GCC Extruded Polystyrene Insulation Materials Market size is forecast to reach $700.5 million by 2026, after growing at a CAGR of 5.4% during 2021-2026. Extruded Polystyrene Insulation material or XPS insulation provides excellent strength, durability, and resistance to moisture, and is commonly used in waterproofing and roof systems. XPS is closed-cell foam material and most commonly used as foam board insulation. Extruded polystyrene (XPS) is one of the thermoplastic polymers. Extruded polystyrene has a closed-cell structure and is often stronger, with higher mechanical performance, and is, in principle, often more expensive than EPS. The rise in demand for insulating material in residential houses to provide protection against heat in the Gulf region is driving the market growth. An increase in demand for thermal insulation in cold storage systems to maintain the temperature is also driving the growth of the market. The rise in demand from the non-residential construction sector is expected to drive the growth of extruded polystyrene Insulation Materials market.
GCC Extruded Polystyrene Insulation Materials Market Segment Analysis – By Form
The sheet segment held the largest share of more than 45% in the GCC Extruded Polystyrene Insulation Materials Market in 2020. XPS insulation sheets provide anti-corrosion properties, thermal insulation, compressive strength, and resistance against water, cold, & pressure, which result in the longevity of the product. The Extruded polystyrene is also very much successful in cold storages application and is also widely used in over-deck and flooring insulation, partition walls, structural sandwich boards, and Shipbuilding. Therefore, due to such properties offered by XPS sheets and their wide use is driving the market growth.
GCC Extruded Polystyrene Insulation Materials Market Segment Analysis – By Type
The thermal Insulator segment held the largest share of more than 35% in the GCC Extruded Polystyrene Insulation Materials Market in 2020. Thermal insulation is one of the most important systems for creating comfortable conditions inside the building by protecting it from heat and cold, while also helps to reduce energy costs to maintain those conditions. The demand for thermal insulation has increased mainly due to changing insulation standards worldwide, to decrease the energy consumption for heating or cooling. XPS possesses a closed-cell structure, which has improved surface roughness, and reduced thermal conductivity. XPS is also used in cold storage and cryogenic systems in pharmaceutical plants and the food & beverage industry to maintain the required temperature. Therefore, due to these properties, the demand for thermal insulators is high in the market.
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GCC Extruded Polystyrene Insulation Materials Market Segment Analysis – By Application
The residential & commercial segment held the largest share of more than 35% in the GCC Extruded Polystyrene Insulation Materials Market in 2020. Extruded Polystyrene Insulation Material is widely used in building walls, roofs, and basements for thermal insulation and waterproofing purposes. XPS also provides excellent soundproofing to eliminating unnecessary noise pollution. XPS foam provides insulation to the entire wall area and reduces air leakage through walls, which improves energy efficiency and comfort. Further increase in demand for XPS in commercial offices, telecommunication shelters, and public institutions like schools and hospitals are also contributing to the growth. As per Venture ONSITE, a private company report in 2018, the Gulf Cooperation Council’s (GCC) building, and infrastructure markets is expected to increase to $140.5 billion in 2019, compared to $125 billion in 2018.
GCC Extruded Polystyrene Insulation Materials Market Segment Analysis – By Geography
United Arab Emirates (UAE) has the largest share of more than 45% in the GCC Extruded Polystyrene Insulation Material Market in 2020. Due to the high demand and increase in local consumption of polystyrene as a construction material. The United Arab Emirates is becoming one of the tourist destinations in the world and surging government investments in infrastructure development are contributing to the growth of the market. As per the Government of UAE, the total contribution of the tourism sector to the UAE’s GDP was AED 159.1 billion ($ 43.3 billion) in 2017 and is forecast to rise by 4.9 % per annum to AED 264.5 billion ($ 72 billion) by 2027. Therefore, such growth will enable the government to invest more in infrastructure and tourism, which will drive the demand for polystyrene insulation material. Furthermore, XPS is also used in food processing plants in freezers, where food is stored. As per Arpal Gulf LLC report, a private company, investment in food and beverages in the UAE expected to be at a CAGR of 8% in 2018. Which is too contributing to the growth of the market.
