The global insulation market size will advance at a CAGR of 7.5% during 2022–2030, to reach USD 117.4 billion by 2030. This is ascribed to the growing construction industry and rising demand for HVAC systems.
The aim of such type of insulation is to provide efficient cooling, reduce ozone depletion and improved quality of air, efficient sunlight screening for commercial, residential and industrial construction. Factors, such as, extended operational life, extended warranties are some benefits, cost savings and sustained temperature which are aiding in the growth of insulation market.
Some of the other factors affecting the demand of such systems include, progress in construction activities, and increasing requirement for thermal insulation for energy efficient applications. Increasing consciousness toward the reduction of consumption of energy in construction is also propelling the demand for these systems.
Manufacturing, construction, plumbing, HVAC, refrigeration, and electronics are some of the industries that employ insulation materials. The growth in the global air conditioner and refrigerator markets, primarily backed by the rising demand in India and China, is one of the key factors driving the insulation market. On account of the rising global temperatures and advancements in the cooling technology, the market for cooling appliance insulation materials has started growing and new energy-efficient appliances are witnessing a rise in their demand. Thus, the sales and replacement of the advanced appliances continue to drive the market growth, globally.
The increasing requirement for HVAC equipment due to rising construction activities and growing preference toward energy efficiency is the numerous factors propelling the growth of insulation market. Favourable regulatory framework across nations, including novel building codes in EU, which compel the improved insulation practice to lower the consumption of energy, have also endorsed the manufacturers of HVAC insulation to broaden their stronghold in the market. In emerging economies such as China, India, Thailand and Indonesia, the infrastructure expenditure is growing which is further propelling the market and is also expected to grow in the coming years.
The various recent trends observed in the insulation market, such as rising use of biodegradable materials and surging demand for high temperature insulation.
Higher disposable income levels have increased the standard of living of the middle-class population in developing countries such as India, Brazil, South Africa, and Russia. Increasing demand for residential buildings on account of increased income at disposal is expected to further increase spending on infrastructure. Besides, growing construction industry coupled with initiatives such as the South Asia Regional Initiative for Energy is expected to provide ample growth opportunities to the players in the global insulation market in the coming years.
North America is the second-largest region in insulation market. This growth is because of the booming construction sector and strict government protocols for boosting energy efficiency. Rest of the World will be the fastest growing region boosted by the booming markets, including, UAE and Saudi Arabia. Upcoming building projects in UAE, and increasing awareness with regard to energy efficiency in the U.A.E. and Saudi Arabia, will boost the growth of the industry in Rest of World.
Additionally, according to the World Bank, the U.S. GDP per capita for 2021 was USD 69,288, a 9.93% increase from 2020, while Canada’s GDP per capita for 2021 was USD 52,051, a 20.33% increase from 2020, which indicates a high purchasing power parity (PPP) among the population in the region.
The most-significant insulation market players are GAF Materials LLC, Huntsman International LLC, Johns Manville, Cellofoam North America Inc., ROCKWOOL A/S, DuPont de Nemours Inc., Owens Corning, Atlas Roofing Corporation, Compagnie de Saint-Gobain, and Kingspan Group plc.