HVAC Insulation Market Overview
HVAC insulation market is expected to witness an extensive growth, during the forecast period. Skyrocketing growth of construction industry, implementation of stringent regulations to minimize the energy consumption and growing demand of HVAC systems are some of the major factors, positively influencing the growth of the market.
HVAC insulation refers to a system that combines three major functions: heating, ventilation and conditioning. Such systems help in regulating the heat that is dissipated through convection, conduction and radiation and deliver thermal properties such as fortification against sound, fire, and physical impact.
This insulation aims to provide minimized ozone depletion, efficient cooling, efficient sunlight screening and enhanced indoor air quality for residential, commercial and industrial constructions. Cost savings, longer operational life, sustained temperature and extended warranties are some of the potential benefits, which are backing the growth of HVAC insulation market. Some of the factors positively impacting the demand of these systems includes surging demand for thermal insulation for energy efficient applications and progress in construction activities. Increasing awareness to reduce energy consumption in construction is further propelling the demand of these systems.
Market Dynamics
Growing construction activities, surge in the demand of HVAC equipment and increasing focus towards energy efficiency, are some of the major factors positively impacting the growth of HVAC insulation market. Favourable regulatory framework across geographies, such as new building codes in the European Union, which necessitate the augmented insulation practice to diminish energy consumption, have also supported HVAC insulation manufacturers to expand their foothold in the market. Growing infrastructure expenditure in emerging economies of Asia-Pacific such as India, China, Indonesia and Thailand, are further expected to bolster the growth of the HVAC insulation market, during the forecast period. Some of the recent trends observed in the global market include soaring demand for high-temperature insulation and the increasing utilization of biodegradable materials.
On the contrary, lack of awareness pertaining to the benefits of insulation and volatile prices of key raw materials are the major challenges hampering the growth of the market. These challenges are projected to trouble participants of this market in terms of profitability and production costs.
Regional Insights
APAC has been the largest HVAC insulation market due to significant growth in the building construction infrastructure, specifically in China and India. India is on the cusp of global governance as it rushes forward as an emerging market. In this context, country’s economy needs to acclimatize to recent, pioneering renovations that are entrenched in technological innovations across several industries.
Real-estate is one of the key industry verticals that require to ring in technological advancement. Some of the key factors fuelling the expansion of real-estate industry in the country include rapid urbanisation, a growing young demographic and mass migration to cities. Innovations in building design along with increasing focus on energy efficiency for buildings have backed the growth of HVAC insulation market in the region.
North America is the second-largest HVAC insulation market, across geographies. Growth of this market in the region is attributed to the rising construction industry and stringent government protocols to boost energy efficiency. RoW is expected to be the fastest growing region strengthened by the growing markets, namely, UAE and Saudi Arabia. Upcoming building infrastructure projects in UAE, and soaring energy efficiency awareness in UAE and Saudi Arabia, are likely to bolster the growth of this market in RoW.
Application Insights
In terms of application, the global HVAC insulation market is broadly categorized into residential, commercial and industrial application. Commercial applications led the global industry in terms of revenue, whilst residential applications are anticipated to register the fastest growth during the forecast period. Surging demand for thermal insulation from households is likely to spur the growth of the HVAC insulation market, especially in Europe and North America.
The U.S. Department of Energy (DOE), through Weatherization Assistance Program (WAP) is likely to enhance the demand of HVAC insulation in residential construction. DOE through WAP program lessens energy costs for low-income families by increasing the energy efficiency of their homes, while safeguarding their health and safety. WAP helps these households to save on an average $283 or more every year, according to a national evaluation of the program.
HVAC Insulation Market Competitiveness
Some of the key players operating in the global HVAC insulation market include CertainTeed Corporation, PPG Industries Inc., Owens Corning Corporation, Rockwool International A/S, Armacell International S.A., Johns Manville Corporation, Xiamen Goot Advanced Material Co., L'isolante K-Flex S.P.A., Glassrock Insulation Co S.A., and Knauf Insulation. Key players in this market are following the strategies of geographical expansion, new product launches, acquisition, and collaborations. For instance, in July 2017, CertainTeed Corporation signed an agreement to acquire SimTek to innovate its outdoor living products portfolio.
