Exterior Insulation and Finish System Market Research Report - Global Forecast 2027

Exterior Insulation And Finish System Market Research Report: by Type (Polymer-Based and Polymer Modified), Insulation Material (EPS (Expanded polystyrene), MW (Mineral Wood) and others), Component (Adessives, Insulation Board, Base Coat, Reinforcement, and Finish Coat) and Region (North America, Europe, Asia-Pacific, Middle East & Africa and South America) - Forecast till 2027

ID: MRFR/CO/7338-HCR | February 2021 | Region: Global | 107 pages

Exterior Insulation and Finish System Market Overview


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. 


Exterior Insulation and Finish System or EIFS are applicable for any construction. The major benefit of EIFS is it can offer protection in all weather conditions by offering thermal insulation inside the construction. It is wall cladding that allows insulation on the upper layer of a wall. EIFS has an organic polymer layer that comes with glass mesh that gives great strength. It allows the architecture to give any desired shape and allow them to show aesthetic. It protects the exterior wall by covering it with a protective layer for insulation and weather protection in any color, shape, or design. 


EFIS is great for both new applications as well as recladding applications. It provides economic and energy-efficient wall covering. EIFS originated in Germany after the Second World War as the building and houses were damaged. Then in late 1960, EIFS came to the US, and now it is a major part of construction in various locations. The best thing about EIFS is it makes the building energy-efficient. Even though EIFS costs more initially but it gives high ROI over time. It can save up to 20% to 30% on energy bills annually. 


EIFS can be molded to create different shapes such as columns, sculptures, window details, and arches. The cost of EIFS is less than the traditional insulation materials. EIFS is applied on the outside, doesn't encroach upon the interior, and can be used in extremely cold and hot places. Due to various advantages of EIFS, it is gaining huge demand and popularity worldwide, and it is boosting the Exterior Insulation and Finish System market growth. 


Covid-19 analysis


Due to the rapid spread of coronavirus worldwide, the governments are taking many preventive measures to reduce the spread. The world economy is going down, and many business sectors are struggling financially. Further, the imposition of lockdown and social distancing guidelines has affected the market. The construction sector was going through a tough time due to this. All the construction activities were on a halt due to lockdown. The laborers traveled back to their homes for their safety. So shortage of laborers was another problem for the construction sector. Various factors played a role in hampering the construction sectors during the covid-19 pandemic. Due to this, Exterior Insulation and Finish System market growth were down. The key players tried their best to boost the Exterior Insulation and Finish System market trends and stabilize the market. It is expected that the market will grow again after the covid-19 pandemic.


Market dynamics



  • Drivers in the Exterior Insulation and Finish System market


The Exterior Insulation and Finish System are highly popular in the European construction sector. Because in 2007, the European heads agreed to reduce the emission of CHG by 20% in 2020. This was a legal contract and a requirement for the European Union to reduce the CHG emission by 20%. The US also declared to reduce the spread of CHG emission by 17% in the year 2020, and most of the countries then declared to control CHG emission, and it became a trend. Due to this, the use became popular and propelled the Exterior Insulation and Finish System market size. 


Apart from that, in the developed regions, many middle-class consumers want to have better cooling and heating systems in their homes. But this demand can increase energy consumption and increase the related cost. But according to the research of the US Department of Energy, the air infiltration problem causes 40% energy loss. But the use of EIFS can reduce air infiltration hence make homes more energy efficient. Due to this, the Exterior Insulation and Finish System market trends are increasing rapidly.



  • Opportunities for Exterior Insulation and Finish System market


Various policies and regulation has generated various opportunities for the Exterior Insulation and Finish System market. EU, Asia-Pacific, and the US have implemented many policies that are reducing CHG emissions. All these new policies have helped the thermal insulation market to grow. All the regions are focusing on using energy-efficient insulation technologies. As a result, it will bring opportunities for the Exterior Insulation and Finish System Industry and boost its market size. 



  • Restraints in the Exterior Insulation and Finish System market


The availability of green insulation material is a big restraint for the market. In the EIFS market, stone glass, plastic foam, glass wool, and other materials are used. The green insulation material is used as an alternative for EIFS, and it is also environmentally friendly. As a result, it is hampering the Exterior Insulation and Finish System trends. 



  • Challenges in the Exterior Insulation and Finish System market


The installation of the Exterior Insulation and Finish System is a huge challenge for inexperienced laborers. Lack of skilled laborers for installing EIFS has become a major challenge for the Exterior Insulation and Finish System market. If the workers are not familiar with the application, it can ruin the quality, leading to holes, leaks, and crack in EIFS. Apart from that, the professionals' lack of awareness of EIFS is another challenge for the Exterior Insulation and Finish System market. 


Cumulative growth analysis


The Exterior Insulation and Finish System market size will increase due to the huge demand in the construction sector. The Exterior Insulation and Finish System industry will witness a healthy CAGR of 12.43%. 


Market segmentation


The Exterior Insulation and Finish System market is segmented based on type, insulation material, and component. 



  • By type


By type the Exterior Insulation and Finish System market is further divided into polymer-modified and polymer-based. The polymer-based segment holds the highest Exterior Insulation and Finish System market share in 2018, and it is expected to grow at the highest CAGR during the forecast period.



  • By material


The material segment of the Exterior Insulation and Finish System market is divided into expanded polystyrene, mineral wool, and others. Expanded polystyrene was responsible for the highest Exterior Insulation and Finish System market share in 2018, and it is expected to register the highest CAGR in the forecast period. 



  • By component


Based on components, the Exterior Insulation and Finish System are divided into insulation board, adhesive, base coat, finish coat, and reinforcement. Among them, insulation board holds the highest Exterior Insulation and Finish System market share in the market.


Regional analysis


The major regions in the Exterior Insulation and Finish System are North America, Europe, Asia-pacific, and others. Europe has the highest share in the Exterior Insulation and Finish System due to countries like Italy, Poland, and others. These regions offer so many opportunities for the Exterior Insulation and Finish System industry. The growth of the market in this region is mainly due to the increasing construction of residential and commercial properties and the high demand for thermal insulation. 


The growing population and economic development in these regions boost the demand of the Exterior Insulation and Finish System market. North America is expected to hold the highest share in the Exterior Insulation and Finish System market due to t implementation of various government initiatives and energy conservation. Exterior Insulation and Finish System market in Asia-Pacific will also see a huge demand due to increasing constriction activities and urbanization.


Competitive landscape


The major key players in the Exterior Insulation and Finish System are



  • 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)


Them Owen Corning (US) contributes highly in the Exterior Insulation and Finish System market. 


Recent developments 



  • In June 2018, BASF, a leader in the manufacturing of construction chemicals, raised its production capacity of Neopor by 40,000 metric tons annually. 


Report overview


This global Exterior Insulation and Finish System market report is based on the qualitative and quantitative analysis of the market. This report highlights the Exterior Insulation and Finish System market on the market overviews, covid-19 analysis, market dynamics, and Exterior Insulation and Finish System market analysis. This Exterior Insulation and Finish System market also highlight regional analysis, competitive landscape, and recent market development.


Segmental table


By Product Type



  • Polymer-based(PB)

  • Polymer-modified(PM)


By Insulation Material  



  • Expanded Polystyrene (EPS)

  • Mineral Wood (MW)


By Component



  • Adhesive

  • Base Coat

  • Insulation Board

  • Finish Coat

  • Reinforcement



Report Scope:
Report Attribute/Metric Details
  Market Size   2027: Significant Value
  CAGR   12.34% CAGR (2020-2027)
  Base Year   2019
  Forecast Period   2020-2027
  Historical Data   2018
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Type, Insulation Material, Component
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   BASF (Germany), Wacker Chemie AG (Germany), Saint-Gobain (France), Owen Corning (US), Sto SE & Co KGaA (Germany), Master Wall, Inc. (the US), Dryvit Systems Inc. (US), Rmax (US) and Parex USA, Inc. (US). Other companies include Durock Alfacinf International (Canada), Durabond Products Limited (Canada), Omega Products International (US), Adex Systems (Canada), and Terraco Group (UK).
  Key Market Opportunities   Due to stringent government regulations
  Key Market Drivers   Increasing demand for modern infrastructure such as energy-efficient buildings in the construction sector


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Frequently Asked Questions (FAQ) :


The global exterior insulation and finish system market is estimated to hold a substantial value during the forecast period.

The global exterior insulation and finish system market is estimated to thrive at a CAGR of 12.34% during the review period.

The global exterior insulation and finish system market is predicted to be the fastest-growing market, followed by North Americ

The global exterior insulation and finish system market can be segmented on the basis of component, insulation material, type, and region.

the most renowned names of the global exterior insulation and finish system market are Wacker Chemie AG (Germany), Sto SE & Co KGaA (Germany), Owen Corning (US), Rmax (US) and Parex USA, Inc. (US), and Dryvit Systems Inc. (US).