growing population. Moreover, surge in working population in these countries is expected to boost the demand for non-residential infrastructure that includes tech-parks and offices, which in turn is projected to drive the global extruded polystyrene Insulation Materials market. Due to globalization a shift in the industry trends has been observed owing to rapid economic growth in India and China.
Drivers – Extruded Polystyrene Insulation Materials Market
- Increased impact of building construction on environment and health fuels the need for green buildings.
Green building refers to the incorporation of environment friendly and resource efficient processes at each stage of construction. The concept of green building concentrates mainly on increasing the energy efficiency of the building and minimizing the wastage associated with the use of energy, water, and materials. Extruded Insulation Materials is a crucial part of green building because it is a key to reduction of the energy usage of a structure. This serves both the immediate owner by lowering energy costs and reduces greenhouse gasses. This factor is anticipated to increase the demand for XPS Insulation Materials during the forecast period Less harmful to ozone layer.
Extruded polystyrene (XPS), is a homogenous polystyrene produced primarily with characteristic colors of pink, blue and green. XPS begins as a molten material that is pressed out of a form into sheets. It is most commonly used as foam board insulation and is widely used for insulation of structural insulating panels and insulating concrete forms (ICFs). The Insulation Materialss of XPS use primarily HCFCs. These are 90% less harmful to the ozone layer than CFCs. The aforementioned advantages of XPS compel its use by manufacturers over other reinforcement materials.
Challenges – Extruded Polystyrene Insulation Materials Market
- Fluctuating raw material prices and presence of toxic chemicals
Fluctuating raw material prices and concerns due to presence of toxic chemical is anticipated to hinder the growth of the market. Moreover, the cost for installation is bit expensive due to its superior characteristics which are slowly hampering the growth of the market. Presence of high number of substitutes is considered to be challenging factor for the market developers. According to the European Union’s (EU) Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) program, hexabromocyclododecane (HBDC) present in polystyrene is listed as a chemical of high concern and recommends restricting its use as much as possible.
Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the extruded polystyrene Insulation Materials market. In 2019, the market of extruded polystyrene Insulation Materials has been consolidated by the top five players accounting for xx% of the share. Major players in the extruded polystyrene Insulation Materials market are BASF SE, Kingspan Group, Owens Corning, Emirates Extruded Polystyrene LLC, Jackon Insulation GmbH, Abrisonv, Ravago, Soprema Inc., URSA Insulation SA, and Austrotherm, among others.
Technological Innovation
- In July 2016, BASF developed a new technology for welding insulation boards. The contactless, thermal welding process makes it possible to combine a variety of Insulation Materialss. For example, Styrodur®, the extruded rigid polystyrene foam from BASF, can be combined with polyurethane, inorganic Insulation Materialss, or the melamine resin foam Basotect® to form completely new Insulation Materials solutions.
