North America Building Thermal Insulation Market Size, Share & Trends Analysis Report By Product (Glass Wool, Mineral Wool, EPS, XPS, PIR PUR, Cellulose), By Application, By End Use, And Segment Forecasts, 2020 - 2027

Report Overview

The North America building thermal insulation market size was estimated at USD 11.13 billion in 2019. It is expected to expand at a compounded annual growth rate (CAGR) of 2.7%, in terms of revenue, from 2020 to 2027. Favorable regulations, owing to the focus on lowering overall energy consumption, are likely to be a significant factor in the rising popularity of building thermal insulation materials. Thermal insulation materials help reduce the heat buildup within the buildings which helps the main nominal temperature inside the households, leading to a reduction in the energy costs. High demand for the product for promoting thermal energy conservation in low-income households through federal funding is expected to drive product growth in the region.

The U.S. market is expected to witness sustainable growth over the forecast period due to the change in the country's construction sector. Increased demand for energy-efficient construction solutions and rising demand for insulating commercial construction materials are expected to boost market growth.

The market in North America is expected to exhibit high growth in the forthcoming years on account of the construction industry's rapid development. The products 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.

Growth in the construction industry is anticipated to propel the demand for the product in the buildings across the forecast period. The increasing number of renovation and refurbishment projects in the U.S., Canada, and Mexico is anticipated to boost the demand for materials, thereby propelling the industry growth.

Stringent government regulations are projected to limit product manufacturing and propel the use of environmentally friendly raw materials restricting the demand for traditionally used raw materials to build thermal insulation. Also, the emergence of covid-19 is anticipated to affect market growth in 2020.

Product Insights

The glass wool segment led the market and accounted for more than 39.0% of the total revenue in 2019, based on its use in diverse applications for efficiency, acoustic insulation, and fire safety. It is also cost-effective, versatile, and easily customizable, thereby accounting for a significant demand for building insulation.

Thermal insulation materials are used in the construction of buildings, which decreases the building's overall energy consumption, aiding the regulation of the temperature in the interiors, thereby making it sustainable. The material selection is the primary influencing factor responsible for increasing the building systems' energy efficiency.

Expanded polystyrene (EPS) is one of the most commonly used foamed plastics for building thermal insulation. It is a type of insulation material with superior properties, such as sound absorption, lightweight, and quakeproof. The major applications include insulation of pipe to prevent heat gain, condensation, or frost formation on water and air conditioning lines.

Other products used include PU foam and PIR foam. Polyurethane foam (PU foam) is one of the most efficient materials widely used in renovation activities where the focus is on increasing the structure's energy efficiency. PIR is a rigid foam board insulation composed of various inorganic and organic materials used in walls, ceilings, and roofs.

End-use Insights

The residential segment led the market and accounted for more than 55.0% share of the total revenue in 2019, on account of growth in the number of single-family houses in developing economies and rising disposable income of the consumers. Growing construction spending in the U.S. is expected to propel the growth across the forecast period.

Thermal insulation is widely used in the building and construction industry with residential, commercial, offices, institutional, and industrial constructions. These materials are used to maintain the energy efficiency standards of the buildings. Also, this material aids in temperature regulation in the building and is fireproof and weatherproof.

The commercial segment is projected to witness a significant CAGR of 2.6% over the forecast period. The commercial construction segment includes buildings for office spaces, universities, hypermarkets, supermarkets, departmental stores, shopping malls, hospitals and clinics, restaurants and hotels, resorts, and others.

The rapidly emerging trend of sustainable buildings is one of the significant factors driving the demand for thermal insulation. Also, rising office spaces are expected to witness considerable demand for the product to maintain the energy benchmarking and regulate the temperature levels.

Application Insights

The walls segment led the North America building thermal insulation market and accounted for more than 39.0% of the total revenue share in 2019; it adopted high-class architecture and maintained high energy efficiency standards in residential and commercial structures. Walls play a vital role in maintaining the building energy consumption benchmarks. This factor is projected to fuel the growth of the segment in near future.

Insulation products are used in industrial applications to increase the processing system's reliability and efficiency by minimizing thermal losses in heat transfer to reduce energy consumption. It also improves the acoustic performance of the process and helps prevent the corrosion of pipes and other equipment due to condensation. 

The demand for building thermal insulation for walls is expected to expand at a significant CAGR of 3.0% over the projected period. Insulated walls and insulated roofs create a protective envelope that eliminated heat transfer from the external environment through conduction and convection radiation.

Other applications include industries, roofs, and floors. The roof is projected to witness a significant CAGR of 2.7% by 2027, owing to commercial spaces across the globe, especially in emerging economies. The rising significance of maintaining thermal building standards is also expected to drive the demand for insulation materials since it plays a vital role in the market.

Regional Insights

The U.S. dominated the market and accounted for over 78.0% share of total revenue in 2019, owing to the increased demand from the construction sector, developed manufacturing industry, and government initiatives favoring the development of social infrastructure. Rising awareness regarding the benefits of insulation of building structures is expected to benefit the market growth.

The economy in North America is characterized by high diversity owing to the presence of major developed economies such as the U.S. and Canada. The construction industry in North America is witnessing moderate growth owing to the reduced investments. The increased rate of international and domestic migration in the region is expected to boost the demand for housing, thereby propelling residential construction.

The market in North America was estimated to be 7,244.7 kilotons in 2019 and is expected to expand at a significant CAGR over the forecast period, which can be attributed to rising in product demand for residential and non-residential construction. The rise in the use of adult continence products due to the increasing geriatric population has a positive impact on industry growth.

The market growth however came to a halt due to the global pandemic. COVID-19 decelerated the market growth in developed regions such as the U.S. and Canada including the Mexico region. The widespread disrupted the supply chain, migration, workforces, and broaden the gap between the different constructional businesses.

Key Companies & Market Share Insights

The regional market for building thermal insulation is competitive, owing to the presence of a large number of significant players in the market. The market has been witnessing an increasing trend of organic growth. Companies in the market are focusing on expanding their product portfolio with enhanced properties.

The market is competitive due to the presence of major companies involved in product manufacture. The market is characterized by a significant consumer base across the globe, with the companies operating their business through dedicated distribution networks. 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

Segments Covered in the Report

This report forecasts revenue growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For this study, Grand View Research has segmented the North America building thermal insulation market report based on product, application, end-use, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Glass Wool

  • Mineral Wool

  • EPS

  • XPS

  • Cellulose

  • PIR

  • PUR

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Roof

  • Walls

  • Floor

• End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Residential

  • Commercial

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • North America

    • U.S.

    • Canada

    • Mexico