The global industrial insulation market size was estimated at USD 7.24 billion in 2019 and is projected to exhibit a CAGR of 5.1% in terms of revenue, over the forecast period. Increasing product demand for enhancing the equipment efficiency and process performance across application industries is projected to be the major factor driving the growth.
Insulation eliminates the heat transfer out of the equipment system and improves the machine performance by making manufacturing processes more efficient. It offers frost protection to pipelines at low temperatures which makes it suitable for transportation equipment. Growing demand coupled with availability of the product at affordable prices is likely to boost the market growth.
The U.S. market for industrial insulation is anticipated to expand at a CAGR of 3.7% from 2020 to 2027. Factors, such as the ongoing global warming initiatives and other related programs in the country coupled with the growing demand for repair and replacement of the exiting insulation systems is projected to fuel the growth in the forthcoming years.
Major raw materials used in product manufacturing are derivatives of crude oil. The fluctuation in crude oil prices is anticipated to be the key factor hampering the growth of the market. Moreover, political turmoil in the major crude oil manufacturing economies including Qatar, Libya, and Iraq is expected to further deflate crude oil prices.
Thermal insulation provides an energy-efficient and cost-efficient design to industrial equipment, nullifying the need for a heating system and minimizing the operating costs. Manufacturers provide materials that improve the life cycle and product performance, which is projected to benefit the market growth over the forecast period.
Manufacturers procure the raw materials from suppliers directly or through third party distribution agencies. These manufacturers enter long-term agreements with raw material suppliers in order to avoid the effect of volatility in raw material prices. They also establish strategic relationships with the distributors to provide ideal solutions through direct or third-party distribution.
Industrial insulation materials such as stone wool, glass wool, CMS fiber, calcium silicate, cellular glass, foamed plastic, and others are used for product manufacturing, which decreases the overall energy consumption in various industrial processes. Selection of the raw material is the primary influencing factor responsible for increasing the system efficiency.
Stone wool segment is anticipated to expand at a CAGR of 6.3% in terms of revenue, from 2020 to 2027. Easy availability of stone wool in various forms with different characteristics and properties to suit a wide range of applications, including ovens and boilers is projected to benefit the segment growth.
Calcium silicate is projected to register a CAGR of 5.9% in terms of revenue, from 2020 to 2027 on account of growing use of the material as an alternative to asbestos for applications that require high temperature. In addition, the material is highly preferred in high-temperature piping and industrial-grade equipment, which is anticipated to boost the growth of the industrial insulation market over the forecast period.
The demand for foamed plastic in industrial manufacturing is projected to witness growth on account of its sound absorption, lightweight, and quakeproof nature among other superior properties. In addition, foamed plastics are resistant to chemicals and moisture, which makes for an ideal insulation material. Moreover, material exhibits superior dielectric strength, making it a preferred material for insulation of electric components in industrial applications.
Insulation products including pipe, board, blanket, and others are used in industrial applications in order to increase the reliability and efficiency of process system. The raw materials used in product manufacturing exhibit corrosion inhibition properties, which helps to prevent corrosion of pipes and other equipment due to condensation.
Industrial insulation is available in diverse forms, among which pipe insulation is the most commonly used product. This product segment accounted for 46.16% of the market share in terms of revenue in 2019 and is anticipated to continue its dominance over the forecast period. Growing use of the product in heat conservation, fireproofing, and soundproofing is likely to further propel the growth.
Pipe insulation offers acoustic protection by lowering the noise and vibration along the pipeline. These products can assist mechanical systems to operate within the desired limit and reduce the emission of pollutants. Pipe insulation products also aid the system to operate at various temperatures, ranging from cryogenic to refractory, thereby deriving high growth in terms of demand from the application industries.
Blanket insulation is estimated to expand at a CAGR of 5.3% in terms of revenue, over the forecast period. The product provides excellent handling characteristics, thermal performance, and dimensional stability in industrial applications. The major applications of the product include storage tanks, heat exchanger, cooling towers, and stack installations.
Stringent government regulations to reduce greenhouse gas emission are expected to boost the demand in applications, such as power generation and petrochemicals. In addition, various advantages, such as energy conservation is presumed to bolster growth of the segment over the forecast period. The EIP industries application segment accounted for USD 2.20 billion in 2019 and is projected to witness significant growth over the forecast period. Expansion of manufacturing industry coupled with the implementation of stringent regulatory norms across the globe is anticipated to drive the growth.
The demand for natural and petroleum gas across the globe has led to the establishment of an extensive storage and transportation infrastructure. High risk involved in the transportation and storage of the aforementioned products leads to the usage of products on a large scale by the industry players which is projected to continue driving the segment growth in near future.
Increasing demand for proper insulation of transportation pipes in the LNG and LPG industries is projected to result in a heightened product demand, leading to segment growth. The market for LNG and LPG is expected to register a sustained growth across the major economies, which is expected to further fuel the demand for industrial insulation over the forecast period.
Europe accounted for USD 2.5 billion in 2019 and is expected to witness exponential growth over the forecast period. Strict regulations related to insulation requirements implemented by the European governments has resulted in increased awareness about the rising energy costs and the need for energy efficiency. Rapid expansion of oil and gas industry owing to the technological advancements in the extraction process, availability of feedstock, developed infrastructure, a strong base of supporting services, as well as its close proximity to major markets is estimated to fuel the product demand in power generation and oil and gas industries in the region.
North America is projected to witness significant growth over the forecast period on account of the implementation of new provincial building codes in several provinces addressing energy consumption in commercial buildings. Growth in the demand for high quality products in order to reduce the carbon emissions is expected to drive the regional market. Increasing number of recovery construction projects in U.S., particularly in the commercial segments is projected to augment the growth. Rising awareness related to environment-friendly construction practices in the country is expected to further propel the product demand on account of its ability to reduce energy consumption.
The market is characterized by the presence of large number of major players. Major players, such as Rockwool Technical Insulation, Paroc Group, and Knauf Gips KG hold the majority of market share, due to their vast product portfolio and wider geographical reach. Large players, such as Armacell expand their customer base by implementing acquisitions and other such business strategies. The company acquired an international firm, Polipex Industria e Comercio Ltda, which is a manufacturer of extruded polyethylene insulation products. This is projected to intensify the competition for gaining higher market share.
Base year for estimation
Actual estimates/Historical data
2016 - 2018
2020 - 2027
Volume in Kilotons Revenue in USD Million and CAGR from 2020 to 2027
North America, Europe, Asia Pacific, Central & South America, Middle East & Africa
U.S., Canada, Mexico, Germany, U.K., France, Poland, Spain, Italy, Benelux, Nordic, CIS, China, India, Japan, South Korea, Indonesia, Malaysia, Thailand, Vietnam, Brazil, Argentina, Colombia, GCC, Turkey
Revenue forecast, competitive landscape, growth factors and trends
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global industrial insulation market report on the basis of raw material, product, application, and region:
Material Outlook (Volume, Kilotons, Revenue, USD Million, 2016 - 2027)
Product Outlook (Volume, Kilotons, Revenue, USD Million, 2016 - 2027)
Application Outlook (Volume, Kilotons, Revenue, USD Million, 2016 - 2027)
Petrochemical & Refineries
Regional Outlook (Volume, Kilotons, Revenue, USD Million, 2016 - 2027)
Central & South America
Middle East & Africa
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The manufacturing sector has been worst hit with the current pandemic situation as manufacturers of non-essential goods have shut down their manufacturing facilities in complying with the government norms for lockdown. We at GVR are trying to quantify the impact of this pandemic on the industrial insulation market. Get your copy now to gain deeper insights on the same.