"Innovative Market Solutions to Help Businesses Make Informed Decisions"
The global building thermal insulation market size was USD 29,656.9 million in 2019 and is projected to reach USD 38,588.8 million by 2027, exhibiting a CAGR of 4.2% during the forecast period.
The demand for thermal insulation has gained impetus owing to the increasing concerns regarding energy conservation across commercial and residential applications. The aforementioned factor, coupled with the implementation of stringent government regulations on reducing energy consumption and greenhouse gas emission, is projected to drive the market.
Thermal insulation is a critical technology that helps to reduce energy usage in building & construction by preventing heat transfer through the building encasement. The thermal conductivity of building insulation products is often less than 0.2 W/mK, which makes them an effective medium to prevent loss/gain of heat inside closed premises. Building thermal insulation products not only provide shielding from the loss of energy efficiency but also offers auxiliary support to the building structure, especially in roofs.
The benefits of proper insulation of buildings are notable, which has resulted in governments placing regulations regarding minimum insulation requirements in a building. For instance, from July 2019 onwards, it is compulsory to carry out the ceiling and underfloor insulation in all rental properties in New Zealand with predefined specifications.
Healthcare Infrastructure Development by Government Agencies amid COVID-19 to Provide Impetus for Market Growth Globally
Since the last quarter of 2019, many countries, including China, India, Germany, Italy, and Brazil have announced lockdown restrictions to reduce the impact of the pandemic. Such restrictions have hindered the movement of humans and materials, seriously affecting the supply chain for the manufacturers operating in the insulation industry. However, several countries consider the construction activities and related operations as an essential service, which has enabled the companies to provide their services to the consumers, albeit with a reduced workforce and increased restrictions. Therefore, to reduce the impact, the companies are targeting the new construction & development projects undertaken by the governments to improve their healthcare infrastructure.
Additionally, the companies are pushing for the inclusion of insulation products in these buildings to reduce the energy demand and support the requirement of a sustainable environment inside the premises of these institutions. Thereby, promoting them as green buildings.
Request a Free sample to learn more about this report.
Increasing Adoption of Do It Yourself (DIY) Insulation Products to Aid Growth
Companies in the market of building thermal insulations have launched DIY insulation products for consumers who cannot afford the services of insulation technicians. These DIY products come in the form of sprays or insulation panels, which can be easily sprayed or laid, thus decreasing the overall cost of the consumer. For instance, DuPont offers Froth-Pak, a spray foam-based DIY kit, containing quick-cure PU foam for filling cavities and cracks in the roof. The development of similar DIY products by key companies such as Knauf Insulation, Owens Corning, and Ecofoam Insulation & Coatings is expected to boost the growth of the market in the forthcoming years.
Rising Building & Construction Industry to Favor Growth
High growth in the building & construction industry has led to a rise in the demand for thermal insulation. Building thermal insulation systems are utilized to maintain an average temperature indoors by reducing the heat transfer between adjacent environments. Furthermore, they reduce the carbon footprint by limiting the conduction of heat to the external environment while using less energy input to maintain temperature. It provides excellent properties, including fire and impact resistance to the building structures. These properties are creating the need for thermal insulation products in the building & construction industry. Additionally, rapid industrialization encourages the installation of thermal insulation systems in commercial buildings for energy conservation and is expected to drive the market growth.
Increasing Energy Expenditure to Augment Growth
High energy costs are the key driver behind the rising demand for building thermal insulation products in residential as well as commercial applications. The cost incurred by improper consumption of energy is two-fold. The heavy usage of energy can cost a fortune to the consumer owing to a steep increase in prices experienced in the recent past. Moreover, it leads to the depletion of natural resources. Thus, consumers, especially those residing in residential spaces, make it a point to insulate their premises. The development of insulation products that require low energy for production, such as foamed plastics, creates a significant opportunity for the market as some of these products can rebate the investment put in insulation through energy savings in as little as 12 months.
Health Concerns Regarding Adoption of Few Thermal Insulation Products to Hinder Market Growth
A critical challenge affecting the growth of the market is the health concern regarding the usage of few insulation products. For instance, exposure to glass wool during the laying process can result in irritation of the eyes and respiratory system. Production of expanded and extruded polystyrenes has been regulated due to the emission of styrene, a carcinogen, during the production process. Such health-related issues of these insulation products may limit their adoption, thereby challenging the market growth.
Low Cost of Foamed Plastics to Promote Growth of the Segment
Based on material, the market is classified into mineral wools, foamed plastics, cellulose, aerogels, and others.
The mineral wools segment is further bifurcated into glass wool and stone wool. Mineral wool is the most preferred material owing to its properties such as easy installation. The European Insulation Manufacturers Association (EIMA) has further certified this product as fire-resistant and safe for usage in buildings.
The foamed plastics segment is further divided into expanded polystyrene (EPS), extruded polystyrene (XPS), polyurethane (PU), polyisocyanurate (PIR), and other foamed plastics. Adoption of shale gas for the production of foamed plastics is expected to decrease the production cost of foamed plastics considerably, which would lead to the growth of the segment during the forecast period. Furthermore, foamed plastics are light in weight, making them suitable for the development of insulation boards and other DIY products.
The aerogels segment is expected to disrupt the market of building thermal insulation due to its super-insulation properties, thus showing significant growth in the forthcoming years.
To know how our report can help streamline your business, Speak to Analyst
Residential Segment to Account for Major Share
In terms of end-use, the market is segmented into residential and non-residential.
The demand for residential building insulation is slightly higher than that from the non-residential segment. This energy can be saved by insulating the residential building infrastructures. The report further states that the addition of insulation in the existing buildings can result in a decrease of up to 35% in energy requirements for maintaining ambient temperatures inside the premises. Thus, the potential for energy savings can be observed in the residential segment, making it the primary reason for being the leading segment in this market.
Roof & Ceiling Segment to Maintain Strong Growth
Based on application, the market is segmented into floor & basement, wall, and roof & ceiling.
The emergence of laying boards and spray foams have provided thrust for the growth of the roof & ceiling segment by easing the process of application in the difficult to reach areas in the roof and the attic. Furthermore, roof insulation is preferred in all the regions having varied climates, including the hot tropical belt. For instance, roof insulation made of mineral wool, especially glass wool, is generally accepted as an energy-saving solution in the Caribbean.
The wall segment accounts for a considerable share in the market owing to the sheer volume of insulation being used in walls as compared to roofs and floors.
These factors, along with the emphasis of regional and national government agencies for sustainable infrastructure development, is further fueling the demand for this market globally.
Asia Pacific Building Thermal Insulation Market Size, 2019 (USD Million)
To get more information on the regional analysis of this market, Request a Free sample
Asia Pacific stood at USD 13,806.5 million in 2019 and is the largest and fastest-growing region in the global building thermal insulation market owing to large scale investment planned by governments of China, India, and Southeast Asia on infrastructure development. Moreover, India and China are expected to lay stringent rules on energy consumption in the five years, which shall further attract more revenue for the market in the forthcoming years.
The market in North America is characterized by substantial government support on energy-saving technologies, including thermal insulation in buildings. Furthermore, considerable awareness among the people in the region is expected to keep the market up and moving.
The market in Europe is to be governed by the usage of building thermal insulation materials in the retrofitting work, which is being carried out in many countries to repair timeworn infrastructures.
The market in Latin America and Middle East & Africa is still in the nascent stage and thus shall gain steady building thermal insulation market share during the forecast period. As the slump in the building & construction industry subsides, these regions are expected to experience sluggish growth.
High Investment to Develop Advanced Insulation Products by Companies to Maintain Their Dominance
The competitive landscape of the market depicts a consolidated market with the top 10 companies accounting for about 70% of the global market revenue. Key players in the market have invested a considerable amount of resources in the research and development of several building thermal insulation products. A diversified product portfolio, supported by superior operational efficiency, and safe & novel technology development for insulation application, are the strategies used by the market leaders for their growth.
The small and medium-scale companies have adopted the strategy of mergers and partnerships with larger enterprises to improve their offering portfolio and other related services. This trend is projected to positively impact the global market during the forecast period as the smaller companies can gain a lot from the experience of the market leaders.
An Infographic Representation of Building Thermal Insulation Market
To get information on various segments, share your queries with us
The building thermal insulation market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.
Volume (Mn Sqm); Value (USD Million)
Material; End-Use; Application; and Geography
Fortune Business Insights says that the global market size was USD 29,656.9 million in 2019 and is projected to reach USD 38,588.8 million by 2027.
In 2019, the market value stood at USD 29,656.9 million.
Growing at a CAGR of 4.2%, this market will exhibit steady growth in the forecast period (2020-2027).
Residential segment is expected to be the leading segment in this market during the forecast period.
An increase in energy costs is the most critical factor driving the demand for thermal insulation products.
Asia Pacific held the highest market share in 2019.
Development of easy-to-use DIY products and continual research on developing high-performance insulation materials, further supported by the government, are few factors contributing to the growth of the market during the forecast period.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry