Exterior Insulation and Finish System (EIFS) Market by Type (PB, PM), Insulation Material (EPS, MW), End-use (Residential, Non-residential), Component (Adhesive, Insulation Board), Thickness (1-2 Inches, 3-6 Inches) & Region - Global Forecast to 2028
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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- Competitor Analysis with Interactive dashboard
- Latest News, Updates & Trend analysis
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Report Metric |
Details |
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Years Considered |
2021–2028 |
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Base year |
2022 |
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Forecast period |
2023–2028 |
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Unit considered |
Value (USD Billion), and Volume (Million Square Feet) |
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Segments |
Type, Insulation material, End-use industry, Component, Thickness, and Region |
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Regions |
Europe, North America, Middle East & Africa, Asia Pacific, and South America |
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Companies |
The major players are BASF SE (Germany), Saint-Gobain (France), Wacker Chemie AG (Germany), Sto SE & Co. KGaA (Germany), Owens Corning (United States), and others are covered in the Exterior insulation and finish system market. |
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.
Frequently Asked Questions (FAQ):
What are the major drivers driving the growth of the Exterior insulation and finish system Market?
The major drivers influencing the growth of the Exterior insulation and finish system market are the growing investments in construction industry and stringent regulations to reduce greenhouse gas emissions.
What are the major challenges in the exterior insulation and finish system Market?
The major challenge in the exterior insulation and finish system market are the limited awareness among end users and the lack of skilled workers.
What are the restraining factors in the exterior insulation and finish system Market?
The major restraining factor faced by the exterior insulation and finish system market is the availability of alternative green insulation material and Fluctuating raw material prices.
What is the key opportunity in the Exterior insulation and finish system Market?
Building-related energy-efficiency policies and regulations are the key opportunity for the Exterior insulation and finish system market.
What are the different insulation materials used in the Exterior insulation and finish system?
EPS, MW, XPS, WW etc. are some of the insulation materials used in EIFS.
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This research involved the use of extensive secondary sources and databases, such as Factiva and Bloomberg, to identify and collect information useful for a technical and market-oriented study of the exterior insulation and finish system market. Primary sources included industry experts from related industries and preferred suppliers, manufacturers, distributors, technologists, standards & certification organizations, and organizations related to all segments of the value chain of this industry. In-depth interviews have been conducted with various primary respondents, such as key industry participants, subject matter experts (SMEs), executives of key companies, and industry consultants, to obtain and verify critical qualitative and quantitative information as well as to assess growth prospects.
Secondary Research
In the secondary research process, various sources such as annual reports, press releases, and investor presentations of companies, white papers, and publications from recognized websites and databases have been referred to for identifying and collecting information. Secondary research has been used to obtain key information about the industry's supply chain, the total pool of key players, market classification and segmentation according to the industry trends to the bottom-most level, regional markets, and key developments from both market-and technology-oriented perspectives.
Primary Research
The Exterior insulation and finish system market comprises several stakeholders in the supply chain, which include suppliers, processors, and end-product manufacturers. Various primary sources from the supply and demand sides of the markets have been interviewed to obtain qualitative and quantitative information. The primary participants from the demand side include key opinion leaders, executives, vice presidents, and CEOs of companies in the Exterior insulation and finish system market. Primary sources from the supply side include associations and institutions involved in the exterior insulation and finish system industry, key opinion leaders, and processing players.
Following is the breakdown of primary respondents—
Notes: Other designations include product, sales, and marketing managers. Tiers of the companies are classified based on their annual revenues as of 2021, Tier 1 = >USD 5 Billion, Tier 2 = USD 1 Billion to USD 5 Billion, and Tier 3=
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Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the size of the global Exterior insulation and finish system market. The research methodology used to estimate the market size includes the following:
- The key players in the industry were identified through extensive secondary research.
- The supply chain of the industry and market size, in terms of value, were determined through primary and secondary research.
- All percentage share split, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research includes the study of reports, reviews, and newsletters of key industry players, along with extensive interviews with key officials, such as directors and marketing executives.
Market Size Estimation: Bottom-Up Approach and Top-Down Approach
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Data Triangulation
After arriving at the total market size from the estimation process explained above, the overall market was split into several segments and subsegments. To complete the overall market size estimation process and arrive at the exact statistics for all segments and subsegments, data triangulation and market breakdown procedures have been employed, wherever applicable. The data have been triangulated by studying various factors and trends from both the demand and supply sides. In addition, the market size has been validated by using both the top-down and bottom-up approaches.
Market Definition
The Exterior insulation and finish system market refers to the industry that produces and supplies exterior insulation and finish system. Exterior insulation and finish system material refers to a type of cladding that provides an insulated finished surface for exterior walls. It is used to create an energy-efficient, fire-resistant, low-maintenance, and esthetic outer surface and can be applied in numerous layers over outer sheathing.
Key Stakeholders
- Raw Material Suppliers
- Exterior insulation and finish system Manufacturers
- Exterior insulation and finish system importers and exporters
- Builders and contractors
- Commercial R&D institutions
- Architects and contractors
- Associations and industry bodies
- Regulatory bodies
Report Objectives
- To define, describe, and forecast the global exterior insulation and finish system market in terms of value and volume.
- To provide insights regarding the significant factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)
- To analyze and forecast the market based on type, insulation material, region, and end-use industry.
- To forecast the market size, in terms of value and volume, with respect to five main regions: Europe, North America, Middle East & Africa, Asia Pacific, and South America.
- To analyze the opportunities in the market for stakeholders and provide details of the competitive landscape
- To strategically profile key players in the market
- To analyze competitive developments in the market, such as new product launches, capacity expansions, and mergers & acquisitions
- To strategically profile the leading players and comprehensively analyze their key developments in the market
Available Customizations:
Along with the given market data, MarketsandMarkets offers customizations as per the specific needs of the companies. The following customization options are available for the report:
Product Analysis:
- Product Matrix, which gives a detailed comparison of the product portfolio of each company
Regional Analysis:
- Further breakdown of the Rest of the Asia Pacific Exterior insulation and finish system market
- Further breakdown of the Rest of Europe's Exterior insulation and finish system market
Company Information:
- Detailed analysis and profiling of additional market players (up to 5)
Generating Response ...
Growth opportunities and latent adjacency in Exterior Insulation and Finish System (EIFS) Market