Global Industrial Insulation Market is Segmented By Form (Pipe, Blanket, Board, Others), By Material (Stone Wool, Cellular Glass, Foamed Plastic, Glass Wool, CMS fiber, Calcium Silicate, Others), By Application (Power Generation, Petrochemical & Refineries, EIP Industries, LNG/LPG, Others), By End-User (Power, Oil & Gas, Chemical & Petrochemical, Cement, Food & Beverage, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Industrial Insulation Market Overview
The Global "Industrial Insulation Market" is estimated to reach at a CAGR of 4.85 % during the forecast period (2024-2031).
Insulation is a layer or coating of durable material that acts as a barrier to targeted energy. Insulation is used in various sectors to conserve energy and enhance the efficiency of machinery, systems, equipment, and components. Industrial insulations provide protection and prevent energy loss from the body to which they are applied.
Non-conducting industrial insulation materials operate as a barrier to the transfer of heat, sound, moisture, and other contaminants. The most typical use of industrial insulation makes a system more resistant to heat and leaks. The thermal insulator is placed to the fluid conduction pipes or the boiler surface in single or multiple layers.
Also, different industrial insulators are present in the global market, which can be flexible sheets and pre-formed shapes, rigid boards, flexible blankets, blocks, sheets and pre-formed shapes, foams, liquids (spray, paints), etc. The most commonly used form of insulation is pipe used in end-use industries, such as food & beverage, power, oil & gas, cement, petrochemicals, and metal processing. They are covered around the pipes and used in these industries to control the flow of heat energy.
Source: DataM Intelligence Analysis (2021)
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Industrial Insulation Market Trends
The growing construction of industrial buildings is anticipated to boost the global industrial insulation market. The increasing demand for cost-effective energy conservation systems in industrial equipment is predicted to boost industrial insulation systems.
Growing industrial building construction is anticipated to boost the global industrial insulation market.
Due to economic changes and rising individual per capita income, building and construction activities have increased in numerous locations. For instance, the government of India has launched initiatives like “100 smart cities” and “Housing for All by 2022," which are expected to propel the residential building market in the country.
As per the Global Trade Administration (ITA), the Australian construction industry is worth over US$ 112 million (AUD 150 million) per year and accounts for around 9% of GDP. However, according to the Building and Construction Authority (BCA), construction demand is likely to remain stable over the medium term.
Furthermore, according to China Banking News, China had set aside USD 1.07 trillion for infrastructure spending in 2020. Various infrastructure projects, such as the smart city initiative, urban transformation plans, new industrial estates, and business parks, have been implemented in India and are likely to enhance sector growth over the predicted period. As a result of increased spending and industrial activity, the industrial insulation market is predicted to expand significantly.
For instance, Rockwool Manufacturing has been commercially producing stone wool insulation materials since July 2021. The state-of-the-art facility produces Rockwool's residential, commercial, and industrial stone wool insulation. Since the pandemic, it has been the first stone wool insulation manufacturing c Asia-Pacific growth in North America.
Growing demand for cost-effective energy conservation systems in industrial equipment is predicted to boost industrial insulation systems.
In each industry dealing with varied heat transfer unit operations, insulation materials hold basic and important requirements. Maintaining the temperature of chilled water and steam supplies, storing products at low temperatures in cold storages or tanks and transporting products at low temperatures is critical in the dairy and food industries.
Insulation's primary goal is to slow the rate of heat flow to prevent or limit temperature changes in the system or space. According to reports, the dairy industry consumes 50% of its energy in the heating and cooling of milk. Because the dairy and food industries contain multiple unit processes at higher or lower temperatures than the ambient air temperature, the use of insulating materials in these industries is inevitable for energy conservation.
A variety of insulation materials on the market, each with its own set of insulating capabilities. It's critical to choose the correct insulating material for the job, considering the system's temperature and the manner of heat transfer. Thus growing demand for thermal insulating equipment in the food and beverage industry is expected to uplift the market share for industrial insulation in the forecast period. For instance, on September 7, 2020, BASF offered SLENTEX, a high-performance insulation material used in eco-friendly cold chain platforms by FMS Korea, which helps keep food fresh.
Low awareness among consumers regarding the usage of insulation products and price fluctuations are hindering the market growth for the product.
All industries, including power, food and beverage, and petrochemicals, focus on energy savings. Insulation materials are a basic yet important necessity in any business that deals with heat transfer. The proper application of insulation materials reduces heat loss and, as a result, saves money. The market is being held back by a lack of awareness about the benefits of good insulation. Another element that operates as a market limitation is the growing usage of renewables as a source of electricity generation.
Compared to traditional competitors, renewables such as solar PV and wind require fewer insulation materials because they involve fewer thermal energy-related operations. However, these technologies have drawbacks, including reliance on the weather and the need for a vast installation area.
The rise in pricing of raw ingredients used in polyurethane foam production, such as succinic acid, toluene diisocyanate, and polyols, along with crude oil price volatility, has slowed the overall growth of the polyurethane foam-based insulating material industry. Adipic acid is a feedstock for polyester polyols utilized in polyurethane foam insulation. In addition, the supply of adipic acid has tightened in recent months. As a result, pricing volatility in the insulating materials market may limit market expansion over the projection period.
COVID-19 Impact Analysis
The power, oil and gas, chemical, food and beverage, and cement industries all employ industrial insulation due to the demands of energy conservation, energy efficiency, and the reinforcement of pipelines, machinery, tanks, boilers, and other equipment. Compared to the same time in 2019, demand for the sector fell by roughly 2.5% in Q1 2020.
As per the Global Energy Agency (IEA), global electricity demand will fall by roughly 2.0% in 2020. The industrial sector consumes the most electricity, followed by residential, commercial and service industries. The industrial and commercial sectors impacted electricity usage, as businesses were compelled to close due to government-imposed lockdowns, social distancing measures and a limited supply chain.
