Building Thermal Insulation Market Size, Share & COVID-19 Impact Analysis, By Material (Mineral Wool {Glass Wool, Stone Wool}, Foamed Plastics {Expanded Polystyrene [EPS], Extruded Polystyrene [XPS], Polyurethane [PU], Polyisocyanurate [PIR], and Other Foamed Plastics}, Cellulose, Aerogels, and Others), By Application (Floor & Basement, Wall, and Roof & Ceiling), By End-Use (Residential and Non-residential), and Regional Forecast, 2022-2029

The global building thermal insulation market size was valued at USD 29.85 billion in 2021 and is projected to grow from USD 31.15 billion in 2022 to USD 42.53 billion in 2029, exhibiting a CAGR of 4.5% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 2.6% in 2020 as compared to 2019.

Thermal insulation is an important method for reducing energy consumption in buildings and construction by blocking heat transmission through the encasement. Building insulation products have a thermal conductivity of less than 0.2 W/mK, making them an excellent medium for preventing heat loss/gain inside closed spaces. Building thermal insulation products protect against energy loss and provide supplementary support to the structure of the building, particularly in roofing. Thermal insulation is an important technology for energy conservation in buildings and construction.

The advantages of effective building thermal insulation are well known, and governments have enacted rules requiring that structures meet certain minimum insulation levels. For example, according to the Residential Tenancies Act, since July 2019, all rental houses in New Zealand must have ceiling and underfloor insulation installed according to predetermined requirements.

Attributed to the growing concern about energy saving in both commercial and residential applications, the need for thermal insulation will grow. The market is expected to be driven by the aspect mentioned earlier and the implementation of rigorous government rules to minimize energy usage and greenhouse gas emissions.

COVID-19 IMPACT

Healthcare Infrastructure Development by Government Agencies during COVID-19 to Provide Impetus for Market Growth Globally

Many countries, including China, India, Germany, Italy, and Brazil have imposed lockdown restrictions to mitigate the pandemic's impact since the fourth quarter of 2019. For instance, the revenue of BASF suffered a decline of 0.3% due to COVID-19 pandemic, while KCC Corporation suffered a loss of 28.6% in 2020.

The movement of people and materials has been hampered due to these restrictions, which has significantly affected the insulation industry's supply chain. On the other hand, several countries consider construction and related operations to be vital services, allowing businesses to continue to serve their customers, albeit with a smaller workforce and more constraints. As a result, to mitigate the impact, the corporations are focusing on new government building and development projects to improve healthcare infrastructure.

Furthermore, the companies are advocating the use of insulation products in these structures to reduce energy demand and support the necessity for a sustainable environment within these institution premises, promoting them as green structures.

LATEST TRENDS

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Increasing Adoption of Do It Yourself (DIY) Insulation Products to Aid Growth

For consumers who cannot afford the services of insulation professionals, companies in this industry have produced DIY insulation products. DIY products are available as sprays or insulating panels that may be readily sprayed or installed, lowering the consumer's overall cost. DuPont, for example, sells a spray foam based DIY package under brand name Froth-Pak, that includes quick-cure PU foam for filling roof voids and gaps. In the next few years, important firms, such as Knauf Insulation, Owens Corning, and Ecofoam Insulation & Coatings, are projected to produce similar DIY products, boosting the market growth.

DRIVING FACTORS

Rising Building & Construction Industry to Favor Growth

The rising demand for building thermal insulation has increased as the building and the construction sector have grown. Thermal insulation systems in buildings keep indoor temperatures consistent by minimizing heat transmission between adjacent environments. Furthermore, they cut carbon emissions by reducing heat transfer to the outside environment and requiring less energy to maintain temperature. It has excellent properties for building structures, including fire and impact resistance. Thermal insulation materials are needed for the building and construction industry due to their high energy efficiency. Furthermore, growing industrialization supports installing thermal insulation systems in commercial buildings to save energy, which is likely to fuel market expansion.

