Insulation Market Size & Share Report

Insulation Market Size & Share Analysis Report By Product (Glass Wool, Mineral Wool, EPS, XPS), By Application (Residential Construction, Non-residential Construction, Industrial, HVAC & OEM), And Segment Forecasts, 2018 - 2025

  • Published Date: Feb, 2018
  • Base Year for Estimate: 2017
  • Report ID: 978-1-68038-196-2
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 176

Industry Insights

The global insulation market size was valued at USD 52.30 billion in 2017 and is expected to ascend at a CAGR of 8.6% over the forecast period. Growing usage of insulation solutions in non-residential and residential applications, owing to rising importance of energy conservation and increasing energy costs, is a major trend observed in the global market.

Initiatives taken by the U.S. government through the Weatherization Assistance Program (WAP) to promote thermal insulation in low-income households via federal funding are likely to boost market growth in North America. Sufficient funds sanctioned by the U.S. Department of Energy for development of phenolic foams are anticipated to further propel demand for insulation. This, in turn, is expected to drive the global market over the forecast period.

U.S. insulation market

Government initiatives to reduce greenhouse gas emissions, coupled with increasing construction spending across the globe, are projected to drive global demand. Building regulations pertaining to energy conservation are expected to strengthen demand for foamed plastic insulation in India and China. Increasing industrial output, rapid urbanization, and rising income levels in emerging markets of Asia Pacific have steered the need for upgraded infrastructure.

U.S. has been categorized into eight regions based on insulation requirements resulting from varying climatic conditions across these segments. Separate R-values are recommended for separate applications, such as floors, attic, and wall insulation, in all these regions. The U.S. federal government also offers tax credit for qualifying insulation purchases.

Product Insights

Stone wool occurs naturally as a byproduct of volcanic eruptions. It is made up of short fibers and has low tensile power. It is highly resistant to heat transfer since it combines the characteristics of thermal insulation, which are inherent to wool, and the strength of stone. Stone wool can be used in a maximum working temperature of 750oC and has a melting temperature above 1,000oC. It offers advantages such as efficient heat insulation, fire safety, dimensional stability, ecological compatibility, biostability, chemical resistance, water repellency, sound absorption, and vapor permeability.

Expanded polystyrene is a lightweight and high-tensile plastic foam made out of hard pellets of polystyrene. It is further expanded by integrating minor amounts of pentane gas dissolved into the base polystyrene during production. Considering the environmental hazards and adverse carbon footprint left behind by most insulation materials, EPS, an eco-friendly material, is gaining recognition as an appropriate substitute.

The idea of green building, an environment-friendly building design, has already been integrated into specific tools used for measuring the environmental performance of building materials and building constructions. Tools such as Leadership in Energy and Environmental Design (LEED) endeavor to employ construction and design conventions that are recognized for consequential elimination or reduction of the impact of buildings and materials on the environment. Extruded polystyrene (XPS) foam insulation is an ideal choice as a nature-friendly alternative in comparison with other building insulation materials.

Application Insights

Well-insulated residential construction is a cost-efficient as well as energy-efficient choice since it brings down cost generated by a heating or cooling system. Insulation is related to the interception of the passing of thermal energy between two objects from an area of higher heat assemblage to one of a lower heat concentration, thereby preserving heat in a specific layout. A building that is well-insulated saves inessential wastage and enables conservation of heat energy.

Global insulation market

In institutional and commercial buildings, sustainability of construction is a comprehensive and exceedingly important driving factor. Fundamental features affiliated with high-performance green buildings, including comfort of inhabitants, increased property values, high energy efficiency, and durability of materials, have boosted the preference for best practices in construction methods and materials. Some of these best practices include use of more efficient insulation systems, seamless monolithic roofing systems, and air barriers. Closed-cell spray polyurethane foam has been known to offer enhanced environmental performance and life-cycle analysis in addition to superior control of indoor environment and building enclosure.

The extent to which insulation is required for residential construction depends on the design of the building, personal preferences, climate, energy costs, and available budget. The selection of a strategy for usage is finalized after determining variants such as energy movement in the building along with potency and orientation of energy flow. Energy movement in a building varies from day to day or season to season.

Regional Insights

North America is characterized by the strong presence of industry participants. These companies have developed high-quality products for use in commercial, industrial, and residential applications. They have achieved core competencies in a variety of materials, including EPS, and have vertically integrated themselves to optimize production and streamline the overall value chain. Stable distribution network of these companies, coupled with a broad product portfolio, is expected to aid market growth in the region over the coming years.

International organizations such as the International Energy Agency have been advocating the use of insulation materials in existing as well as new buildings in the region. These materials are widely used in countries such as U.S. and Canada as a means to save energy. Strong demand from these countries has contributed significantly to overall regional market growth.

Government initiatives such as Affordable Housing Institute (AHI) and supporting policies put in place by the Canadian Housing and Renewal Association (CHRA) are likely to support the growth of the residential application segment over the forecast period. Rising population, coupled with urbanization and resurgence of the domestic manufacturing sector, are likely to drive the construction sector in Canada over the forecast period. Expansion of the construction sector is directly linked to the growth of the insulation market in the country.

The Federal Law on Metrology and Standardization in Mexico has established several standards aimed at energy saving in building components. The Norma Oficial Mexicana (Official Mexican Standards) are mandatory and are applied throughout the country. In 2014, the government of Mexico, under the Secretary of Energy, in association with other organizations in the country, proposed the national energy code for commercial buildings. The code was prepared in line with the International Code Council methodology and was aimed at integrating existing standards in the country.

Insulation Market Share Insights

Major companies operating in the market include NOVA Chemicals Corp., Owens Corning Corp., Knauf, GAF Materials Corp., Dow Building Solutions, Cellofoam North America, CertainTeed, Bayer, BASF, and Atlas Roofing Corporation.

The market for foamed plastic is characterized by excessive forward integration by raw material suppliers to manufacture insulation products. This enables these companies to expand their scope of operations and enter new application markets. Key fiberglass manufacturers in the global market include Owens Corning, CertainTeed, and Johns Manville.

Manufactured insulation products usually comply with the standard protocol of the supply chain and reach end users through distribution channels such as lumber yards, wholesalers, retailers, and government contractors. In some cases, manufacturers directly establish relationships with these integral members of the supply chain and provide solutions to end users, which mostly constitute home-owners, building contractors, and HVAC and OEM appliance manufacturers.

Report Scope

Attribute

Details

Base year for estimation

2017

Actual estimates/Historical data

2014 - 2016

Forecast period

2018 - 2025

Market representation                                                 

Volume in Kilotons, revenue in USD Million, and CAGR from 2018 to 2025

Regional scope

North America, Europe, Asia Pacific, Middle East & Africa, Central & South America

Country scope

U.S. Canada, Mexico, Germany, U.K., France, China, India, Japan

Report coverage             

Revenue forecast, company share, competitive landscape, growth factors, and trends

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of 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 report on the basis of product, application, and region:

  • Product Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Glass Wool

      • Glass Wool by Application

    • Mineral Wool

      • Mineral Wool by Application

    • EPS

      • EPS Wool by Application

    • XPS

      • XPS by Application

    • Others

      • Others by Application

  • Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Residential Construction

    • Non-residential Construction

    • Industrial, HVAC & OEM

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • Central & South America

    • Middle East & Africa

Key questions answered by the report
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