Microporous Insulation Market Size, Share & Trends Analysis Report By Material (Calcium Magnesium Silicate, Alumina Silica, Others), By Product (Flexible Panels, Rigid Boards and Panels, Others), By Applications (Industrial, Energy and Power, Oil and Gas, Aerospace and Defense, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global microporous insulation market size was valued at USD 135.48 million in 2022. It is estimated to reach USD 194.50 million by 2031, growing at a CAGR of 4.1% during the forecast period (2023–2031). The microporous insulation has outstanding thermal insulation properties. Owing to this, it is widely used in several end-user industries, such as oil and gas and the construction industry, and the expansion of these industries worldwide is expected to drive the global microporous insulation market.

Microporous insulation is a thermal insulation material renowned for its exceptional thermal efficiency and little thermal conductivity. The design of this material aims to reduce heat transfer by integrating small, sealed pores that impede the flow of air and other gasses. The name "microporous" pertains to the tiny dimensions of these pores, often measuring in the micrometer range.

The various characteristics of microporous insulation render it well-suited for various applications, encompassing industrial furnaces and kilns, building construction, transportation, appliances, and the oil and gas industry, among other sectors. Microporous insulating materials comprise diverse substances, such as silica, alumina, perlite, vermiculite, and other inorganic compounds. The precise composition can exhibit variability depending on the intended application and the desired performance criteria.

Market Dynamics

Global Microporous Insulation Market Drivers

High Demand from the Oil and Gas Industry

Microporous insulating materials are used to insulate vessels, tanks, equipment, industrial piping, pipe supports, and fired heaters. The oil and gas industry employs microporous insulation in numerous applications primarily because of its exceptional thermal insulating characteristics and resistance to elevated temperatures. They significantly enhance process efficiency, minimize energy consumption, and safeguard critical infrastructure and equipment.

The oil and gas industry is growing at a rapid rate worldwide. According to the Oil 2023 medium-term market research, global oil demand is expected to increase by 6% from 2022 to 2028, reaching 105.7 million barrels per day (mb/d). This growth is expected to be driven by strong demand from the petrochemical and aviation industries, in line with prevailing government policies and market trends. Thus, the growing oil and gas industry increases the demand for microporous insulating materials, driving market growth.

Increasing Demand from Construction Industry

The expansion of the construction industry, particularly in areas characterized by extreme climates, serves as a substantial catalyst for the microporous insulation market. Builders and contractors actively search for materials that offer efficient thermal insulation properties while reducing space and weight requirements. The need for improved insulation materials is also driven by infrastructure development initiatives, encompassing the construction of energy-efficient buildings.

Additionally, the construction industry is one of the leading segments of the global economy. Factors like rapid urbanization, rise in disposable income, improvements in living standards, and 100% FDI have supported the expansion of the construction sector in emerging nations like India, China, Japan, Brazil, and Thailand. According to a report by the UN, the global population will increase from 7.2 billion to 8.1 billion in 2025, thus boosting the housing sector. The surge in non-residential construction projects will drive the demand for microporous insulation in the construction sector.

Global Microporous Insulation Market Restraint

High Manufacturing Cost

Numerous raw materials are utilized to produce microporous insulation panels and boards, including zirconia and inorganic silica oxides. Opacity is also achieved through opacifiers, characterized by their controlled particulate size, thermal stability, and uniform distribution across the surface area. The utilization of these opacifiers aids in the minimization of thermal transmission. Moisture absorption is prevented, and handling strength is enhanced using glass filaments that secure these.

The expense incurred throughout the process and technology is three to five times greater than that of conventional insulating materials, even though the final product has the lowest thermal conductivity. Inadequate industrial production capacity and a shortage of commercialization are additional contributors to the excessive production expenses. This is expected to restrict market development over the forecast period.

Global Microporous Insulation Market Opportunities

Environmental Advantages

Microporous insulation exhibits a significant degree of efficacy in mitigating heat transfer. When implemented in industrial or residential environments, this technology reduces the energy consumption necessary for heating or cooling designated areas. The enhanced energy efficiency has the potential to result in decreased total energy usage, hence diminishing the reliance on fossil fuels and decreasing the release of greenhouse gases. Considering the environmental concerns, various regions and countries across the globe planned to reduce greenhouse gas (GHG) emissions. Such a pledge is likely to increase the market.

In December 2019, the European Union proposed The European Green Deal Investment Plan. The plan has been presented to ensure a climate-neutral European Union by 2050. As per the Green Deal, the government has pledged to reduce GHG emissions by 55% in 2030 compared to 1990. In September 2020, China pledged carbon neutrality by 2060 by considering various factors such as raising building energy efficiency with higher energy-efficiency standards and others. The country is aiming to reduce emissions as per the new policies. Thus, the following policies are expected to act as opportunities for microporous insulation market growth.

Regional Analysis

Asia-Pacific Dominates the Global Market

Based on region, the global microporous insulation market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific is the most significant global microporous insulation market shareholder and is expected to expand substantially during the forecast period. The expanding Asia-Pacific's construction and oil and gas industries have greatly increased demand for such insulation materials. The major factors contributing to the growth of the Asia-Pacific construction industry include the surging pace of urbanization, increasing disposable income, and improving living standards. In Asia-Pacific, China, India, Japan, and South Korea are the leading developing nations. Asia-Pacific is the most significant market for the global construction industry as of 2019 and will continue to dominate the industry. Increasing population, demand for housing, and investment in multiple projects such as 5G networks, IoT, Artificial Intelligence, and data centers contribute to the construction industry's rapid expansion in the region. Moreover, to address the pandemic's potential consequences on the construction sector, the National Development and Reform Commission formulated a set of 65 fixed-asset investment initiatives valued at USD 78.4 billion. Therefore, the demand for microporous insulating materials is expected to rise due to the investments made in various projects.

Additionally, the oil and gas sector is expanding across Asia-Pacific due to the rising need for petrochemicals and energy. As per the National Bureau of Statistics, China's crude throughput rose 4.6% yearly to 14.13 million b/d in 2021 despite refineries cutting crude runs by 2.1% in December to offset product inventory pressure. The daily output of crude oil is close to 576,000 tons, according to the National Bureau of Statistics of China. Similarly, according to the India Brand Equity Foundation (IBEF), the country's aviation industry is anticipated to receive INR 35,000 crore (USD 4.99 billion) investments in the aerospace sector during the next four years. Thus, the growth of end-user industries employing microporous insulating materials in the region is driving the expansion of the market.

North America is expected to grow at a significant pace. The growth of the automotive and aerospace industry in the North American region drives the microporous insulation market. Microporous insulation has been implemented in the automotive and aerospace industries, where thermal efficiency and weight reduction are paramount. The automobile industry in the U.S. is contributing significantly to the regional and global automobile markets. The country houses major automakers producing and exporting vehicles to other economies in the Americas, Europe, and the Asia Pacific. The National Automobile Dealers Association (NADA) predicted that the U.S. market for manufacturing cars will be worth USD 82.6 billion in 2021.

Moreover, the association predicted that the U.S. new light-vehicle sales will increase by 3.4% to 15.4 million units in 2022. The United States has the largest aviation market in North America and the world's largest fleet size. The aerospace industry's industrial activities have been driven by healthy consumer spending in the United States and strong exports of aircraft components to nations like France, China, and Germany, which can induce a positive momentum for the market of microporous insulation materials in the country.

Segmental Analysis

The global microporous insulation market is bifurcated into material, product, and application.

Based on material, the global market is segmented into calcium magnesium silicate, alumina-silica, and others. 

Alumina silica, often called alumino-silicate, is a compound composed of aluminum oxide (Al2O3, also known as alumina) and silicon dioxide (SiO2, also known as silica). These two components are the major constituents of many minerals, rocks, and materials commonly found in the Earth's crust. Alumina (Al2O3) is an aluminum oxide known for its hardness, high melting point, and resistance to chemical corrosion. It is commonly used to produce ceramics, refractories, and abrasives. Silica (SiO2) is a compound of silicon and oxygen and is the most prevalent mineral on Earth. It is a key component of many types of rocks, including quartz.

Based on product, the global market is segmented into rigid boards and panels, flexible panels, and others. 

The rigid boards and panels segment is the highest contributor to the market. Rigid boards and panels are flat, robust constructions commonly constructed from materials known for their capacity to offer stability and support. These materials find utility across many sectors and applications, serving distinct objectives. The selection of rigid boards and panels is determined by their distinct characteristics, including strength, durability, weight, and look, to meet the unique demands of the intended use. They are essential constituents in the construction, manufacturing, and diverse other sectors.

Based on application, the global market is bifurcated into industrial, energy and power, oil and gas, aerospace and defense, and others.

Microporous insulation is extensively employed in several industrial sectors, including foundries, petrochemical plants, and power production facilities. The market's development was substantially propelled by the expansion of these industries and the increasing demand for improved insulation to maximize energy efficiency. In industrial processes, adequate insulation is necessary to manage and regulate temperatures effectively. Microporous insulation can enhance energy efficiency in diverse industrial sectors, including manufacturing and petrochemical industries. This can result in a decrease in the carbon emissions associated with industrial operations.

Recent Developments

• March 2023- Shin-Etsu Chemical Co., Ltd. launched a new molding silicone rubber KE-5641-U) that is optimal as an insulation coating material for high-voltage automobile cables.
• September 2023- PrimaLoft Utility, the most recent product innovation from PrimaLoft Inc., represented a substantial advancement in synthetic insulation technology. By integrating recycled materials, employing efficient manufacturing processes, and boasting an exceptional lifespan, this groundbreaking product actively promotes sustainable practices within the industry.