Building Insulation Market - Forecast (2024 - 2030)

Building Insulation Market Overview

Building Insulation Market size is forecast to reach US$31.6 billion by 2030, after growing at a CAGR of 5% during 2024-2030. The market is growing because of the extended demand for, rising infrastructure, and industrialization globally. Building Insulation is an important economic and environmental investment, as installing thermal insulation, buildings use less energy for heating and cooling thus occupants experience less thermal variability. Insulating concrete forms (ICFs), used to hold fresh concrete that remain in place permanently to provide insulation, and energy efficiency. Developing countries are heavily investing in infrastructure and industrialization, as developed countries broke the poverty cycle by industrializing rather than focusing on agriculture and other industries. This aids in the growth of the Building Insulation Market.

There's a growing emphasis on using insulation materials that are environmentally friendly and sustainable. This trend involves moving away from traditional insulation materials like fiberglass and polystyrene, which can have negative environmental impacts during production and disposal. Asbestos is one of the traditional building insulating materials. It poses high risks of lung diseases like mesothelioma. Thus, there's a focus on utilizing renewable and recycled materials such as recycled denim, cellulose insulation made from recycled paper, sheep's wool, hemp, and cork. These materials offer excellent thermal performance while minimizing the carbon footprint of buildings.?

Advanced insulation materials have emerged as a game-changer in the quest for energy-efficient homes. These cutting-edge solutions offer better thermal resistance, reduced heat transfer, and enhanced moisture control, resulting in optimal comfort and energy savings. Advanced insulation materials, such as spray foam and aerogel insulation, provide superior thermal resistance compared to traditional options. This results in better heat retention during colder months and effective heat reflection during hot summers. Homeowners can expect reduced reliance on heating and cooling systems, ultimately saving energy and money. Advanced insulation not only benefits homeowners but also contributes to a greener future. By reducing energy consumption, these solutions help decrease greenhouse gas emissions.

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COVID-19 Impact

Due to the COVID-19, many Building Insulation manufacturing companies shut down due to lockdown restriction, cross border import export restrictions, till receipt of further directions from the government authorities. There has been a significant undersupply of housing globally to match demand. This created a major opportunity for investors and developers to adopt innovative construction technologies and partnerships in order to accelerate development. However, production at certain manufacturing companies' plants later resumed, which is a positive sign. Residential Constructions are increasing due to increased population globally; thus, the market is expanding rather than experiencing minor economic disruptions.?

Building Insulation Market Report Coverage

The report: “Building Insulation Market – Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the Building Insulation Market. By Type: Fiberglass, Mineral wool (Glass wool, Rock wool), Cellulose, Natural Fiber (Cotton, Sheep's wool, Straw, Hemp), Polystyrene, Polyurethane, Polyisocyanurate, Vermiculite and Perlite, Urea-formaldehyde foam, Cementitious Foam, Phenolic foam, Insulation facings and Others. By Application: Residential (Independent Houses, Row Houses, Large Apartments, on Residential (Office Buildings, Warehouses, Hospitals, Educational Institutions, Shopping Complex, Super Market and Hyper Market) and Others. By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East, and Africa).

Key Takeaways

• North American region dominated the Building Insulation market and is also forecasted to be the fastest-growing market during the forecast period owing to the increasing demand for thermal Insulation in the region.
• Because of massive construction sector and broad industrial base, the intensity of insulation use in the United States exceeds global averages in terms of GDP, population, and fixed investment spending. Construction companies use an extensive amount of insulation materials, which is partly owing to building rules requiring insulation.
• In China, rapidly growing construction and industrial markets contribute to the high levels of insulation demand. However, intensity of insulation use relative to fixed investment spending and population is lower than more developed countries in the region, including Japan and Australia.
• The competitiveness of the European industry of thermal insulation materials in relation to other international competitors is moderate to strong. In the EU the demand for thermal insulation materials is on the rise due to strong economy and housing market. Advanced insulating materials are rising in popularity due to EU Health and Environmental Concerns. Wool minerals (glass and stone wool) and plastic foams (EPS, XPS, PUR) are the most required materials for building insulation.

Building Insulation Market Segment Analysis – By Type

The Polystyrene segment held the largest share of 81.1% in the Building Insulation Market in 2023. Among the many types of plastics, Polystyrene (PS) foam is a lightweight, rigid plastic insulation material, and is widely recognized as the most immediate and affordable means to fight climate change. Polystyrene is made into a foam material, called expanded polystyrene (EPS), which accounts for 49.6% of the building insulation market has no global warming potential as the material does not decompose at the end of its life and it does not release any ozone-depleting substances. Polystyrene is also made into a rigid foam material, called extruded polystyrene (XPS), accounting for 30.5% of the market share. The plastic insulation materials were compared to mineral wool and glass foam, with the result that on average plastic insulation materials consume 16 % less energy and produce 9% less GHG emissions than the alternative mix of mineral wool and glass foam. Polystyrene Insulation enable significant energy savings during their entire lifecycle. For example, the energy needed to produce the panels is offset by the energy savings recovered during their first four months use. In fact, across their total life cycle, Polystyrene Insulation boards save 150 times more energy than is needed for their production.

Rigid insulation panels made from polyurethanes are light but strong, moisture-resistant and easy to install. Insulation panels and other types of foam insulation can retain their energy-efficient properties for as long as the building exists. Compared to other forms of insulation polyurethane foams are much more space-efficient, allowing architects and designers to maximise use of internal spaces. Sustainable insulation aid to sustainable buildings thus boosting the infrastructure sector and aiding to the growth of Building Insulation Market.

