High-Performance Insulation Materials Market Size and Share Analysis by Material Type (Aerogel, Vacuum Insulation Panel, Fiberglass, Ceramic Fiber, High-Performance Foam), End User (Oil & Gas, Industrial, Building & Construction, Transportation, Power Generation) - Global Industry Analysis and Demand Forecast to 2030

Market Overview

The global high-performance insulation materials market size was $5,833.1 million in 2021, and it will grow at a CAGR of 7.4% during 2021–2030, to reach $11,096.8 million by 2030. This is credited to the growing usage of these materials in the oil & gas industry and rising concerns regarding greenhouse gas emissions and energy saving. Essentially, the worldwide insulation industry is primarily driven by the rising demand for residential and commercial insulation. The ultra-thin and lightweight characteristics of these materials allow them to be used for insulating vessels, tanks, pipe supports, sulfur recovery, industrial pipping, and furnaces.

As per data analysis, around 40% of the energy is consumed in buildings annually. As per a recent report, global electricity generation increased by 6.2% in 2021 over last year, to meet the increasing demand since the resumption of many of the economic activities post the lifting of the lockdowns. The use of high-performance insulation materials, such as aerogel, vacuum insulation panels, fiberglass, and ceramic fibers, can reduce energy consumption considerably, as they have a lower density and lower thermal conductivity.

Vacuum Insulation Panels Dominate Market

Vacuum insulation panels dominated the market with 32% revenue share in 2021, majorly due to their wide application in buildings, refrigeration units, and insulated shipping containers.

Other than this, vacuum insulation panels are in high demand in the industrial sector, for use in vacuum flasks, cooling devices, automobiles, cold-storage containers, and water boilers. These panels improve the energy efficiency of commercial and industrial buildings and also facilitate a reduction in the thickness of building components. This, in turn, provides more internal space and optimizes land utilization and the recyclability of the constituent materials after their service life.

Asia-Pacific Expected To Garner Highest CAGR

Asia-Pacific is expected to witness a CAGR of 7.2% during the forecast period. The fast-paced development of the automotive, construction, and telecommunications industries, due to the rapid industrialization, is bolstering the Asia-Pacific high-performance insulation materials market growth. The low labor costs, low startup costs for production facilities, and low insulating material costs are other factors driving the industry in APAC.

Additionally, residential and non-residential construction firms have started using high-performing insulation materials due to a growth in the demand for them brought on by climate change, in order to reduce energy consumption, and the desire for more-soundproof buildings. Moreover, the economic development in China and India is fueling the market by driving construction and renovation & retrofitting activities.

Additionally, high-performance insulation is employed both in the building of factories and plants as well as their renovation, since such materials have outstanding acoustic insulation qualities, in addition to thermal insulation qualities. They are, therefore, perfect for usage in industrial plants where low noise levels are required.

China is the largest market, with a share of more than 41% in 2021, majorly due to the net-zero strategy adopted by it in order to reduce CO2 emissions. The country is the world’s largest energy consumer, so strategies are being implemented to reduce emissions. A roadmap for decarbonization with five guiding principles, numerous initiatives, and emission targets for 2025, 2030, and 2060 was released by the State Council in October 2021. This will drive the usage of high-performance thermal insulation materials in buildings over this decade.

The key high-performance insulation materials market trend is materials with low thermal conductivity, density, thickness, surface emissivity, and thermal bridging. The type of raw material, the production process, and the skill level of the labor force all affect the degrees of these abilities of high-performance insulation materials.

Japan is the second-largest country in the high-performance insulation materials market of APAC. This is ascribed to its high construction and manufacturing output, rising infrastructure spending, and urbanization trends. With the development of building energy efficiency regulations, the country targets to reduce emissions by 26% by 2030. Moreover, the consumption of these materials in the residential sector is growing, in part due to an increase in the renovation and re-insulation of homes, thus driving the market.

Industrial Sector Holds Major Share

The industrial sector accounted for the major share, of around 33%, in the market in 2021. Due to the booming industries, energy demand has increased globally. The sector still contributes massively to air pollution despite numerous nations making commitments to decarbonize their economies and lessen their reliance on non-renewable fuels. Around 42% of all energy use is accounted for by the construction industry. Lightweight aerogel-based insulating materials have the potential to dramatically cut energy consumption in the global building and construction sector.

Moreover, aerogel has a higher thermal efficiency and a significantly improved insulation profile over traditional materials, such as mineral wool, perlite, and cellular glass, of the same thickness. Thus, it is used in high-performance pipes carrying hot and cryogenic fluids, including subsea pipelines; transportation (including ships and trailers), and stationary storage tanks.

Oil & gas is the second-largest shareholder in the market, since high-performance insulation can maximize energy efficiency and optimize the usage of the smallest spaces. Ultra-thin and lightweight insulation solutions that offer such advantages are widely available for LNG and petrochemical plants, refineries, and other types of oil & gas facilities. These materials' low thermal conductivity cuts heat loss to the absolute minimum, without the need for substantial insulation linings.

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To Increase Market Share, Companies Involved in Several Strategic Developments

The high-performance insulation materials market competitive landscape is fragmented, with the presence of many players. In recent years, they have been involved in partnerships, expansions, and product innovations in order to stay ahead of their competitors.

• In January 2022, Armacell, a provider of flexible foam for the equipment insulation market, acquired the engineering business of SpiderPlus & Co. Ltd., to expand its operations in Japan.

Key Players in High-Performance Insulation Materials Market Are:

• 3M Company
• Morgen Advanced Materials
• Aspen Aerogels Inc.
• Ibiden Co. Ltd.
• Guangdong Alison Hi-tech Co. Ltd.
• Nano High-Tech Co. Ltd.
• Cabot Corporation
• Unifrax LLC
• Rockwool International A/S

High-Performance Insulation Materials Market Size Breakdown by Segment

The study offers a comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

Based on Material type

• Aerogel
• Vacuum Insulation panel
• Fiberglass
• Ceramic Fiber
• High-Performance Foam

Based on End User

• Oil & Gas
• Industrial
• Building & Construction
• Transportation
• Power generation

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Spain
  • Italy
• Asia-Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • South Africa
  • Saudi Arabia