U.S. Extruded Polystyrene (XPS) Insulation Material Market Expected to Reach $987.8 Million by 2031

According to a new report published by Allied Market Research titled, “U.S. Extruded Polystyrene (XPS) Insulation Material Market by Application and Region: Regional Opportunity Analysis and Industry Forecast, 2022–2031” 
The U.S. extruded polystyrene (XPS) insulation material market size was valued at $596.6 million in 2021, and is projected to reach $987.8 million by 2031, growing at a CAGR of 5.2% from 2022 to 2031.

Extruded polystyrene (XPS) insulation is a rigid foam insulation commonly used in the construction industry to improve building energy efficiency. It is made of polystyrene resin and other additives that are melted and then forced through a shaping die, resulting in a continuous sheet of closed-cell foam insulation. To encourage the use of energy-efficient insulation systems, governments around the world are enforcing strict building codes and regulations. Extruded polystyrene insulation materials are in high demand due to the increase in construction activity, particularly in the commercial sector and the rising demand for energy-efficient buildings. 

Extruded polystyrene insulation is a growing demand for more sustainable and energy-efficient building materials in non-residential construction. XPS insulation is well-suited for use in non-residential buildings, particularly those with high energy demands, such as hospitals, schools, and office buildings. However, there are certain limitations associated with the use of extruded polystyrene insulation material. XPS insulation is made from petroleum-based materials, it is not biodegradable and it will remain in the environment for a long time. 

Extruded polystyrene insulation materials typically have a lower R-value than other types of foam insulation, such as polyurethane foam. XPS insulation materials are less permeable than other types of foam insulation, making it more difficult for moisture to escape from a building. The U.S. is a technological innovation leader, there is an increased demand for new and modern infrastructure, such as data centers, research facilities, and other specialized buildings.  

The U.S. government has implemented energy efficiency regulations and codes to reduce energy consumption in buildings. Extruded polystyrene insulation material is an effective way to meet these standards while also helping reduce energy consumption, which is opening new market opportunities. The U.S. extruded polystyrene (XPS) insulation materials market analysis is segmented on the basis of application, and region. The applications covered in the report include residential construction and non-residential construction.  

The residential construction application accounted for a major market share of 65% in 2022. Building codes and standards are becoming more stringent, there is a greater demand for extruded polystyrene insulation materials that meet these requirements. As a result, a wider range of insulation materials is being used in homes, which may have an impact on the market share of XPS insulation. In addition to that XPS insulation can also help to improve comfort by maintaining a consistent indoor temperature across residential buildings. This can result in a more comfortable living environment. All these factors have escalated the demand for extruded polystyrene insulation material in residential construction. 

The U.S. extruded polystyrene (XPS) insulation material market is segmented on the basis of application and region. By application, market is divided into residential and non-residential. By region, the market is analyzed across Southeast, West, Northeast, Midwest, and Southwest. 

By application, the residential application accounted for the largest market share in 2021, owing to several desirable properties including high thermal resistance, low moisture absorption, and excellent compressive strength, thus making it an ideal insulation material across residential buildings. In addition, lightweight and easy to work, make extruded polystyrene a good choice for insulating roofs, walls, and foundations in residential construction. 

Region-wise, West region accounted for the largest market share in the market and is projected to grow at fastest CAGR of 5.7% during the forecast period. Uniform and miniature closed cells of extruded polystyrene make it widely adopted insulation material as compared to other insulation materials. In addition, minimal water absorption and high bending strength of XPS insulation material make it viable to be used across terrace, foundations, and other construction structures.  

Key players engaged in development and production of extruded polystyrene (XPS) insulation material across U.S. include DuPont, Williams Foam, Owens Corning, Morgan Advanced Materials, Sika Sarnafil, Pactive LLC, Soprema, Inc., Kingspan Group plc, Knauf Insulation, and TeMa North America L.L.C.

KEY FINDINGS OF THE STUDY

• By application, the residential segment accounted for the largest market share in 2021 and is expected to grow at a CAGR of 4.5%.
• Region wise, West U.S. region accounted for the largest market share in 2021 and is anticipated to grow at fastest CAGR of 5.3% in the forecast period.