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The Global Insulation Market size is estimated to grow by USD 23.11 billion accelerating at a CAGR of 5.6% between 2023 and 2027. This insulation market report extensively covers market segmentation by Product (wool, plastic foam, and others), End-user (non-residential and residential), and Geography (APAC, North America, Europe, Middle East and Africa, and South America) and geography APAC, North America, Europe, Middle East and Africa, and South America. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
Report Coverage |
Details |
Page number |
169 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.6% |
Market growth 2023-2027 |
USD 23.11 billion |
Market YoY |
Fragmented |
YoY growth 2022-2023(%) |
5.05 |
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing need for energy efficiency in buildings is a key factor driving the market growth. Boosting building energy efficiency drives the global insulation market. High energy demand from cooling systems in homes and businesses is a major contributor to global energy use. Insulation materials cut energy leakage, enhance building efficiency, and align with rising energy costs and environmental concerns. New energy-efficient buildings use only 10% of the energy compared to older structures.
Insulation also offers benefits like high noise reduction, easy installation, and protection against thermal stress-induced cracks, leading to increased profits for organizations. Consequently, the growing demand for energy-efficient buildings will positively impact the global insulation market's growth.
Green building developments influencing sales prospects is a key trend shaping the market. Common building materials consume vast energy and resources, making green building practices essential for sustainability. Green building materials are crucial in this context. Manufacturing building materials contributes significantly to pollution, responsible for 40% of emissions. Anticipated growth in institutional and commercial buildings amplifies energy consumption. The US and EU construction sectors account for 60% and 40% of total energy use, respectively. Sustainable insulation materials and green building standards enhance efficiency, driving insulation demand.
Eco-friendly insulation materials are advancing, promoted by governments to address health concerns and reduce production costs. Escalating raw material prices drives vendors to cut costs. Green building initiatives will fuel the global insulation market's growth.
The lack of skilled workforce is a key challenge hindering the market growth. A significant impediment to the global insulation market's growth is the scarcity of skilled workers. Demand for professionals knowledgeable in insulation materials and installation methods is high, yet vendors struggle to find them.
Installing insulation in buildings is a complex, technical task involving material selection based on factors like building dimensions, structure type, external conditions, and thermal properties. Temperature is a critical consideration when choosing insulation. Only a limited number of experts capable of handling this intricate process are available in the market. Recruiting and retaining such talent poses challenges for vendors. We anticipate an increase in these skilled individuals during the forecast period, ultimately removing growth barriers in the insulation market.
The wool segment will contribute a major share of the market, due to its greater demand in the building construction industry. The wool segment showed a gradual increase in market share with USD 34.63 billion in 2017 and continued to grow by 2021. Mineral wool is a fibrous, flexible material made from rock and mineral materials, including slag and ceramics, which can effectively meet the needs of thermal and sound insulation in many applications. The effective use of rock wool or mineral wool in the walls and ceiling will improve the sound insulation of the room. Therefore, it is in great demand in the construction industry.
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Mineral wool products have gained wide acceptance in residential, commercial, and many industrial applications due to their beneficial properties such as sound and thermal insulation. Companies are introducing innovations in wool insulation to provide more thermally efficient buildings while maintaining fire safety and acoustic standards. In addition, companies also offer various solutions for assessing the environmental impact of wool insulation products at each stage of their lifecycle. These factors will have a positive impact on the growth of the wool segment of the market during the forecast period.
Based on the end-user, the non-residential segment holds the largest market share. Non-residential buildings, including commercial, industrial, and institutional structures, will sustain a consistent demand for insulation products in the coming years. Among these, the commercial sector, comprising office and retail buildings, will hold the largest share due to its emphasis on occupant comfort and maintaining favorable indoor conditions. Insulation is crucial for managing heating and cooling costs, accounting for approximately half of a building's lifetime energy use.
Polyurethane insulation stands out as a cost-effective choice, delivering energy efficiency and environmental benefits. Its attributes include durability and low thermal conductivity. These insulation materials are versatile, finding application in stadiums, offices, hospitals, and industrial facilities. Manufacturers are introducing innovative products like spray foam, insulated metal panels, and board stock insulation systems, enhancing thermal performance, temperature control, and cost-effectiveness. Insulation materials align with energy codes and certifications, including ASHRAE, BREEAM, DGNB, and HQE, fueling growth in the global non-residential insulation market.
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APAC is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC has the largest contribution to the market and is expected to grow during the forecast period. China is the major producer and consumer of insulation materials. Moreover, an increasingly responsive customer base has led manufacturing bases to shift from Western Europe and North America to APAC, accelerating the growth of the market in the APAC region. Along with all this, growing infrastructure development in the region, coupled with the rise of China as a global manufacturing hub, is driving the consumption of thermal insulation products in the region. Therefore, the increasing number of construction projects in the country will be the main factor driving the growth of the market during the forecast period.
The 2020 COVID-19 outbreak negatively impacted the market. The pandemic caused a high number of deaths across the world, which prompted different governments to impose lockdowns. This had a major impact on various end-user industries, including construction and automotive, as the insulation manufacturing sector got temporarily closed. Demand for insulation decreased as industrial activity shut down during the pandemic. However, in 2021, the availability of a COVID-19 vaccine and the massive vaccination campaigns carried out by the governments of different countries gradually increased the activity in end-user industries such as construction, packaging, and automotive. Hence, the demand for insulation materials will increase, boosting the growth of the market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Aeroflex USA Inc: The company offers different types of insulation services such as industrial insulations, plumbing insulations, pipe insulations, sheet and roll insulations, and many more.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Altana AG, Armacell International SA, BASF SE, Carlisle SynTec Systems, Compagnie de Saint Gobain, Continental AG, Dow Inc., Holcim Ltd., Huntsman International LLC, Kaneka Corp., Recticel NV, Rilmac Group of Companies, ROCKWOOL International AS, Synthos SA, Thermaflex International Holding BV, Xella International GmbH, Kingspan Group Plc, Knauf Digital GmbH, and Owens Corning
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The insulation market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Insulation Market Scope |
|
Report Coverage |
Details |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 46% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aeroflex USA Inc., Altana AG, Armacell International SA, BASF SE, Carlisle SynTec Systems, Compagnie de Saint Gobain, Continental AG, Dow Inc., Holcim Ltd., Huntsman International LLC, Kaneka Corp., Recticel NV, Rilmac Group of Companies, ROCKWOOL International AS, Synthos SA, Thermaflex International Holding BV, Xella International GmbH, Kingspan Group Plc, Knauf Digital GmbH, and Owens Corning |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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