The global building thermal insulation market size was valued at USD 24.4 billion in 2015 and is expected grow at a CAGR of 4.2% during the forecast period. Rising demand for insulation especially from the residential and non-residential application segments owing to the rising energy costs and growing awareness regarding energy conservation is expected to drive the demand for thermal isolation materials market.
Thermal isolation materials help in reducing the accumulation of heat within the buildings, thus resulting in lower dependence on air conditioning, and thereby also cutting down the energy costs. Moreover, the government initiatives to promote energy efficiency and sustainable development through insulation technologies expected to play a crucial role in supporting the market growth.
Residential building sector dominates the market and is expected to observe higher growth prospects on account of single unit housing sector growth in the region. High growth of single-unit houses, as well as lodging & office buildings, is expected to trigger the regional growth. Refurbishment and re-insulation activities for old homes are also likely to aid the increasing demand.
The Nordic countries, Germany, France, and the U.K. are amongst the highest consumers of home insulation. Many European countries have passed legislation regarding the grade of thermal barriers to be installed at home, based on the R-value of the material and the climatic conditions in the country. European Commission’s Energy Performance of Buildings Directive (EPBD) regarding usage and grades of these materials and their environmental impact is aimed at standardizing the market in the region.
In developed markets, future economic growth is expected to be primarily led by domestic demand. With diminished reliance on exports, this region will focus increasingly on trade and investment in their home market. This will be facilitated by relatively easy access to finance and a robust local labor market. Over the longer term, the trend will strengthen because the growing middle-class population and rising income levels will fuel domestic demand further.
Mineral wool has advantages such as efficient heat barrier, fire safety, dimensional stability, ecological compatibility, bio-stability, chemical resistance, water repellency, sound absorption and vapor permeability. The thermal qualities of EPS are recognized by the SANS-204 standard for energy efficient materials. EPS also resists water, is rot-proof, non-toxic, and completely recyclable. These are some of the factors that are expected to boost the demand for EPS over the forecast period.
Glass wool is comprised of glass fibers bound systematically into a texture similar to wool and is relatively lighter than rock wool. It is produced in slabs and rolls along with several other mechanical properties. Moderate growth of other products such as cotton wool, wool slag, and aerogel is expected to register modest growth rate over the forecast period on account of its lack of awareness among consumers. Its growth is supposed to be driven by increasing penetration in the North America market.
Stringent regulations by agencies such as U.S. EPA, REACH and EU Directives regarding usage of toxic blowing agents in foamed plastics is expected to pose challenges to its growth over the forecast period. Mineral wool is widely used for insulating wall cavities, internal walls and external walls, lofts, etc. Increasing usage of mineral wool in thermal barrier applications in residential, commercial and public buildings is expected to drive its growth over the forecast period.
Most of the individual homes in the U.S. are 20-25 years old when thermal barriers was not prominent and thus refurbishment & re-insulation of these homes will benefit the overall market in the region. Wall insulation holds the highest share and is expected to dominate the market demand over the forecast period. Growing infrastructure sector in emerging markets of China, India, Brazil, Mexico and South Africa is expected to drive thermal insulation demand in non-residential constructions.
EPS and XPS are typically employed for pros, such as long-term and stable R-value of the materials, recyclability, the ability to be placed below grade, applicability for inverted assemblies (over membrane), etc. Although, exposure to sun, irreversible damages caused by solvent-based materials, incompatibility with certain thermoplastics, and flammability can turn out to be the cons related to the utilization of polystyrene.
Polystyrene materials which are classified under ASTM C578 fall into various classifications. Also, they are manufactured in a variety of board sizes, usually a minimum of 1-inch thick. Tapered units, too are produced for use in roofing assemblies, where the insulation is used for creating a slope for positive drainage. Wall application dominates the overall demand. The main reason for the penetration is the large surface area of the walls in a building. The presence of a large number of single homes will trigger the segment growth.
Growing infrastructure sector in emerging markets of China, India, Brazil, Mexico and South Africa is expected to drive thermal insulation demand, mainly in non-residential constructions. Initiatives by the U.S. Dept. of Energy through Weatherization Assistance Program to improve the energy efficiency of low-income households is expected to further drive North America market growth over the forecast period.
Residential construction emerged as the most significant segment and accounted for over 50% of the total market demand in 2015. Residential construction is expected to gain 0.85% of market share by 2025 on account of increasing insulation demand in residential buildings to reduce energy consumption.
The residential re-insulation market is a significant contributor to the industry, as a large number of under-insulated houses have turned to re-insulation to save energy. Barrier materials are heavily applied in the manufacturing industry, where there is a high necessity for thermal and acoustic isolation.
Resurgent building construction activity coupled with the implementation of strict building codes such as the International Energy Conservation Code (IECC), in North America, is likely to boost thermal insulation demand in the region. Moreover, the initiatives focused towards making existing buildings more energy efficient in the U.S. is anticipated to help the region account for the most significant market share in North America.
The European market is governed by stringent regulations from the European Commission and REACH. The EU initiatives to promote thermal insulation as a means of energy conservation strategy are expected to support the market growth. Increasing energy costs and high awareness among consumers regarding benefits of insulation are expected to have a positive impact on the regional market growth.
Governments of China, India, and Japan have been increasing their construction spending to improve public and commercial infrastructure. These trends coupled with energy conservation initiatives to reduce greenhouse gas emissions are expected to drive Asia Pacific market growth over the forecast period.
Presence of key market players is a significant factor, which is likely to support the market growth in North America. Europe is anticipated to emerge as the largest market and is likely to account for over 30% market share by volume in 2025. The market in Asia Pacific is characterized by high demand in residential and commercial buildings.
High level of integration exists in the foamed plastic market as the raw material suppliers have a forward integration with the insulation products manufacturers. This enables these companies to expand their scope of operations and enter new application markets. Key fiberglass manufacturers in the global market include Owens Corning, Certain Teed, and John Manville.
The raw materials required for the manufacturing of fiberglass insulators such as silicon, limestone, borate, and feldspar, are sourced from different suppliers. Biesanz Stone Co. and Michigan Limestone & Chemical Company are major limestone suppliers, while Alfa Aesar and American Borate Company supply borates. Companies such as BASF, Bayer, and Dow Chemical Company dominate raw material supply for foamed plastic insulation products.
The manufactured insulation products usually follow supply chain and reach end-users through distribution channels such as government contractors, retailers, wholesalers, and lumberyards. In some cases, the manufacturers directly establish relationships with these integral members of the supply chain and provide solutions to the end users. The end users are mostly homeowners, contractors, etc.
The manufactured insulation products usually follow supply chain and reach end-users through distribution channels such as government contractors, retailers, wholesalers, and lumberyards. In some cases, the manufacturers directly establish relationships with these integral members of the supply chain and provide solutions to the end users. The end users are mostly homeowners, building insulation contractors, etc.
Key players such as Huntsman International LLC, Owens Corning, have focused on acquisitions, to expand their market presence and penetration. A majority of manufacturers are focused on developing application-specific thermal insulation materials having no adverse effect on the ozone layer.
This report forecasts revenue growth at global, regional, and country levels and provides an analysis on latest industry trends in each of the sub-segments from 2014 to 2024. For the purpose of this study, Grand View Research has segmented the global market report on the basis of product, application, end-use and region:
Product Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)
Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)
End-Use Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)
Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)
Middle East and Africa
Central & South America
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