North America Building Thermal Insulation Market Size, Share & Trends Analysis Report By Product (Glass Wool, Mineral Wool, EPS, XPS, Cellulose, Others), By Application (Roof, Walls, Floor) By End-use, And Segment Forecasts, 2023 - 2030

Report Overview

The North America building thermal insulation market was estimated at USD 11.79 billion in 2022 and is forecast to expand at a CAGR of 3.5% over the forecast period. This growth is attributed to the development of the residential sector along with the implementation of strict building codes such as the International Energy Conservation Code (IECC) in North America.

The industrial sector is likely to witness a significant expansion owing to the rising GDP of the region. In addition, manufacturing industry is also expected to benefit from the new policy reforms. This is expected to boost industrial construction in the region, thereby driving the demand for building thermal insulation over the coming years.

The value chain includes raw material manufacturers & suppliers, product manufacturers, assemblers or fabricators, installers, and end users. The presence of a large number of manufacturers and service providers coupled with the easy availability of raw materials and easy installation process has resulted in high competition amongst players in this region. The price structure for building thermal insulation varies with respect to products, processes, and raw materials used.

Raw materials used for thermal insulation include fibers, silicon, limestone, polymer resins, composite materials, and others. Composite materials are widely used owing to their abundant availability and ability to mold easily into components used for building thermal insulation. Fluctuating raw material prices result in price variations of the thermal insulating materials, thus, affecting the profit margins of companies across the value chain.

Local and international players in North America provide raw materials for thermal insulating components. Increasing demand for energy-efficient buildings, owing to the stringent government regulations and the rising awareness of environmental degradation is anticipated to fuel the demand for thermal insulation for residential, non-residential, commercial, and industrial buildings in North America. Favorable government policies coupled with increasing awareness among consumers is expected to remain the key driving factor for the growth of the building thermal insulation market.

Building thermal insulation systems are expected to gain wide acceptance in North America owing to its several benefits such as lightweight materials, improved external appearance, and acoustic performance of the buildings. In the U.S., as per the Federal Energy Policy Act 2005, a tax credit of up to USD 2,000 is provided for builders of new energy-efficient homes that are constructed as per the standards of the Federal Manufactured Homes Construction and Safety Standards.

The U.S. building thermal insulation market is expected to witness sustainable growth over the forecast period owing to the growth in the construction sector in the country. Increased demand for energy-efficient thermal insulation solutions is one of the primary factors driving the market growth. In addition, the increase in incidents of natural calamities, including hurricanes and wildfires, hitting different parts of North America, is anticipated to have a positive effect on the construction sector in the country, thereby driving the demand for building thermal insulation over the forecast period.

Product Insights

Based on products, the glass wool segment accounted for the largest revenue share in 2022. Glass wool is manufactured by heating silica sand at 1200ºC to 1250ºC and converting it into fibers. It can be manufactured in the form of pipes, boards, and blankets of different sizes, with different technical properties, specific to its applications.

Glass wool also offers energy-efficient thermal and acoustic insulation and fire safety. It also helps to reduce energy consumption and fluctuation in temperature. Glass wool provides extremely high-temperature tolerances, as the product itself is flame-resistant. In addition, it is cost-effective, versatile, and easily customizable thereby accounting for a notable demand for building thermal insulation in North America.

The EPS building thermal insulation segment in North America is forecasted to be the fastest-growing market segment by 2030. EPS exhibits excellent dielectric strength, and resistance to chemicals, heat, and moisture; making it a preferred material for insulation of electric components in building applications. Foamed plastics are expected to witness significant demand for building insulation applications, owing to the energy efficiency regulations imposed by governments in North America.

In addition, various advantages provided by the product including thermal insulation along with cost-effectiveness and resistance to dust & moisture accumulation is expected to boost its demand in North America. The tough and resilient surface offers a higher degree of puncture resistance. The major applications include the insulation of pipes in order to prevent heat gain, condensation, or frost formation on water and air conditioning lines.

Application Insights

Based on application, the wall segment accounted for the largest revenue share and the fastest-growing segment in 2022 in North America. Mineral and XPS are some of the most popular materials used for external thermal wall coatings owing to their low cost, high durability, and convenient installation. Thermal insulation of walls is also one of the essential elements to make the building more energy efficient. Thermal insulated walls along with insulated roofs create a protective envelope that eliminates heat transfer from external environment through conduction, & radiation.

