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

Thin Insulation Market is Segmented By Type (Coating, Sheet and Films, Vacuum Insulation Panels, Others), By Material(Plastic Foam,  Aerogel, Others), By Application(Building Thermal Insulation, Thermal Packaging, Wires & Cables, Pipe Coatings, Others),  By End-user(Automotive, Aerospace, Building, and Construction, Oil and Gas, Others), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Thin Insulation Market Overview

The Thin Insulation market is expected to reach at a CAGR of 7.4% within the forecast period (2024-2031). 

Thin insulation covers sheets, film, foam, vacuum insulation panels, and others with low thermal conductivity and thermally insulating qualities. Thin insulation is a better option than blanket insulation systems because it reduces corrosion behind the insulation. Thermal insulation is a critical procedure in various sectors, but for many of its applications, cost, efficiency, and adaptability are all important factors to consider. Thin thermal insulation is becoming an important field of study and development as a result of this. Space-saving isn't just a concern in the construction industry when it comes to thermal insulation. The benefits of thin thermal insulation can have a substantial impact on performance in many different industries. Lightweight thermal insulation materials, for example, are critical in the aerospace and automotive industries for striking the right balance between safety and performance.

Thin Insulation Market Summary

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Thin Insulation Market Dynamics

Growing demand for excellent insulation services in the construction and building industry has uplifted the market share for thin insulations. The increasing adoption of thermal packaging has increased the market share for thin insulation.

Growing demand for excellent insulation services in the construction and building industry has uplifted the market share for thin insulations.

Thin insulation is widely used in the building and construction industry because it serves the dual purpose of providing heat insulation while also addressing the industry's common spacing issues. Infrastructure, corporate buildings, residential, and other construction activities have increased due to rapid expansion and urbanization, likely increasing demand for thin insulation material in the market. Furthermore, thin materials with high insulation values are beneficial in all building applications, but they are especially important in retrofits where additional insulation is often limited. Vacuum insulation and lightweight silica aerogel are two promising techniques. Several companies offer flexible insulation materials with a thermal resistance of almost R-10 per inch. The usage of these insulating materials has been limited to industrial applications such as pipes due to their high costs while building uses have been investigated.

The worldwide building and construction industry spent over USD 11 trillion in 2019. It is expected to grow to USD 14 trillion by the end of 2025, benefiting the market during the projected period. The construction industry's revenue from its various segments of specialized construction operations, building construction, civil engineering, and so on is expected to be USD 201.31 billion, USD 86.7 billion, and USD 45.55 billion in 2019. All of the factors mentioned above and government assistance are likely to propel the worldwide thin insulation market during the forecast period.

The increasing adoption of thermal packaging has increased the market share for thin insulation.

Pharmaceuticals and foods are frequently packaged using thin insulating films to protect them from heat and sunlight. The growing use of thin insulation for packing processed foods such as seafood, chocolates, meat, wine, cheese, butter, and others has supported the market's growth. If pharmaceuticals are not stored at the correct temperature, their chemical composition may change. The chemical composition of medicinal items is preserved via thermal packaging, ensuring that no efficacy is lost during transit. The degree of protection required is determined by the stability of the pharmaceutical molecules. Injectable biotech products, for example, tend to have the highest molecular sensitivity, while room-temperature (CRT) tablets have the best stability. As a result, thermal packing is utilized to keep pharmaceutical products safe during shipment. According to the World Health Organization, global health spending increased by 3.9 percent each year between 2000 and 2017, while the GDP grew by 3.0 percent per year. Thus growing spending in the healthcare sector coupled with the increasing demand for thin insulation products in the pharmaceutical and food industry has accelerated the market share for the product in recent times.

Growing environmental concerns due to the overuse of plastic have severely challenged the market share for thin insulation.

Plastics are non-biodegradable and do not decompose in the environment. The expansion of plastic-based thin insulation films is hampered by rising environmental concerns and government limitations on the manufacture and sale of expanded polystyrene. Insulation is made from various basic materials, ranging from sand in fiberglass to petrochemicals in foam plastic insulation and old newspaper in cellulose insulation. On the negative side, depletion of limited resources and pollution from mining are two environmental concerns with raw material acquisition. Furthermore, Plastic insulation materials are among the most thermally efficient insulation materials available on the market since they require only a slight thickness to achieve maximum energy efficiency. Thus, they are in great demand compared to other materials. They are simple to install in both existing and new structures, are extremely durable, and perform at the same high level throughout the building's lifespan. The adoption of plastic insulation materials results in significant long-term energy savings due to these consistent performance features. Thus the benefits mentioned above offered by plastic insulation have triggered the market share for plastic insulation. However, growing side effects on the environment are the prime factor challenging the overall market share for thin insulation.

For instance, the City Council of Morro Bay approved an ordinance in February 2016 limiting the use and sale of expanded polystyrene (EPS). Furthermore, the thin insulation market's growth is hampered by the thin insulation films' low heat-insulating capacities compared to thick insulating sheets.

COVID-19 Impact on Thin Insulation Market

The thin Insulation industry's expansion is being moderately hampered due to coronavirus outbreaks across the globe. The major application of thin insulation has been seen in the construction and automotive industry. Due to the lockdown, various mega projects were on hold for a limited time, leading to a drop-down in demand for thin insulation in the industry. However, the conditions are improving, and the market momentum is expected to remain in the forecast period.

