The global building thermal insulation market size was estimated at USD 27.98 Million in 2018 and is expected to expand at a CAGR of 4.8%. Increasing residential and commercial application of the product to reduce the overall energy costs, coupled with rising awareness pertaining to energy conservation is expected to drive the growth.
Favorable regulations owing to focus on lowering the overall energy consumption is likely to be a major factor for driving the market. Thermal insulation helps reduce the dependency on Heat, Ventilation, and Air Conditioning (HVAC), thereby lowering the overall energy consumption, which is expected to benefit the growth.
U.S. is expected to account for the largest share in North America. Various initiatives such as the Weatherization Assistance Program (WAP,) which is focused on large scale product adoption in low income households is expected to play pivotal role in driving the growth.
Favorable building codes in U.S. and Canada, coupled with establishment of energy certification agencies such as the Leadership in Energy and Environmental Design (LEED) and the U.S. Green Building Council (USGBC) are expected to have a positive impact on the demand for building thermal insulation. However, stringent regulations imposed by the United States Environmental Protection Agency (EPA) pertaining to use of foamed plastics, owing to their low bio-degradability and carcinogenicity may have a negative impact on the market growth.
Environmental impact of insulation materials is likely to shift the industry’s focus to development of environment-friendly products over the forecast period. In addition, increasing prices of plastic foam is expected to have an adverse effect on the industry growth, thereby leading to development of alternative products.
Recyclable insulation is gaining popularity due to the stringent regulations governing conventional products such as plastic foams. Increasing preference for green, biodegradable and recyclable products by homeowners, architects, and businesses, owing to increasing environmental awareness is expected to boost the threat of substitutes in the market over the forecast period.
Expanded Polystyrene (EPS) is expected to exhibit the highest CAGR of 5.0% in terms of revenue over the forecast period, owing to its excellent thermal insulation properties and a long life span. In addition, increasing preference for the product owing to its non-toxic, rot-proof, and recyclable properties is expected to boost the growth.
Extruded Polystyrene (XPS) is estimated to witness significant growth over the forecast period, on account of its ability to reduce moisture related damages, resistance to water, and ability to enable energy savings. In addition, its ability to inhibit microbial or fungal growth in insulated area is further expected to bolster growth.
Mineral wool insulation accounted for a market share of 12.3% in 2018 and is estimated to exhibit significant growth over the forecast period, owing to superior characteristics of the product including fire safety, efficient heat barrier, ecological compatibility, and dimensional stability. Increasing usage of mineral wool in thermal barrier applications is expected to drive its growth over the forecast period.
Other products such as aerogel, cotton wool, and wool slag are expected to register moderate growth rate over the forecast period, owing to the increasing product penetration in North America. In addition, rising preference for building thermal insulation as an alternative to foamed plastic insulation is estimated to drive growth.
Roof application accounted for a market share of 35.07% in 2018 and is expected to witness significant CAGR over the forecast period, owing to rising requirement to avoid heat penetration from direct sunrays through roof. In addition, increasing number of single housing is expected to boost the market growth over the forecast period.
Wall application led the building thermal insulation market in 2018 and is estimated to expand at a CAGR of 4.9% in terms revenue over the forecast period, owing rising application of the product on exterior as well as interior walls. In addition, increasing product penetration for the insulation of cavity walls is expected to bolster the industry growth.
Floor application is projected to witness moderate growth over the forecast period, owing to rising demand to reduce the energy costs of HVAC application. Thermal insulation finds applications in flooring including basement, garage, cantilever, and crawl space. Increasing product penetration for floor insulation in extremely cold regions is expected to fuel the market growth.
Residential construction is estimated to witness the highest CAGR of 5.0% during the forecast period, owing to high growth of single-unit houses, coupled with refurbishment and re-insulation of old houses. In addition, growth in multi-family housing construction activities is also predicted to aid the market growth.
Commercial construction segment accounted for around 51.9% of the total revenue in 2018. Increasing importance for energy efficiency of commercial and public buildings on account of high energy costs that lead to increased maintenance costs is expected to complement the growth over the forecast period.
Europe is held the largest market share of 35.6% in 2018 and is predicted remain the major market by 2025. Initiatives by Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) and European Commission to promote thermal insulation as a means of energy conservation is expected to aid the regional growth.
Burgeoning residential and commercial construction activities in North America, coupled with implementation of strict green building codes to reduce the energy consumption per structure is expected to aid the growth. Furthermore, favorable government regulations for the adoption of the product for residential as well as commercial structures is expected to boost the growth over the forecast period.
Asia Pacific is expected to exhibit the highest growth, owing to the rising construction activities in the region to cater to the requirements of growing population. China is estimated to account for the largest share in the region, owing to the various government initiatives to improve its public infrastructure.
Political and economic instability in Central and South America is expected to have a negative impact on the regional market growth. However, efforts undertaken by the government to improve the economic condition is presumed to boost the growth in near future.
The market players are focused on increasing their share through mergers and acquisitions. Industry participants are focusing on research and development activities to expand their product portfolio by developing cost-effective products with enhanced properties. Manufacturers also focus on expanding their manufacturing capabilities to cater to the ascending product demand.
The market is mature and is witnessing slow but stable growth in most of the application segments. The market is highly price sensitive, owing to the high demand for insulation materials. New constructions and implementation of energy efficiency codes is likely to result in high industry rivalry.
Base year for estimation
Actual estimates/Historical data
2014 - 2017
2019 - 2025
Volume in Kilotons, Revenue in USD Million and CAGR from 2019 to 2025
North America, Europe, Asia Pacific, Central & South America, Middle East & Africa
U.S., Canada, Mexico, Germany, U.K., France, Spain, Italy, China, India, Japan, South Korea, Indonesia, Malaysia, Brazil, Argentina, Saudi Arabia, UAE, Qatar, South Africa
Volume forecast, Revenue forecast, competitive landscape, growth factors and trends
15% free customization scope (equivalent to 5 analysts working days)
If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global building thermal insulation market on the basis of product, application, end use, and region:
Product Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
End Use Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
Regional Outlook (Volume, Kilotons; Revenue; USD Million, 2014 - 2025)
Central & South America
Middle East & Africa
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The shortage in supply of raw materials from Chinese manufacturers has resulted in a severe demand-supply gap. The manufacturers are further expected to be stranded on raw material orders owing to the logistics industry being significantly impacted due to lockdown amid COVID-19. However, the producers are expected to move away from China aiming to reduce the future risks that would affect the business and to reduce the manufacturers' cluster in a single country in order to smoothen the supply chain. The report will account for Covid19 as a key market contributor.