Composite Insulated Panels Market - Size, Industry Share, Growth Trends and Forecasts (2023 - 2030)

Composite Insulated Panels Market Dynamics - (DRO) :

Key Drivers :

The increasing adoption of composite insulated panels in building walls

Composite insulated panels are employed in building walls to aid in efficient vapor, air, moisture, and thermal protection. Building walls are developed in various construction projects, including residential, commercial, industrial, and infrastructure. For instance, according to the recent 2022 statistics published by the European Construction Industry Federation (FIEC), in 2020, the investment in residential construction projects in the Netherlands was Euro 34,917.95 million (USD 39,883.15 million), and in 2021, it was EURO 36,175.00 million (USD 42,785.62 million). In 2021, the year-on-year growth rate of the Netherlands' residential construction industry was 3.6% as compared with the year 2020. Therefore, the growth in residential construction accelerated the construction of building walls. Hence, the increase in the development of building walls is boosting the demand for composite insulated panels to ensure superior thermal properties. This, in turn, is benefiting the market growth.

Growth in the development of building roofs is favoring the growth of the market

The key features of composite insulated panels include excellent weather & temperature resistance, minimum maintenance, lightweight, easy installation, and others. These vital characteristics enable higher functioning property for building roofs, which are critical for commercial buildings, including office buildings, hospitals, cinema halls, museums, and others. The development of new commercial construction projects is increasing due to the growing demand for larger commercial spaces. For illustration, in October 2022, Foster + Partners completed the construction of Varso Tower, a commercial building in Poland. Thus, the development of new commercial construction projects is driving the development of building roofs. As a result, the demand for composite insulated panels is increasing to ensure superior material flexibility, thereby proliferating market growth.

Key Restraints :

Fluctuations in the raw materials prices are restraining the growth of the market

The overall cost of composite insulated panels is primarily dependent on the cost of production, followed by the cost of raw materials such as polystyrene, polyurethane, and others. As a result, fluctuations in the prices of raw materials are posing a bottleneck for the growth of the market. Additionally, the above-mentioned materials are downstream derivatives of crude oil. For instance, Brent crude prices increased up to USD 139 per barrel in 2022. In addition to this, the Crude Oil Basket (COB) increased significantly by 35% from its initial budget estimate as per revised estimates for 2020-21. Hence, the volatility in the prices of raw materials including polystyrene, polyurethane, and others that are used in the production of composite insulated panels impacts the overall pricing of these chips. This, in turn, is restraining the growth of the market.

Future Opportunities :

Rise in the development of new cold storage is amplifying the market growth

Composite insulated panels are ideal for cold storage applications as the panels are equipped with excellent thermal performance. This makes composite insulated panels for use in a diverse range of cold storage applications such as refrigerated vehicles, temperature-controlled environments, and others. For instance, in April 2023, Cypress Cold Storage commenced the development of a new cold storage plant in Springdale, United States. The Cypress Cold Storage facility will be spread across 207,285-square-foot. This facility will consist of over 170,000 square feet of temperature-controlled space. The construction of the new Cypress Cold Storage facility will be completed by the end of 2024. Thus, the rising development of new cold storage facilities will boost the demand for composite insulated panels as these panels are utilized in cold storage ceilings, walls, cold store partitions, and others. This prime factor will boost the demand for the composite insulated panels market.

Top Key Players & Market Share Insights :

The composite insulated panels market is highly competitive, with several large players and numerous small and medium-sized enterprises. These companies have strong research and development capabilities and a strong presence in the market through their extensive product portfolios and distribution networks. The market is characterized by intense competition, with companies focusing on expanding their product offerings and increasing their market share through mergers, acquisitions, and partnerships. The key players in the market include-