Insulation Market Size, Share & Trends Analysis Report Product Outlook (Glass Wool, Mineral Wool, EPS, XPS, CMS Fibers, Calcium Silicate, Aerogel, Cellulose, PIR, Phenolic Foam, Polyurethane), End-use Outlook (Construction ( Residential, Non-Residential & Commercial), Industrial, HVAC & OEM, Transportation ( Automotive, Marine, Aerospace), Appliances, Furniture/Bedding, Packaging) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global insulation market was valued at USD 56.25 billion in 2021 and is projected to reach USD 98.64 billion by 2030 at a CAGR of 6.44% from 2022 to 2030.

Insulation materials are used in construction to prevent heat, electricity, or sound from entering or leaving electrical appliances and building materials. Specifically, thermal, electrical, and heat insulation comprises the three main segments of the insulation materials market. Quality insulation materials must be installed correctly for a system of insulation to be effective. Insulation is a crucial technology to avoid heat gain or loss in buildings. It functions as a barrier to heat movement for keeping homes warm in the winter and cool in the summer.

On any surface of a building or structure, insulation is applied to improve the acoustic, fire, and impact resistance of the structure. Insulating materials are available in a variety of forms, such as plastic foams, mineral wools, and fiberglass wools. Based on their applications, the materials are utilized in a variety of building and structure types, including residential and non-residential structures.

Market Dynamics

The Residential And Construction Industry Is Driving The Market

Increasing emphasis on reducing energy consumption and installation of efficient, recyclable, and environmentally friendly materials are further increasing the segment's market share. Increasing customer spending and the rising demand for new homes will have a positive impact on the insulation market growth. Increasing demand for insulating materials in residential and commercial applications in developed regions, such as North America and Europe, will have a positive effect on product penetration.

The expansion of the construction industry coupled with an increase in energy-efficient innovation will boost market revenues. Due to the need for a stronger customer relationship in this sector, domestic players are expected to compete with international ones. Manufacturers are likely to establish robust distribution networks in an effort to increase their profit margins. In addition, the use of glass wool, plastic foam, and EPS can significantly reduce the overall energy consumption by decreasing the heating and cooling loads in the building sector.

A Variety of Usages Is Driving The Market

The segment share over the study period is being driven by the diverse range of applications for fibreglass/glass wool in various building components. In comparison to other insulating products, this segment is anticipated to experience significant growth due to its lower cost. In addition, the material is capable of providing insulation in the range of R-8 to R-40, which makes them ideal for consumer-driven applications that are tailored to their needs.

With a reduced u-value of 0.3, mineral wool has superior thermal insulation properties. This product is a superior fire-resistant insulator that can withstand temperatures exceeding 10,000 degrees Celsius. Moreover, the superior acoustic dampening properties to reduce the noise produced in industrial areas are among the major factors driving the insulation market's growth over the forecast period.

Industrialization and Increasing Infrastructure Development Activities

By supplying the expanding demand from quickly expanding infrastructure & developing projects, manufacturers in the insulation market are profiting handsomely. Rapid urbanization and increasing industrial activity are driving the expansion of the worldwide insulation market throughout the anticipated timeframe. Major players in the worldwide insulation industry are partnering with small- and medium-sized producers to grow their businesses.

Fiberglass and plastic foam are two common insulating materials used in manufacturing all around the world. The expansion of the insulation market is due to growing infrastructure development projects in emerging economies and the constantly growing worldwide population.

 Market Restraints

Environmental Concerns And Volatile Prices Hamper The Market

The primary raw material for the majority of insulating products is crude oil. Since Middle Eastern countries produce the majority of the world's crude oil, political uncertainty in these regions has a significant impact on crude oil pricing and supply worldwide. The other factor that affects crude oil prices is the equilibrium between supply and demand, which makes crude oil pricing extremely dynamic. The economic downturn in North America and Europe has altered the equilibrium between crude oil demand and supply.

Political unrest in countries like Libya and Iraq is anticipated to reduce crude oil prices. The United States and Europe are delaying the sanctioning of Russia's crude oil exports. The volatile price of crude oil has a direct impact on the prices of raw materials in the downstream petrochemical industry. Concerning the final pricing of finished product ranges such as polystyrenes and polyurethanes, these changes are of great concern.

Market Opportunities

Government Policies Will Bring In New Opportunities

It is likely that new laws and policies will encourage the adoption of modern building techniques. The application of these materials has been bolstered by the modification of building codes to increase the minimum required thickness. Increasing energy conservation awareness in developing nations, coupled with a growing population, will positively influence the growth of the industry. Adoption of zero-energy buildings and sustainable construction are among the key factors positively influencing the market penetration of insulation. Insulation provides fundamental functionality such as high-performance buildings, increased occupant comfort, noise protection, and fire resistance.

Standard 90.1 has been established by the American Society of Heating, Refrigeration, and Air Conditioning Engineers (ASHRAE) for the use of energy-efficient products in new U.S. buildings. In addition, the National Insulation Association encourages the use of insulated pipes and ducts in commercial and high-rise residential structures. The energy efficiency of residential and commercial buildings is highly dependent on the effectiveness of the insulating material and the operating temperature.

Regional Analysis

In 2021, the Asia-Pacific region led the market with a 41% market share due to the increased oil production in the economies of China and India, concerns regarding significant energy waste, and the demand for the materials in refurbishing and renovation applications. Demand from industries with high operating temperatures, such as oil & gas, manufacturing, metal & mining, and power, has a significant impact on the North American market. In addition, businesses in this region are focusing on reducing losses in order to boost their performance by conducting routine maintenance inspections.

In 2021, Europe accounted for a sizeable revenue share. Due to rapid industrialization and the presence of major insulation product manufacturers in Europe, it is expected that the regional market will be an early adopter of emerging insulation materials. Due to political and economic unrest in Brazil, one of the leading users of industrial insulation products, the gross domestic product of Central and South America has grown at a slower rate. The expansion of the downstream petrochemical industry and the rising product demand for maintenance & repair of existing infrastructure are anticipated to drive the growth of the Insulation market in the Middle East & Africa region.

Segmental Analysis

In 2022, the EPS insulation product segment dominated the market and represented more than 27% of global revenue. Expanded polystyrene is a lightweight, high-tensile plastic foam insulation made from rigid polystyrene pellets. It is anticipated that the product's dominance will persist throughout the projected timeframe.The glass wool product segment is anticipated to increase at a constant CAGR over the forecast period. Glass wool comprises sand and possesses thermal and acoustic insulation properties, including low weight and high tensile strength. Removable blankets, a byproduct of glass wool, are ideal for covering irregular surfaces that generate heat in industrial environments, including turbines, pumps, heat exchangers, tanks, expansion joints, valves, and flanges.

In 2022, the extruded polystyrene foam insulation (XPS) segment contributed significantly to the market's total revenue. The construction industry generated 44% of the market's total revenue in 2022. Due to the rising number of urban buildings requiring extensive insulation, the sector is anticipated to experience growth. The construction industry was followed by the transportation and residential construction industries, which are anticipated to experience significant CAGRs between 2023 and 2031.Over the projection period, the aerogel segment is anticipated to see a sizable CAGR in value. The result is a network of interconnected solid, open-celled, mesoporous foam nanostructures. Aerogel is said to be the lightest solid material compared to other insulation materials. Aerogel offers several benefits, including improved thermal conductivity in high-temperature applications, quicker application on large-bore pipelines and vessels, etc.

The petrochemical and refining industries are insulated for various reasons, including energy conservation, heat gain/loss reduction, maintaining a uniform temperature, effective equipment or chemical reaction operation, condensation prevention, etc. Heating, ventilation, and cooling systems are typically insulated with a solution that, in addition to noise reduction and fire protection, provides superior thermal insulation characteristics. Refrigerators, microwaves, ovens, and water heaters require insulation to prevent heat transfer and absorb sound. Additionally, insulation is required for dehumidifiers, air purifiers, refrigerators, washing machines, and dishwashers.

Automotive, marine, and aerospace industries comprise the transportation segment. In 2022, this market segment will hold a substantial share of the Insulation Market. Constant efforts by automakers to improve passenger safety and comfort are significant drivers of insulation demand in this industry.

Impact of covid-19

Covid-19 had some profound adverse impacts on the global advanced ceramics market.

COVID-19 spread across the world from China, making the whole world stand still and to a complete lockdown situation. Covid-19 is an infectious disease that was caused by a newly discovered coronavirus. During the time, the fatality rate among the population above 40 was also high globally. The disease causes severe illness for people suffering from medical conditions like diabetes, cardiovascular disease, chronic respiratory disease, etc.

Considering the situation during that time, it was declared a pandemic which led to numerous countries, including the major economies like China, the United States, India, and others, implementing lockdowns which adversely affected the global economy.

In the first two quarters of 2020, the economic and industrial operations temporarily halted. Almost every manufacturing unit where advanced ceramics is used, such as electrical and electronics, transportation, industrial, chemical, and other End-user Industries (except medical), reduced their manufacturing capacities due to the lack of workers. The lockdown implemented put a halt to global supply chains. This resulted in repercussions in terms of both production and demand for advanced ceramics.

Market Recovery Timeline and Challenges

With time the lockdowns were uplifted, and relaxation was made to the public. Gradually, the economy picked up the pace and started its operations, bringing the demand in the global advanced ceramics market and increasing among various industries. As the situation improved during the initial months of 2021, the economies also strengthened their fiscal policies and initiated their development process; the end-user industries began their activities, bringing the overall ceramics market back on track.

Recent Developments

• In November 2022, ROCKWOOL introduced its "By Nature" positioning.
• In May 2022, ROCKWOOL and the Denmark SailGP Team announced a scientific alliance with the One Ocean Foundation.
• In January 2023, Team Rubicon and DuPont Personal Protection Announce an Expanded Partnership.
• In December 2022, The world's most water-efficient brewery was built by Carlsberg with the aid of DuPont's CCRO technology.