Product Code: 68930
The Global Extruded Polystyrene Market is projected to register a CAGR of over 4% during the forecast period (2021-2026).
The market was negatively affected due to COVID-19 in 2020. Owing to the outbreak of COVID-19, many projects were halted in 2020 because of lack of funds, labor shortage, and lockdown regulations. In many developed and developing countries such as the United States, China, and India, migrant workers wreaked havoc and stopped working in construction sites due to a ban on interstate travel. This causes disruption in the supply chain leading to less consumption of construction materials and decreased demand and supply of extruded polystyrene. For instance, in India, more than 30% of construction workers were away from construction sites due to the pandemic thus delaying the construction activities. Over 65% of companies in the construction ecosystem have been severely affected by the prolonged construction inactivity thus having a negative impact on the extruded polystyrene market. However, the construction industry is likely to witness growth in the coming years, owing to the activities in the economies such as China and India thus increasing the market for extruded polystyrene in the construction industry.
- Over the medium term, the major factors driving the market studied are growth in construction and building activities around the world and an increase in demand for insulation materials.
- On the flip side, the high cost of extruded polystyrene on comparing to its close substitutes and the negative impact of COVID-19 pandemic are expected to hinder the growth of the market.
- The growing concern regarding global warming and increasing demand for sustainable solutions like the introduction of green buildings is expected to offer various opportunities for the growth of market over the forecast period.
- By application, the residential segment is expected to dominate the market owing to the increasing expenditure on construction of new buildings due to the growing population and increased renovation of buildings along with the adoption of the concept of green buildings.
- Asia-Pacific region dominated the market across the globe with the largest consumption from countries such as China, India, and Japan.
Key Market Trends
Increasing Demand from Residential Segment
- Extruded polystyrene (XPS) is a thermoplastic polymer that has a closed-cell structure and is considerably stronger with higher mechanical performance but is more expensive than its close substitute expanded polystyrene (EPS).
- Extruded polystyrene is widely used in residential buildings in the form of rigid foam for the insulation of floors, roofs, walls, ceilings, and balconies owing to its properties namely high compressive strength and moisture resistance.
- Furthermore, extruded polystyrene is most widely used in the insulation of green buildings owing to its ability to reduce energy consumption by 6-8% and also ability to reduce greenhouse gas emissions namely carbon dioxide and methane.
- The global residential building construction industry is projected to register a CAGR of over 10% during the forecast period owing to which the demand for extruded polystyrene is expected to increase which will propel the extruded polystyrene market.
- According to World Bank and Mordor Intelligence Analysis, the construction industry spending worldwide in the year 2019 was USD 12 trillion and is forecasted to reach an estimated value of USD 15.3 trillion in the year 2026 which will create the demand for building walls.
- The US Census Bureau has been providing more permits for the construction of new residential buildings due to the current trend of a multi-family building, along with a rise in the migration to cities.
- According to US Census Bureau, construction spending in the United States in both private, as well as public construction in 2020, is around USD 1400 billion. Furthermore, according to StatCan, gross domestic product at basic prices for the construction industry in Canada in the year 2019 was around 141.22 billion Canadian dollars and is expected to increase during the forecast period.
- India is likely to witness an investment of around USD 1.3 trillion in housing, over the next four years, during which, the country is likely to witness the construction of 60 million new homes. The availability of affordable housing is expected to rise around 70% by 2024 in India.
- Owing to all the above-mentioned factors for extruded polystyrene, its demand from the residential segment is expected to grow rapidly over the forecast period.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific region is expected to dominate the market for extruded polystyrene during the forecast period. In countries like China, and India owing to the growing population, increasing industrialization, urbanization, and living standards, the demand for extruded polystyrene has been increasing in the region.
- The Asia-Pacific region accounted for more than 40% of the global extruded polystyrene consumption share owing to growth in various sectors namely banking, telecommunication, information technology, financial services, and insurance.
