Industrial Insulation Market Size, Share & Trends Analysis Report By Material (Stone Wool, Glass Wool, Foamed Plastic), By Product, By Application (Power Generation, EIP), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global industrial insulation market size was estimated at USD 7.82 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of  5.0%. Increasing product demand for boosting process efficiency, condensation control, noise reduction, freeze protection, and reducing environmental pollution is expected to drive market growth during the forecast period. However, the industry witnessed a severe downfall in the investments in the industrial sector, owing to the pandemic, thereby impacting the market. In addition, a dramatic fall in crude oil prices led to a drop in fiscal resources for oil-producing countries, which affected the product demand from the oil & gas sector.

The market in the U.S. is expected to witness increased demand for insulation for industrial applications, such as machinery, boilers, pipes, and storage tanks, and in linings of heat exchangers, cooling towers, and ventilation & air conditioning systems, among others. To better serve their customers with customized products and increase their profit margins, most manufacturers turn to independent distribution. Manufacturers also establish a 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 price of the product 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 advanced products, which, in turn, is expected to drive the demand for a niche products such as aerogel and perlite.

The market exhibits high entry barriers, owing to the presence of a large number of players. In addition, the capital-intensive nature of the market ensures the requirement of a substantial amount of time, planning, and resources for entry and sustenance. Achieving economies of scale remains the top priority in the market, which may discourage new market entrants.

Major industry participants are developing novel manufacturing processes for products to enhance their properties and make them suitable for several applications. Continuous investments in the R&D process by the companies for new product development and improvement in transparent technology for thermal insulation are expected to benefit the market.

Material Insights

Stone wool led the market and accounted for about 23% share of the revenue in 2021. Stone wool is manufactured from volcanic rocks such as dolomite, diabase, and basalt, which are available in abundance.

CMS fibers are expected to expand at a CAGR of 3.9% during the forecast period, owing to the increasing demand for high-temperature insulation for fire protection in industrial applications. The product offers an exceptional performance-to-weight ratio and resistance to chemical attacks, which is expected to boost its demand.

Calcium silicate is anticipated to witness a higher demand, owing to its preference as an alternative to asbestos for high-temperature insulation since it acts as an excellent barrier to infrared radiation. High-temperature piping and industrial-grade equipment are the common applications of calcium silicate.

Elastomeric foam is estimated to reach USD 621.8 million by 2030, owing to its superior moisture barrier properties as compared to other materials. Elastomeric foam products have exceptional dimensional stability. In addition, they offer excellent protection against condensation, thermal loss, and south transfer.

Product Insights

Pipe insulation led the market and accounted for about 47% share of the revenue in 2021. The market is projected to witness notable demand, expanding at a CAGR of 5.5% from 2022 to 2030 due to its superior performance and ability to stabilize the process temperatures. It protects against freeze damage and pipe breaks and prevents 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 exchangers, 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, reducing the labor costs associated with installation.

The industrial board stood at USD 1,254.4 kilotons in 2021, owing to excellent thermal performance from ambient to high temperatures for mechanical, power, and process systems. The mineral wool board is widely used in many applications due to the low shrinkage it exhibits at high temperatures, as it prevents gaps from forming at joints, which is crucial to preventing thermal leaks.

Spray foam and milled fiber are also used for industrial insulation applications. Spray foam is a sealant designed to seal cracks, seams, and smaller gaps and 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.

Application Insights

LPG/LNG led the market and accounted for about a 30% share of the revenue in 2021. The market is expected to continue the trend during the forecast period, which can be attributed to the high risk involved in the transportation & storage of LPG & LNG products, leading to extensive product demand.

The power generation industry is expected to witness a heightened demand for these products, owing to its ability to minimize power losses. Growing concerns regarding energy management in the power generation industry across the globe are expected to drive market growth during the forecast period.

The Petrochemical & refineries industry is expected to experience robust growth, expanding at a CAGR of 4.8% during 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 in higher demand for the products.

The EIP industries are involved in the production of a wide range of products that require insulation for thermal energy conservation. In addition, the 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 during the forecast period.

Regional Insights

Europe dominated the market and accounted for about 34% share of the revenue share in 2021. The industry is predicted to remain the major market by 2030. Strict codes and laws effectuated by the European regulatory authorities have increased the awareness of 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 the highly developed industrial and power generation sector influencing the demand. The U.S. holds the largest market share in the industry, 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 2.42 billion by 2030 due to rising awareness regarding the products, coupled with industrial developments. However, extremely fast-paced growth in the industrial sector in the Asia Pacific, especially in China and India, may limit the expansion in the U.S., which may hamper the market growth.

The 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 the extensive need for insulation to maximize efficiency.

Key Companies & Market Share Insights

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 to cater to the ascending product demand.

Key players, like Armacell, have focused on international strategy, through which the company acquired Polipex Industria e Comercio Ltda, 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. Some prominent players in the global industrial insulation market include:

• Rockwool Insulation A/S

• Poroc Group Oy

• Knauf Insulation

• TechnoNICOL Corporation

• Anco Products, Inc.

• Aspen Aerogels, Inc.

• Cabot Corporation

• Morgan Advanced Materials plc

• Unifrax LLC

• RATH Group

• IBIDEN Co., Ltd.

• Armacell International

Industrial Insulation Market Report Scope

Segments Covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global industrial insulation market based on material, product, application, and region:

• Material Outlook (Volume, Kilotons, Revenue, USD Million, 2017 - 2030)

  • Stone Wool

  • Glass Wool

  • CMS Fibers

  • Calcium Silicate

  • Cellular Glass

  • Foamed Plastic

  • Elastomeric Foam

  • Perlite

  • Aerogel

  • Cellulose

  • Micro Silica

  • Others

• Product Outlook (Volume, Kilotons, Revenue, USD Million, 2017 - 2030)

  • Pipe

  • Board

  • Blanket

  • Others

• Application Type Outlook (Volume, Kilotons, Revenue, USD Million, 2017 - 2030)

  • Power Generation

  • Petrochemical & Refineries

  • EIP Industries

  • LNG/LPG

  • Others

• Regional Outlook (Volume, Kilotons, Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Poland

    • Spain

    • Italy

    • Benelux

    • Nordic

    • CIS

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Indonesia

    • Malaysia

    • Thailand

    • Vietnam

  • Central & South America

    • Brazil

    • Argentina

    • Colombia

  • Middle East & Africa

    • GCC

    • Turkey