GCC Extruded Polystyrene Insulation Materials Market Segment Analysis – Drivers
The rise in Construction Activities
The Gulf region construction industry is constantly blooming, which can be attributed to high levels of liquidity triggered by lucrative oil prices ever since early 2011. The revenues generated from oil coupled with low interest rates have boosted the construction industry in the Gulf region. Extruded polystyrene insulators are used in residential & commercial buildings, and highways as floor and roof insulation for their excellent strength, durability, moisture resistance, and thermal insulation. Therefore, any increase in construction activities will further boost the Extruded Polystyrene Insulation Material market. For instance, the infrastructure projects in the GCC like Saudi Vision 2030, Qatar National Vision 2030, UAE Vision 2021, and Abu Dhabi Economic Vision 2030 will play a vital role to the market growth.
Increasing Demand for Green Building or Resource Efficient Building
An increase in popularity for energy-efficient building is driving the demand for the market. Green building refers to the incorporation of environment-friendly and resource efficient processes at each stage of construction. The concept of green building concentrates mainly on increasing the energy efficiency of the building and minimizing the wastage associated with the use of energy, water, and materials. The use of Extruded Polystyrene (XPS) Insulation plays an important role in achieving this sort of efficiency, due to its ability to maintain insulating power. XPS foam insulation uses extremely effective blowing agents which is especially, selected for low thermal conductivity, which helps the insulation to retain its properties. The durability of XPS insulation is one of its most important environmental factors. The closed-cell structure and lack of voids in XPS foam insulation not only impart the durability and strength of the material but also help the foam resist any moisture penetration without the use of a laminate. Perfectly, installed XPS insulator foam can improve buildings energy efficiency, by installing a proper layer of insulation on the wall can reduce the airflow through the wall that can rob energy.
GCC Extruded Polystyrene Insulation Materials Market Segment Analysis – Challenges
Prices Volatility and Toxicity of Raw Material Hindering Growth
In general, Polystyrene (PS) is a synthetic polymer made from the monomer styrene, which is obtained from benzene and ethylene, a petroleum products. Therefore, any fluctuation in crude oil prices affects the price of the raw material. For instance, the crude oil prices from June-2015 to 2020 were constantly changing. Such volatility in prices acts as a challenging factor to the market growth. Furthermore, the presence of toxic chemicals like benzene and ethylene, which are harmful form both humans and the environment is also hindering the markets. As per the Center for Disease Control & Prevention (CDC), long-term exposure to benzene causes harmful effects on the bone marrow and can cause a decrease in red blood cells, leading to anemia. Therefore, the above factors are hindering the markets growth.
Emergence of the COVID-19
The unprecedented crisis brought by COVID-19 during 2020 continues to have a clear and negative impact on the GCC Extruded Polystyrene Insulation Materials Market. The extruded polystyrene insulators are typically used in construction projects, with the construction industry going down due to, delay in supply of raw material and unavailability of workers, and leads to reduce in demand, which in turn hinder the markets growth.
Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the GCC Extruded Polystyrene Insulation Materials Market report. Major players in the GCC Extruded Polystyrene Insulation Materials Market are Emirates Extruded Polystyrene LLC, BASF SE, Owens Corning, Styro Insulations Mat. Ind. LCC, Kingspan Holdings Ltd., Emirates Extruded Polystyrene LLC, DuPont de Nemours, Inc., Chryso Sas, Kingspan Group, TECHNONICOL Corp., Compagnie de Saint-Gobain S.A., and among others.
Acquisitions/Technology Launches
In August 2020, Owens Corning was launched a new line of extruded polystyrene (XPS) foam insulation “Foamular NGX”, which will deliver a 90% reduction in global warming potential (GWP) without sacrificing product performance. With this new launch, Owens Corning has expanded its offering, which will further drive the market growth.
In July 2020, DuPont de Nemours, Inc., was developed Next Generation of Styrofoam™ Brand Insulation, to reduce greenhouse emission. With this new launch, DuPont will expand its offering and help in reducing the greenhouse emission, which will drive the markets growth.
Key Takeaways
Bahrain region is projected to witness significant growth, due to government focus on the development of the country’s infrastructure.
High recyclability of XPS material, which avoids wastage or dumping of materials in the environment is also contributing to the growth of the market.
The presence of toxic chemicals in polystyrene is expected to restrain the market growth.
COVID-19 has hindered the market growth for GCC Extruded Polystyrene Insulation Materials, due to disruption in supply of material and global lockdown.
Related Reports:
A. Extruded Polystyrene Insulation Material Market
B. Insulation Materials Market
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