Steel Sandwich Panels Market - Forecast(2023 - 2028)

Steel Sandwich Panels Market Overview

The Steel Sandwich Panels Market size is forecast to reach US$3.3 billion by 2027, after growing at a CAGR of 8.2% during 2022-2027. Steel sandwich panel is a common building material widely used in roof & wall insulation systems in industrial plants, warehouses, gymnasiums and other applications owing to its great heat and sound insulation properties. The various types such as expandable polystyrene panels, polyurethane panels, glass wool panels, power factor panels and mineral wool panels find their application in various end-use industries owing to their high strength & excellent corrosion resistance, easy installation and lightweight properties. The increase in construction and building maintenance activity will drive the steel sandwich panels industry. For instance, as per the U.S. Department of Commerce, the U.S. construction spending for May 2022 is around US$1,779.8 billion and is 9.7% above the May 2021 estimate of US$1,621.9 billion. Therefore, the rise in construction spending will increase construction activity and in turn will drive the steel sandwich panels market. However, the global economic downturn caused by the COVID-19 pandemic resulted in a huge drop in demand for steel sandwich panels in building construction and maintenance activity all across the world, which had a significant impact on the growth of the steel sandwich panels industry.

Steel Sandwich Panels Market Report Coverage

The report: “Steel Sandwich Panels Market Report – Forecast (2022 - 2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Steel Sandwich Panels industry.

By Type: EPS (expanded polystyrene) Panels, Polyurethane (PU) Panels, Glass Wool Panels, PF Panels, Polyisocyanurate (PIR) panels and Others.
By Application: Building Roof Insulation, Building Wall Insulation, Interior & Exterior Decoration, Cold Room, Freezer Room, Sound-Heat-Insulating and Others.
By End-use Industry: Residential Building (Independent Home, Large Appartements, Row Houses), Commercial Building (Hospital & Healthcare, Educational Institutes, Hotels & Restaurants, Banks & Financial Institutions, Airports, shopping malls, Hyper & Super Market and Others), Industrial Building (Industrial Plant, Wearhouse, Mobile Houses and Others), Agriculture & Husbandry Building and Others.
By Geography: North America (the USA, Canada and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Belgium and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and Rest of South America), Rest of the World: Middle East (Saudi Arabia, UAE, Israel, Rest of the Middle East) and Africa (South Africa, Nigeria, Rest of Africa).

Key Takeaways

• The Asia-Pacific region dominates the Steel Sandwich Panels Market share with a CAGR of 9.4% during the forecast period (2022-2027) owing to the rising growth in the development of high-rise towers and commercial buildings in various countries such as China, India, Japan and South Korea.
• Growing awareness about energy-efficient buildings, improvement in thermal performance of sandwich panels and implementation of stringent regulations towards energy conservation is boosting the steel sandwich panel market size between 2022-2027.
• The rise in industrialization is boosting the demand for industrial buildings which in turn will raise the demand for glass wool panels, polyurethane panels and power factor panels.

Figure: Steel Sandwich Panels Market Revenue Share in 2021, By Geography (%)

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Steel Sandwich Panels Market Segment Analysis – By Type

The expandable polystyrene panels segment of steel sandwich panels held the largest Steel Sandwich Panels Market share in 2021 and is expected to grow at a CAGR of 7.8% during 2022-2027. The expandable polystyrene panels are fabricated by heating the polystyrene beads and expanding them to more than 50 times their existing size. The expandable polystyrene panels are cost-effective and have thermal resistance properties. These products are widely used for purification plant ceilings, enclosures and purification products of industrial plants, warehouses and many more. The growing building construction and repair & maintenance activity will drive the steel sandwich panels industry. According to the U.S. Associated of General Contractors, construction is one of the largest customers for manufacturing, mining and a variety of services in the U.S. economy with US$1.4 trillion worth of structures each year. Thus, with the rise in the construction activity globally, the demand for expandable polystyrene panels segment will increase and in turn boost the demand for steel sandwich panels market size during the forecast period.

Steel Sandwich Panels Market Segment Analysis – By End-use Industry

The residential sector held a significant Steel Sandwich Panels Market share in 2021 and is estimated to grow at a CAGR of 8.9% during the forecast period 2022-2027. Steel sandwich panels such as polyurethane panels, glass wool panels, power factor panels and mineral wool are widely used for various applications such as building roof insulation, building wall insulation, interior & exterior decoration, sound-heat-insulating and others owing to their ease of application. The demand for steel sandwich panels is rising due to the increase in residential construction activity globally. For instance, residential construction spending is valued at US$938.2 billion in May 2022, a 0.2% has been increased as compared to the April 2022 estimate of US$935.9 billion in the U.S. Such growth in the investment for residential projects will propel the growth of the steel sandwich panels market size.

