Insulation Products Market Size, Share, Growth, Trends, and Forecast to 2028

Insulation Product Market Size & Industry Analysis:

The global insulation product market size was worth around USD 53.5 billion in 2021 and is predicted to grow to around USD 77.8 billion by 2028 with a compound annual growth rate (CAGR) of roughly 5.5% between 2022 and 2028. The report analyzes the global insulation product market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the insulation product market.

Insulation Product Market: Overview

Insulation is the technique of preventing sound, heat, and electricity from entering or leaving a physical space. It is accomplished by installing insulating materials that serve as a barrier to the flow of energy. Mineral wool, polyethylene, polystyrene, and other insulators are available and typically have poor thermal conductivity. Hardboard and wooden doors, as well as other wood-based items, help with insulation, and the spaces between tiles and windows are filled with spray foam and adhesive strips. An area's insulation helps save energy costs, prevent moisture condensation, and improves people's sense of safety and protection. Along with lowering noise pollution, it helps to reduce heat loss from exposed pipes and uninsulated valves inside buildings.

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Key Insights

• As per the analysis shared by our research analyst, the global insulation product market is estimated to grow annually at a CAGR of around 5.5% over the forecast period (2022-2028).
•  In terms of revenue, the global insulation product market size was valued at around USD 53.5 billion in 2021 and is projected to reach USD 77.8 billion, by 2028.
• The global insulation product market is projected to grow owing to the increasing demand for insulation products in the construction and transportation industries.
• Based on the product, the polyurethane segment hold the largest market share in 2021.
• Based on end-use, the construction segment leads the market during the forecast period.
• Based on region, Asia Pacific is projected to dominate the market during the forecast period.

Insulation Product Market: Growth Drivers

Rising building and construction activities across the globe to drive the market

Due to economic changes and increased per capita incomes, building and construction activity are expanding in several regions. For instance, the government of India has launched schemes like "Housing for All by 2022" and "100 Smart Cities" that are predicted to propel the Indian residential building market throughout the projection period.

The Australian construction sector is estimated to be worth USD 112 billion yearly, or around 9% of GDP, by the International Trade Administration (ITA). According to the Building and Construction Authority (BCA), Construction demand is predicted to continue constantly over the medium term. Demand is anticipated to be between $27 billion and $34 billion annually for 2021 and 2022, and between $28 billion and $35 billion annually for 2023 and 2024.

Additionally, there has been substantial investment in residential development in the United States, and this trend is anticipated to continue soon. For instance, the value of construction put in place in residential and nonresidential construction grew to $567,555 million and $470,986 million in January 2020 from $546,532 million and $466,436 million in December 2019, respectively, according to the U.S. Census Bureau.

To maintain the proper temperature inside the building, insulation materials are frequently employed in the building and construction details of floors, walls, roofs, and ceilings for new building constructions as well as for retrofitting existing buildings. Thus, the rising building and construction activities across the globe are expected to drive the market during the forecast period.

Insulation Product Market: Restraints

Price volatility of raw materials to restrain the market growth

The market hasn't been able to expand as much as it should due to rising prices for the raw chemicals used to make polyurethane foam, including succinic acid, toluene diisocyanate, and polyols. Adipic acid serves as a feedstock for the polyester polyols that are used to make insulation materials made of polyurethane foam. Adipic acid's supply has also tightened over the previous few months. Therefore, the global insulation product market expansion over the forecast period may be constrained by the price volatility of insulating materials.

Insulation Product Market: Opportunities

Stringent regulations mandating the use of insulation materials for energy conservation provide a lucrative opportunity

Globally, nations have recognized the importance of taking aggressive measures to address the growing global warming problem. Although the idea of energy efficiency is not new, it was not always as universally recognized as it is now. For applications like building insulation and automotive insulation, industries are creating more effective energy-conserving insulations.

