Insulation Materials Market Size, Share, Industry, Forecast and Outlook (2024-2031)

Insulation Materials Market is segmented By Product Type (Vacuum insulation panel (VIP) (Fiberglass, Ceramic fiber, Aerogel, High-performance foam)), By Application (Building & infrastructure (Industrial, HVAC, Residential, Others)), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031 

Insulation Materials Market Report Overview

The insulation materials market 150 pages report analyzes the market shares, size, recent trends, future market outlook, and competitive intelligence. The demand for insulation materials is increasing due to the growing need for energy efficiency and sustainable construction practices. The market is witnessing a surge in demand from the Asia-Pacific region due to the increasing construction activities in developing economies. The competitive rivalry is intensifying with major players such as Owens Corning, Johns Manville, Saint-Gobain S.A., and others actively operating in the market.

Insulation Materials Market Scope and Summary

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In the construction industry, insulation materials prevent heat, electricity, or sound from entering or leaving electrical appliances and building materials. The thermal, electrical, and heat insulation sectors comprise most of the insulation materials market. The secret to a successful insulation system is the correct installation of high-quality insulation materials. The use of insulation in buildings helps to limit heat gain and loss while consuming less energy.

It is a barrier to heat movement for homes to stay warm in the winter and cool in the summer. The right amount and kind of insulation depending on the climate. The insulating materials include polyurethane foam, mineral wool, polyethylene, polyvinyl chloride, expanded polystyrene, and extruded polystyrene. These materials serve just to protect and soothe inhabitants while conserving energy.

Insulation Materials Market Dynamics and Trends

The need for insulation goods is rising as the transportation and consumer end-use sectors expand. Another primary factor driving the global market for insulation materials is growing consumer awareness of the benefits of acoustic insulation in building and construction.

The growing usage of insulation materials in building & construction 

The need for insulation products is driven by the growing demand for energy-efficient goods & equipment, acoustic insulation in partitions, and technological advancements in HVAC equipment in the construction industry. A large number of public vehicles have adopted air conditioning technology. In the transportation industry, insulation is used for heat shields, battery insulation, fire protection, and data recorder insulation.

Another essential component of vehicle safety is the fireproofing of the interior and bodywork. High-temperature insulation increases car safety, promotes high-tech car parts, and prolongs the life of cars. In addition, the COVID-19 vaccination campaign is fueling the expansion of the cold storage sector, which raises the demand for thermal insulating materials.

Stringent regulations regarding energy conservation

Globally, nations have recognized the importance of aggressively addressing 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. Industries are creating more effective energy-conserving insulations for building and automotive insulation applications.

Both reducing fuel usage and eliminating energy loss are objectives. In addition to being used to stop energy loss, insulation also improves safety and comfort levels. The use of insulation has been made mandatory by changes to building codes in Europe and North America.

Fluctuations in raw material prices

The insulation product market is significantly constrained by fluctuations in the cost of plastic foams' raw components. Because plastic foams, including polyurethane and polystyrene foams, are made from crude oil, changes in the price and supply of crude oil play a significant role in their manufacture and use. Products made from crude oil, such as polymers and elastomers, are sometimes available, depending on the import and production patterns of different nations. Logistics, labor costs, trading costs, and tariffs all play key roles in determining the prices of raw materials.

COVID-19 Impact on Insulation Materials Market Growth

Up to April 2020, the epidemic will have affected more than five billion people worldwide. Over a hundred nations were in full or partial lockdown. The pandemic's effects on supply chains and lockdown have affected the GDP of all major economies, including Germany, the U.S., China, Japan, the UK, India, Italy, and France. During the first and second quarters of 2020, the COVID-19 pandemic caused a production shutdown and decreased demand from the industrial sector for insulation materials. Still, the industry rebounded quickly in 2021 and is anticipated to reach and surpass the pre-COVID-19 level in 2022. 

As a result, after declining in 2020, the demand for insulation materials is again moderately increasing. Due to COVID-19's limits on international travel, closure of the tourism industry, suspension of construction activities, and shutdown of the majority of manufacturing facilities, the market for insulation goods by end use was impacted. The pandemic significantly impacted countries like U.S., Germany, Italy, India, and France, which always have a high demand for end-use applications.

Insulation Materials Market Segment and Shares

By application, the insulation materials market is segmented into building & infrastructure, residential, HVAC, industrial, and others.