For instance, according to the U.S. Census Bureau and U.S. Department of Housing and Urban Development, 1,295,000 housing projects were completed. Additionally, building permits authorized an expected 1,724,700 housing projects in 2021. This is 17.2% (0.6%) higher than the 2020 figure of 1,471,100. The increasing construction projects are likely to foster building thermal insulation market growth.

Increasing Energy Expenditure to Augment Growth

Rising energy costs are primarily driven by increased demand for building thermal insulation products in residential and commercial applications. The cost of inefficient energy consumption is two-fold. Due to recent price increases, significant energy usage might cost a lot of money to the consumer. It also results in the depletion of natural resources. As a result, consumers, particularly those who live in residential areas, make it a point to insulate their spaces. Developing low-energy insulation products, such as foamed plastics, presents a huge market opportunity. Through energy savings, some of these products can recoup insulation costs in as little as 12 months.

Moreover, according to the Indian Green Building Council, building insulation at its best saves money and helps the environment. It lowers not only monthly energy expenditures but also improves general comfort. Insulation keeps the temperature comfortable by preventing heat loss and leakages. Today, with the introduction of green technologies and practices, the potential for energy savings through design can be as high as approximately 40% to 50%. Building insulation is becoming increasingly important as it can significantly reduce energy consumption in the 5-8% range.

RESTRAINING FACTORS

Health Concerns Regarding Adoption of a Few Thermal Insulation Products to Hinder Market Growth

The health concerns about using a few insulation materials are a major stumbling block to the market's expansion. Glass wool, for example, can irritate the eyes and respiratory system when used during the laying process. Due to the emission of styrene, carcinogen expanded and extruded polystyrenes have been restricted during the manufacturing process. These insulation products' health-related risks and stringent regulations related to its usage may limit their acceptance, posing a challenge for market expansion.

SEGMENTATION

By Material Analysis

Low Cost of Foamed Plastics to Promote Growth of Segment

Based on material, the market is classified into foamed plastics, mineral wool, aerogels, cellulose, and others.

Mineral wool segment is further divided into stone and glass wool. Mineral wool is the most popular material due to its features such as ease of installation. This product has also been certified as fire-resistant and suitable for buildings by the European Insulation Manufacturers Association (EIMA). Extruded polystyrene (XPS), expanded polystyrene (EPS), polyisocyanurate (PIR), polyurethane (PU), and other foamed polymers make up the plastic foam category. The use of shale gas in the manufacturing of foamed plastics is predicted to significantly reduce the cost of production, resulting in the segment's growth during the forecast period.

Foamed plastics are also lightweight, making them ideal for creating insulating boards and other do-it-yourself goods. As they possess low cost and R-values acceptable for temperate and equatorial climates, they are widely used for insulation in tropical and temperate locations.

By Application Analysis

Roof & Ceiling Segment to Dominate Owing to Growing Construction Activities

Based on application, the market is segmented into floor & basement, walls, and roof & ceiling.

The introduction of laying boards and spray foams aided the expansion of the roof & ceiling segment by making application easier in difficult-to-reach sections of the roof and attic. Furthermore, roof insulation is preferable in all climate zones, especially the sweltering tropical belt. In the Caribbean, for example, mineral wool roof insulation, particularly glass wool, is widely acknowledged as an energy-saving alternative.

Due to the sheer volume of insulation used in walls compared to roofs and floors, the wall insulation segment accounts for a significant share of the market. Together with regional and national government agencies' emphasis on long-term infrastructure development, these factors are surging the product demand.

By End-Use Analysis

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Residential Segment to Hold a Significant Share Due to Growth in Construction Sector

In terms of end-use, the market is segmented into residential and non-residential.

Residential building insulation demand is slightly higher than non-residential building insulation demand. According to a European Commission assessment on the insulation materials sector for energy-efficient buildings, residential buildings consume more than 40% of primary energy demand. Residential building infrastructures can be insulated to save energy. According to the paper, adding insulation to existing buildings can reduce up to 35% in energy requirements for sustaining ambient temperatures inside the premises. As a result, the residential segment has maximum potential for energy savings, resulting in it being the dominant segment in the building thermal insulation industry.

Non-residential, on the other hand, is growing quickly due to strict laws requiring enterprises to use energy-saving rules and guidelines. For example, the NAIMA 202-96 Standard specifies laminated flexible glass insulation for use in metal buildings.

REGIONAL INSIGHTS

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In terms of geography, the market can be categorized into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Attributed to large-scale infrastructure development planned by China, India, and Southeast Asia, Asia Pacific is the largest and fastest-growing area in the global building thermal insulation market, with a market value of USD 14.15 billion in 2021. Furthermore, in the next five years, India and China are projected to impose stricter regulations on energy usage, resulting in increased revenue for the industry.

North America's market is characterized by significant government backing for energy-saving technologies such as building thermal insulation. For instance, according to the Environmental Protection Agency (EPA), fiberglass, rockwool, cellulose, and natural fibers are examples of bulky fiber materials while rigid foam boards and sleek foils are examples of sleek foils. Bulky materials in a building cavity obstruct conductive heat flow. The organization also has sustainable considerations, which insist on using materials with greater thermal insulation values (R-value). Furthermore, a high level of public awareness in the region is projected to keep the business alive and well.

The use of building thermal insulation materials in retrofitting work, which is being carried out in many nations to repair timeworn infrastructures, will rule the market in Europe.

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Latin America and the Middle East & Africa are still in their infancy stage and will continue to acquire market share over the projected period. These regions are projected to see sluggish growth as the building and construction industry crisis subsides.

KEY INDUSTRY PLAYERS

Major Players to Adopt Policies and Extend their Presence

The market's competitive landscape shows a consolidated market, with the top 10 businesses accounting for over 70% of global market revenue. Several key market players have put significant resources into researching and developing thermal insulation products. The market leaders' growth strategies include a diverse product range, better operating efficiency, and safe and unique technology development for insulation applications.

To strengthen their providing portfolio and other associated services, small & medium-sized businesses have embraced a mergers and partnerships approach with larger firms. This trend is expected to positively impact global market statistics over the projection period since smaller businesses might benefit greatly from it.

LIST OF KEY COMPANIES PROFILED:

• BASF (Germany)


• Atlas Roofing Company (U.S.)


• Cellofoam North America Inc. (U.S.)


• DuPont (U.S.)


• Knauf Insulation (U.S.)


• Owens Corning (U.S.)


• Armacell S.A. (Luxembourg)


• Beijing New Building Material (Group) Co., Ltd. (China)


• Evonik (Germany)


• PT. Bondor Indonesia (Indonesia)


• BYUCKSAN (South Korea)


• Huamei Energy-saving Technology Group Co., Ltd. (China)


• Johns Manville (U.S.)


• Kaneka Corporation (Japan)


• KCC Corporation (South Korea)


• Kingspan Insulation LLC (Ireland)


• Lloyd Insulations (India) Limited (India)


• NICHIAS Corporation (Japan)


• ROCKWOOL International A/S (Denmark)


• U.P. Twiga Fiberglass Limited (India)


• GAF (U.S.)


• Superglass Insulation Ltd. (Scotland)


• Recticel Group (Belgium)


• Ursa (Spain)


• Firestone Building Products (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• April 2021 – Atlas Roofing Company introduced SureSlope prefabricated tapered products. The new product family of polyiso roof insulation components is ideal for roofing applications, reducing job site waste and decreasing installation time.


• March 2021 - Owens Corning acquired vliepa GmbH, a company specializing in coating, printing, and finishing nonwovens, film, and paper for the construction industry. The acquisition widens the company’s nonwovens portfolio for European customers working in the regional construction industry.

REPORT COVERAGE

An Infographic Representation of Building Thermal Insulation Market

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The global building thermal insulation market research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, products, and raw materials. Also, the report offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the market's growth in recent years.

This report includes historical data & forecasts revenue growth at global, regional, country levels, and analyzes the industry's latest market dynamics and opportunities.

Report Scope & Segmentation