- Governments of countries like India, China, and Japan have emphasized reducing the emission of greenhouse gases owing to which adoption of green buildings is increasing in the region and the demand for extruded polystyrene is increasing as it reduces the emission of harmful gases like carbon dioxide and methane.
- The Indian government has allocated USD 63 billion for the infrastructure sector in 2019-20 and is planning to spend USD 1.4 trillion over the next five years.
- In India, the construction industry in value terms is expected to record a CAGR of 15.7% to reach USD 738.5 billion by 2022.
- The construction sector of India has been growing at a higher rate owing to the increasing investments and increasing purchasing power of people. The government of India supports the higher growth of construction sector through their schemes as: "Pradhan Mantri Awas Yojana (PMAY)" programme aims to build 20 million urban homes and 30 million rural houses by 2022.
- The rising expenditure in infrastructure development is expected to propel the extruded polystyrene market. For instance, China is investing USD 1.43 trillion in the next five year till 2025, in major construction projects. According to National Development and Reform Commission (NDRC), Shanghai plan includes the investment of USD 38.7 billion in next three years, whereas Guangzhou has signed 16 new infrastructure projects with and investment of USD 8.09 billion.
- Also, China has the largest building market in the world, making up 20% of all construction investment globally. The country alone is expected to spend nearly USD 13 trillion on buildings by 2030.
- The aforementioned factors, coupled with government support, are contributing to the increasing demand for extruded polystyrene during the forecast period.
The extruded polystyrene market is fragmented with players accounting for a marginal share of the market. Some key companies in the market include BASF SE, Synthos, Saint-Gobain ISOVER, Knauf Insulation, and DuPont.
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TABLE OF CONTENTS
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Drivers
- 4.1.1 Growth in Construction and Building Activities
- 4.1.2 Increase in Demand of Insulation Materials
- 4.2 Restraints
- 4.2.1 High Cost of Extruded Polystyrene
- 4.2.2 Negative Impact of COVID-19 Pandemic
- 4.2.3 Other Restraints
- 4.3 Industry Value Chain Analysis
- 4.4 Porters Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Consumers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5 MARKET SEGMENTATION
- 5.1 Application
- 5.1.1 Residential
- 5.1.2 Commercial
- 5.1.3 Infrastructure
- 5.2 Geography
- 5.2.1 Asia-Pacific
- 220.127.116.11 China
- 18.104.22.168 India
- 22.214.171.124 Japan
- 126.96.36.199 South Korea
- 188.8.131.52 Rest of Asia-Pacific
- 5.2.2 North America
- 184.108.40.206 United States
- 220.127.116.11 Canada
- 18.104.22.168 Mexico
- 5.2.3 Europe
- 22.214.171.124 Germany
- 126.96.36.199 United Kingdom
- 188.8.131.52 Italy
- 184.108.40.206 France
- 220.127.116.11 Rest of Europe
- 5.2.4 South America
- 18.104.22.168 Brazil
- 22.214.171.124 Argentina
- 126.96.36.199 Rest of South America
- 5.2.5 Middle-East and Africa
- 188.8.131.52 Saudi Arabia
- 184.108.40.206 South Africa
- 220.127.116.11 Rest of Middle-East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share (%)** /Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
- 6.4 Company Profiles
- 6.4.1 Austrotherm
- 6.4.2 BASF SE
- 6.4.3 DiversiFoam Products
- 6.4.4 DuPont
- 6.4.5 EMIRATES EXTRUDED POLYSTYRENE L.L.C.
- 6.4.6 Saint-Gobain ISOVER
- 6.4.7 JACKON Insulation GmbH
- 6.4.8 Kingspan Group
- 6.4.9 Knauf Insulation
- 6.4.10 Owens Corning
- 6.4.11 Ravago Greece Group
- 6.4.12 Soprema Group
- 6.4.13 Synthos
- 6.4.14 TECHNONICOL
- 6.4.15 URSA
- 6.4.16 Versalis S.p.A.
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Increasing Demand for Sustainable Solutions
- 7.2 Other Opportunities