Both reducing fuel usage and eliminating energy loss are objectives. Insulation is used to promote comfort and improve safety measures in addition to avoiding energy loss. The use of insulation is now required by building codes in both Europe and North America. Thus, stringent regulations across the globe are expected to provide lucrative opportunities for market expansion.

Insulation Product Market: Segmentation

The global insulation product market is segmented based on the product, end-use, and region

Based on the product, the global market is bifurcated into glass wool, mineral wool, EPS, XPS, CMS fiber, calcium silicate, aerogel, cellulose, PIR, phenolic foam, and polyurethane. The polyurethane segment is expected to hold the largest market share during the forecast period.

The growth in the segment is attributed to its several features, including superior thermal insulating capabilities, low moisture vapor permeability, high resistance to water absorption, relatively high mechanical strength, and low density and it has a large proportion of unconnected closed microcells packed with inert gas, and polyurethane foam is an excellent insulator (minimum 90 percent). In addition, it is also relatively simple and inexpensive to install. As a result, the better properties of polyurethane foam over other materials are expected to drive demand for polyurethane foam-based insulation over the projection period.

Based on end-use, the market is segmented into construction, industrial, HVAC & OEM, transportation, appliances, furniture/bedding, and packaging. The construction segment is expected to lead the market during the forecast period. The market is predicted to rise as the number of insulation-intensive structures in metropolitan areas increases.

The Indian government intends to build roughly 100 airports over the next 15 years as part of its Regional Air Connectivity initiative. Due to increased demand from industrial facilities, industrial construction is expected to show profitable growth in the market in various regions. On the other hand, Transportation covers the automotive, maritime, and aerospace industries. In 2021, the sector represented a large market share of the worldwide market. Automobile manufacturers are continuously seeking ways to improve passenger safety and comfort, which is a primary factor driving demand for insulation products in this sector.

Recent Developments:

• In August 2022, by utilizing NyRock technology, ROCKWOOL introduced its new product line, which includes NyRock Rainscreen 032 and Frame Slab 032. This range of products offers the lowest lambda stone wool insulation available in Britain. The NyRock Rainscreen 032 product series is especially made for ventilated cladding, including curtain walling, and sealed constructions.
• In November 2021, CFI Insulation, Inc. ("CFI") has been acquired by Installed Building Products, Inc. (the "Company" or "IBP"), an industry-leading installer of insulation and related building products. Through this acquisition, CFI expands their presence to residential, multifamily and commercial customers throughout Tennessee.

Insulation Product Market Report Scope:

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Insulation Product Market: Regional Analysis

The Asia Pacific region is expected to dominate the market during the forecast period

The Asia Pacific region accounted to hold the largest revenue share of more than 40% in 2021 in the global insulation product market and is expected to show its dominance during the forecast period. The growth in the region is attributed to the rapid population growth, as well as rapid urbanization and industrialization, which are paving the way for infrastructure expansion. The adoption of energy-efficient insulating solutions has been sparked by the region's improving economic outlook and significant growth in living standards. Furthermore, the governments of regional economies like China, India, and Japan may alter the dynamics of the regional market by placing a greater focus on expanding infrastructure and constructing better road. For instance, according to Invest India, the Indian government has forecasted an investment of $350 bn towards road infrastructure in the North-East region of India during 2020-2025.

Insulation Product Market: Competitive Analysis

The global insulation product market is dominated by players like GAF, Huntsman International LLC, Johns Manville, Cellofoam, ROCKWOOL A/S, DuPont, Owens Corning, Atlas Roofing Corporation, Saint-Gobain, Kingspan Group, BASF SE, Knauf Insulation, among others.

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The global insulation product market is segmented as follows:

By Product

• Glass Wool
• Mineral Wool
• EPS
• XPS
• CMS Fiber
• Calcium Silicate
• Aerogel
• Cellulose
• PIR
• Phenolic Foam
• Polyurethane

By End-use

• Construction
• Industrial
• HVAC & OEM
• Transportation
• Appliances
• Furniture/Bedding
• Packaging

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa