The global insulation market size was estimated at USD 52.18 billion in 2018 and is expected to expand at a CAGR of 5.7% over the forecast period. Increasing consumer awareness regarding energy conservation is estimated to propel the growth. Factors such as rapid industrialization and urbanization in the emerging countries such as China, India, Philippines, Malaysia, and Indonesia, drive the need for better infrastructure. Moreover, increasing regulatory support and demand for residential and industrial insulation are the factors estimated to fuel the product demand.
In North America, glass wool sector accounted for the largest market share in 2018 and is estimated to expand at a CAGR of 5.0% over the forecast period. Glass wool is a thermal insulator consisting of flexible and knotted glass fibers, which traps air inside resulting in low density. The segment was followed by mineral wool and EPS respectively.
Funding by the U.S. Department of Energy for the development of phenolic foams is estimated to boost demand for product, which, in turn, is estimated to drive the global growth. According to a research conducted in 2016 by the Harvard School of Public Health, about 45 million residences in U.S. were found to be living in under-insulated conditions, which represents a huge opportunity for insulation in the country.
Factors such as fluctuating raw material prices and limited production in U.S. are estimated to hamper the overall growth in the forthcoming years. Rising presence of manufacturing industries in China, India, Brazil, and Mexico is estimated to boost the demand for fiberglass insulating material in industrial buildings thereby driving the market growth.
Rising demand for sustainable residential buildings on account of growing populace and urbanization is a recent application trend estimated to drive industrial growth. Furthermore, technological enhancements in thermal insulation like vacuum panels and R&D activities to advance transparent thermal product are expected to drive the industry growth.
The market is segmented into glass wool, mineral wool, EPS, XPS, CMS fibers, calcium silicate, aerogel, cellulose, PIR, phenolic foam, and polyurethane. EPS insulation emerged as the largest product segment, which accounted for 26.69% of the insulation market share in 2018 and is estimated to continue its dominance over the forecast period on account of its light weight and high-tensile strength.
Glass wool was the second largest product sector that is expected to expand at CAGR of 5.5% over the forecast period. Glass wool is made of sand has thermal and acoustic insulating properties such as low weight and high tensile strength. Removable blankets are a byproduct of glass wool and make a great cover for turbines, pumps, heat exchangers thereby leading to a high demand.
Extruded Polystyrene (XPS) foam insulation is a superior choice as a potentially environmentally responsible alternative, in comparison with other building insulating materials. Moreover, stone wool occurs naturally as a byproduct of volcanic eruptions. It is highly resistant to heat transfer since it combines the capabilities of thermal insulating characteristics inherent to wool and the strength of stone.
Aerogel is a solid, open-celled, mesoporous foam of nanostructures interconnected in a network. Aerogel is claimed as the lightest solid material in comparison with other insulating materials. Aerogel bears many advantages such as optimized thermal conductivity in high-temperature service, faster application on large-bore piping and vessels, quick applications on large-bore piping and vessels, etc.
The market is segmented on the basis of applications into infrastructure, industrial, HVAC & OEM, transportation, appliances, furniture, and packaging. Infrastructure sector accounted for the largest market share in 2018 and is estimated to expand at a CAGR of 5.9 % over the forecast period on account of increasing number of insulation-intensive’ buildings in urban areas.
Infrastructure sector was followed by transportation and residential construction sector and are estimated to grow at a notable rate. Petrochemical industries and refineries are insulated for benefits such as energy conservation, heat gain/loss reduction, maintaining a uniform temperature, effective operation of equipment or chemical reaction, condensation prevention, etc.
Heating, ventilation and cooling systems are usually insulated by employing a solution which caters superior thermal insulating characteristics, other than noise reduction and fire protection. Appliances such as refrigerators, microwaves, ovens, and water heaters require to be insulated to resist heat transfer and absorb sound. Dehumidifiers, air purifiers, refrigerators, washing machine, and dishwashers are some other major appliances that require insulation.
Transportation sector, comprises automotive, marine, and aerospace, emerged as a significant application segment in the global market in 2018. Automakers are constantly looking to enhance the safety and comfort vehicles, which is a major factor driving the demand for insulation in this sector.
Asia Pacific accounted for the largest market share of 40.4% in 2018 and is estimated to expand at a CAGR of 6.6% over the forecast period. The reason being, rising oil production in the economies of China and India and concerns regarding significant energy wastage coupled with the demand for the materials in refurbishing and renovation.
North America is highly influenced by demand from oil and gas, manufacturing, metal and mining, power, and other industries, where operating temperature is high. In addition, companies in this region are focusing on reducing the losses to improve their performance, by practicing regular maintenance inspection.
Europe was the second largest region accounted for a notable market share in 2018 and is estimated to expand at a substantial CAGR over the forecast period. Moreover, the region was an early adopter of the emerging materials owing to the rapid industrialization and the presence of major insulation product manufacturers thereby leading to high product sales.
The GDP of Central and South America has exhibited a slow CAGR on account of political and economic disturbances in Brazil, which is one of the leading users of industrial insulation products. Demand for insulation materials in Middle East and Africa is expected to be driven by the growth of downstream petrochemical industry coupled with infrastructure development.
Prominent market players are Atlas Roofing Corporation; BASF; Bayer; Certain Teed; Cellofoam North America Inc.; Dow Building Solutions; GAF Materials Corp.; Knauf; Owens Corning Corp.; and Nova Chemicals Corp. These players are concentrating on new joint ventures, collaborations, agreements, and strategies to advance their production facilities and to gain larger market shares.
Biesanz Stone Co. and Michigan Limestone & Chemical Company are the 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.
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, Italy, Spain, China, India, Japan, South Korea
Volume forecast, revenue forecast, competitive landscape, growth factors and trends
15% free customization scope (equivalent to 5 analysts working days)
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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 sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global insulation market on the basis of product, application, and region:
Product Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
HVAC & OEM
Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
Central & South America
Middle East & Africa
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