Building Panels Market – By Panel Type, By Material, By Installation Type, By End Use, By Distribution Channel and Forecast, 2024 – 2032

Building Panels Market Size

The global building panels market was valued at USD 66.3 billion in 2023 and is estimated to grow at a CAGR of over 7.5% from 2024 to 2032.

Rapid urbanization in developing regions, particularly in Asia-Pacific and Africa, is driving the demand for cost-effective and sustainable housing solutions. Governments and private developers are increasingly utilizing building panels to expedite residential construction and reduce costs. As urban populations expand, the need for enhanced infrastructure, including commercial spaces, schools, and hospitals, is escalating, thereby boosting the demand for durable and versatile construction materials like building panels. Globally, governments are enforcing stricter energy efficiency standards for buildings.
 

Insulated panels, such as structural insulated panels (SIPs) and sandwich panels, are meeting these standards by minimizing heat transfer and enhancing building insulation. There is a growing preference among consumers and developers for eco-friendly materials. Consequently, panels made from renewable resources, recycled materials, or those with low carbon footprints are gaining traction. Programs like LEED (Leadership in Energy and Environmental Design) and BREEAM (Building Research Establishment Environmental Assessment Method) are promoting the use of sustainable materials, directly driving the building panels market for advanced building panels. 
 

The rise of e-commerce and global supply chains necessitates the rapid construction of warehouses and logistics hubs, where building panels are extensively utilized. Industrial projects favor building materials that are durable, cost-effective, and quickly deployable, such as panels.
 

Building Panels Market Trends

Governments and NGOs in developing countries are investing in affordable housing schemes, where cost-efficient construction methods like building panels are preferred. Many cities in developed countries are undergoing urban redevelopment, creating demand for innovative and efficient construction materials. The expanding retail, hospitality, and corporate sectors, especially in emerging markets, require fast and aesthetically pleasing construction solutions, driving the use of building panels.
 

Building panels with thermal and weather-resistant properties are in high demand to protect buildings from extreme heat, cold, and precipitation. Panels with fire-resistant properties are increasingly used in regions prone to wildfires or with stringent fire safety regulations. Governments are mandating the use of high-quality materials that ensure structural integrity and energy efficiency, favouring advanced building panels.
 

Building Panels Market Analysis

The manufacturing of advanced building panels, such as structural insulated panels (SIPs) or composite panels, often involves sophisticated technology and high-grade raw materials, which increases initial production costs. While building panels can reduce construction time, the specialized skills and equipment required for installation can elevate initial project expenses, deterring cost-sensitive developers. In developing countries, where cost-effective traditional construction methods dominate, the higher price of panels compared to conventional materials like bricks and wood is a barrier to widespread adoption. Building panels rely on materials such as steel, aluminium, wood, concrete, and polymers, whose prices are subject to global market fluctuations. Volatile raw material costs can increase the overall cost of production, impacting profit margins.
 

Based on material, the market is segmented as concrete panels, wood panels, structural insulated panels, vacuum insulated panels, and others. The structural insulated panels held a majority industry value of USD 23.4 billion in 2023.
 

Governments and industries worldwide are increasingly focused on reducing energy consumption in buildings. Structural Insulated Panels (SIPs), known for their superior thermal insulation, play a crucial role in minimizing energy loss, thereby reducing heating and cooling costs. Programs such as the U.S. Department of Energy’s Zero Energy Ready Homes and the European Union's Energy Performance of Buildings Directive advocate for the use of SIPs in both residential and commercial construction. As energy costs continue to rise, energy-efficient solutions like SIPs become more attractive to homeowners and businesses aiming to lower operational expenses.
 

Additionally, SIPs are considered environmentally friendly, especially when produced from recycled or sustainable materials, such as recycled foam cores or sustainably harvested wood. With many countries setting net-zero carbon targets, materials like SIPs, which help reduce carbon footprints during construction and operation, are gaining traction. Furthermore, SIPs contribute to earning points in green building certifications like LEED (Leadership in Energy and Environmental Design), making them a preferred choice for eco-conscious developers.
 

Based on installation type, the building panels market is segmented as floors, roofs, walls and others. The floors segment held a dominant industry share of around 39% in 2023.
 

As global energy regulations tighten, construction materials, including floor building panels, must meet higher energy performance standards. Panels with excellent thermal and acoustic insulation properties are increasingly used in residential and commercial projects. The growing emphasis on reducing the carbon footprint of buildings is driving the adoption of panels made from renewable or low-emission materials, such as engineered wood and lightweight composites. Floor building panels are essential to prefabricated and modular construction, which relies on factory-made components for faster and more cost-effective assembly. These prefabricated panels ensure high precision and quality, reducing errors during on-site installation and ensuring consistent performance.
 

In fast-paced construction projects, these panels save significant time compared to traditional flooring methods, making them highly desirable for large-scale developments such as apartments, schools, and hospitals. Advances in material science have led to the development of floor panels made from lightweight yet highly durable materials, including fiber-reinforced plastics, engineered wood, and advanced composites.  
 

In terms of the country, the U.S. building panels market dominates with an overall North America market and valued at USD 13.2 billion in 2023 and is estimated to grow at a CAGR of over 7.9% from 2024 to 2032. The U.S. housing market remains robust, driven by population growth, urbanization, and strong demand for both single-family and multi-family homes. Post-COVID-19, suburban expansion has intensified, increasing the need for durable, energy-efficient flooring solutions in new constructions. The aging housing stock in the Northeast and Midwest has triggered a surge in renovation projects, with floor building panels preferred for their durability and aesthetic versatility.
 

The rise of e-commerce giants like Amazon has led to a significant uptick in warehouse construction, driving demand for floor panels capable of handling heavy loads and providing insulation. Businesses are investing in modern office spaces with floor panels designed for cable management, underfloor heating, and soundproofing to enhance employee comfort and productivity. Government expenditure on public infrastructure, including hospitals and schools, is on the rise, creating demand for antimicrobial and fire-resistant floor panels.
 

North America: In terms of the country, the US dominates with an overall market share of around 68% in North America building panels market. Initiatives such as the Infrastructure Investment and Jobs Act (IIJA) are propelling the construction of public infrastructure, including transportation hubs and civic buildings, which require durable and high-performance flooring systems. In regions prone to natural disasters, such as hurricanes and earthquakes, there is an increasing need for floor panels with superior strength and weather resistance. U.S. floor panels are increasingly designed to integrate with underfloor heating systems, smart sensors, and HVAC systems, aligning with the growing trends in smart homes and buildings.
 

U.S. manufacturers are introducing lightweight, fire-resistant, and moisture-resistant floor panels to cater to diverse climatic and structural requirements. Prefabricated construction is gaining traction in the U.S., particularly for affordable housing, disaster recovery housing, and large-scale commercial projects. Floor panels are integral to this approach due to their rapid installation and consistent quality.
 

On the other hand, Canada market is growing at a CAGR of 7% during the forecast period. Urban centers such as Toronto, Vancouver, and Montreal are experiencing rapid urbanization, driving strong demand for high-rise residential and mixed-use developments. Floor panels are widely utilized for their ease of installation and insulation benefits. Canada has a significant stock of older homes and buildings requiring modernization. Floor panels are increasingly selected for renovation projects due to their thermal and acoustic insulation properties.
 

Canada’s building codes, including the National Energy Code of Canada for Buildings (NECB), encourage the use of energy-efficient materials like insulated floor panels to meet stringent energy performance standards. Growth in logistics, manufacturing, and commercial sectors across Canada is driving the construction of warehouses and factories, where floor panels with heavy load-bearing capacities are in high demand.
 

Building Panels Market Share

In 2023, key companies like Owens Corning, Huntsman, Kingspan, Lafarge, Melt-span, etc. held a combined market share of 5-10%. These companies are actively engaging in mergers, acquisitions, facility expansions, and collaborations to enhance their product portfolios, reach more customers, and strengthen their market positions.
 

Companies are heavily investing in research and development to develop advanced building panels that align with the changing and evolving industry’s needs and preferences. Competitive strategies frequently center on product differentiation, where manufacturers augment their offerings with distinctive features, and geographic expansion to penetrate emerging markets. In this dynamic environment, companies that adeptly innovate and respond to market trends are poised for the most significant growth.
 

Building Panels Market Companies

Major players operating in the building panels industry are:

• Boral
• CRH
• Dow
• Evonik Industries
• Fletcher Building
• Huntsman
• Kingspan
• Lafarge
• Metl-Span
• Nippon Steel Coated Sheet Corporation
• Owens corning
• Panasonic Corporation
• Saint-Gobain
   

Building Panels Industry News

• In 2024, Kingspan launched new lower Embodied Carbon QuadCore LEC Insulated Panel. QuadCore LEC has been developed specifically to help reduce the carbon footprint of the buildings it is used in. Using comparative Lifecycle Assessment Data (LCA) data to the EN15804-A2 standard, this breakthrough in insulated panel technology demonstrates a 21% reduction* in embodied carbon modules A1-A3 (product stage) for QuadCore AWP in a 100mm thickness. The first products in the QuadCore LEC range are now available in the UK and Irish markets.
   

This building panels market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) & volume (Million Units) from 2021 to 2032, for the following segments:

Click here to Buy Section of this Report

Market, By Panel Type

• Concrete panels
• Wood panels
• Structural insulated panels (SIP)
• Vacuum insulated panels (VIP)
• Others

Market, By Material

• Concrete
• Plastic
• Metal
• Wood
• Silica

Market, By Installation Type

• Floors
• Roofs
• Walls
• Others

Market, By End Use

• Residential
• Non-residential

Market, By Distribution Channel

• Online
• Offline

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa