Insulation Materials Market Size, Share, and Trends 2024 to 2034

Insulation Materials Market Size to Reach USD 110.7 Bn by 2032

The global insulation materials market size was estimated at USD 67 billion in 2022 and it is projected to surpass around USD 110.7 billion by 2032, growing at a CAGR of 5.20% during the forecast period 2023 to 2032.

Key Takeaways

• Asia Pacific region has held largest market share of about 41%  in 2022.
• By end user, the construction sector has captured largest market share of around 34% in 2022.
• By product, EPS segment has accounted largest market share of around 27% in 2022.

Insulation Materials Market Overview

Primarily there are 3 categories of insulation which are heat insulation, electrical insulation and thermal insulation. Insulation is an extremely important technology which helps in reducing the consumption of energy at various places by preventing heat loss or heat gain insulation actors and barrier which is extremely essential in order to keep the homes warm inventor and cool during summer. Various insulation materials are used in order to stop electricity sound or heat from going out or coming in. In order to prevent the heat gain or heat loss through the building insulators are used. Insulators are extremely important in maintaining the internal atmosphere. There is an increased demand for thermal insulators in nonresidential, residential and also industrial buildings in order to save energy and to provide comfort. The demand for these thermal insulators is increasing as there is been an increase in the global temperature and there are been drastic climatic changes. Increased awareness regarding energy conservation is also expected to have a positive impact on the market during the forecast.

Due to the economic recession during the pandemic the global insulation industry has experienced less growth. As there was a decline in construction activities the insulation materials market dropped.

Insulation Materials Market Growth factors

Due to rapid industrialization and urbanization in many developing countries there is a boom in the construction industry the growing construction industry is driving the insulation materials market. Constructions in various regions across Europe, Asia Pacific and North America are witnessing a growth and this is expected to increase the demand for the insulation materials beard in terms of the construction sector the Asia Pacific region dominates this industry globally and it is growing at a good rate. The reasons for the growth of the construction industry in the Asia Pacific region are the increase in middle class income, increase in the population and urbanization. The climatic conditions also largely affect the insulation materials market. This is an increased awareness to save energy and to protect excessive consumption of energy the market for insulation is expected to grow during the forecast.

Insulation Materials Market Scope

Constant Changes in the Prices of Raw Materials

The cost of plastic foams is constantly fluctuating, which is one of the major impeding factors of the global insulation materials market. The products utilized as plastic foams like polystyrene and polyurethane foams are made of crude oil. Hence, the constant changes in costs and the accessibility of this oil is an important factor in the manufacturing of these plastic foams. The accessibility of the products made of crude oil like elastomers and polymers is totally dependent of the import and manufacturing framework of numerous nations. Costs of the raw material lie prominently on the location of the production, trading prices, tariffs, and the labor prices. The supply chain is wholly disrupted due to the pandemic and caused a lower rate of manufacturing. In reverse, it is followed by the high process of freights and so of the raw materials. These factors are harming the growth of the global insulation materials market.

Compulsory Regulation for the Usage of Insulation Materials

To deal with the increasing issues of global warming is the need of the hour, and the nations across the world have accepted the same and working on a proactive approach. Energy efficacy is a very old concept which was not acknowledged properly in the past years. But, it is now being acknowledged widely. Various sectors are advancing effective insulations for the conservation of energy for the several applications that involve vehicle and building insulation. These practices are done not only for the prevention of energy but also to decrease the consumption of fuels. Insulation is employed to inflate the comfort and better precautionary measures and not only for the energy prevention. Regions like the Europe and the North America have inculcated improvements in their laws of building and construction to compel the utilization of insulation.

Why is the demand for the mineral wool increasing?

According to the present scenario, the mineral wool is employed to a very large extent across the globe as it helps in reducing heat loss in the low temperature regions, and preventing the heat coming in the hot atmosphere. Stone, Lime, sand, and several other minerals are the starting materials for the insulation materials. The stone and the glass wool enfold almost the half of the total importunities among them. Synthetic polystyrene is also popular in the market. The demand for polyisocyanurate and polyurethane is considerably less. The demand for the insulin materials depends totally over the country on country, taking climate conditions and consumer choices into the consideration as well as on the buying prices and the technical characteristics of the product type.

Organic Products are flourishing

There is an increasing need for the sustainable and environment friendly insulation materials. Insulation materials derived from the imperishable resources possess these properties. Insulating materials namely cork, wood chips, straw, wool, reed, coconut fibers, or hemp reduce greenhouse gas emissions as much as they are able to. These products are easily accessible in every region, which in turn do not undergo transportation for longer routes. They can be disposed of very easily and are processed smoothly, and are worth in ecological estimation. However, these products are costlier than those made of crude oil and to be saved from pests, fire, and moisture. Safety standard and regulations are complementing their utilization in building applications. For instance, the labels named “Blue Angel” and the “Austrian Eco-Label” are the representation of bio-based products. Its demand is fueling at a steady rate, and is anticipated to reach certain heights in the time to come.

Product Insights

On the basis of the product used for insulation the EPS segment had the largest market share about 27% in 2022. EPS which means expanded polystyrene is high tensile plastic which is lightweight and made out of rigid pellets of polystyrene. This product is expected to dominate the market during the forecast. Followed by the EPS segment the glassful segment is also expected to have a good growth during the forecast period. Glass wool is low weight and it has a high tensile strength. Glasswool has sand and it is helpful in thermal and sound insulation.

The extruded polystyrene foam insulation is also expected to grow well during the forecast. This product happens to be environment friendly. This product is also a great alternative to all the other building insulation materials. The polyurethane foam segment is also expected to have a good market share during the forecast. This material provides high thermal resistance of the gas. It has applications in the oil and gas industry. This product is also used for insulation in the automotive interiors.

End User Insights

On the basis of the end user, the construction sector has led the market in 2022 and had largest share of around 34%. This sector is expected to witness great growth during the forecast period. The reason for the growth of this sector is the increasing number of buildings in the urban areas which are insulation intensive. The residential construction sectors and the transportation sectors are also expected to have a good growth during the forecast period. The residential construction sector and the transportation sector are expected to grow at a good CAGR till the year 2032. Insulation helps in offering noise reduction, fire Protection and superior thermal insulation. Most of the cooling systems ventilation systems and heating systems are insulated. Water heaters, microwaves, refrigerators and ovens require insulation in order to prevent the heat transfer.

Apart from them the air purifiers, washing machines and dehumidifiers also require insulation. All of these are the major appliances where insulation is extremely important. Refineries as well as the petrochemical industries have a great application for insulation. It helps in effective operation of equipment, maintaining a uniform temperature, energy conservation, preventing heat gain or heat loss, prevents condensation and chemical reaction. Insulation also finds application in the transportation segment. The aerospace sector, marine and automotive sector find major use of insulation. In order to provide comfort and passenger safety the use of insulation is made in these sectors. Owing to all of these reasons the insulation market is expected to grow during the forecast period.

Region Insights

The Asia Pacific region is expected to have the largest market share during the forecast period. In the recent years the largest market share of about 41% was held by Asia Pacific region. In the 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 the energy wastage and an increasing demand for insulation in refurbishing and renovation application.

The North American region also has a great demand for insulation materials. The market in North American region is influenced by the demand for oil and gas, metal and mining, power and manufacturing industries where in 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 of insulation materials market across various regions in the globe due to the maintenance and repair work in the infrastructure. The market in Africa in Middle East region is also expected to grow as there are many petrochemical industries located in these regions.

Key Players had to suffer a Significant Loss amid the COVID-19 Pandemic

The novel corona virus has had a severe consequence on the worldwide economy with destructive impact on the trade globally. The consequences in turn have impacted businesses, infrastructure enterprises, households, industrial establishments, and financial institutes. The outspread of this virus stopped all the construction activities temporarily, which perhaps affected the volume of the global insulation materials market. Raw material sector for the buildings and construction has undergone a huge pitfall in the trade activities due to the lockdowns announced by the several governments across the globe. As the supply chain and logistics were totally disturbed, appropriation of raw materials was rebellious. The demand for several industrial goods got declined and the demand of oil and gas resources was reduced owing to the stoppage of industrial production as a result of government rules and regulations had impeded the advancement of the global insulation materials market. Due to all these reasons, prominent players operating in the market had to suffer a grave loss in their businesses. However, the construction industry has started operating with a full fleet as the imposed lockdowns have been lifted by the governments across the various countries around the world. 

Insulation Materials Market Top Players

• Roxul Inc.
• Huntsman International LLC
• Kingspan Group
• Owens Corning
• BASF
• GAF Materials Corporation
• Johns Manville
• The Dow Chemical Company
• Cellofoam North America Inc.
• Covestro AG.

Recent Developments

• In July 2021, Owens Corning announced the acquisition of vliepa GmbH (Germany) which specializes in the coating, printing, finishing of nonwovens, paper and film. The acquisition helps Owens Corning to serve the building and construction market in the European region.
• In February 2020, Parafon, the producer of stonewool based acoustic solutions was acquired by Rockwool International AS. This acquisition will help in establishing its footmarks in northern Europe and nourishing stone wool with its excellent acoustic performance in order to enhance the consumer base.

Insulation Materials Market Segmentation

(Note*: We offer report based on sub segments as well. Kindly, let us know if you are interested)

By Product

• EPS
• XPS
• Polyurethane
• Polyurethane Foam
• Polyvinyl Chloride
• Cellulose
• Glass Wool
• Mineral Wool
• Aerogel
• Calcium Silicate
• Others

By End User

• Infrastructure
• Construction
• Industrial
• HVAC
• Transportation
• Appliances
• OEM
• Others

By Distribution Channel

• Online
• Offline

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