Furthermore, the pharmaceutical and food industry is another major end-user of thin insulation. The growing demand for pharmaceutical drugs has increased the share of thin insulation during the covid-19 period. Apart from this, consumer products and food & beverage companies face significantly reduced consumption and disrupted supply chains. Although at-home consumption has increased, out-of-home consumption – which has historically generated the biggest margin – has practically come to a halt, leading to a drop in the overall demand for thin insulation packaging in the food and beverage industry during the covid-19 period. However, online delivery facilities have added a significant share to the market growth of thin insulation during the 2019-2020 period.

Thin Insulation Market Segmentation Analysis

The global Thin Insulation market is bifurcated based on types, materials, applications, end-user, and regions.

The increasing use of plastic-based thin insulations for heat and electrical insulations in the electric and electronics industries is propelling the thin insulation market forward.

The global thin insulation market can be divided into aerogel, metal, plastic foam, and others. Out of the mentioned types of materials, plastic foam holds a dominating position in the global thin insulation market. The market is being driven by the cost-effectiveness and low thermal and electrical conductivity of plastic. Furthermore, the increasing use of plastic-based thin insulations for heat and electrical insulations in the electric and electronics industries is propelling the thin insulation market forward. Furthermore, plastics are employed in a rising number of construction applications, from insulation to piping, and window frames to interior design. Plastics' popularity grows because of their durability, strength, corrosion resistance, easy maintenance, cost-effectiveness, and visually pleasing finish. Heating and cooling requirements account for up to 60% of total energy consumption in buildings. Minimizing the environmental impact requires making our buildings more energy-efficient and minimizing the energy consumed. Insulation is widely acknowledged as one of the simplest and most cost-effective ways to accomplish this.

Plastic insulation is beneficial on a wide range of sustainability issues, including improving building energy efficiency and lowering CO2 emissions. In the construction industry, plastic insulation is a particularly effective contribution to sustainability. Thus, increasing thin insulation plastic in the construction and building industry has uplifted the global market share for the segment.

Thin Insulation Market Geographical Share

Due to the highly developed automobile industries in China, Korea, and Japan and ongoing investments in the region to advance the wind energy, aerospace, and military sectors throughout time, Asia-Pacific is likely to dominate the global market.

In 2019, Asia- Pacific led the thin insulation market with a market share of a significant CAGR%, followed by North America and Europe. The rapid population growth and urbanization have boosted the construction activities in emerging nations like China and India, which propels this market's growth in the APAC region. In the APAC region, rising building and construction activities and rising oil and natural gas demand all contribute to market growth. Increased rural-to-urban migration in the region boosts demand for house construction in urban areas, hence expanding the market for thin-insulating materials. Some of the primary drivers for the market in Asia-Pacific include the rising building industry (both residential and non-residential) and developments in process manufacturing. The thin insulation market is predicted to proliferate in countries like India, Indonesia, and China, owing to rising building and construction industry demand.

The development of pipelines and storage tanks, which use thin insulating layers to defend against heat, has increased in response to rising oil consumption. For instance, Sinopec signed a US$2.8 billion contract with the government of Zhoushan, China, in May 2020 to build a liquefied natural gas (LNG) terminal. Construction on the first phase, which includes two wharves, four gas storage tankers with a capacity of 220,000 cubic meters each, and auxiliary facilities, is planned to commence in the first half of 2021.

Thin Insulation Companies and Competitive Landscape

The Thin Insulation market is highly competitive with the presence of local and global companies. Some prime companies contributing to the market's growth are Armacell International GmbH, Johns Manville, Dow Chemical Company, BASF SE, Kingspan Insulation Ltd., Cabot Corporation, 3M Company, Owens Corning, Actis Insulation Ltd., and Huntsman International LLC., R-50 Systems, Blueshift International Materials, Inc and others.     

The major companies are adopting several growth strategies such as acquisitions, product launches, and collaborations, contributing to the growth of the IoT in the Education market globally.  

• For instance, in August 2018, R-50 Systems, LLC introduced Rich-E-Board, a 1′′ thick vacuum insulation. It is a green, sustainable, ultra-thin insulation solution with better insulating capabilities than other solutions, lowering the cost of building modifications and structural retrofits and increasing the amount of usable space for living and business.

BASF

Overview: BASF SE is a growing German multinational chemical corporation that is the world's largest chemical manufacturer. The company is branched in Europe, Asia, Australia, the Americas, Africa, and joint ventures in over 80 countries and operates in six integrated production sites and 390 other production sites.

Product Portfolio: The Company has a product portfolio of Thin Insulation that includes:

• SLENTITE: The product is the first purely polyurethane-based aerogel ever to be produced. The heavy-duty aerogel insulation panel, which is made up of roughly 90% air and is breathable, allows insulation to be up to 50% thinner than traditional materials, allowing for optimum efficiency while maintaining a high aesthetic. The open-porous structure of SLENTITE®, a pioneering high-performance insulation material, produces a comfortable indoor atmosphere while also helping to reduce energy expenses. Its remarkable insulating performance (= 18 mW/m -K) is complemented by excellent processing properties.

Key Development

• For instance, on March 03, 2019, BASF SE and Aspen Aerogels, Inc. announced the expansion of their strategic partnership by signing an addendum to their exclusive supply agreement. The expansion calls for the creation and manufacture of a new non-combustible, high-performance thermal insulating solution. In early testing with lead customers, the new solution, which complements SLENTEX®, performs exceptionally well.