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The industrial insulation market size is forecast to increase by USD 2.38 billion, at a CAGR of 5.38% between 2023 and 2028. The growth rate of the market depends on several factors growing need for energy efficiency in buildings, a rising focus on personnel safety in the industrial sector, and an increase in the popularity of acoustic insulation solutions. Our report examines historical data from 2018-2022, besides analyzing the current and forecasted market scenario.
The industrial insulation market in APAC is driven by robust infrastructure development, particularly in China, a global manufacturing hub. The surge in construction projects contributes significantly to the increased consumption of insulation products in the region. Key players like API Group Corp and Armacell International SA offer innovative industrial insulation solutions, including cryogenic LNG tank insulation and aerogel-based insulation technology (ArmaGel), further supporting market growth.
Market Forecast 2024-2028
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Our researchers studied the market research and growth data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The need to enhance the energy efficiency of buildings is an important factor that drives the growth of them arket. Energy demand in commercial and residential buildings, which deploy refrigerators and air-conditioners, contributes significantly to global energy consumption. Insulation materials are used to reduce the leakage of energy and thereby increase the efficiency of a building. The cost of energy is increasing globally, and governments are stressing the need to use products that consume less energy. Insulation can help reduce the dependence on fossil fuels for power generation, thereby minimizing the environmental negative impact associated with their emissions.
Moreover, new residential buildings that use energy-efficient technologies for thermal insulation use only 10% of the energy consumed by older buildings, which deploy inefficient technology for thermal insulation. Therefore, the growing need for energy efficiency in buildings will positively impact the growth of the market during the forecast period.
The integration of smart technologies and digitalization in insulation systems within the market represents a significant advancement in the industry. These innovations aim to enhance energy efficiency, improve cost-effectiveness, and optimize performance in industrial settings. One example of this integration is the utilization of smart sensors in insulation systems. These sensors are designed to monitor and collect data on temperature, humidity, and other relevant variables. By leveraging this data, industrial facilities can gain real-time insights into the performance of their insulation systems. This proactive approach enables the early detection of potential issues, leading to timely maintenance and preventing energy loss. In addition to smart sensors, digitalization plays a crucial role in the advancement of industrial insulation.
Furthermore, smart insulation materials have emerged as a result of technological integration. These materials are embedded with advanced features such as self-healing capabilities and adaptive thermal properties. For example, phase change materials (PCMs) are being incorporated into insulation solutions to leverage their ability to store and release energy, maintaining stable interior temperatures and reducing reliance on continuous heating or cooling systems. Thus, such factors are expected to fuel the growth of the market during the forecast period.
The market has been adversely affected by the lack of technical expertise and installation challenges, impacting various facets of the industry. One significant impact stemming from the lack of technical expertise is the compromised quality of insulation installations. Without the necessary knowledge and skills, installations are prone to errors and subpar workmanship. Furthermore, the absence of technical proficiency has led to safety concerns within the industrial sector. Improperly installed insulation can pose fire hazards or fail to meet safety regulations, jeopardizing the well-being of workers and the integrity of industrial operations.
Similarly, installation challenges, such as access constraints and complex industrial environments, have compounded the negative impact. Industrial facilities often present intricate layouts and hard-to-reach areas, increasing the complexity of insulation installations. This has led to project delays, cost overruns, and logistical complications for industrial insulation contractors. Thus, such factors are expected to hinder the growth of the market during the forecast period.
The market share growth by the petrochemical and refineries segment will be significant during the forecast period. This segment involves the insulation of various equipment, piping, and processing units in petrochemical plants and refineries to ensure operational efficiency, safety, and environmental compliance. One of the key drivers of industrial insulation in the petrochemical and refineries segment is the need to maintain optimal operating temperatures.
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The petrochemical and refineries segment was the largest and was valued at USD 2.23 billion in 2018. Furthermore, the petrochemical and refineries segment heavily depends on insulation to mitigate corrosion under insulation (CUI) issues. CUI can cause significant damage to steel equipment and piping systems, leading to operational disruptions and maintenance challenges. Insulation systems with proper protective coatings and corrosion-resistant materials are essential for preventing CUI and extending the service life of critical assets. Thus, the above-mentioned advantages are expected to increase the demand for industrial insulation in the petrochemical and refineries sector, which will propel the growth of the petrochemical and refineries segment in the global market during the forecast period.
Based on the material, the market has been segmented into mineral wool, plastic foam, calcium silicate, and others. The mineral wool?segment will account for the largest share of this segment. Mineral wool, which includes materials such as rock wool and slag wool, is valued for its thermal insulation properties, fire resistance, acoustic insulation, and robustness in challenging industrial environments. One of the key drivers of the mineral wool segment in the industrial insulation market is its exceptional thermal insulation capabilities. Mineral wool products are extensively utilized in industrial settings to insulate equipment, piping systems, boilers, tanks, and industrial ovens. Thus, such advantages are expected to increase the demand for mineral wool in industrial insulation, which will propel the growth of the mineral wool segment in the global market during the forecast period.
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APAC is estimated to contribute 43% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. China has become a major producer and consumer of insulation material. Additionally, an increasingly responsive customer base has driven manufacturing bases to shift from Western Europe and North America to APAC, accelerating the growth of the market in APAC. The growth in the market in APAC is primarily driven by demand from the building and construction industry. The growth in the construction sector is expected to accelerate during the forecast period. China, Japan, India, and South Korea are the largest consumers of insulation materials in the region.
In addition, the growing e-commerce industry in APAC will drive the use of insulation in the packaging of heavy goods. Also, investments of vendors in the market in countries such as China in the region will boost the growth of the regional market during the forecast period. For instance, in June 2023, BASF SE (BASF) announced the plan to increase its bio-based alkyl polyglucosides (APG) capacity in Bangpakong, Thailand, and Cincinnati, Ohio. Thus, these factors will, in turn, boost the growth of the regional 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.
Aspen Aerogels Inc - The company offers industrial insulation such as Pyrogel and Cryogel aerogel insulation.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including API Group Corp., Armacell International SA, Aspen Aerogels Inc., BASF SE, BNZ Materials, Cabot Corp., Compagnie de Saint Gobain, Dongsung Finetec, DUNA Corradini S.p.A., Ibiden Co. Ltd., Imerys S.A., Kingspan Group Plc, Knauf Digital GmbH, L ISOLANTE K FLEX S.p.A., Morgan Advanced Materials Plc, NICHIAS Corp., Owens Corning, Pacor Inc., Rath Aktiengesellschaft, and NMC International SA
Technavio market report forecast is an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market analysis and report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Industrial Insulation Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.38% |
Market Growth 2024-2028 |
USD 2.38 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.85 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 43% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
API Group Corp., Armacell International SA, Aspen Aerogels Inc., BASF SE, BNZ Materials, Cabot Corp., Compagnie de Saint Gobain, Dongsung Finetec, DUNA Corradini S.p.A., Ibiden Co. Ltd., Imerys S.A., Kingspan Group Plc, Knauf Digital GmbH, L ISOLANTE K FLEX S.p.A., Morgan Advanced Materials Plc, NICHIAS Corp., Owens Corning, Pacor Inc., Rath Aktiengesellschaft, and NMC International SA |
Market dynamics |
Parent market growth 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 the 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. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Material
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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