Europe ETICS System Materials Market is expected to reach US$ 12.24 Billion by 2031

Surge in Construction Activities Boosts Europe ETICS System Materials Market Growth

According to the latest market study on "Europe ETICS System Materials Market Forecast to 2031 – Country Share, Trend, and Growth Opportunity Analysis – by Material Type and Application," the market was valued at US$ 7.73 billion in 2023 and is projected to reach US$ 12.24 billion by 2031; it is anticipated to record a CAGR of 5.9% from 2023 to 2031. The report highlights key factors contributing to the Europe ETICS system materials market size and prominent players, along with their developments in the market. 

The Europe ETICS system materials market is experiencing steady growth, driven by a combination of factors, such as the growing construction activities. In Europe, there is an increase in residential, commercial, industrial, and infrastructural construction activities. According to the European Commission, in Europe, the construction industry contributes ~9% to the gross domestic product (GDP). The industry supports the economy's growth by assisting the supply chain, which creates several business opportunities and services, thereby increasing employment rates as well.

Europe ETICS System Materials Market Breakdown – by Country

In Europe, there is a growing focus on renovating and remodeling old buildings, along with significant investment to improve public infrastructure. Moreover, rising populations have led to a rapid expansion of cities, requiring more and better infrastructure of roads, housing, and office spaces. Germany is Europe's largest construction market; and the construction sector in the country is growing significantly. The requirement for residential buildings in the country is increasing due to the rising population and a favorable economic environment.

The growing construction activities in Europe are driving the demand for ETICS system materials. The construction industry in the region has embraced these systems for their ability to provide energy-efficient and aesthetically appealing solutions. ETICS systems play a key role in improving the energy efficiency of various types of buildings. Using highly efficient thermal insulation materials, these systems significantly reduce heat loss through the walls, resulting in lower heating and air conditioning costs. ETICS systems provide great benefits throughout the year, which are suitable for all European countries. Thus, the rising demand for electronics bolsters the Europe ETICS system materials market growth.

According to the Office of National Statistics, the construction output of new private housing increased from US$ 3,502.86 million in November 2023 to US$ 3,577.24 million in May 2024. Private developers are responding to the high demand for residential properties by launching numerous construction projects across the UK. Moreover, the development of sustainable ETICS systems is expected to remain one of the major Europe ETICS system materials market trends in the coming years. As a part of a broader shift toward energy efficiency and environmental sustainability, market players are focusing on developing more sustainable products, including ETICS systems. They are focusing on developing eco-friendly insulation materials with a lower environmental impact throughout the lifecycle. Market players are focusing on developing recyclable products. For instance, Saint-Gobain Weber in Germany has developed the first recyclable ETICS called weber.therm circle.

According to the FIEC, i.e., the European Construction Industry Federation, the total production value of the construction sector reached ~US$ 13.45 billion (EUR 12.8 billion) in 2023, a level 84% higher than in 2017. ETICS, known for its effective thermal insulation properties, provides a cost-efficient solution by reducing the need for heating and cooling, directly impacting energy bills for both residential and commercial properties. Furthermore, government regulations and EU derivatives are playing a significant role in boosting the demand for ETICS systems. Players operating in the construction industry are also paying high attention to factors such as Leadership in Energy and Environmental Design (LEED) ratings and green points. By incorporating sustainable building practices and materials, construction projects are trying to reduce their environmental impact and contribute to a more sustainable future.

The Europe ETICS system materials market analysis is carried out by identifying and evaluating key players in the market. ISOMAT SA, FIBRAN SA, Sika AG, Thrakon SA, Chromodomi Paints Factory Savvas Chaliampalias & Co, Nordia AE (MARMOLINE), VIMATEC N VIDALIS SA, Ravago Hellas SMSA, Compagnie de Saint Gobain SA, and Henkel AG & Co KGaA are among the key players profiled in the Europe ETICS system materials market report. Manufacturers provide ETICS system materials through their network of distributors, suppliers, and independent dealers operating across different regions. Distributors or suppliers aid in a consistent supply of ETICS system materials to domestic and international markets. The products are supplied to end users directly via business-to-business sales or the network of independent dealers operating across different regions. End users maintain long-term relationships with ETICS system materials manufacturers to ensure a proper and steady supply of high-quality products.

Europe ETICS System Materials Market Report Segmentation:

Based on material type, the market is segmented into thermal insulation materials (EPS white, EPS graphite, extruded polystyrene, mineral wool), adhesives, reinforcement mesh, and coatings. The electrolysis segment held the largest Europe ETICS system materials market share in 2023. The thermal insulation materials segment is experiencing steady growth, driven by its pivotal role in enhancing energy efficiency and reducing heat loss in buildings. An ETICS involves a multi-layered construction technique designed to insulate and protect building exteriors while providing aesthetic value. Thermal insulation materials are a core component of this system, offering excellent thermal resistance, reducing energy consumption for heating and cooling, and contributing to compliance with stringent European energy efficiency regulations such as the Energy Performance of Buildings Directive (EPBD).

EPS white is widely recognized for its affordability, lightweight properties, and excellent thermal performance. EPS white is predominantly used in ETICS applications due to its high energy efficiency, which significantly reduces building energy consumption. Its closed-cell structure ensures low thermal conductivity, making it a preferred material for meeting stringent energy standards in the construction sector in Europe.

Based on application, the market is segmented into residential, commercial, industrial, and infrastructure. The residential segment held the largest Europe ETICS system materials market share in 2023. The demand for ETICS system materials in the residential sector is growing, driven by the increasing requirement for energy-efficient homes and the rising need for building renovation and retrofitting. ETICS offers an effective solution for improving the thermal performance of residential buildings, helping homeowners reduce energy consumption and maintain a comfortable indoor environment. With the growing awareness of the environmental impact of energy use, the residential sector is increasingly adopting ETICS to meet the EPBD and other sustainability goals. In residential applications, ETICS systems are used to insulate building façades, significantly improving heat retention during winter and minimizing heat gain in summer.

The industrial sector is growing in crucial areas, driven by the increasing need for energy efficiency and improved thermal performance in industrial buildings. These buildings, which include factories, warehouses, logistics centers, and manufacturing plants, require robust insulation solutions that can withstand harsh environmental conditions and optimize energy consumption. ETICS systems provide an ideal solution for industrial applications due to their high-performance thermal insulation properties, which help reduce heating and cooling costs and maintain stable internal temperatures for machinery and personnel.

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