In the current evolving building construction sector, the use of cold‐formed steel frames (CSF) has gained popularity due to their fast, clean, and flexible constructability. On the other side, in terms of the energy efficiency of a building, the use of CSF has raised concerns due to their high thermal conductivity, especially in the case of external wall panels. Hence, it is crucial to examine the thermal performance of such wall configurations and find solutions to reduce heat loss through walls by lowering the thermal transmittance, which would ultimately enhance the energy efficiency of the buildings. Accordingly, this study focuses on analysing the thermal performance of external wall panels made of cold‐formed and thin‐walled steel‐lipped channel studs with plasterboard linings and vacuum insulation panels (VIP). 2D and 3D finite element models developed in ABAQUS were used to analyse the effect of using VIP, oriented strand board and plasterboard, and their positions on the thermal transmittance of the CSF walls. 70 numerical analyses were conducted on 35 wall configurations and the results obtained were checked against the U‐value requirements set by UK building standards. It was found that replacing oriented strand boards with plasterboards does not substantially affect the thermal transmittance of the wall. However, adopting VIP as an insulation material has shown a U‐value reduction of up to 77%. But again, the change in position of VIP in the wall cross section has no notable effect on the U‐value.