North America Building Thermal Insulation Market Analysis By Product (Glass Wool, Mineral Wool, EPS, XPS), By Application (Roof, Wall, Floor), By End-use (Residential, Non-residential), Competitive Landscape And Segment Forecasts, 2018 - 2025

Industry Insights

North America building thermal insulation market size was valued at USD 7.09 billion in 2015. Growing insulation demand in residential and commercial applications due to increasing energy costs is expected to drive the demand for building thermal insulation materials in the North America. Government initiatives to promote energy efficiency and sustainable development through insulation technologies are further anticipated to play a key role to support the market growth.

Initiatives by the U.S. government through Weatherization Assistance Program (WAP) to promote thermal insulation through federal funding are expected to drive the industry growth in the North America. Funding by U.S. Dept. of Energy to develop highly insulating phenolic insulation foams is expected to augment further demand, which in turn influences the industry positively. 

U.S. building thermal insulation market by application, 2014-2025 (USD Million)

In Canada, the National Energy Code of Canada for Buildings Code (NCEB 2015) dictates the use of thermal insulation for semi-heated buildings. SE4All Building Efficiency Accelerator (BEA) has helped Mexican government to establish national building energy code, which is expected to facilitate a solid foundation for making buildings in Mexico to be energy efficient.

The presence of key market players is a major factor, which is likely to support the industry growth in the U.S.Canadian government is in the process of strengthening policies pertaining to energy efficient buildings.Lack of well-defined regulatory framework in Mexico is likely to hamper the growth. In the U.S., roof application is expected to emerge as the fastest growing segment and wall application is slated to be the largest segment. 

The thermal insulation market in North America is mature and thus can be considered to be a steady contributor. The industry has witnessed slow but stable growth in most of the application segments. Insulation materials have been in demand in this region for a long time, and hence the industry is highly price sensitive.

Product Insights

North America glass wool building accounted for 44.3% of market share by volume in 2015. Glass wool reduces temperature fluctuations and energy consumption and is one of the most economical thermal insulation product available in the market. The glass wool segment in North America is projected to increase at a CAGR of 3.7% over the forecast period.

Product market share, by revenue (USD Million), 2015 (USD Million)

Expanded polystyrene accounted for 23.5% of share by volume in 2015. By 2025, market share by volume for this product segment is likely to increase by 1.5%. EPS has excellent thermal insulation properties and a long life span. It is anticipated to augment at the highest CAGR from 2016 to 2025.

Application Insights

Roof thermal segment accounted for 34.8% of market share by volume in 2015 and is projected to augment at a CAGR of 4.1% from 2016 to 2025. Roof being the most prominent source of heat as it is directly exposed to sunlight, is required to be properly insulated in order to enhance the overall effect.

The wall segment was valued at USD 2.78 billion in 2015 and is anticipated to emerge as the largest segment. The presence of a large number of single-unit individual homes in the region is expected to propel the growth. Most of the individual homes in the U.S. are 20-25 years old when thermal insulation was not prominent, and thus refurbishment of these homes will benefit the overall industry in the region.

End-Use Insights

Residential construction emerged as the largest segment and accounted for over 50% of the total market revenue in 2015. Recovery of residential real estate industry in the region coupled with increasing spending for construction in Mexico is expected to drive insulation demand in residential construction. Residential construction segment is expected to gain 1.0% of share by 2025 on account of increasing demand in residential buildings in order to reduce energy consumption.

Non-residential construction segment accounted for around 48% of the total market revenue in 2015. The increasing importance of energy efficiency of commercial and public buildings on account of high energy costs that lead to increased maintenance costs is expected to complement the growth further over the forecast period. The demand in non-residential construction was 2.77 million tons in 2015.

Regional Insights

The U.S. is anticipated to account for largest market share.In the U.S., resurgent building construction activity will boost the demand, supported by the implementation of strict building codes such as the International Energy Conservation Code (IECC), which is likely to encourage more insulation utilization per structure. Also, the country has implemented regulations focused towards making existing buildings more energy efficient. The demand in the U.S. was valued at USD 5.62 billion in 2015.

The severe weather conditions in Canada are likely to play a key role in presenting a lucrative opportunity for the growth of the industry. The Canadian government has implemented regulations regarding the materials to be used in manufacturing thermal insulation materials. The main objectives of these initiatives are to restrict the use of materials, which affect the ozone layer. This region is anticipated to augment at an estimated CAGR of 3.7% from 2016 to 2025.

Competitive Insights

Key players include Dow Building Solutions, Owens Corning Corp., Johns Manville Corporation, Huntsman International LLC, CertainTeed Corporation, etc. 

The market is mature,onwith no outright industry leader. Major players focus their marketing strategies on increasing sales and targeting specific applications to exploit their competitive strengths. Environmental impact of insulation materials is likely to shift the industry focus towards developing environmentally friendly products.

Report Scope

Segments covered in the report

This report forecasts volume & revenue growth and provides an analysiofthe latest trends in each of the sub-segments from 2014 to 2025. For the purpose of this report, Grand View Research has segmented North America building thermal insulation market on the basis of product, application, end-use and region:

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

  • Glass Wool

  • Mineral Wool

  • EPS

  • XPS

  • Others

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

  • Roof

  • Wall

  • Floor

• End-Use Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

  • Residential

  • Non-Residential

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

  • North America

    • U.S

    • Canada

    • Mexico