The global industrial insulation market size was estimated at USD 6.90 billion in 2018 and is expected to grow at a CAGR of 5.1%. Increasing product demand for boosting the process efficiency, condensation control, noise reduction, freeze protection, and for reducing environmental pollution is expected to drive the market growth over the forecast period.
Manufacturers are striving to provide superior materials for improving the equipment operational lifetime and increasing the efficiency. In addition, the rising awareness regarding the benefits of insulation in the industrial application coupled with the reduction in overall operations costs is expected to drive the industry growth.
The industrial sector in the U.S. is predicted to witness significant expansion owing to the rising GDP. In addition, the product demand in the U.S. is influenced by number of factors, such as, global warming initiatives and related renewable programs, development of oil & gas prices, which is expected to impact the demand for industrial insulation.
Industry participants, especially aerogel manufacturers, face difficulties to raise capital to develop new products, owing to the diminishing subsidies causing venture capitalists to lose interest in new projects. Achieving energy efficiency and implementing strategies to promote the adoption of insulation are the major agenda for industry participants.
Major manufacturers in the industry opt for independent distribution, in order to better serve their customers by providing customized products and to increase their profit margin. Manufacturers also establish strategic relationship with distributors and provide solutions to the end-users through direct or third-party distribution.
The buyers in the market are essentially medium to large-scale businesses that exhibit limited sensitivity to the product price and lay higher emphasis on the product quality and the degree of insulation provided by the materials. In addition, key consumer industries have also exhibited a trend of adoption of the advanced products, which in turn is expected to drive the growth.
Major industry participants are developing novel manufacturing processes for products in order to enhance its properties and make it suitable for several applications. Continuous investments in R&D process by the companies for new product development and improvement in transparent technology for thermal insulation is expected to benefit the market
The market for CMS fibers insulation is expected to grow at a CAGR of 4.0% over the forecast period, owing to the increasing demand for high temperature insulation for fire protection in industrial applications. The product offers exceptional performance-to-weight ratio and resistance to chemical attack, which is expected to boost its demand.
Calcium silicate is anticipated to witness a higher demand, owing its preference as an alternative to asbestos for high temperature insulation, since it acts as an excellent barrier to infrared radiation. High demand for the product for use in high temperature piping and industrial grade equipment are expected to drive the industry growth over the forecast period.
The market for elastomeric foam is estimated to reach USD 531.5 million by 2025, owing to its superior moiisture barrier properties as compared to other materials. Elastomeric foam products has exceptional dimensional stability. In addition, they offer excellent protection against condensation, thermal loss, and south transfer, thereby driving the product use.
Micro silica is expected to witness sustainable demand over the projected period, owing to its ability to provide thermal insulation for variety of industrial applications over a wide range of temperatures, from ambient temperature to extremely high temperature ranges. Typical applications include vacuum panels, exhaust systems, and fire barrier systems.
Pipe insulation is projected to witness notable demand, growing at a CAGR 5.6% from 2018 to 2025, due to its superior performance and ability to stabilize the process temperatures. It provides protection against freeze damage and pipe breaks, and prevents the exposure to extreme temperatures. The product aids in increasing the energy efficiency of the process or plant, thereby reducing the operating expenses.
Blanket insulation products are specifically used in high temperature applications, operating up to 538ºC. Typical applications include heat exchanger, storage tanks, stack installations, cooling towers, air conditioning ductwork, and large diameter piping, among others. Removable blankets are used where installation of conventional insulation is difficult; hence reduce the labor costs associated with installation.
The market for Industrial insulation boards stood at USD 1,180.0 kilotons in 2018, owing to excellent thermal performance from ambient to high temperatures for mechanical, power, and process systems. Mineral wool board is widely used for number of applications; owing to the low shrinkage it exhibits at high temperature, in order to prevent the formation of gaps at joints to prevent thermal leaks.
Spray foam is a sealant, designed to seal cracks, seams, and smaller gaps and to eliminate drafts, block insects, and repel moisture. These are also used to fill, insulate, and seal corner joints, exterior cracks, utility panels, pipes, and duct penetrations. Increasing application scope of the product is expected to drive the market growth over the next seven years.
LPG/LNG transportation & storage accounted for the market share of 25.5% in 2018 and is expected to continue the trend over the forecast period, which can be attributed to high risk involved in the transportation & storage of LPG & LNG products, leading to extensive product demand.
Power generation industry is expected to witness a heightened demand for these products, owing to its ability to minimize power losses. Growing concerns regarding the energy management among the power generation industry across the globe is expected to drive the market growth over the forecast period.
Petrochemical & refineries industry is expected to experience a robust growth, growing at a CAGR of 4.9% over the projected period. The oil & gas industry is involved in the continuous high volume production of crude oil and natural gas, which is estimated to result into higher demand for the products.
The EIP industries are involved in the production of a wide range of products that require the insulation for thermal energy conservation. In addition, growth of the manufacturing sector coupled with the presence of stringent regulatory norms by the European Commission and other governing agencies is expected to drive the market growth over the forecast period.
Europe is expected contribute largest share to the global industrial insulation market, accounting for 34.8% in 2018 and is predicted remain the major market by 2025. Strict codes and laws effectuated by the European regulatory authorities have increased the awareness about rising energy costs and the need for energy efficiency, which is expected to benefit the market.
North America has been dominating the global industrial insulation market over the years, owing to highly developed industrial and power generation sector influencing the demand. U.S. holds the largest market share in the market, which can be attributed to its extremely advanced industrial sector, which accounts for the largest energy consumption in the region.
The market in the U.S. is expected to reach USD 2.07 billion, due to rising awareness regarding the products, coupled with industrial developments. However, extremely fast-paced growth in industrial sector in Asia Pacific, especially in China, India may limit the expansion in the U.S., which may hamper the market growth.
Asia Pacific is expected to generate notable growth on account of rising oil production in the economies of China and India. The industry is also expected to exhibit high growth due to the growing thermal energy production, leading to extensive need of insulation in order to maximize efficiency.
The industry players are focused on increasing their market share through organic growth, rather than mergers and acquisitions. Companies in the market are focusing on expanding their product portfolio by developing cost-effective insulation products with enhanced properties. Manufacturers are also focusing on expanding their manufacturing capabilities in order to cater to the ascending product demand.
Large players, like Armacell have focused on international strategy, through which the company acquired Polipex Industria e Comercio Ltd, a Brazilian manufacturer of extruded polyethylene insulation products for technical equipment. The company also established a joint venture with JIOS Aerogel, South Korea to develop & manufacture high-tech silica aerogel blankets.
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, UK, France, Poland, Spain, Italy, Benelux, Nordic, CIS, China, India, Japan, South Korea, Indonesia, Malaysia, Thailand, Vietnam, Brazil, Argentina, Colombia, GCC, Turkey
Volume forecast, Revenue forecast, competitive landscape, growth factors and trends
15% free customization scope (equivalent to 5 analysts working days)
If you need specific market 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 & country levels and provides an analysis on the 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 industrial insulation market on the basis of material, product, application and region:
Material Outlook (Volume, Kilotons; Revenue, USD Million; 2014 - 2025)
Product Outlook (Volume, Kilotons; Revenue, USD Million; 2014 - 2025)
Application Outlook (Volume, Kilotons; Revenue, USD Million; 2014 - 2025)
Petrochemical & Refineries
Regional Outlook (Volume, Kilotons; Revenue; USD Million, 2014 - 2025)
Central & South America
Middle East & Africa
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