Insulation Market Analysis By Product (Fiberglass, Foamed Plastic, Mineral Wool), By Application (Residential Buildings, Non-residential Buildings, Industrial, HVAC & OEM) And Segment Forecasts To 2020

Published: September 2015 | ISBN Code: 978-1-68038-196-2 | Report Format: PDF

Industry Insights

Global insulation market was worth USD 37.94 billion in 2013. Growing insulation demand in residential and non-residential applications on account of rising energy costs and growing importance for energy conservation is expected to drive the overall market growth over the next seven years.

Various government initiatives to promote energy efficiency by reducing greenhouse gas emissions and sustainable development through insulation technologies were witnessed over the past few years. Increasing construction spending in the emerging regions is expected to complement the global insulation market demand.

Insulating materials such as EPS, elastomers, and polyethylene, which constitute the plastic foam, are downstream derivatives of crude oil. Volatile crude oil prices in the international market are a serious restraint to the growth for this industry.

R&D initiatives from industry participants are expected to create lucrative opportunities for industry expansion. In March 2013, Huntsman Corporation acquired 20% stake in Nippon Aqua Co. Ltd., Japan. The company specializes in spray polyurethane foam insulation and entered a 10-year supply agreement with Nippon Aqua. Nippon Aqua, a spray polyurethane foam insulation company, is one of the best companies in Japan, and it operates in more than 30 regions in the country. This acquisition helped Huntsman Corp. to enter the Japanese market and is slated to strengthen the company’s foothold in the eastern Asian market.

North America insulation market revenue by product, 2012-2020, (USD Million)

North America insulation market

Product Insights

Fiberglass products dominated the market and accounted for over 43% of the revenue generated in 2013. High-level compatibility with minimal expenses helped this product to gain consumer attraction over other materials. It is also expected to witness the fastest growth over the next seven years, at a CAGR of 9.1% from 2014 to 2020.

Foamed plastics are expected to grow at a CAGR of 8.6% from 2014 to 2020 and are expected to gain market share by 0.10% over the forecast period. Foamed plastics are widely used for acoustic and thermal insulation in residential, commercial and industrial applications. Increasing demand for thermal insulation as a means to increase the energy efficiency of buildings is expected to drive overall product demand over the next seven years.

Application Insights

Residential construction was the largest application and accounted for over 50% of the total revenue in 2013. Residential construction is expected to gain revenue share by 4.93% over the forecast period. Rising disposable income levels coupled with urbanization in emerging markets of Latin America and Asia Pacific have driven demand for residential buildings. This trend coupled with increasing awareness regarding energy conservation is expected to drive overall growth in residential construction.

Insulation products used in industrial, HVAC & OEM and non-residential construction are expected to witness significant growth from 2014 to 2020, respectively. High operational costs due to increasing energy costs coupled with regulatory policies regarding the reduction of greenhouse gas emissions are expected to drive the overall demand.

Regional Insights

Asia Pacific insulation market was the most dominant region and accounted for over 40% of the total revenue in 2013. Flexible regulations in China and India are expected to strengthen the demand for foamed plastic materials. 

North America is expected to grow at a CAGR of 8.1% from 2014 to 2020. Initiatives by the U.S. government through Weatherization Assistance Program (WAP) to promote thermal insulation in low-income households through federal funding are expected to drive market demand.

Stringent regulations from European Commission and REACH help growing awareness regarding thermal insulation as a means of energy conservation strategy. Increasing energy costs and high awareness among consumers regarding the benefits are expected to have a positive impact on the regional market.

Competitive Insights

Global insulation market is highly fragmented with top four companies, namely, Saint-Gobain, Rockwool, Johns Manville, and Knauf, accounting for over 25% of the overall revenue in 2013. Major companies such as Knauf and Johns Manville are actively involved in M&As to increase their revenue share. Major plastic producers such as BASF, Dow, and Huntsman are expanding their product manufacturing capabilities to enhance their presence in the market.

Saint-Gobain accounted for over 10% of the revenue share in 2013 to emerge as the leading industry participant. The company is aggressively involved in M&As with smaller firms to enhance its thermal insulation capabilities. The company acquired Z-Tech LLC and Phoenix Coating Resources, both thermal coatings producers, to enhance its thermal insulation business segment.

In January 2014, DuPont announced the launch of LAMINEX MaxFlow 4G, intended for improving texture, taste, and appearance of the beer. In October 2012, DSM acquired Cargill’s cultures and enzymes business for USD 107.6 million (Euro 85 million).

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