Global Building Panels Market To Reach $208B By 2026

A new market study by the research company Global Industry Analysts Inc., titled “Building Panels — Global Market Trajectory & Analytics,” was released today, presenting a fresh perspective on opportunities and challenges in a transformed COVID-19 pandemic market. 

Global building panels market is projected to reach $208.4 billion by 2026. Building panels represent performed construction panels that experience increasing uptake in interior and exterior applications for residential and commercial construction projects. Made of concrete, building panels are witnessing higher demand due to their ability to expedite construction projects and enable structures with enhanced green credentials, due to associated energy savings.

Global market growth is set to be driven by increasing construction activity post COVID-19 pandemic scenario, rising population, need for better housing solutions, and a stronger focus on effective options to make energy-efficient buildings. Within the next few years, more builders are expected to actively pursue scientifically validated green construction technologies, thereby giving a shot in the arm for prefabricated housing.

Although rising demand for transportation facilities and new construction is favoring uptake of building panels, increasing population and the growth of disposable income in emerging nations are bound to create new growth opportunities. 

The market expansion is also expected to be facilitated by the rising adoption of vacuum-insulated panels due to concerns regarding inadequate warehousing units, infrastructure, logistic support, and cold chains that are resulting in notable food waste, mainly in emerging countries. 

The global market for building panels, estimated at $167.9 billion in the year 2022, is projected to reach a revised $208.4 billion by 2026 — growing at a compounding annualized growth rate (CAGR) of 5.2% over the analysis period. 

Residential, one of the segments analyzed in the report, is expected to grow at 5.5% CAGR to reach $139.2 billion by the end of the analysis period. The residential segment dominates the market share due to rapid urbanization and the projected surge in residential construction activity. The segment’s growth will also be boosted by increasing population, low mortgage rates, fast regulatory approvals, and expanding urban transport infrastructure. 

Meanwhile, growth in the non-residential segment is readjusted to a revised 4.7% CAGR for the next seven-year period, after taking into account the business implications of the pandemic and its induced economic crisis. 

China, the world’s second-largest economy, is estimated to reach a market size of $51.2 billion in the year 2026, trailing a CAGR of 6.7% through the analysis period. Other noteworthy geographic markets, such as Japan and Canada, are expected to grow at 3.5% and 4.2%, respectively.