Pipe Insulation Market Size, Share & Trends Analysis Report By Product (Cellular Glass, Elastomeric Foam), By Application (Industrial, Building & Construction), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global pipe insulation market size was estimated at USD 7.9 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 5.4% from 2021 to 2028. Rising consumer awareness pertaining to energy conservation among consumers is expected to drive the market over the forecast period. The market witnessed a severe downfall in the investments in the industrial sector owing to the pandemic. In addition, a dramatic fall in crude oil prices led to a drop in fiscal resources for oil-producing countries, which affected product demand from the oil and gas sector.

Increasing adoption of district heating systems, driven by rising electricity tariffs, rising environmental awareness, and technological advances is expected to propel market growth in the U.S. In addition, rising investment in the expansion of gas liquefaction terminals is expected to drive the product demand over the forecast period.

The presence of a large number of manufacturers and service providers, coupled with easy availability of raw materials and easy installation processes, has resulted in high market competition. The price structure for pipe insulation varies with respect to production processes and raw materials used.

Growing demand for pharmaceutical and cosmetic products is driving the expenditure on capacity additions by major pharmaceutical companies. Process pipes form an integral component in these production facilities and are expected to generate significant demand for pipe insulation over the forecast period.

The manufacturers are largely dependent on reliable suppliers with high goodwill on account of past product procurement, making it moderately difficult for new entrants to penetrate the market. In addition, the market exhibits the presence of several well-established players with a strong financial base. This is anticipated to limit the entry of new market players. Moreover, high initial investments required to set up the business are expected to further restrict new entrants.

Product Insights

The polyurethane & polyisocyanurate foam segment dominated the market and accounted for the largest revenue share of around 23.0% in 2020. The product is typically used in pipe insulation applications as it can restrict the absorption of air, water, and gas. The material is commonly used in applications below 50°F. as it offers excellent dimensional stability over a wide temperature range.

Cellular glass is used in various applications such as in heat transfer fluid systems, chemical processing systems, ductwork, and commercial pipework, storage tanks, and in many other application areas. The material exhibits consistent insulating efficiency, low vapor permeability, fire protection, and high compressive strength.

Fiberglass is widely used in insulation systems due to its lower cost and easy installation. The material is used in the automotive and construction industries in providing insulation solutions. The material is widely used to insulate copper, iron, and PVC pipes in industrial, commercial, and institutional buildings.

The demand for elastomeric foam insulation is expected to grow owing to its properties such as moisture retention and strong water vapor permeability. The demand for elastomeric foam has witnessed an upward trend from the past few years due to the rising environmental concerns and strict government regulations regarding reducing carbon emissions since the material does not contain any formaldehyde or fibers and has low VOC emission levels.

Application Insights

The industrial application segment dominated the market and accounted for the largest revenue share of around 39.0% in 2020. Escalating demand for piping systems in various industries such as petrochemical, oil and gas, power generation, chemical, and wastewater treatment is estimated to augment segment growth. The product is used in oil pipelines to provide enhanced safety, particularly in onshore pipelines.

Increasing population, coupled with urbanization is likely to propel product demand in building and construction applications. The growth of the construction sector and stricter energy-efficiency norms are projected to positively influence the demand for pipe insulation. In addition, an emerging trend of sustainable buildings is one of the primary factors driving the growth of pipe insulation in buildings.

District energy systems have been adopted across the globe as an effective solution to connect thermal storage, renewables, power grids, waste heat, and heat pumps, thus ensuring sustainable heating and cooling. The system uses pre-insulated pipes for the distribution of produced streams and supplies steam or hot water for cooling building spaces.

Insulated piping systems are the major components of district energy systems. Insulated pipes used in these systems are made from eco-friendly materials. As a result of the increasing growth of district energy systems, the demand for pipe insulation is also expected to grow over the forecast period.

Regional Insights

Europe dominated the pipe insulation market and accounted for the largest revenue share of about 34.0% in 2020. This can be attributed to the rapidly increasing number of construction and infrastructural activities coupled with the rising installation of district energy systems in economies such as Germany, the U.K., Spain, and others.

Growing domestic consumption of food and beverages and pharmaceutical products is driving investments in the respective manufacturing sectors, thereby propelling the demand for process pipes and pipe insulation materials in North America. In addition, rising product demand for residential applications due to climatic conditions is anticipated to benefit the industry’s growth.

In Asia Pacific, the market is expected to witness the fastest CAGR of 5.8% over the forecast period owing to growing investments in the chemical processing industry. In addition, rising demand from the oil and gas sector, coupled with rapidly expanding their LNG regasification capacities to meet future demand is expected to propel market growth.

Though the chemical industry holds an important position in the manufacturing sector of Brazil, the prevailing stagnant economic conditions have negatively impacted the overall investments in the manufacturing sector, thereby affecting the demand for pipe insulation. In addition, the recent pandemic is expected to delay the economic recovery and affect the investment climate.

Key Companies & Market Share Insights

The industry is highly fragmented owing to the presence of various players in the market. Market players are highly focused on providing eco-friendly and diversified product portfolios to their customers. The companies also emphasize the adoption of raw materials to maintain a steady supply coupled with the cost-effectiveness of the overall pipe insulation system.

Small companies often rely on channel intermediates, such as brokers and suppliers, to perform many of the marketing functions due to lack of resources. Although, established players in the market have their distribution and sales channel through which they supply products to end-users. Some of the prominent players in the pipe insulation market include:

• Armacell

• Lydall, Inc.

• Kingspan Group

• Owens Corning

• Huntsman International LLC

• Saint-Gobain Group

• Rockwool Insulation A/S

• Johns Manville

• Knauf Insulation

• BASF SE

• Covestro AG

• Wincell Insulation Co., Ltd.

• NMC International SA

• Gilsulate International, Inc.

• Sekisui Foam Australia

• Omkar Puf Insulation Pvt. Ltd.

Pipe Insulation Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global pipe insulation market report on the basis of product, application, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2028)

  • Cellular glass

  • Polyurethane & Polyisocyanurate Foam

  • Fiberglass

  • Elastomeric Foam

  • Others

• Application Outlook (Revenue, USD Million, 2017 - 2028)

  • Industrial

  • Building & Construction

  • District Energy System

• Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa