The North America industrial insulation market size was valued at USD 1.86 billion in 2017. It is anticipated to expand at a CAGR of 4.0% during the forecast period. Surging demand for products across various industries for minimizing thermal losses during heat transfer and reduction of heat transfer is estimated to drive the market over the forecast period.
Manufacturers procure required raw materials from suppliers through direct or third part distribution agencies. These manufacturers enter into long-term partnerships with raw material suppliers in order to avoid the effects of volatility on raw material prices. Furthermore, distribution is carried out directly so as to incorporate varying degrees of product customization for consumers.
The industry in the U.S. is highly influenced by the demand from the oil & gas, manufacturing, and power generation industries, where operating temperature is high. Expanding the industrial sector, coupled with stringent safety norms in the region associated with industrial safety and gas emissions, is expected to have a positive impact on market growth.
Raw materials constitute more than half of the total production cost. As a result, the rising cost of raw materials is likely to drive the price of industrial insulation products. Major raw materials, such as foamed plastic and elastomeric foam, are derived from crude oil. Therefore, high volatility in prices of crude oil has adverse effects on the growth of the market.
High entry barriers in the market on account of the presence of established players coupled with elevated initial setup costs lead to a reduced threat of new market entry. In addition, increasing interest of existing manufacturers in setting up production bases in Asian economies to achieve lower production costs is poised to limit geographical availability for new players.
An increased number of initiatives by major industry participants to develop novel manufacturing processes to enhance product properties is projected to aid market growth. In addition, continual investments in R&D for new product development and technological advancements in transparent insulation technology are anticipated to augur well for the market.
High usage of stone wool in applications requiring high compressive strength such as HVAC ducting is estimated to propel the market over the forecast period. In addition, the product does not emit toxic gases in case it catches fire and provides effective protection against extremely high and low temperatures, thereby exhibiting high demand.
Glass wool is majorly used in heavy-duty applications such as pipes that are used in industries to carry hot and cold fluids. The market for glass wool insulation is expected to expand at a CAGR of 3.8% in terms of revenue from 2018 to 2025 due to intensive use for insulating cover flanges, heat exchangers, turbines, pumps, and any irregular surface in industrial application.
Foamed plastics exhibit excellent dielectric strength and resistance to chemicals, heat, and moisture, making it a preferred material for the insulation of electric components in industrial applications. Various advantages, such as cost-effectiveness and resistance to dust & moisture accumulation, provided by the product is likely to boost its demand.
Cellular glass offers superior compressive strength, incombustibility, and greater thermal insulation performance. In addition, it also provides a highly effective vapor barrier and is unaffected by common chemicals and a highly corrosive environment, making it an ideal industrial insulation material. Rising awareness regarding their merits is poised to contribute to the growth of the segment.
Pipe insulation is projected to realize notable demand on account of superior action in the control and stabilization of process temperatures. The product is also useful in the prevention of the formation of condensation and limits pipe corrosion. It is, thereby, anticipated to witness high demand throughout the forecast horizon.
The growing use of board-based products for applications including vessels, equipment, chillers, heat and air conditioning duct, and acoustical wall panels is estimated to spur the growth of the market. In addition, the product also finds extensive use in hot & cold equipment, power & process equipment, and specialized ceiling applications.
The market for blanket insulation is expected to reach a value of USD 725.5 million by 2025. It is driven by characteristics such as excellent handling characteristics, thermal performance, and dimensional stability. Increasing use of the product for heat exchanger, storage tanks, cooling towers, air conditioning ductwork, and large diameter piping is likely to bolster the growth of the North America industrial insulation market.
Removable and reusable insulation blankets are commonly used for industrial applications, such as HVAC applications, boiler, metal, and masonry walls. These blankets are self-contained insulation systems, which lower operation costs by reducing energy consumption, and shorten downtime and are hence poised to realize notable growth over the forecast period.
Rising use of products by the power generation industry on account of the increasing requirement for cost-effective and thermally efficient insulation and lagging systems is projected to stimulate the growth of the market over the forecast period. The industry uses materials that perform well in high temperatures and exhibit resilient compressive strength, thereby accounting for a notable market share.
The transportation of liquefied natural gas (LNG) and liquid petroleum gas (LPG) requires extensive use of insulation materials to ensure the maintenance of low temperature and elimination of re-gasification. Robust growth of the LNG and LPG industries across the globe on account of rising energy generation requirements is anticipated to stir up the demand for industrial insulation products.
The presence of extensive application scope of these products in the LNG and LPG transportation industries, such as containment tanks and piping systems, is estimated to stoke the growth of the market during the forecast period. The product also realizes high use in maintenance and repair operations that are conducted frequently in the industry, thereby contributing to the growth of the market. In addition, the growth of energy generation activities in the U.S. coupled with the burgeoning prominence of shale gas is expected to augment the demand for such products in the region.
North America is one of the prominent regional markets in the global arena owing to the highly developed power generation sector. The U.S. is at the forefront of the market in North America, which can be attributed to its advanced power generation and LNG & LPG transportation industries.
With private investments in the industrial sector reaching the highest levels in 2017. In addition, the manufacturing industry is also anticipated to benefit from new policy reforms undertaken by the Donald Trump-led government, leading to increased demand for such products over the forecast period.
The booming oil & gas sector is likely to be a key factor for the rising demand for industrial insulation in this region. A recent rise in energy costs and carbon emissions associated with industrial activities can shift the focus of companies towards energy efficiency, thereby driving product demand over the same period.
The power generation sector in Canada is poised to undergo a major transformation from a centralized model of production towards a decentralized system, leading to the development of new power generation facilities, especially in hydropower plants. As a result, the market in Canada is projected to witness a CAGR of 4.6% in terms of revenue during the forecast period.
The North America market is competitive in nature, owing to the presence of a large number of major players in the region. However, the industry is concentrated, with few major players controlling sizeable market share, owing to their wider geographical reach and vast product portfolio.
Key players in the market are focused on increasing their market share through organic growth. Players prefer to maintain a strategic relationship with their raw material suppliers in an attempt to maintain a steady supply. Companies are anticipated to rely on the introduction of advanced products, such as Pyrogel HPS by Aspen Aerogels, to consolidate their position in the market.
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 |
Country scope |
U.S., Canada |
Report coverage |
Volume forecast, Revenue forecast, competitive landscape, growth factors and trends |
15% free customization scope (equivalent to 5 analysts working days) |
If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization |
This report forecasts volume and revenue growth at 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 North America industrial insulation market report on the basis of material, product, application, and country:
Material Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
Stone Wool
Power Generation
Petrochemical & Refineries
EIP Industries
LNG/LPG
Others
Glass Wool
Power Generation
Petrochemical & Refineries
EIP Industries
LNG/LPG
Others
CMS Fibers
Power Generation
Petrochemical & Refineries
EIP Industries
LNG/LPG
Others
Calcium Silicate
Power Generation
Petrochemical & Refineries
EIP Industries
LNG/LPG
Others
Cellular Glass
Power Generation
Petrochemical & Refineries
EIP Industries
LNG/LPG
Others
Foamed Plastic
Power Generation
Petrochemical & Refineries
EIP Industries
LNG/LPG
Others
Perlite
Power Generation
Petrochemical & Refineries
EIP Industries
LNG/LPG
Others
Aerogel
Power Generation
Petrochemical & Refineries
EIP Industries
LNG/LPG
Others
Cellulose
Power Generation
Petrochemical & Refineries
EIP Industries
LNG/LPG
Others
Micro Silica
Power Generation
Petrochemical & Refineries
EIP Industries
LNG/LPG
Others
Others
Power Generation
Petrochemical & Refineries
EIP Industries
LNG/LPG
Others
Product Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
Pipe
Board
Blanket
Others
Application Type Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
Power Generation
Petrochemical & Refineries
EIP Industries
LNG/LPG
Others
Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
North America
The U.S.
Canada
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The shortage in supply of raw materials from Chinese manufacturers has resulted in a severe demand-supply gap. The manufacturers are further expected to be stranded on raw material orders owing to the logistics industry being significantly impacted due to lockdown amid COVID-19. However, the producers are expected to move away from China aiming to reduce the future risks that would affect the business and to reduce the manufacturers' cluster in a single country in order to smoothen the supply chain. The report will account for Covid19 as a key market contributor.