Industrial Insulation Market

The global industrial insulation market was valued at USD 7.68 billion in 2021. It is projected to reach USD 13.20 billion by 2030, growing at a CAGR of 6.20% during the forecast period (2022–2030). Insulation is most commonly used for the industry's pipes, fluid lines, ducts, and storage tanks. Rock wool and slag wool are the most common wool used to maintain core temperature and conserve energy. Glass fiber materials provide equipment with water resistance, heat and fire resistance, and soundproofing. Industrial insulation uses various materials, layers, and thicknesses depending on the needs of the process and is specifically designed for the equipment.

Using appropriate insulation solutions can also significantly reduce corrosion caused by moisture penetration. Industrial processes that use high-velocity liquid, steam, and air movements produce noise, which is terrible for the working environment. As a result, insulation also provides excellent sound insulation, making the workplace more comfortable. In addition to safety, comprehensive strength, and low water absorption, industrial insulation provides numerous additional benefits.

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Market Dynamics

Market Drivers

Increasing Power and Energy Requirements

Population growth increases the demand for electricity and other forms of energy. Nearly 80 percent of the world's population resides in developing nations, where residential housing and urban infrastructure are in high demand. According to the United Nations, the global population is projected to reach 8.5 billion by 2030 and 9.7 billion by 2050, resulting in a rise in demand for electricity, oil, and gas. The demand for electricity from the residential and commercial sectors, industrial areas, and emerging economies with improved access to electricity are expected to rise. This rising energy demand and production trend are anticipated to continue in both developed and developing economies, propelling the industrial insulation market during the forecast period.

Strict Regulations by Governments

The primary factor fuelling the expansion of the industrial insulation market is the strict legislation mandating the use of insulation materials for energy conservation. The market is expanding due to regulations requiring energy efficiency and insulation materials in end-use industries. The development of the industrial insulation market is also being fueled by the American Society of Mechanical Engineers (ASME), the American Boiler Manufacturers Association (ABMA), and the American Society for Testing and Materials (ASTM) standards for creating, updating, and implementing equipment in the industries. Insulation also protects equipment from dangerously high or low temperatures, reducing the possibility of mishaps and shielding it from fire risks and moisture condensation.

Market Restraint

Low Awareness Regarding the Usage of Insulation Products

Energy conservation is a primary concern for all industries, including the energy, food and beverage, and petrochemical sectors. Insulation materials are a simple yet essential requirement for any industry engaging in various heat transfer processes. Lack of awareness regarding the advantages of proper insulation is a major market restraint. Another factor that acts as a market restraint is the increasing use of renewable energy for electricity generation. Compared to their conventional counterparts, renewable energy sources such as solar photovoltaic and wind do not require as much insulation material, as fewer thermal energy-related operations are involved. The drawbacks of these technologies include their reliance on the weather, their low capacity, and the size of the installation area needed.

Market Opportunities

Increasing Infrastructural Spending in Emerging Countries

Infrastructure development in China, India, Brazil, and South Korea is anticipated to boost industrial activities and increase the demand for insulation materials during the forecast period. India also launched several infrastructure projects, including the smart city initiative, urban transformation schemes, new industrial estates, and business parks, which are anticipated to contribute to the sector's growth. As a result, an increase in spending and industrial activity is anticipated to create significant growth opportunities for the industrial insulation market.

Segmental Analysis

The global industrial insulation market is segmented by product, application, and material.

On the Basis of Material

Based on material the market is segmented into stone wool, glass wool, CMS fibers, calcium silicate, cellular glass, foamed plastic, elastomeric foam, perlite, aerogel, cellulose, and micro silica.

Stone wool dominates the market and generates the highest revenue share. The abundant igneous rocks dolomite, diabase, and basalt are used to produce stone wool. Due to the rising demand for high-temperature insulation for fire protection in industrial applications, the CMS fibers market is anticipated to expand during the forecast period. It is anticipated that the product's exceptional performance-to-weight ratio and resistance to chemical attacks will increase its demand.

On the Basis of Product

Based on product, the market is divided into pipe, board, blanket, and others.

The pipes segment dominates the global industrial insulation market due to its superior performance and capacity to stabilize process temperatures. It prevents exposure to extreme temperatures and protects against freeze damage and pipe ruptures. The product aids in enhancing the energy efficiency of a process or facility, thereby decreasing operating costs.

On the Basis of Application

The application segment is categorized into power generation, petrochemical and refineries, EIP industries, LNG/LPG, and others.

LPG/LNG dominates the market and accounts for the largest revenue share. The market is expected to grow due to the high risk associated with transporting and storing LPG and LNG products, creating a significant demand for these products.

Regional Analysis

The global industrial insulation market is segmented into five regions, namely North America, Europe, Asia-Pacific, Central and South America, and the Middle East and Africa.

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Europe is dominating the global industrial insulation market and is anticipated to dominate during the forecast period. European regulatory authorities' strict codes and laws have increased awareness of rising energy costs and the need for energy efficiency, which is expected to benefit the market. North America dominates the global industrial insulation market due to its highly developed industrial and power generation sectors. The U.S. holds the most extensive market share in the industry, which can be attributed to its highly developed industrial sector.

Competitive Analysis of the Global Industrial Insulation Market

• Rockwool Insulation A/S
• Poroc Group Oy
• Knauf Insulation
• TechnoNICOL Corporation
• Anco Products, Inc.
• Aspen Aerogels, Inc.
• Cabot Corporation
• Morgan Advanced Materials plc
• Unifrax LLC
• RATH Group
• IBIDEN Co., Ltd.
• Armacell International

Recent Developments

• March 2022- Parco launched PAROC Trio, a new revolutionary insulation solution for facade renovations. The PAROC® Trio renovation slab allows you to use one insulation product instead of the previously required two or three different insulation products. It consists of three layers: a layer that smooths the uneven surface to be renovated; a thick, energy-efficient thermal insulation layer; and a layer that provides excellent wind protection.
• March 2022- TECHNONICOL implemented a machine vision system at four stone wool plants. The technical vision was integrated with the production management system in the packaging areas. As a result, when a person appears in the danger zone, the neural network automatically turns off the equipment and does not allow it to be started again until the employee leaves it. This dramatically improves safety at work and prevents accidents.

Global Industrial Insulation Market: Segmentation

By Material

• Stone Wool
• Glass Wool
• CMS Fibers
• Calcium Silicate
• Cellular Glass
• Foamed Plastic
• Elastomeric Foam
• Perlite
• Aerogel
• Cellulose
• Micro Silica

By Product

• Pipe
• Board
• Blanket

By Applications

• Power Generation
• Petrochemical and Refineries
• EIP Industries
• LNG/LPG

By Regions

• North America
• Europe
• Asia-Pacific
• Central and South America
• The Middle East and Africa