Steel Sandwich Panels Market Segment Analysis – By Geography

Asia-Pacific region dominated the Steel Sandwich Panels Market share by 42% in the year 2021, owing to the rising investment in the construction, repair and maintenance of building in the region. China is estimated to witness growth in the demand for glass wool panels, polyurethane panels, power factor panels and mineral wool due to the rise in construction activity. For instance, in January 2022, China unveiled a development plan for its construction industry to push the pillar sector of the country's economy onto a greener, smarter and safer path with the plan to modernize its industrial chain. Moreover, Vietnam Ho Chi Minh City People’s Committee issued a decision approving the adjustment of the 1/500 detailed planning of the eco-smart city project invested by Lotte Group with a capital of nearly US$1 billion to develop commercial & residential units in Thu Thiem New Urban Area of Thu Duc city at the end of 2021. Such initiatives and investments from the government for construction and development projects in the APAC countries are anticipated to increase the demand for steel sandwich panels and are proving to be a market booster for the steel sandwich panels market size in this region. 

Steel Sandwich Panels Market Drivers

Increasing demand for Steel Sandwich Panels with the growing Housing projects 

The government initiatives in the development of affordable housing globally are expected to support the growth of the steel sandwich panels market size over the forecast period. Accordingly, it launched various social housing programs such as the Housing for Poor Rural Families Program, low-rent housing for industrial zone employees and low-income urban social housing-local government. For instance, there are more than 260 ongoing projects providing about 219,000 apartments in Vietnam as per the Ministry of Construction. Also, the various commercial & industrial construction project kicked off in the fourth quarter of 2021 in Indonesia are the Tuban olefin complex project, Gresik copper smelting plant, plaju green diesel refinery and many more. Thus, significant market traction from the increasing usage of polyurethane panels and glass wool panels across residential and commercial construction is further projected to fuel the market growth. 

The growing need for Energy Efficient Buildings

The growing need for energy-efficient buildings is mainly due to electricity emissions from buildings from different electronic devices like air conditioners, coolers and others. According to the United Nations Environment Programme, building operations accounted for 28% of global emissions while construction-related industries like cement, glass and others added another 10% of emissions. The steel sandwich panels are widely used for building roof insulation, building wall insulation, interior & exterior decoration and sound-heat-insulating. Owing to this, the use of electric appliances will decrease. Therefore, growing emission from a building is boosting demand for the steel sandwich panels market during the forecast period.

Steel Sandwich Panels Market Challenges

Higher cost of steel sandwich panels

The cost of steel sandwich panels is much higher compared to traditional lagging and cladding insulation techniques. The reason behind this is its production cost while producing steel sandwich panel products. The machinery and the equipment which are used are tagged with higher expense, also, these types of machinery require high maintenance. Owing to this factor, the product of steel sandwich panels comes at a higher price as compared to its alternative materials, which tends to constrain the growth of the market. Also, expensive application techniques and fluctuations in raw material prices will hamper the market growth.

Steel Sandwich Panels Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies players adopt in the Steel Sandwich Panels Markets. The top 10 companies in the Steel Sandwich Panels industry include:

1. Arcelor Mittal SA
2. Fischer Profil Gmbh
3. Alubel Spa
4. Balex Metal Sp Z.O.O.
5. Isopan Spa
6. Isomec Srl
7. Kingspan Group Plc
8. Metecno Pty Ltd.
9. Omnis Exteriors Ltd.
10. Silex

Recent Developments:

• In November 2021, AGACAD announced the release of Sandwich Panels, the latest solution to join the ranks of our specialized framing software for Autodesk Revit.
• In June 2021, Nucor Corporation has signed a definitive purchase agreement to acquire Cornerstone Building Brands' insulated metal panels (IMP) business which includes wall and roof panel solutions comprised of an energy-efficient foam core sandwiched between two layers of steel or aluminum and are available in a variety of widths, thicknesses and exterior finishes.
• In December 2020, ArcelorMittal Construction signed an agreement with Llentab, a manufacturer and contractor for steel buildings, to acquire its Kungshamn panel production line in Sweden which produces mineral wool (MiWo) panels for steel buildings, adds to the existing profile production lines in ArcelorMittal Construction’s Swedish business.

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