Exterior Insulation & Finish System Market Research Report—Global Forecast till 2030

Exterior Insulation & Finish System Market Research Report Information By Type (Polymer-based, Polymer-modified) Insulation Type (Expanded polystyrene, Mineral wool, Others) Thickness (1-3inches, 3-6 inches, More than 6 inches) Components (Adhesives, Insulation board, Base coat, Reinforcement, Finish coat) Forecast 2030

ID: MRFR/CO/7338-CR | August 2022 | Region: Global | 107 Pages         

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Exterior Insulation and Finish System Market

Exterior Insulation and Finish System market value were $55.41 billion in 2018, and the market is expected to register a CAGR of 12.34% in the market forecast period.

Segmentation
By Type Polymer-Based and Polymer Modified) Insulation Material (EPS (Expanded polystyrene) MW (Mineral Wood) and others
By Component Adessives Insulation Board Base Coat Reinforcement Finish Coat
Key Players
Companies Profiled   Sto SE & Co KGaA (Germany)   BASF (Germany)   WackerChemie AG (Germany)   Saint-Gobain (France)   Owen Corning (US)   Master Wall    Inc. (the US)   Dryvit Systems Inc. (US)   Rmax (US)   Parex USA    Inc. (US)   Omega Products International (US)   Adex Systems (Canada)      Terraco Group (UK)   Alfacinf International (Canada)   Durabond Products Limited (Canada)
Drivers
Market Driving Forces   Increasing demand for modern infrastructure such as energy-efficient buildings in the construction sector
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Exterior Insulation & Finish System Market Overview


Exterior Insulation and Finish System or EIFS is applicable to any construction. The main benefit of EIFS is that it can provide protection in all weather conditions by providing thermal insulation within the structure. It is a wall covering that allows insulation on the top layer of a wall. Exterior Insulation and Finish System has an organic polymer layer covered with a glass fabric that gives it great strength. It allows the architecture to give any desired shape and allow them to show aesthetic. EIFS protect the exterior wall by covering it with an insulating and weatherproof layer of any color, shape, and finish.


COVID-19 Impact on the Global Exterior Insulation & Finish System Market:


The advent of the global pandemic, COVID-19, has resulted in a global crisis. Impacting over 195 countries, the pandemic has created an economic backdrop worldwide and is deemed to create a chaotic environment, thereby resulting in the advent of global rescission.


The COVID-19 pandemic has disrupted the global supply chain and interrupted the entire value chain, from raw material procurement to manufacturing, packaging, and distribution. With several manufacturers having the required raw material and end-product stock, the impact does not seem high for a short duration. However, if the pandemic prolongs and trade restrictions are extended, the impact is expected to rise on the global exterior insulation and finish system market.


Market Dynamics


Drivers

  • Supportive government regulation on building insulations

  • Rising investment requirement for infrastructure development

  • Rising demand for energy efficient buildings


Insulation acts as a barrier to heat loss and heat gain, particularly in roofs, ceilings, walls, and floors. Insulation in any building provides resistance to heat flow and lowers the heating and cooling costs. Properly insulating the building not only reduces heating and cooling costs but also improves comfort. In many residential buildings, insulation is the most cost-effective way to make a house more energy-efficient, keeping it cooler in summer and warmer in winter and saving up to 80% in heating and cooling losses. In addition, insulation may reduce condensation in homes. This can provide health benefits by reducing mold and dampness.


Restraints

  • Availability of skilled labour

  • Fluctuating supply and price of raw materials


Increasing fluctuations in material costs due to changes in supply and demand and production costs are among the key factors affecting sales of exterior insulation and finish system market globally. The increased demand for the product affects the upward pressure on prices. Growing competition among industry players due to the large number of regional and multinational manufacturers is also a major obstacle to the growth of the industry. Manufacturers facing downward pressure on prices due to increased competition can hamper industry demand.


Opportunities

  • Government initiatives for reduces greenhouse gas emissions


Global greenhouse gas emissions generally arise from the energy used to generate heat, with a vast majority of the residential buildings still relying on fossil fuel-powered gas boilers and building stock, which are poorly insulated and are inefficient. This gives building insulation the opportunity to cut greenhouse gas emissions and emissions of harmful pollutants. It helps the residential spaces and commercial spaces to cut money, with the most cost-effective opportunities expected to arise from better insulation and from replacing inefficient heating systems. It is important to ensure that homes and buildings being built now and in the future are highly energy efficient. The government is committed to introducing various energy efficiency standards for new homes and buildings, which include insulation systems.


