Insulation Market Size, Share, and Trends 2024 to 2034

Insulation Market Size and Forecast 2024 to 2034

The global insulation market size is calculated at USD 62.14 billion in 2024 and is projected to surpass around USD 128.11 billion by 2034, growing at a CAGR of 7.5% from 2024 to 2034. The market is driven by favorable regulations in a majority of regions and increasing consumer awareness leading to energy conservation.

Insulation Market Key Takeaways

• The Asia Pacific region led the global market with the highest market share of 38.08% in 2023.
• North America is expected to grow fastest during the forecast period. 
• By insulation type, the thermal insulation segment dominated the market with a share of 64.51% in 2023. 
• By material type, the expanded polystyrene (EPS) segment generated over 23.02% of revenue share in 2023.
• By end-use type, the building and construction segment registered a maximum market share of 36.07% in 2023.

Asia Pacific Insulation Market Size and Growth 2024 to 2034

The Asia Pacific insulation market size is exhibited at USD 23.83 billion in 2024 and is projected to be worth around USD 52.35 billion by 2034, growing at a CAGR of 8.2% from 2024 to 2034.

Asia Pacific is dominated the insulation market in 2023. In countries like China and India due to increased oil production, there has been a significant use of insulation materials. There has been increased use of insulation to prevent energy wastage and an increasing demand for insulation in refurbishing and renovation applications.

North America is expected to grow fastest during the forecast period.  

The North American region also has a great demand for insulation materials. The market in the North American region is influenced by the demand for oil and gas, metal and mining, power, and manufacturing industries where the temperature of operation is high. Due to rapid industrialization and the presence of major manufacturers of insulation material European market is also expected to have a significant revenue share during the forecast period. There is a growth in the insulation materials market across various regions in the globe due to the maintenance and repair work in the infrastructure. The market in Africa in the Middle East region is also expected to grow as there are many petrochemical industries located in these regions.

Market Overview 

The insulation market deals with various materials such as mineral wool or fiberglass. These materials are widely used for insulating air ducts in homes. When there is a need for insulation that combats high temperatures, insulation is used. These products come in an extensive range of thicknesses.

Insulation Market Growth Factors 

• The growing demand for insulation there has been a growth in the demand for solutions that are helpful in saving energy.   
• There has been a growth in the demand for the products that provide insulation in the vehicles which will be helpful in improving the performance of the engines.   
• The growing demand for the installation of insulation in various commercial infrastructures contributed to propel the market growth.  
• The increasing number of people moving from rural to urban regions and the massive growth in the global population are expected to enhance market growth. 

Market Scope

Market Dynamics 

Driver 

Growing construction and residential industry  

The increasing installation of environmentally friendly, recyclable, and efficient materials and increasing emphasis on reducing energy consumption are increasing the market growth. The rising demand for new homes and Increasing customer expenditure have a positive impact on the market demand. In addition, the expansion of the construction industry combined with a rise in energy-efficient innovation further drives the market growth. 

Domestic players are expected to compete with international ones, due to the need for a stronger customer relationship in this industry. Manufacturers are supposed to develop robust distribution networks to increase their profits. Furthermore, by decreasing the heating and cooling loads in the building industry, the use of EPS, plastic foam, and glass wool can reduce the overall energy consumption further contributing to propelling the market growth. 

Restraint

High Cost and Environmental Concerns 

Crude oil is the major raw material for the majority of insulating products. Political uncertainty in these regions has a significant impact on crude oil supply and pricing globally since Middle Eastern countries produce most of the world's crude oil. In addition, the high cost of crude oil is affecting the market demand and further restraining the growth of the insulation market.  

Opportunity 

Increasing demand for insulation services from developing nations 

The high demand from emerging countries will drive the market’s growth. The market is growing rapidly in growing markets such as India, Mexico, South Korea, Indonesia, Turkey, Russia, and China. Considerations such as government regulations, low transportation costs, cheap labor, and the availability of land have made manufacturing plants and automobile manufacturers in these countries. 

Due to the increasing demand for insulation in the construction and refrigerator sectors, the market is growing rapidly in India. In addition, EPS provides improved high-performance insulation, precision, durability, and moisture resistance. Thus, the growth of the construction industry in developing markets is further anticipated to enhance the growth of the insulation market. 

Insulation Type Insights

The thermal insulation segment dominated the insulation market in 2023. The segment growth is attributed to factors such as the increasing demand for energy regulations, government initiatives, indoor air quality, and noise reduction. Thermal insulation materials minimize noise transmission through ceilings, floors, and walls and make them crucial components.  

• For instance, in October 2023, a leading provider of innovative technical solutions in the apparel industry, Freudenberg Performance Materials Apparel announced to launch of two advanced thermal insulation products made from low-level Bisphenol A (BPA) recycled PET fibers (rPET) into the global range of Freudenberg and comfortemp’s thermal insulation brand.  

Material Type Insights

The expanded polystyrene (EPS) segment dominated the insulation market in 2023. Expanded polystyrene is a high-tensile and lightweight plastic foam insulation produced from rigid polystyrene pellets. The product is expected to continue its dominance during the forecast period.  

The glass wool product segment is estimated to grow fastest during the forecast period. Glass wool has acoustic and thermal insulation properties such as high tensile strength and low weight and is made of sand. Removable blankets are byproducts of glass wool and make an amazing cover for flanges, valves, expansion joints, tanks, heat exchangers, pumps, turbines, and other irregular surfaces creating heat in industrial environments. 

The aerogel segment is expected to grow at a notable rate during the forecast period. The product is mesoporous, open-celled, and solid foam of nanostructures connected in a network. Aerogel is the lightest solid material in comparison with other insulation materials. 

The product tolerates various advantages such as quick application on large-bore piping and vessels, faster application on large-bore vessels and piping, and improved the lightest solid material in comparison with other insulation materials. The product tolerates various advantages such as quick application on large-bore piping and vessels, faster application on large-bore vessels and piping, and improved thermal conductivity in high-temperature service. 

End-use Insights

The building and construction sector segment accounted for the largest market share in 2023. Due to the increasing number of insulation-intensive buildings in urban areas, the construction sector is expected to grow. The construction or building sector was followed by the residential and transportation construction sector is expected to expand at a significant rate. Refineries and petrochemical industries are insulated for condensation prevention, effective operation of chemical reactions, maintaining a uniform temperature, heat gain/loss reduction, and energy conservation.  

On the other hand, the transportation segment is observed to grow at the fastest rate in the insulation market during the forecast period. The transportation sector comprises aerospace, marine, and automotive in the market in 2023. Automakers are continuously looking to comfort vehicles and enhance safety, which is expected to drive the insulation market demand. 

This surge is driven by increasing demand for energy-efficient vehicles, advancements in electric vehicle (EV) technology, and the rising focus on reducing carbon emissions in the transportation industry. Enhanced insulation materials are being sought after to improve fuel efficiency, thermal management, and noise reduction in vehicles, fueling this rapid growth.

Insulation Market Companies

• GAF
• Saint Gobain
• Recticel 
• Kingspan Group
• URSA
• Rockwool Group
• Knauf Insulation
• Johns Manville
• 3M Company
• Owens Corning

Recent Developments

• In October 2024, the launch of revolutionary slim insulation, Invisiloft was announced by Thermore Group which combines exceptional warmth with unprecedented thinness.  The aim behind this launch was to offer extraordinary insulating capacity while minimizing bulk.  
• In March 2023, BASF’s energystore is launching energystore+, a new low-carbon footprint insulation product range, that combines climate protection with high product quality. Energy stores will provide a significant opportunity for their customers to reduce the carbon footprint of their buildings with these products. 
• In October 2023, a part of the Rs 2000 Cr ALP Group, ALP Aeroflex Pvt Ltd announced the launch of a brand of superior, ‘Aerocell Rail’. This new insulation material has superior thermal properties, is rubber-based, and doesn’t emit toxic smoke.  
• Alert insulation was acquired by Installed Building Products in order to expand its business in the year 2021.
• The production of commercial insulation products of stone wool was announced by Rockwool in the year 2021. The production shall commence in the manufacturing unit which is located in West Virginia.

Segments covered in the report

By Insulation Type

• Thermal Insulation
• Acoustic Insulation

By Material Type

• Glass Wool
• Mineral Wool
• Expanded polystyrene (EPS)
• Extruded polystyrene foam insulation (XPS)
• Calcium-Magnesium-Silicate (CMS) Fibers
• Calcium Silicate
• Polyurethane
• Aerogel
• Others (Cellulose, Phenolic Foam, etc.)

By End User

• Building and Construction
• HVAC and OEM
• Transportation
• Appliances
• Others (Furniture, Packaging, etc.)

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa