Insulation Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Insulation Market Size

Insulation Market Trends & Drivers

Rising Demand for Residential and Industrial Insulation Drives Market

In recent years, the U.S. has witnessed an increase in the housing demand, which is acting as a driver for the market of new residential construction. A similar trend is being observed in European countries, which are gradually recovering from the recession. Residential construction re-insulation is another key driver for the market, as an umpteen number of under-insulated houses have turned to re-insulation to save energy costs. Almost all manufacturing units and industries today, require insulation for cost-effective operations. According to U.S. government, the total number of privately owned housing completions is over 1.3 million in October 2022, which further drives the market.

High urbanization and industrialization coupled with population growth in emerging markets, such as Russia, Mexico, South Africa, India, China, and Brazil, have contributed to the development in industrial and residential infrastructure. Additionally, rising energy costs and increasing government initiatives toward energy efficiency are expected to trigger the requirement for insulation products in industrial and residential buildings in these markets in the coming years. With reducing exports, countries are expected to largely focus on trade and investment in their home markets. A robust local labor market and a relatively easy access to finance would certainly facilitate this. In the long run, the trend is expected to gain pace because the domestic demand will further be fueled by the growing population of the middle class and rising real income rates.

Insulation is extensively used in the manufacturing industry, where there is a high requirement for acoustic and thermal insulation. However, insulation requirement varies from plant to plant, depending on their location and operations, such as in boilers, stacks, incinerators, exhausts, and turbines. APAC is the leading market for industrial insulation owing to increasing industrial output in the emerging markets of China, India, Philippines, Thailand, Malaysia, and Indonesia. Altogether, these factors indicate that increasing demand for residential and industrial insulation materials is expected to drive the industry in the coming years.

Regulatory Support to Encourage Insulation is a Key Trend

The demand for energy in developed and developing countries is on the rise, well complemented by rising energy costs. An insulated residential building can save up to 20% of energy costs, as it considerably brings down the heating and cooling costs during summers and winters, respectively. A study conducted by the United States Environmental Protection Agency (US EPA) concluded that the installation of an insulation system in a building can reduce up to 18% of cooling and heating costs. Spray polyurethane (PU) foams and rigid PU foams are largely used as insulation materials in the construction of buildings to prevent heat loss and achieve energy efficiency. Insulation requirements vary from region to region, depending on the climatic conditions. Different R-values (thermal resistance) are recommended for different applications (such as floor, attic, and wall insulation).

The U.S. federal government offers tax credit for qualifying insulation purchases. Europe, on the other hand, is a mature market. European countries, such as Germany, France, and the U.K., are among the largest users of home insulation materials. Many European countries have passed legislations regarding the grades of insulation materials installed at home, based on the R-value of the material and the climatic conditions in the country. The European Commission’s Energy Performance of Buildings Directive (EPBD) focuses on the usage and grades of insulation materials and their environmental impact. These government initiatives have increased awareness among people and led to an increased usage of home insulation, mostly retrofit, in recent years.

Insulation Market Analysis

EPS Insulation Dominates Market

EPS insulation dominates the market with a share of around 30%, attributed to the wide usage in various thermal and acoustic insulation applications owing to its properties, such as light weight, fire retardancy, versatility, durability, and ease of recycling. Moreover, EPS insulation is budget friendly, and is made of 2% polystyrene and 98% air. Since still air is the best thermal insulator, EPS is an excellent insulation material.

Glass wool insulation holds second largest share in the market owing to the inexpensiveness, easy availability, longer life span, and being non- hazardous to health. Furthermore, glass wool is thermal insulator and is resistant to fire.

Construction is Major Application

Construction was the largest application area of insulation materials during the historical period and it will contribute over 25% share to the global market in the future as well. This can be majorly attributed to the large-scale use of insulation materials in construction activities, which are taking place at a high rate owing to the increasing population and income.

Various factors, such as rising focus on lowering consumption of energy accompanied by installation of efficient, green, and recyclable materials, increasing customer spending along with the increasing need for new homes, growing requirement in residential applications for insulating materials among developed regions including, North America and Europe, growth in construction industry along with increasing focus toward adoption of energy efficient modes are expected to fuel the market revenue during the forecast period.

Industrial Application Boosting the Growth

In industrial applications, insulation is must for equipment and pipes to keep the systems stable. Factors responsible for insulating pipes in industries control surface temperature for protection of people, prevents condensation and subsequent corrosion of cold surfaces, and fire protection.

Industrial insulation is done to achieve temperature and humidity control, air and noise reduction, and savings of energy costs. The category includes, light industrial and marine applications. Insulation in ducts, pipes, is usually done to improve energy efficiency, fire safety, and acoustic performance of a building.

The increasing demand for insulation in industries is because of the improving equipment efficiency, and increasing infrastructural activities. Industrial insulation is used to safeguard storage tanks, furnaces, boilers, and chimneys and other power sector equipment.

With rising environmental concerns, manufacturers are adopting environment friendly alternatives for insulation, such as cellulose, wool, and many others.

Because of the war between Russia and Ukraine, the supply of oil and gas decreased, and with the attack on powerplants rising focus on heating efficiency in homes and buildings, including resealing windows and adding insulation, need relatively minimal investment and have instant impacts. insulation will save energy and cost in the nations, which in turn has a positive impact on the market.

Geographical Analysis

Asia-Pacific Holds Largest Share

APAC is leading the market, and it will maintain its position till 2030, with a value of over USD 50 billion. This is attributed to the increasing population, which subsequently increases the requirement for commercial and industrial construction. The rising oil production in India and China, and growing concerns regarding significant energy wastage, coupled with the rising demand for the materials in refurbishing and renovation.

China leads the region, and it will grow with a CAGR of around 8%, attributed to the rising disposable income and rapid urbanization.

According to government reports, construction sector in India is expected to reach USD 1.4 trillion by 2025 and more than 40% of population is expected to live in urban areas. Under National Investment Promotion (NIP) India has an investment budget of USD 1.4 Tn on infrastructure - 24% on renewable energy, 19% on roads & highways, 16% on urban infrastructure, and 13% on railways.

Market Breakdown

This report offers deep insights into the insulation industry, with size estimation for 2019 to 2030, the major drivers, restraints, trends and opportunities, and competitor analysis.

Based on Product

• Expanded Polystyrene (EPS)
• Glass Wool
• Mineral Wool
• Cellulose
• Calcium Silicate

Based on Function

• Thermal
• Acoustic
• Electric

Based on Form

• Blanket
• Foam
• Board
• Pipe

Based on Application

• Industrial
• Construction
  • Residential
  • Non-residential & commercial
• Transportation
  • Automotive
  • Marine
  • Aerospace
• Appliances
• Packaging
• Furniture

Geographical Analysis

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

Top Insulation Companies