Exterior Insulation and Finish System (EIFS) Market

The market for exterior insulation and finish system is approximated to be USD 90.2 billion in 2022, and it is projected to reach USD 160.3 billion by 2028, at a CAGR of 10.1%.

Exterior insulation and finish system is basically a non-load bearing exterior wall treatment that utilizes rigid insulation boards on the wall sheathing, providing a plastic-like appearance. Primarily, exterior insulation and finish systems are used to reduce the amount of energy required to cool or heat a building by reducing the entry of hot air in summers and escape of heat during winters. These systems provide superb insulation and design flexibility and have been a popular choice for exterior building cladding for several decades. The exterior insulation and finish system market is segmented on the basis of type into polymer-based (PB) and polymer-modified (PM).

ATTRACTIVE OPPORTUNITIES IN THE EXTERIOR INSULATION AND FINISH SYSTEM MARKET

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Exterior insulation and finish system Market Dynamics

Driver: Growing investment in the construction industry will drive the market.

Infrastructure spending is a key driver of global and regional economies. It is expected that spending on capital projects and infrastructure will grow significantly in the next decade. The US, China, Japan, Germany, Australia, Canada, India, Indonesia, Brazil, and Spain are investing large amounts in the construction industry to achieve rapid and sustained economic growth. Considerable infrastructure investment is required for the modernization and commercialization of economic activities. Rapid urbanization in emerging markets, such as China, India, Brazil, Malaysia, and Indonesia, further boosts spending in vital infrastructure sectors, such as hospitality, healthcare, retail, and transportation. Increasing prosperity in these emerging markets is expected to drive the exterior insulation and finish system market.

Restraint: Availability of alternative green insulation material

Conventional materials such as stone wool, glass wool, and plastic foam, among others, are used in exterior insulation and finish systems. However, green insulation material known as hempcrete is proving to be increasingly popular among building professionals and engineers, especially in Europe. Hempcrete is a mixture of hemp fibers and cement-like binders that can be used for building thermal insulation. Hemp can be cultivated in both temperate and tropical climates and absorbs CO2 during its growth process, making it environment-friendly. Hempcrete provides resistance to heat and manages moisture in buildings. Thus, its availability acts as a restraint for the conventional insulation market.

Opportunities: Building-related energy-efficiency policies and regulations

In recent years, the EU, the US, and Asia Pacific countries have been very active in implementing policies that are influencing the overall energy consumption and resulting in a reduction of GHG emissions. These policies and initiatives are aimed at addressing climate change, improving energy efficiency, and reducing dependency on foreign energy sources. All these initiatives provide an opportunity for the global and exterior insulation and finish system market.

Challenges: Limited awareness among end users

There is a lack of awareness among consumers as well as building professionals about exterior insulation and finish systems. In some cases, buildings are not even insulated to code, that is, as per the location, weather conditions, and structure of the building; this is often due to lack of awareness on the part of some architects and building code officials. This has resulted in inadequate insulation in many commercial buildings. The lack of awareness about exterior insulation and finish system is a major challenge for the market.

Exterior Insulation and Finish System (EIFS) Market ECOSYSTEM DIAGRAM

By Type, the Polymer-based segment accounted for the highest CAGR during the forecast period

The polymer-based segment led the market for exterior insulation and finish system, with a highest share of the overall market, in terms of value, in 2022, and is expected to grow at the highest CAGR from 2023 to 2028. The demand for exterior insulation in recent years has been increasing due to their properties, such as easy installation, the low cost, and resistance to heat and moisture of polymer-based insulation.

By Insulation Material, the EPS segment accounted for the largest share during the forecast period

The EPS segment accounted for highest share of the overall market in 2022, in terms of value. This can be attributed to the efficient cost, durability, water-resistance, high thermal insulation, low maintenance, and reliability of EPS. Exterior insulation and finish systems with EPS insulation material are the most widely used in North America and Europe.

By End Use Industry, the non-residential segment accounted for the largest share during the forecast period

The non-residential segment led the market for exterior insulation and finish system, with a highest share of the overall market, in terms of value, in 2022. Rising government concerns and increased spending on commercial & institutional construction have also fueled the demand for exterior insulation and finish systems in the non-residential segment. The housing renovation & remodeling activities, increasing green building norms, and focus on energy-efficient buildings in developed countries are the key factors propelling the growth of the exterior insulation and finish system market in the non-residential industry.

By Component, the exterior insulation and finish system comprised of adhesives, insulation boards, base coats, reinforcements (glass fiber mesh), and finish coats (renders and paints)

Exterior insulation and finish systems (EIFS) can be used to improve the energy efficiency of both new as well as existing buildings. A comprehensive range of these systems is available to meet the various demands of building structure and architecture. External insulation and finish systems or external thermal insulation composite systems (ETICS) are a set of construction elements consisting of certain (specified) prefabricated components applied directly to the facade.

By Thickness, the exterior insulation and finish system is available with 1-2 Inches, 3-6 Inches, and more than 6 inches

Exterior wall insulation has drawn a lot of attention in recent years due to both the high cost of energy as well as the impact that energy consumption has on the environment. The thickness of insulation plays an important role in determining how efficient the insulation is. When insulation of the right thickness is used, significant energy reduction can be achieved.

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Key Exterior Insulation and Finish System (EIFS) Market Players

Exterior insulation and finish system comprises major manufacturers such as Wacker Chemie AG (Germany), BASF SE (Germany), Saint-Gobain (France), Owen Corning (US), Sto SE & Co KGaA (US), Dryvit Systems Inc. (US), Terraco Group (UK), Omega Products International (US), Master Wall, Inc. (US), Parex USA, Inc. (US), Rmax (US), Durabond Products Limited (Canada), Adex Systems (Canada), and were the leading players in the exterior insulation and finish system market. Expansions, acquisitions, joint ventures, and Durock Alfacinf International (Canada). New product developments are some of the major strategies adopted by these key players to enhance their positions in the exterior insulation and finish system market.

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Scope of the Report

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This research report categorizes the global Exterior insulation and finish system market on the basis of Type, Insulation material, End-use industry, Component, thickness, and Region.

Exterior insulation and finish system Market, By Type

• Polymer-based (PB)
• Polymer-modified (PM)

Exterior insulation and finish system Market, By Insulation material

• EPS
• MW
• Others

Exterior insulation and finish system Market, By End-use industry

• Non-residential
• Residential

Exterior insulation and finish system Market, By Component

• Adhesives
• Insulation boards
• Base coats
• Reinforcement mesh
• Finish coats

Exterior insulation and finish system Market, By Thickness

• 1-2 inches
• 3-6 inches
• More than 6 inches

Exterior insulation and finish system Market, By Region

• Europe
• North America
• Middle East & Africa
• Asia Pacific (APAC)
• South America

The market has been further analyzed for the key countries in each of these regions.

Recent Developments

• In February 2023, The Sto SE & Co. KGaA launched StoGuard Conformable Membrane, a self-adhering membrane utilized in StoGuard air and water-resistant barrier systems. The novel membrane can be used to seal penetrations, rough apertures, substrate transitions, sheathing joints, dynamic joints, and substrate transitions.
• In March 2023, Wacker Chemie AG exhibited three new polymeric binders at the European Coatings Show in Nuremberg, Germany; the binders are intended for use in the creation of tile adhesives and mortars for external insulation and finish systems (EIFS). The VINNAPAS 4419 E, VINNAPAS 8819 E, and VINNAPAS 4449 E generate an unusually creamy consistency when added to dry-mix mortars, making the finished product simpler for customers to process. They also enhance wetting ability, and slip resistance.
• In June 2022, The BASF SE Neopor team launched Neopor BMB at the American Institute of Architects (AIA) Conference on Architecture in Chicago, IL. The low-carbon, EPS rigid foam insulation product offers added sustainability benefits in addition to traditional Neopor features. Neopor BMB's manufacture results in 60% lesser CO2 emissions than regular foam plastic insulation, and the material's carbon footprint is 90% lower than that of traditional Neopor.
• In January 2022, Owens Corning acquired Natural Polymers, LLC, a Cortland, Illinois-based producer of spray polyurethane foam insulation for building and construction applications. The tested technology from Natural will help the company offer clients a diverse selection of insulating products and long-term, sustainable solutions.

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