Exterior Insulation and Finish System (EIFS) Market

Exterior Insulation and Finish System (EIFS) Market Outlook 2023 to 2033

Newly-released exterior insulation and finish system market analysis report by Fact.MR reveals that global sales of Exterior Insulation and Finish Systems in 2023 were held at US$ 3.7 Billion. With 13.9% projected growth from 2023 to 2033, the market is expected to reach a valuation of US$ 13.6 Billion by the end of the forecast period.

Exterior insulation and finish system in EPS Insulation (PB EIFS) is expected to be the highest prominent generating type in the market, projected to grow at a CAGR of over 10.5% from 2023 to 2033. Exterior Insulation and Finish System in commercial sector by end use is expected to be the highest revenue-generating segment in the market, projected to grow at a CAGR of over 12.5% from 2023 to 2033.

Attributes	Details
Global Market Size (2023)	US$ 3.7 Billion
Global Market Size (2033)	US$ 13.6 Billion
Global Market CAGR (2023-2033)	13.9%
U.S. Market CAGR (2023- 2033)	10%
Key Companies Covered	BASF SE Sika Corporation Owen Corning Wacker Chemie AG Sto SE & Co KGaA Parex Group Danosa Baumit GmbH Dryvit Systems, Inc.

Revenue of the Exterior Insulation and Finish System Market from 2018 to 2022 Compared to Demand Outlook from 2023 to 2033

As per the exterior insulation and finish system market research by Fact.MR - a market research and competitive intelligence provider, historically, from 2018 to 2022, the market value decreased by around -0.2% CAGR due to Covid-19, as the pandemic caused a decrease in construction activity, which affected the demand for EIFS products. With an absolute dollar opportunity of US$ 10.3 Billion, the market is projected to reach a valuation of US$ 13.6 Billion by 2033.

What Key Factors are influencing the Market's Expansion?

The key driver of exterior insulation and finish system are Growing investments in the green building construction industry and its cost efficiency. The EIFS industry is driven by a combination of factors related to durability, energy efficiency, and cost-effectiveness.

The development of green buildings and the reduction of greenhouse gas emissions are among the industries with the greatest global growth rates, which primarily fuel the growth of the EIFS industry. According to the World Green Building Trends, architects, engineers, contractors, and investors will take part in more green building activities globally over the next 3 years.

Due to its extensive colour and material flexibility, EIFS is the optimal option for individually designed building exteriors. For instance, Sto Corp., a manufacturer of EIFS, highlights the EIFS's ability to be designed with a variety of colour, texture, and shape options. There are also less cosmetic maintenance requirements due to the EIFS material's increased strength and endurance. To keep building exteriors looking clean and freshly painted, EIFS also have a tendency to prevent dirt, moisture and mould.

EIFS has potent insulation qualities that decrease heat transfer through walls and increase a building's energy efficiency. The Green Building Council Indonesia (GBCI) claims that buildings that adhere to green building standards can save between 26% and 40% of their energy per month.

Innovative methods for tried-and-true construction methods, like EIFS, provide solutions to raise the overall R-value of the wall assembly, which can result in improved energy efficiency in a light wall assembly. Expanded polystyrene, also known as EPS, has an R-value of 3.85 per inch and is typically used as insulation in EIFS. This can be installed as thick as six inches or more, which can cut annual energy bills by 20% to 30%.

Which Region is projected to offer the Largest Exterior Insulation and Finish System Opportunity?

Europe held a market size of US$ 1 Billion in 2022 and it has US$ 1.1 Billion in 2023. It is projected that Europe will have a market worth US$ 4.5 Billion in 2033.

Europe is taking proactive steps in advancing decarbonisation roadmaps on a national and European level to drive climate action in the built environment. Europe along with World Green Building Council unveiled a new policy strategy in May 2022 to hasten the decarbonisation of buildings and construction. EIFS can be a prominent component that can help Europe to successfully implement this strategy.

Country-wise Analysis :

United States Exterior Insulation and Finish System Market Analysis :

The market in the United States is expected to grow to be worth US$ 3.2 Billion by 2033, with an absolute dollar growth of US$ 2.1 Billion. The market in the country is expected to grow at a CAGR of 10% from 2023 to 2033.

The EIFS market is expected to continue to grow in the US, driven by factors such as demand for energy efficiency. In 2013, the US Department of Energy ordered all states to update their commercial building rules to comply with or beyond ASHRAE Standard 90.1-2010, which calls for the usage of EIFS to attain significant R-values and follow relevant building codes. These factors contribute to the growing demand for EIFS in the U.S.

Canada Exterior Insulation and Finish System Market Analysis :

The market in Canada is expected to grow to be worth US$ 547.8 Million by 2033, with an absolute dollar growth of US$ 389.2 Million. The market in Canada has grown at a CAGR of 1.4% from 2018 to 2022 and is expected to grow at a CAGR of 11.9% from 2023 to 2033.

Due to the many sustainability advantages of green construction practises, which include lowering negative environmental effects by using other natural resources, less water, renewable energy, and enhancing indoor environmental quality, they are becoming more popular in Canada.

In 2014, the green building industry supported 297,890 employment and generated US$ 23.45 billion in GDP, according to a research by the Canada Green Building Council. Hence, the growth of green building practices and the increasing demand for sustainable building design have contributed to the growth of EIFS.

China Exterior Insulation and Finish System Market Analysis :

The market in China is expected to grow to be worth US$ 1.8 Billion by 2033, with an absolute dollar growth of US$ 1.4 Billion. The market in China has grown at a CAGR of 3.7% from 2018 to 2022 and is expected to grow at a CAGR of 15.6% from 2023 to 2033.

China had the largest green building market in terms of value in 2021. With approximately 180 million square feet of certified LEED buildings, China also has the most number of such buildings globally. Thus, the construction of green buildings and the reduction of greenhouse gas emissions are the primary factors driving the EIFS market growth in China.

Germany Exterior Insulation and Finish System Market Analysis :

The market in Germany is expected to grow to be worth US$ 367.9 Million with an absolute dollar growth of US$ 307.8 Million. The market is expected to grow at a CAGR of 18% from 2023 to 2033.

One of the key reasons for the popularity of EIFS in Germany is their architectural versatility as EIFS comes in a wide range of colours, textures, and finishes, allowing architects to create unique and customized designs. Due to these properties of EIFS many German architectural firm are incorporating EIFS in their projects.

For instance, German companies such as MIND AC have created adaptable architectural projects, such as office spaces with wood envelopes, displaying cutting-edge and flexible design techniques.

Category-wise Insights

Which Type in Exterior Insulation and Finish System is projected to Witness Securely Growth?

EPS Insulation (PB EIFS) Market is expected to grow at a CAGR of 10.5% from 2023 to 2033. Expanded polystyrene (EPS) insulation is growing in demand due to its various properties, including its resistance to humidity, shock absorption, resistance to compression, and insulating properties. According to studies, EIFS with EPS insulation can contribute to energy savings of 20-30% compared to buildings without insulation. These factors contribute to the growing demand of EPS insulations in recent years.

Competitive Analysis:

Key players in the market include BASF SE, Sika Corporation, Owen Corning, Wacker Chemie AG, Sto SE & Co KGaA, Parex Group, Danosa, Baumit GmbH, Dryvit Systems, Inc., Caparol, Ceresit, Amvic Building System, Saint-Gobain Weber, and Total Wall Systems Inc.

Some of the recent developments in the market are :

• In May 2023, Sika Corporation announced that it acquired MBCC group. With this acquisition Sika expanded its presence throughout the world, broadened its selection of goods and services to cover the entire lifecycle of a building, and accelerated the transition to a more sustainable construction industry.
• In June 2022, BASF SE announced the release of Naopor BMB during the American Institute of Architects (AIA) Conference on Architecture in Chicago, Illinois. The low carbon, EPS rigid foam insulation alternative provides additional sustainability benefits in addition to the regular Neopor features.
• In September 2021, Contemporary Amperex Technology Co., Limited (CATL) and BASF SE have formed a partnership to develop battery material solutions. The collaboration aims to advance CATL's localization in Europe, develop a sustainable battery supply chain, and assist both companies in achieving their global carbon neutrality goals.
• In December 2021, Sika Corporation unveiled a new technological hub. In addition to establishing a technology hub, SIKA increased the amount of adhesives and sealants it produces in India.
• In December 2020, Wacker Chemie AG was funded US$ 313 million by European Investment Bank (EIB). Wacker Chemie will use the financing to fund its research and development initiatives, with a particular emphasis on its innovation and sustainability strategy.

Segmentation of the Global Exterior Insulation and Finish System Market :

• By Type :

  • EPS Insulation (PB EIFS)
  • XPS Insulation (PM EIFS)
  • Mineral Wool

• By Insulation Thickness :

  • Standard Thickness (Up to 4 inches)
  • High Performance Thickness (>4 inches)

• By End Use :

  • Residential
  • Commercial