Supply Chain Analysis


The companies require raw materials, such as plastic foam, glass wool, mineral wool, and others. The raw materials can be project specific as exterior insulation and finish system industry varies with construction and aesthetic values. The companies purchase raw materials and convert them into the final insulation product such as foams, engineered plastics, pipework insulations, and others, as per the client requirements.


The distribution includes both domestic and international. The exterior insulation and finish system market generally depends on imports from various countries. Final products are distributed through an organized channel of physical distributors. The end users comprise the construction industry. Residential and commercial construction companies require building insulation products to elevate the construction value. Such additions to the buildings are given high importance with increased aesthetic values.


Segmentation


Based on type:


Polymer-based and polymer-modified are the segments based on the type of the Global Exterior Insulation & Finish System Market. The growing demand for efficient energy use requires effective thermal insulation materials. The most common type of EIFS is the polymer-based (PB) system. This system has a nominally 1/16 inch thick reinforced base coat that is applied to the insulation before the top coat is applied. The insulation is usually made of closed expanded polystyrene (EPS) and can be glued or mechanically connected to the sheathing. The segment accounted for an 83.90% share of the global exterior insulation & finish system market in 2021.


Based on insulation type:


Expanded polystyrene, mineral wool and others are the segments of global exterior insulation and finished system market. Mineral wool is perhaps the best known of the whole range of insulation types. It is widely used in all sectors of industry, transport and building for thermal, acoustic and fire-protection purposes. There is a common misconception that mineral wool is a specific product type – it is not. Mineral wool is a generic name for a range of man-made non-metallic inorganic fibers. Due to protection from fire outbursts and other fire related hazards, mineral wools are heavily used across Europe. Due to this, the segment accounted for the highest share.


Based on thickness:


1-3 inches, 3-6 inches and more than 6 inches are the segments based on thickness of the Global Exterior Insulation & Finish System Market. The 1-3 inches segment accounted for a largest market share of 67.01% in 2021. However, the 3-6 inches segment is likely to register the highest CAGR of 1 during the review period.


Based on components:


Adhesives, insulation board, base coat, reinforcement, finish coat and others are the segments of global exterior insulation and finish system market based on components. The base coat segment accounted for the largest market share of 33.97% in 2021. However, the adhesives segment is likely to register the highest CAGR during the review period. Adhesive is used to attach the expanded polystyrene board to the main wall. It is a water-based elastomeric coating that uses the latest technology to resist adverse weather conditions, chemical erosion, etc.


Regional Analysis


The regions are classified as North America, Europe, Asia-Pacific, Middle East & Africa and South America. Europe has the largest regional market during the forecast period. The increasing market demand, broad market scope, and support from the government have led many corporates, individuals as well as independent government bodies to heavily invest in the R&D of thermal insulations. For instance, BASF introduced an innovative product tagged as Cavipor insulation material for the existing buildings. The vacuum insulations and other technologies are also ready to roll in the market. Considering the advantages, such as environmental benefits, economic benefits, and long-lasting performance, the European energy efficiency and greenhouse gas reduction policy sets challenges for the insulation of both new and old properties to go for nearly zero energy building, accelerating the R&D department as well. The second largest market share being of North America. 


Competitive Landscape


The market comprises tier-1, tier-2, and local players. The tier-1 and tier-2 players have a global reach and diverse product portfolios. BASF SE, Saint Gobain SA, Wacker Chemie AG, Sto Se & Co KGAA, and Owen Corning are the players dominating the global market due to brand reputation, product differentiation, financial stability, and diversified regional presence.


The market players are focused on investing in research & development and adopting strategic growth initiatives such as expansion, product launches, agreement, partnership, acquisition, and merger to strengthen their market position and capture a large customer base.


List of Key Companies covered in the report:



  • Basf SE (Germany)

  • Saint Gobain SA (France)

  • Wacker Chemie (Germany)

  • STO SE & CO KGAA (Germany)

  • Owen Corning (US)

  • Dryvit Systems, Inc. (US)

  • Master Wall, Inc. (US)

  • Parex USA, Inc. (Canada)

  • Sika Ag (Switzerland)

  • Durabond Products Ltd. (Canada)


Recent Developments:



  • In June 2022, Owens Corning has completed the acquisition of WearDeck, a premium composite decking and structural lumber manufacturer based in Ocala, Florida. WearDeck solutions will advance Owens’s growth strategy and help pivot company’s Composites business to focus on high-value material solutions within the building and construction space

  • In May 2021, Sika acquired Supermassa do Brasil Ltda, a mortar manufacturer which operates under the brand BR Massa in the Brazilian market. The acquisition will enhance Sika’s position in the region of Minas Gerais, one of the strongest economic regions in Brazil, and complement the production footprint.

  • In April 2020, ADFORS, a part of the Saint-Gobain family launched FibaLath, an innovative fiberglass lath to be used in stucco applications and exterior/interior manufactured stone and brick facades. The unique patented three-dimensional profile of FibaLath is self-furring and attaches the same way as a metal lath. It is lightweight and pliable making it easier and safer to cut and carry compared to metal lath.

  • In June 2018, Sto has partnered with Dri-Design to offer a line of unique architectural panels that are available in a variety of metals (anodized copper, aluminum, and zinc) and with Swisspearl to offer to offer high-caliber fiber cement panels.

  • In March 2018, Wacker Chemie AG is expanding its product portfolio of dispersible polymer powders by including VINNAPAS 4240 N, which offers highly flexible and excellent adhesive properties. The powder, which is based on vinyl acetate-ethylene (VAE), is extremely suitable for numerous wall applications such as adhesive and embedding mortar in external thermal insulation composite systems or finishing plasters.


Report Overview:


The Global Exterior Insulation & Finish System Market is segmented based type, insulation type, thickness, and component in this report. The report is focused on various analytical aspects such as market dynamics, Supply chain analysis, Porter’s five forces, competitive landscape, recent developments, and company profiles. The insights in this report, comprise, discuss views, and predict the emerging and fast-growing segments, regions, and countries with potential of development in the Global Exterior Insulation & Finish System Market.


Segmentation Overview:


By type:



  • Polymer-based

  • Polymer-modified


By Insulation type:



  • Expanded polystyrene

  • Mineral wool

  • Others


By thickness:



  • 1-3inches

  • 3-6 inches

  • More than 6 inches


By components:



  • Adhesives

  • Insulation board

  • Base coat

  • Reinforcement

  • Finish coat


By Regions:



  • North America

  • Europe

  • Asia-Pacific

  • Middle East & Africa

  • South America


Objectives of the Study



  • To get a comprehensive overview of the Global Exterior Insulation & Finish System Market.

  • To get wide-ranging information about the key factors driving the market and market opportunities

  • To gain information regarding the key players in the industry, technology advancements and key developments

  • To gain insights about the key country/region in which the market is growing


Intended Audience



  • EIFS Companies

  • Research Institutes

  • Academic Institutes

  • Government Organizations



Report Scope:

Report Attribute/Metric Details
  Market Size    2030: USD 2,75,799.72Million
  CAGR    11.59%
  Base Year   2021
  Forecast Period    2022-2030
  Historical Data   2019 & 2020
  Forecast Units   Value (USD Million)
  Report Coverage    Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Type, Insulation type, Thickness, Component
  Geographies Covered   North America, Europe, Asia-Pacific, Middle East & Africa and South America
  Key Vendors   Basf SE (Germany), Saint Gobain SA (France), Wacker Chemie (Germany), STO SE & CO KGAA (Germany), Owen Corning (US), Dryvit Systems, Inc. (US), Master Wall, Inc. (US), Parex USA, Inc. (Canada), Sika Ag (Switzerland), Durabond Products Ltd. (Canada)
  Key Market Opportunities   Government initiatives for reduces greenhouse gas emissions
  Key Market Drivers   Supportive government regulation on building insulations Rising investment requirement for infrastructure development Rising demand for energy efficient buildings


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Frequently Asked Questions (FAQ) :

The Global Exterior Insulation & Finish System Market would register a growth of 11.59% during the forecast period.

Fluctuating supply and price of raw materials is a key retraining factor for the Global Exterior Insulation & Finish System Market

Europe would enjoy the upper hand in the Global Exterior Insulation & Finish System Market