Furthermore, the pandemic also significantly impacted global oil and gas demand. In recent years, oil and gas industry had already been hurt by a severe drop in oil prices that began in mid-2014 and has since escalated.
In 2020, the industry was hit by a fresh violent shock: a sudden and large reduction in global demand, combined with the COVID-19 outbreak. Due to the COVID-19 pandemic and the resulting drop in industrial insulation demand induced by the global lockdown, many major refiners were compelled to shut down their operations.
Industrial Insulation Market Segment Analysis
The global industrial insulation market is segmented based on form, material, application and region.
The easy availability of stone wool in various forms with diverse features and properties to suit a broader range of applications, including ovens and boilers, has made the segment the fastest growing compared to other types of materials.
The global industrial insulation market based on material is segmented into stone wool, cellular glass, foamed plastic, glass wool, CMS fiber, calcium silicate and others. Among the mentioned material types, stone wool is expected to dominate the global industrial insulation market in the forecast period due to the easy availability in various forms with diverse features and properties to suit a broader range of applications, including ovens and boilers.
Furthermore, the more regularly used vitreous fiber wools, such as insulating glass wool, stone wool and slag wool, created since 2000, as carcinogenicity in humans (Group 3). The production of high biosoluble fibers that do not harm human cells is achieved, making the product less harmful. Stone wool insulation acts as a natural fire barrier and can easily protect highly combustible elements from flame damage, protecting the employees and business.
Also, Stone wool's thermal characteristics allow it to survive temperatures above 1000°C (1800°F)6. Having a fire-resistant solution on-site can assist in reducing the chance of a fire spreading, ensuring the safety of those who work there.
Source: DataM Intelligence Analysis (2021)
Industrial Insulation Market Geographical Share
Asia-Pacific industrial insulation market is driven by a rising population, greater electrification, increased disposable income, and urbanization.
During the forecast period, the industrial insulation market in Asia-Pacific is expected to grow at the fastest rate. Growing industrial operations, rising consumer and infrastructure spending and solid economic growth are driving demand in Asia-Pacific. In 2019, the most promising market was Asia-Pacific, and this trend is likely to continue throughout the forecast period.
Asia-Pacific industrial insulation market is driven by a rising population, greater electrification, increased disposable income, and urbanization. The significant growth of the market in this segment is due to increased usage of oil and gas for power, rising population and rising need for petrochemicals. Rapid infrastructure development in nations like India, Malaysia, Indonesia and South Korea is driving expansion in the construction industry. In Asia-Pacific, China is the largest market for industrial insulation. Apart from China, countries like Japan, Australia, India and South Korea are expected to grow rapidly over the next few years.
Furthermore, the market for insulating materials is being driven by an increase in construction projects and investments in the Asia Pacific region. For instance, the Chinese government spent 1.9 million on 13 public housing projects in 2019. As per to the Global Trade Administration (ITA), China's construction value was US$ 893.58 in 2018.
The Chinese construction sector is expected to increase at a real-term annual rate of 5% between 2019 and 2023. In addition, the Green Building Action Plan calls for the renovation of approximately 400 million square meters of existing urban dwellings in northern China. As a result of these reasons, product demand in the Asia-Pacific area is expanding.
Source: DataM Intelligence Analysis (2021)
Industrial Insulation Market Companies and Competitive Landscape
The industrial insulation market is highly competitive with the presence of local and global companies. Some prime companies contributing to the market's growth are Kingspan Group PLC, Rockwool Group, Owens Corning, Saint Gobain, Knauf Insulation, Armacell Global SA, Johns Manville, Nichias Corporation, Insulcon BV and Promat (ETEX Group) and among others.
The major companies are adopting several growth strategies such as acquisitions, product launches and collaborations, contributing to the growth of the industrial insulation market globally.
- For instance, in November 2019, ITW Insulation Systems, a business owned by Illinois Tool Works Inc., has agreed to be acquired by Johns Manville. Its significant strategic purchase will enable the company to provide expanded insulation solutions to the industrial industry.
Rockwool Global A/S
Overview: Rockwool Global A/S, the ROCKWOOL Group, is a mineral wool company based in Hedehusene, Greater Copenhagen, Denmark. The company's R&D department, which employs 100 people as of 2016, is housed in the same building as the headquarters in Copenhagen.
Product Portfolio: The Company has a product portfolio of industrial insulations that includes:
- ProRox PS 960: The ProRox PS 960 stone wool insulation pipe segment is mandrel-wound. The pipe sections are made with WR-TechTM, a novel water-repellent binder (CUI), to reduce the risk of corrosion under insulation. The company's stone wool's outstanding water repellency is maintained by WR-Tech even at elevated operating temperatures within the CUI range while maintaining its good thermal performance in use.
Key Development
- In June 2018, In Ranson, West Virginia, Rockwool invested US$ 150 million in a 460,000-square-foot stone wool manufacturing facility. Rockwool's production in Asia-Pacific was boosted due to the investment, allowing it to fulfill rising demand.
Why Purchase the Report?
- Visualize the industrial insulation market segmentation by form, material, application, highlighting key commercial assets and players.
- Identify commercial opportunities in the industrial insulation market by analyzing trends and co-development deals.
- Excel data sheet with thousands of industrial insulation market-level 4/5 segmentation data points.
- PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
- Product mapping in excel for the key product of all major market players
The global industrial insulation market report would provide approximately 61 market data tables, 55 Figures and 180 pages.
Target Audience 2024
- Service Providers/ Buyers
- Power Generation Companies
- Emerging Companies
- Manufacturers
- Logistics companies
- Distributors
