Extruded Polystyrene XPS Market

The global extruded polystyrene market is projected to register a CAGR of 4.71% during the forecast period (2019–2023). The global market, in terms of value, is expected to reach USD 3,624.6 million by the end of 2023. The prominent factor driving the growth of the global market is the rising demand for extruded polystyrene in commercial and residential construction activities across the globe. Extruded polystyrene (XPS) is widely used as a rigid foam in the construction industry in insulating applications. It finds application in slabs, floors, roofs, walls, decks, and balconies. It offers excellent flexibility, compatibility, thermal efficiency, lightweight, and high strength. With the growing construction activities in Asia-Pacific, especially commercial construction, owing to the growth of the industrial sectors such as information technology (IT); banking, financial services, and insurance (BFSI); and telecommunication, the demand for XPS is expected to grow at a significant rate. Moreover, increasing renovation activities in North America and Europe, and increased spending on construction of new residential building is further expected to boost demand for XPS and drive the global market growth in the years to follow.

Furthermore, with the growing concern regarding global warming and increasing need for sustainable solutions, green buildings have been gaining popularity all over the world. XPS is one of the most widely used insulation materials in the green buildings, owing to the materials ability to reduce greenhouse gas emissions and also the ability to reduce energy consumption to the extent of 6–8%. The rapidly growing construction of green buildings is expected to create immense growth opportunities for market players during the forecast period.

However, the high cost of extruded polystyrene as compared to its substitute, expanded polystyrene, is expected to be a key factor restraining the growth of the global market during the review period. Additionally, the fluctuations in crude oil prices are directly impacting the raw material prices for XPS, which is projected to be a major challenge for the manufacturers of XPS during the forecast period.

The market in Asia-Pacific held the largest share of 42.6% in 2018. The growth of the regional market is mainly attributed to the significant growth of the building and construction industry in the region. China is expected to be the leading market in the region in terms of consumption, owing to the high growth of the construction industry in the country as well as the need for sustainable energy solutions. The Asia-Pacific market is projected to register a CAGR of 5.95% to reach USD 1,639.6 million by the end of 2023. The market in the Middle East & Africa is projected to register the highest CAGR of 6.30% during the review period, on account of increasing investments in construction projects, particularly in Qatar, Saudi Arabia, and UAE.