After hitting its bottom in 2023, the market for Sandwich panel has rebounded and is experiencing stable development in 2024. Market projections show 1.1% increase in value sales in 2024, reaching EUR 3,910.5 million. Quantity sales represent 125.8 million square meters, nearly 0.2% above the overall result from 2023 according to a recent market report by Interconnection.

Gently landing after turbulent times

Prior to this development, the market peaked in 2022—EUR 0.5 billion above its 2024 total—driven by high inflation, strong product demand, and a surge in construction activity. However, a correction followed in 2023 as construction activity slowed, inflationary pressures eased, and input costs, such as steel, began to decline. This cooling effect deflated the price bubble, with the average price correction -8.1%, bringing the market to a more balanced state in 2024, as detailed in Interconnection’s study.

Pole position does not guarantee success

As the situation in 2024 may seem balanced, the development across countries differs. Germany, the biggest market for sandwich panels in 2023, is losing its breath due to downturn in construction activity underscored by domestic and foreign geopolitical uncertainty. Germany is anticipated to be overtaken by even two countries – the United Kingdom and Italy. According to Interconnection data, the prospects for total value sales in the United Kingdom are EUR 715.6 million in 2024.

Product group preferences

The most preferred core material is PUR/PIR, with 70.7% share in quantity sales. This preference is driven by its lower price and the need for thinner insulation compared to mineral wool. However, mineral wool has better prospects for increased demand in the coming years due to its fire resistance, ecological benefits such as recyclability and sustainability. Mineral wool reaches 27.0% market share in 2024, with a growth rate of 0.5%, higher than the market average. Steel sheet remains the dominant cover material for sandwich panels, holding a strong 94.8% market share, ahead of aluminum and other materials.

Dominance in segment trends

By building type, where sandwich panels are used, the most popular are warehouses, production halls, and agricultural buildings, together accounting for over 70.3% of the total usage of panels. On the other hand, data centers have seen the greatest growth, increasing by 2.2%, despite holding the smallest share of the total. Subsidies for renovation in some regions and the push for energy efficiency are driving the demand for thicker materials. The renovation segment is expected to grow by 1.5%, while the segment using materials thicker than 100mm is expected to grow by 1.0%, while other segments either stagnate or decline.

Market competition landscape

The sandwich panels market remains concentrated, with many mergers and acquisition performed mainly by the market leader Kingspan. Together with ArcelorMittal, Lattonedil, Isopan and Tata Steel (including subsidiaries) the TOP5 producers are holding almost two thirds of overall European market. Nevertheless, minor producers play also important role due to their geographical proximity to customers.

Interconnection Consulting’s report examines and analyzes the forecast market trajectory for the following European regions: Austria, Benelux, Czechia, France, Germany, Hungary, Italy, Poland, Slovakia, Switzerland, the United Kingdom, and separately the United States.

Link to the report

19/11/2024

Copyright: Interconnection, Publication free of charge for coverage regarding the study and InterConnection Consulting.