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. 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.
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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.
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.
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.
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.
This market can be segmented on the basis of products, end-uses, regions and competitors. In 2021, the EPS insulation product segment dominated the market and represented more than 27% of global revenue. Expanded polystyrene is a lightweight and high-tensile plastic foam insulation made from polystyrene pellets that are rigid. 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 is comprised of 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 2021, the extruded polystyrene foam insulation (XPS) segment contributed significantly to the market's total revenue.
44% of the market's total revenue was generated by the construction industry in 2021. 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 2022 and 2030. The petrochemical and refining industries are insulated for a variety of reasons, including energy conservation, heat gain/loss reduction, maintaining a uniform temperature, effective operation of equipment or chemical reaction, 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 2021, this market segment will hold a substantial share of the Insulation Market. Constant efforts by automakers to improve passenger safety and comfort are a major driver of insulation demand in this industry.
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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.
The market has a moderate level of concentration due to the presence of numerous small- and large-scale vendors. To improve their production facilities and increase their market share, market participants are focusing on joint ventures, collaborations, and other strategic alliances. Biesanz Stone Co. and Michigan Limestone & Chemical Company are the largest suppliers of limestone, whereas Alfa Aesar and American Borate Company are the largest suppliers of borates. BASF, Bayer, and Dow Chemical Company dominate the supply of raw materials for foamed plastic insulation products. GAF Materials Corp., Huntsman International LLC, Johns Manville, Cellofoam North America, Inc., Rockwool International A/S, DuPont, Owens Corning, Atlas Roofing Corp., Saint-Gobain S.A., Kingspan Group, BASF, and Knauf Insulation are some of the most prominent players in the global insulation market.