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Building Insulation Market Segment Analysis – By Application

Residential segment held the largest share in the Building Insulation market in 2023 and is growing at a CAGR of 5% during 2024-2030. In US, Spending for energy efficient buildings has shown an increase in 2023, with investment in building energy efficiency across global markets increasing to USD $358 billion in 2023, an increase of 22% from 2022. However, this remains a small proportion of the USD $11.9 trillion spent in the building and construction sector. According to the U.S. Census Bureau the Total Construction spending during November 2023 was estimated at a seasonally adjusted annual rate of US$2050.1 billion. According to the U.S. Census Bureau the Non-residential construction was at a seasonally adjusted annual rate of US$698.2 billion in November 2023.

Building Insulation Market Segment Analysis – By Geography

North American region held the largest share in the Building Insulation Material market in 2023 up to USD $12.29 billion, owing to the need of thermal Insulation due to cold climatic condition and the rapid urbanization in the region. Another factor contributing to the growth of the Building Insulation Market in this area is growing population and the need to create a new eco-friendly urbanization that can help achieve high-quality growth in the coming decade and create an economy based on high value-added manufacturing and services while avoiding enormous environmental costs. Globally, over 50% of the population lives in urban areas today. By 2045, the world's urban population will increase by 1.5 times to 6 billion. 55% of the world’s population – 4.2 billion inhabitants live in cities. This trend is expected to continue. By 2050, with the urban population more than doubling its current size, nearly 7 of 10 people in the world will live in cities. With more than 80% of global GDP generated in cities, urbanization can contribute to sustainable growth of construction and housing sector and thus aid to expansion of Building Insulation Material Market globally.

Building Insulation Market – Drivers

Rise in Population and Urbanization globally:

The two causes of urbanization are natural population increase and rural to urban migration. Urbanization affects all sizes of settlements from small villages to towns to cities, leading up to the growth of mega-cities which have more than ten million people. According to the National Mission for Urban Housing, The Indian government’s ‘Housing for All by 2022’ was also a major game changer for the Building Insulation market. ?The Mission also prescribed certain mandatory reforms for easing up the urban land market for housing, to make adequate urban land available for affordable housing. Central assistance at the rate of US$2300 (Rs.1.5 lakh) per house for EWS (Economically Weaker Section) category was provided under the Affordable Housing in Partnership and Beneficiary-led individual house construction or enhancement. Insulation will help Buildings keep the desired temperature all the year-round, protecting it against cold in winter and excess heat in summer. Insulation is also useful to reduce noise pollution. A well-insulated house is very energy efficient and will need very little additional heating and cooling.

Conservation Of Energy:

Insulation is one of the most efficient ways to save energy, since it keeps it warm in the winter and cool in the summer. In fact, the Energy Saving Trust estimates that in one year a typical three-bedroom semi-detached house can save up to US$354 Billion (￡310) on energy bills by installing loft and cavity wall insulation. Building Insulation leads to energy savings, which reduce the demand for fossil fuels and associated GHG emissions and other environmental impacts. It is estimated that improvements in the level of insulation of the existing building stock can reduce heating requirements by a factor of two to four.

For countries with milder winters, where heating is still required, as is the case in many developing countries, modest levels of insulation at a reasonable cost may already reduce the heating requirements by more than half of current levels, and in addition may contribute to reducing indoor temperatures in summer. If there is no air conditioning, lower temperatures in summer improve indoor comfort, or, if air conditioning is used, lead to additional energy savings. As 10% of the energy for heating than houses built according to the local national building codes.

Building Insulation Market – Challenges

High Initial Investment Cost:

Common barriers for Building Insulation are high investment costs, lack of financing options for the up-front investments, the time and effort required to undertake renovation measures in existing buildings, lacking knowledge and awareness, and split incentives. Governments in different regions of the world have introduced measures to reduce these barriers, including mandatory energy efficiency standards, building certification, voluntary labeling, and financial incentives to stimulate investments into increased insulation and other energy saving measures in buildings. Moreover governments, civil society and industry organizations use information campaigns to increase awareness and knowledge of energy saving options in buildings. In the EU the Energy Performance of Buildings Directive (EPBD) is the main regulatory framework to prescribe the use of energy labels for European buildings. In other regions such as the United States and some Asian countries, there is a stronger focus on a combination of mandatory regulation

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Building Insulation Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Building Insulation market. Building Insulation Market top companies?

1. Berkshire Hathaway (Johns Manville Corporation)
2. Saint-Gobain S.A.
3. BASF SE
4. Kingspan Group plc
5. Knauf Insulation, Inc.
6. Owens Corning
7. Huntsman Corporation
8. Rockwool International A/S
9. Holcim Group (Firestone Building Products Company)
10. Cabot Corporation

Acquisitions/Technology Launches/Product Launches

• In March 2022, BASF expanded its graphitic expandable polystyrene (EPS) granulate portfolio. BASF had launched Neopor F 5 McycledTM, which contains 10 percent recycled material and is suitable for numerous building applications, particularly exterior insulation.
• On 28th November 2023, Kingspan Group, announced the launch of HemKor range of products which is a bio-based insulation product largely made up of hemp. It was launched as an effort to reduce the carbon footprint of buildings.