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The Insulation Market size is estimated to grow by USD 24.3 billion at a CAGR of 5.6% between 2023 and 2028. Several factors contribute to the growth of the insulation products market include the rising demand for energy-efficient buildings, the growth of infrastructure development, and the necessity to optimize building energy consumption. However, there are also significant challenges hindering market growth, such as a shortage of skilled workforce, fluctuations in raw material costs impacting insulation manufacturers' prices, and concerns about the health and environmental impact of polystyrene foam. EPS insulation and geofoams are favored for their lightweight and easy installation, making them ideal for high-rise residential structures and homeowners. The glass wool sector is particularly benefiting from these trends, as it is a versatile material suitable for cold storage units, refrigerated warehouses, and other industrial infrastructure.
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The report includes the adoption lifecycle of the market, covering from the innovatorâs stage to the laggardâs stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
The market is witnessing substantial growth driven by a focus on energy conservation and environmental regulations. The engineering and construction industries are investing in quality insulation materials to meet these requirements. With increased infrastructure spending and a shift towards environmental conservation, the market for heat insulation and acoustic insulation is expanding. The rise in stay-at-home instructions and social distancing mandates has further emphasized the need for comfortable and quiet environments, driving demand for building materials that offer these features. Innovative solutions like transparent weather tape are also gaining traction for their effectiveness in sealing gaps and improving insulation. Amidst these factors, ongoing trends like the surge in green building developments influencing sales opportunities, increasing demand from developing nations, and a rising need for foam insulation are expected to drive the market's growth.
The growing need for energy-efficient buildings is the key factor driving the market share. The need to improve the energy efficiency of buildings is a major factor driving the growth of the market. The energy demands of commercial buildings using refrigerators and air conditioners contribute significantly to global energy consumption. Insulation is used to reduce energy loss and thereby increase building efficiency. With energy costs rising around the world, governments are stressing the need to use products that use less energy. Insulation helps reduce reliance on fossil fuels for power generation, thereby minimizing the negative environmental impacts associated with their emissions. A new home with energy-efficient insulation technology uses only 10% of the energy used by an older building with inefficient insulation technology.
Further, insulating buildings also provides significant protection from outside noise and helps businesses achieve higher profits through energy savings. Some other benefits of insulations involve providing a high noise reduction coefficient (NRC) of 0.95, a simple, hassle-free, and quick installation, and Prevention of cracks in buildings due to thermal stress. Hence, the rising demand for energy efficiency in buildings will therefore have a positive impact on the growth of the insulation products market during the forecast period.
The high demand from developing nations will fuel the market growth. The market is expanding rapidly in growing markets such as Brazil, China, Russia, Turkey, Indonesia, South Korea, Mexico, and India. Considerations such as the availability of land, cheap labor, low transportation costs, and lax government regulations have made automobile manufacturers, and manufacturing plants in these countries. The market in India is also growing rapidly due to the increasing demand for insulation in the refrigerator and construction sectors. EPS board offers approximately 30% to 40% higher thermal insulation, making it an ideal material for insulation in refrigeration equipment.
In addition, EPS offers improved moisture resistance, durability, precision, and high-performance insulation. Among all Latin American countries, Brazil recorded the largest growth in insulation demand in 2021. The growth of the construction industry in emerging markets is expected to boost the growth of the market. This is further underpinned by rising disposable incomes and lifestyle changes in these economies. These factors drive the growth of the insulation products market during the forecast period.
The lack of a skilled workforce can majorly impede the growth of the market. The availability of a skilled workforce is a major issue hindering the growth of the market. Skilled workers who are familiar with insulation materials and assembly processes are required. However, suppliers in the market face a shortage of such technically skilled employees. The process of installing insulation in buildings is a technical process that requires material selection based on factors such as building area, building type, external environment, and type of materials used.
Moreover, since temperature is a very important factor, it is very important to choose the right material based on the material's heat storage properties. There are very few professionals on the market who can understand and perform this complex installation process. Attracting and retaining such qualified professionals is also a challenge for providers. The number of such technically competent employees is expected to increase during the forecast period, thereby removing impediments to the growth of the insulation products 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 insulation materials 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.
Altana AG: The company offers a wide range of services across different industries one of which is electrical insulation services.
We also have detailed analyses of the marketâs competitive landscape and offer information on 18 market companies, including:
The report offers clients a deeper understanding of the market and its players through a combined qualitative and quantitative analysis of the companies. The analysis classifies companies into categories based on their business approach, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak to understand the dos and donâts of business which in turn can help a client make the best decision.
The wool segment will contribute a major share of the market, due to its greater demand in the building construction industry. 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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The wool segment showed a gradual increase in market share with USD 36.20 billion in 2018. 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. These advancements extend to various sectors, including stadiums and automotive applications, where superior insulation is crucial for both performance and comfort. In addition, companies offer various solutions for assessing the environmental impact of wool insulation products at each stage of their lifecycle. These factors will positively impact the growth of the wool segment of the market during the forecast period.
Non-residential buildings such as commercial, industrial, and institutional buildings are expected to see steady demand for insulation products during the forecast period. Among these buildings, the commercial sector accounts for the largest share due to the office and commercial buildings that make up this category. These buildings implement insulation to ensure the comfort and living conditions of the residents. Insulation also helps regulate thermal energy within a building, creating a balance between the internal and external environment. About 50% of the energy consumed in a building's lifetime is used for heating and cooling, which requires the use of effective insulation. Polyurethane insulation is one of the simplest and most affordable materials for non-residential establishments. These materials maximize energy efficiency and help fight global warming. All these factors drive the growth of the non-residential segment of the insulation materials market growth during the forecast period.
APAC is estimated to contribute 47% to the growth. Technavioâs analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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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 market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is experiencing significant growth driven by the adoption of zero-energy buildings and a focus on energy conservation awareness. Various materials such as aerogel, fiberglass, expanded polystyrene (EPS), and stone wool are being used for their thermal insulation properties in residential structures, industrial buildings, and marine sectors. The market is witnessing technological enhancements to develop more efficient materials, including vacuum insulation panels and extruded polystyrene foam insulation (XPS). The demand for sustainable construction is also driving the use of environmentally friendly materials such as wood fiber and recyclable materials. With increasing customer spending and a focus on energy-efficient innovation, the market is poised for continued expansion, particularly in sectors like aerospace, oil & gas, and petrochemical industries. With the power of electricity, electrical appliances create a comfortable and quiet environment for modern living.
The market is driven by a multitude of factors spanning various industries. In the aerospace sector and airports, insulation plays a critical role in maintaining optimal temperatures and reducing energy consumption. Alumina and ceramic fibers are used for their high-temperature capabilities in factories and refineries, while fiberglass and mineral wools are popular for their fire resistance and impact resistance in industrial areas and non-residential structures. As the demand for sustainable residential buildings grows, there's an increasing focus on energy consumption reduction and environmentally friendly materials like wool-derived insulation materials. Rapid industrialization and high-performance engines drive the need for insulation in various sectors, emphasizing the market's importance in mitigating heat loss and heat gain in diverse environments.
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Market Scope |
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Report Coverage |
Details |
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Page number |
175 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.6% |
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Market growth 2024-2028 |
USD 24.3 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.15 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 47% |
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Key countries |
China, US, Japan, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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 Corp., Kaneka Corp., Kingspan Group Plc, Knauf Digital GmbH, Owens Corning, Recticel Group, Rilmac Group of Companies, ROCKWOOL International AS, Synthos SA, Thermaflex, and Xella International GmbH |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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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. |
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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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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