Investments in public infrastructure is on the rise in North America. Institutional buildings such as schools, hospitals, malls, and hotels are adopting high-class architecture and maintaining high energy-efficient standards. Thus, these trends are projected to positively influence the demand for wall thermal insulation products over the forecast period, since it plays a key role in maintaining the building energy consumption benchmark.

Insulated roof panels offer heat retention and prevention benefits thereby enabling a cozy space in residences and workspaces. Temperature regulation through insulated roofs leads to an improvement in the energy efficiency of the building through the reduction in the usage of air conditioning systems and heaters. Moreover, they act as a protective barrier against harsh climatic conditions. Thus, the aforementioned benefits are projected to drive the demand for insulation materials in roofing applications in North America.

To meet thermal insulation standards in North America, the ground floor needs to be built with multi-layered construction including flooring, under layers, an appropriate insulating layer, and a base. The insulation materials used for flooring applications require high compressive strength along with superior thermal barrier properties. Thus, XPS is one of the most popular materials used for insulation in flooring applications in North America. The rising significance of maintaining building thermal standards is also expected to drive the demand for insulation materials in North America since it plays a key role in the same.

End-Use Insights

On the basis of end-use, the residential segment accounted for the largest segment in North America building insulation market. The segment is also estimated to expand at the fastest CAGR of 3.6% over the coming years. This growth is accounted for the rise in the number of nuclear families in developing economies and the rising disposable income of the consumers are some of the factors projected to drive residential construction activities.

The growth of the residential construction sector in North America along with growing building energy consumption norms are projected to positively influence the demand for insulation. The commercial construction segment is inclusive of buildings for office spaces, universities, hypermarkets, supermarkets, departmental stores, shopping malls, hospitals & clinics, restaurants & hotels, resorts, and others.

The rapidly emerging trend of sustainable buildings is one of the major factors driving the growth of building thermal insulation in North America. In addition, the rise in office spaces in North America especially located in the subtropical region is expected to witness notable demand for insulation systems in order to maintain energy benchmarking as well as regulate temperature levels.

Regional Insights

The U.S. building thermal insulation market accounted for the largest revenue share of 77.2% of North America. This is owing to the increased demand from the residential sector, the extensively developed manufacturing industry, and government initiatives to develop social infrastructure. In addition, the rising awareness of the benefits of insulation in building structures is expected to benefit market growth.

The U.S. is also expected to be the fastest growing segment due to increased demand for energy-efficient construction solutions in the market growth. In addition, the increase in incidents of natural calamities, including hurricanes and wildfires, hitting different parts of the U.S. is anticipated to have a positive effect on the construction sector in the country, thereby driving the demand for building thermal insulation in the forecast period.

The building thermal insulation market in Mexico is expected to witness substantial growth on account of the rising construction industry, mainly due to the increasing population, urbanization, and increased rate of migration. The gradual recovery in the economic conditions of Mexico coupled with rising domestic consumption of building thermal insulation in residential buildings is expected to fuel the market growth. In addition, the collaboration of private and public sectors for investment in infrastructure projects is projected to drive the overall construction industry in the country.

Key Companies & Market Share Insights

North America building thermal insulation market is competitive in nature, owing to the presence of a large number of players in the region. Major players, such as Owens Corning, Huntsman International LLC, Johns Manville Corporation, and GAF Material Corporation hold the majority of revenue share in North America, due to their vast product portfolio and wider geographical reach. These companies develop a strong business model in order to adapt to market volatility and any technological & geographical change.

Unlike other regions, the players in the North America building thermal insulation market focus on increasing their revenue share through organic growth, rather than mergers and acquisitions. Companies in the North American region 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 thermal insulation product demand across North America. Some prominent players in the North America building thermal insulation market include:

• Anco Products, Inc.

• Atlas Roofing Corporation

• Cellofoam North America Inc.

• Certain Teed Corporation

• GAF Material Corporation

• Huntsman International LLC

• Johns Manville Corporation

• Knauf Insulation

• Owens Corning

• ROCKWOOL Insulation A/S

• Dow Inc.

• DuPont

• Kingspan Group

North America Building Thermal Insulation Market Report Scope

North America Building Thermal Insulation Market Segmentation

This report forecasts revenue growth at regional & country levels and provides an analysis of the industry trends in each of the segments from 2018 to 2030. For this study, Grand View Research has segmented North America building thermal insulation market report based on product, application, end-use, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Glass Wool

  • Mineral Wool

  • EPS

  • XPS

  • Cellulose

  • Others

    • PIR

    • PUR

    • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Roof

  • Wall

  • Floor

• End-Use Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Residential

  • Commercial

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico