This study intends to unfurl the multiple facets of global extruded polystyrene market. The insights offered in the report aid in market growth examination during the forecast period.
Extruded Polystyrene Market Receives an Impetus with Growing Number of Green Building Initiatives
The construction sector widely uses extruded polystyrene (XPS) to reduce energy use and greenhouse gas emissions. Green structures have been more and more preferred over traditional ones in recent years. Compared to conventional structures, green buildings offer benefits including enhanced air quality, lower operating costs, less strain on metal frames, and efficient use of energy, and water. The superior insulation that XPS provides greatly increases its demand for green structures. The extruded polystyrene market is thus anticipated to experience a significant increase over the forecast period, along with the increasing demand for green buildings. With 124,200 LEED-certified buildings – the most in the world – the US has been a natural leader in the construction of green buildings since it established the LEED initiative.
The global extruded polystyrene market is anticipated to expand at a faster rate during the forecast period due to rising demand for environmentally friendly, lightweight products that offer superior durability and thermal insulation. It is anticipated that the demand for high-quality polymers will rise due to the increasing need for thermal and acoustic insulation in the building and construction sector in developing nations like China, and India. Additionally, expanding the construction of sturdy homes and businesses that can readily survive extreme external weather variables is anticipated to fuel the expansion of extruded polystyrene market throughout the forecast period.
While the use of XPS for precise industrial concrete casting is a recent market trend, the uptake in application areas like manholes, industrial pipes, and concrete void fillers for poured-in-place and pre-cast concrete systems is also remarkable. XPS serves to reduce material requirements and overall weight, which further upholds the growth of extruded polystyrene market. The easiest and fastest-to-use XPS concrete casting molds are available. Wax or a removable layer is frequently utilized to speed up and leave no residue during the de-molding process, which helps remove the XPS cast. Foam scraps are gathered and recycled back into the mold-making procedure. The FDA states that polystyrene is also safe for use in food contact. With an estimated daily consumption of 6.6 micrograms per person per day, the results show that styrene exposures from polystyrene food contact items are incredibly minimal. The FDA's safety standard is more than 10,000 times lower than this.
Extruded Polystyrene Market: COVID-19 Impact
The global extruded polystyrene market has suffered because of the COVID-19 pandemic. The world remains inside their houses due to government controls, lockdowns, and the COVID-19 conflict. As a result, the industries experienced numerous difficulties, including a lack of supply, labor, and cost-effective products, which caused a brief halt in the industries. The construction sector is expanding in Asia Pacific, and Eastern Europe, giving polystyrene a competitive advantage over other materials available on the market during this period. Following the brief lockdowns, the extruded polystyrene sector has resumed operations by taking the required efforts to increase consumer demand. One opportunity to boost the market growth in the extruded polystyrene sector is recycling.
Expanding Usage in Construction Sector to Support Extruded Polystyrene Market Growth
Extensive adoption by construction industry is anticipated to fuel the expansion of extruded polystyrene market. This is explained by the many advantages XPS has for the construction sector. Many construction projects benefit from XPS's design and structural soundness, a cutting-edge building material. Although XPS has long been acknowledged as a typical insulating material, over the past ten years, new uses have appeared. XPS is a potent architectural design component and a great option for green building design, delivering real environmental benefits like improved indoor air quality, higher durability, and increased energy efficiency. Both the packaging business, where basic shapes may be hot wire cut to protect corners and edges, and the construction industry frequently employ XPS blocks to insulate walls and floors. ICFs, or Insulating Concrete Forms, are hollow XPS forms that are constructed on a construction site and then filled with five to six inches of reinforced concrete.
Unprecedeted Expansion of Consumer Electronics Industry Bodes Well for Extruded Polystyrene Market Growth
With its evolving technology and a narrowing product price range, the XPS market is growing due to rising demand from consumer electronics manufacturers. Consumer electronics are in greater demand in developing nations like China, and India due to urbanization and rising disposable income. The extruded polystyrene market is growing due to the expansion of the youthful demographic population and digitalization activities, which increase consumer demand for electronic goods. Plastic is a crucial component of consumer electronics because it works well in aesthetically pleasing and practical applications. India, according to the Electronic Industries Association of India, produced US$76 Bn worth of electronics in 2019–2020, and US$400 Bn dollars worth is predicted to be produced in 2025–2026.
Concerns Around Environmental Sustainability, and Potential Health Risks Related To XPS Manufacturing Challenge Extruded Polystyrene Market
Major constraints anticipated to impede rapid expansion of extruded polystyrene market include worries about environmental sustainability and health risks associated with the production of XPS. During the XPS production process, more than 50 chemicals are discharged, harming the air, the water, and the people who live close to facilities. Different styrene units used during production are believed to be carcinogenic, according to the Department of Health and Human Services, and the International Agency for Research on Cancer. Exposure to styrene can irritate the skin, eyes, and respiratory system. This could lead to concerns regarding the environmental sustainability of XPS and potential health risks during manufacture. With these environmental issues, several businesses have discontinued using XPS for packaging and other uses.
Flooring Remains Leading Category in Extruded Polystyrene Market as Demand for Heavily Insulated Flooring Soars
In terms of value, the flooring category is anticipated to develop at the highest CAGR. Compared to other building components like walls or roofs, the flooring of a building loses a significant amount of energy. As a result, the flooring must be heavily insulated to prevent energy losses and moisture intrusion. With its numerous characteristics, including high compressive strength and moisture resistance, the XPS reduces energy consumed for heating and cooling and strengthens the overall infrastructure, which underpins a demand surge in global extruded polystyrene market. The flooring industry is expanding due to the rapid infrastructure development brought on by the rising population in developing nations. Additionally, the flooring business's expansion is fueled by rising investments in residential structures' comfort due to growing disposable income.
Residential Sector Registers Maximum Revenue Contribution Toward Extruded Polystyrene Market
The residential segment will hold the largest share in the extruded polystyrene market in terms of value and volume over the projection period due to a rise in demand for the construction of residential infrastructure in emerging nations. With its excellent compressive strength and moisture resistance, a firm foam made of extruded polystyrene is frequently used in residential buildings to insulate floors, roofs, walls, ceilings, and balconies. Extruded polystyrene is also among the most popular insulating green building materials since it may cut energy use by 6–8% while simultaneously lowering emissions of carbon dioxide and methane, two greenhouse gases. The Housing for All plan of the Indian government seeks to construct more than 20 million affordable dwellings for the urban poor by 2022. Residential construction is anticipated to increase dramatically as a result, making up a third of the industry's overall value by 2023. Extruded polystyrene's demand from the residential market is anticipated to rise throughout the projected period due to all the aforementioned factors.
Asia Pacific to Acquire Major Market Share due to Increased Construction Activities in Region
Asia Pacific is anticipated to lead the extruded polystyrene market during the projected period. The need for extruded polystyrene has been rising in nations like China and India due to the rising population, industrialization, urbanization, and living standards. With the adoption of green buildings growing in the region and the demand for extruded polystyrene increasing as it reduces the emission of harmful gases like carbon dioxide and methane, governments in nations like India, China, and Japan have prioritized minimizing greenhouse gas emissions. The market for extruded polystyrene is anticipated to grow as infrastructure building costs rise. China announced or launched large infrastructure projects with a total investment of more than 3 trillion yuan (US$471 Bn) in less than two weeks of 2022. To achieve sustainable development of the nation, the Indian government aims to invest US$1.4 Tn in infrastructure between 2019 and 2023. The extruded polystyrene market will thus gain momentum.
The construction, automotive, and packaging industries had a high need for extruded polystyrene, which led to Europe becoming the next major market in the short term. With its ability to take on various shapes, ease of molding, and other adaptable features, the product finds use across various sectors. Extruded polystyrene has seen an increase in demand in recent years in Europe for green building design applications because of its strong environmental benefits, including increased durability, maximized energy efficiency, and a better indoor atmosphere. 106 LEED projects totaling more than 1.16 million gross square meters (GSM) of space were certified in Italy in 2021. Rising investments by the European Union member states principally drive Europe’s extruded polystyrene market expansion to promote a green and circular economy. To attain sustainability by 2030, the nations are concentrating on expanding their recycling capacities. A few nations that have significantly invested in the growth of XPS recycling facilities are the Netherlands, Italy, and Belgium.
Global Extruded Polystyrene Market: Competitive Landscape
A few of the players in the extruded polystyrene market include BASF SE, Knauf Insulation, COMPAGNIE DE SAINT-GOBAIN S.A., Kingspan Group Plc, Austrotherm GmbH, Xella International GmbH, Foamex Victoria Pty. Ltd., Ridgespear Ltd., DuPont de Nemours Inc., and Synthos S.A.
Recent Notable Developments
Global Extruded Polystyrene Market is Segmented as Below:
Key Elements Included In The Study: Global Extruded Polystyrene Market
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