High utilization of insulation materials in the residential sector

An environmental separator is a building. It divides the interior from the exterior. By reducing heat absorption and loss via the building envelope, insulation in residential construction is a crucial technology for lowering energy consumption in buildings. Due to population expansion, increasing levels of urbanization, and rising per capita wealth, the building and transportation industries are expanding dramatically in developing nations like China, India, Australia, and Singapore.

Residential building insulation is becoming increasingly popular because of its architectural and energy-saving advantages. Promoting energy efficiency (EE) standards for new homes is a successful obligatory policy tool to reduce the rate of growth in energy usage in the residential building industry. Due to population growth, rural residents moving to service sector hubs, and the rising tendency of nuclear families, residential development has seen tremendous expansion over the past few years.

The use of building insulation materials in the residential construction sector worldwide has been driven by declining land-to-population ratios and the rising trend of building high-rise residential structures and townships. Due to China and India's rising house construction markets, Asia-Pacific experienced the highest growth rate in residential development in recent years.

Insulation Materials Market Geographical Analysis

The rise in demand from the building & infrastructure sector in Asia-Pacific

Due to increasing technological development and the expansion of solar panel manufacturing facilities, particularly in nations like China, India, Indonesia, Thailand, Malaysia, and the Philippines, Asia-Pacific is predicted to have significant market growth. The construction of homes and businesses has advanced significantly in China, encouraged by the country's expanding economy. In India, many government measures, including the Housing for All by 2022 initiative and the Smart City project, are anticipated to boost the flagging construction sector. Additionally, recent legislative changes like "Made in India" have increased the number of business beginnings, increasing demand for the construction industry and the need for insulation materials.

The market for insulating materials is being driven by a large increase in construction projects and investments in the Asia Pacific. As an illustration, the Chinese government spent US$ 1.9 billion on 13 public housing projects in 2019. China's construction value was US$ 893.58 in 2018, according to the International Trade Administration (ITA). Between 2019 and 2023, the Chinese construction sector is expected to increase at an average annual rate of 5%. Along with new construction, the Green Building Action Plan calls for renovating 400 million square meters of existing urban housing in northern China. As a result of these reasons, product demand in Asia-Pacific is rising.

Insulation Materials Companies and Competitive Landscape 

Due to reputable competitors, the market for insulating materials is quite competitive worldwide. Major players are receiving and launching cutting-edge insulation materials with new residential and infrastructure construction technologies. For instance, DecoTech 2.0, a new insulation material created for an updated roof-integrated solar Kit, has been introduced by GAF Materials Corp.

To increase their market penetration and investment in power equipment production, businesses are collaborating, acquiring, merging, and licensing. For instance, on February 13, 2020, StarRFoam was acquired by Atlas Roofing Corporation to expand the use of molded polystyrene as an insulation material in Texas and Arizona.

Major global insulation materials market companies include Owens Corning Corp., Knauf, Nova Chemicals Corp., Atlas Roofing Corporation, BASF SE, Certain Teed, Cellofoam, Dow Building Solutions, GAF Materials Corp, and Carlisle.

Owens Corning Corp.

Overview: In 1935, Owens-Illinois and Corning Glass Works merged to form Owens-Corning Fiberglass Company. Its headquarters are in Toledo, Ohio, and separated into a different business in 1938. In 1952, the business became a publicly traded corporation and debuted on the New York Stock Exchange. It has been listed on the Fortune 500® for 63 years, since 1955. Owens Corning is the leading global producer of fiberglass composites, roofing, and insulation. The company reported US$6.4 billion in revenue in 2017 and 19,000 employees in 37 nations. 

Product Portfolio: The company wants to create a line of goods emphasizing energy conservation and comfort enhancement in office and residential facilities. Its products, which are used in wind energy, electronics, maritime, infrastructure, and transportation, are lighter, stronger, and more long-lasting. They use home stores, lumberyards, merchants, distributors, and contractors in the U.S. to distribute their product lines. Industrial, residential, and commercial structures offer insulation.

Key Development

On June 20, 2022, Owens Corning revealed that it had reached an agreement to buy Natural Polymers, LLC, a cutting-edge Cortland, Illinois-based producer of spray polyurethane foam insulation for building and construction applications. The transaction is estimated to be complete in the third quarter, subject to regulatory clearances and other usual circumstances.

The acquisition promotes Owens Corning's plan to improve its essential building & construction products and broaden its market reach into higher-growth industries. The company's ability to supply its clients with a more varied selection of insulating products thanks to Natural Polymers' established technology strengthens its dedication to offering long-term, sustainable solutions.