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Valued at $52.3 billion in 2017, the global insulation market is expected to reach $101.3 billion by 2025, demonstrating a CAGR of 8.6% between 2018 and 2025.
Asia-Pacific (APAC) is expected to witness the fastest growth in the market during the forecast period. This is majorly ascribed to the increasing demand for insulation products in residential and non-residential construction, on account of the growing population, rapid industrialization, and fast economic growth, especially in emerging countries, namely China and India.
Fundamentals Governing Insulation Market
The key trend being observed in the insulation market is the regulatory support from governments in different regions, to encourage the installation of an insulation systems in buildings, for energy conservation. An insulated building can save up to 20% in energy costs, as it can bring down the warming and cooling requirements during winters and summers, respectively, by preventing heat gain/loss, with which energy efficiency can be achieved. For instance, the U.S. federal government offers tax credits on purchase of insulation products.
The increasing demand for residential and industrial insulation is a major factor driving the insulation market, globally. In the manufacturing industry, there is a high demand for acoustic and thermal insulation, such as in boilers, stacks, incinerators, exhausts, and turbines. APAC is a leading market for industrial insulation, owing to the increasing industrial output in emerging countries, including China, India, the Philippines, Thailand, Malaysia, and Indonesia.
The surging expenditure on infrastructure in emerging economies, namely Russia, India, China, and Brazil, offers a huge growth potential for the players in the insulation market. This can be attributed to the efforts being made to counter the rising energy costs and increasing government initiatives toward energy efficiency, which is expected to trigger the demand for insulation products in industrial and residential buildings in the coming years.
Insulation Market Segmentation Analysis
Expanded polystyrene (EPS) wool was the largest insulation market category, among all products, generating $17.1 billion in 2017. This can be attributed to its wide usage in various thermal and acoustic insulation applications, owing to its low weight, fire retardancy, and durability.
The industrial, HVAC & OEM category is expected to exhibit the fastest insulation market growth, in terms of value, witnessing a CAGR of 8.9% during the forecast period, on the basis of application. This can be ascribed to the increasing insulation demand in the industrial and marine sectors, mainly to control temperature and humidity, reduce noise, and save on operational costs. The demand for energy-efficient insulation will increase further, owing to the rapid industrialization in developing countries, such as India, China, and Brazil.
Geographical Analysis of Insulation Market
Globally, Europe was the largest market for insulation during the historical period(2014–2017). This is mainly attributed to the European Union (EU)’s initiatives to promote thermal insulation as a means of energy conservation. Additionally, the increasing awareness among consumers regarding the benefits of insulation is also expected to have a positive impact on the regional insulation market growth. Germany is expected to lead the European market during the forecast period.
During the forecast period, the insulation market is expected to witness the fastest growth in the APAC region, mainly on account of the rapid industrialization, fast economic growth, and energy conservation initiatives by governments to reduce greenhouse gas emissions. China is expected to lead the APAC insulation industry over the forecast period, generating revenue worth $17.8 billion by 2025.
Competitive Landscape of Insulation Market
The global insulation market is fragmented in nature, with the presence of several global and regional players. Some of the key players operating in the market are Guardian Building Products Inc., Cellofoam North America Inc., ROCKWOOL International A/S, Dow Building Solutions, Atlas Roofing Corporation, Compagnie de Saint-Gobain S.A., Byucksan Corporation, Kingspan Group plc, Owens Corning, and GAF Materials LLC.
Recent Strategic Developments of Major Insulation Market Players
In recent years, major players in the insulation market have taken several strategic measures, such as product launches and geographical expansions by mergers and acquisitions, to gain a competitive edge in the industry. For instance, in August 2017, Johns Manville launched JM CladStone Water & Fire Block Insulation, a mineral wool-based non-combustible insulation product that offers high thermal efficiency, fire resistance, and acoustic performance.
Moreover, in November 2017, ROCKWOOL International A/S announced the acquisition of 97.6% share of Flumroc AG, a company focusing on construction products and technical insulation, to strengthen its presence in Switzerland.
Market Size Breakdown by Segment
The Insulation Market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2025.
Based on Product
Based on Application
Key Questions Addressed