Expanded Polystyrene (EPS) Market

Expanded Polystyrene (EPS) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

SR496951 | 26-Mar-2021 | 120 Pages | Mordor Intelligence |

Summary


The Global Expanded Polystyrene Market was valued at around 8 million tons in 2020 and the market is projected to register a CAGR of around 5% during the forecast period (2021-2026). Expanded Polystyrene market growth is hampered by the COVID-19 pandemic, as lockdowns, social distances, and trade sanctions have triggered massive disruptions to global supply chain networks. Due to lockdowns in various countries, most of the industries or factories were temporarily shut down and have impacted the building and construction sector which impacted the EPS market. Over 65% of companies in the construction ecosystem have been severely affected by the prolonged construction inactivity thus having a negative impact on the expanded polystyrene market.

- Over the medium term, the growth of the expanded polystyrene market is likely to be driven by the growth in the construction industry in Asia-Pacific & Eastern Europe, and an advantage over competitive materials.
- Stringent government regulations and factors such as decreasing demand from packaging industry are likely to hinder the growth of expanded polystyrene market.
- Recycling in EPS Industry is likely to create opportunities for the market in the coming years.
- Asia-Pacific region is expected to dominate the market and is also likely to witness highest growth during the forecast period.

Key Market Trends

Increasing Demand from the Building and Construction Industry

- Expanded Polystyrene, owing to its properties of lightweight, durability, thermal efficiency, shock absorption, moisture resistance, usability, etc., is used in building and construction sector. It is used in making roofs, walls, floor insulation, closed cavity walls, road construction, etc.
- For construction insulation applications, the EPS foam is used for Rigid Cellular Polystyrene Thermal Insulation. This ASTM C578 standard addresses the physical properties and performance characteristics of EPS foam, as it relates to thermal insulation in construction applications.
- In construction sector, EPS is used in combination with other materials, such as steel (in sandwich panels, used for cold store construction), concrete (as an insulation core in tilt up wall panels), gypsum, and plasterboard (as skins for ceiling panels and other prefabricated components). Sheathing is one of the most basic and widely-used applications for EPS insulation in residential and commercial construction.
- Floorings and ceilings account for the largest market share of EPS application in the construction sector, followed by roofing systems. Moreover, EPS roofing insulation is used in roofing systems and provides cost-effective and consistent thermal performance.
- Increasing energy prices are forcing consumers to work toward increasing thermal efficiency of constructions to reduce their energy consumption, thus driving the market for EPS-based roofing systems.
- Owing to all the aforementioned factors, the market for expanded polystyrene in the construction segment is likely to grow substantially during the forecast period.

Asia-Pacific to Dominate the Market

- China is the largest consumer in the Asia-Pacific region. Due to the booming housing market and real estate demand, the construction and building industry is expected to grow rapidly, which is anticipated to increase the consumption of expanded polystyrene during the forecast period.
- The housing market is facing strong demand fueled by rising incomes, low-interest rates, as well as high-levels of net migration. Indeed, it is estimated that the government of China is likely to inject more than USD 560 billion in housing and building constructions for the growing population.
- Currently, China has numerous airport construction projects, which are either in the development or planning stage. The Civil Aviation Administration of China (CAAC) aims to construct 216 new airports by 2035 to meet the growing demands for air travel. China had a total of 234 civil airports at the end of October 2020, and this number is likely to hit 450 by 2035. Additionally, the government rolled out massive construction plans for the movement of 250 million people to its new megacities, over the next 10 years.
- In India, the construction industry in value terms is expected to record a CAGR of 15.7% to reach USD 738.5 billion by 2022.
- The construction sector of India has been growing at a higher rate owing to the increasing investments and increasing purchasing power of people. The government of India supports the higher growth of construction sector through their schemes as: “Pradhan Mantri Awas Yojana (PMAY)” programme aims to build 20 million urban homes and 30 million rural houses by 2022.
- All these factors are expected to increase the market for expanded polystyrene in the region during the forecast period.

Competitive Landscape

The global EPS market is fragmented, with major players being SABIC, BASF SE, INEOS Styrolution Group GmbH, Synthos, among others. The market is fragmented due to the presence of a large number of Chinese players.

Reasons to Purchase this report:

- The market estimate (ME) sheet in Excel format
- 3 months of analyst support

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