Industry Outlook

Building thermal insulation market was totaled 26,167.7 kilo ton in 2017 and expected to grow at a CAGR of 4.6% from 2018 to 2026. Factors such as surge in demand for insulation from residential and non-residential application coupled with rising regulation for energy saving and efficiency fuelling the market growth during the forecast period from 2018 to 2026. Thermal insulation materials mitigate the transfer of heat within the buildings consequently lowering the dependence on air conditioning which in turn reducing the energy costs.

Rising building construction and industrial activity especially in developing economies boost the demand for insulation. Moreover, people migrating from rural to urban in developing countries will stimulate building activities in urban areas and therefore building insulation demand. In developed economies, insulation demand will rebound from downturns (2008-2013) and strict environmental & governmental regulation to reduce energy consumption will lead to the adoption of new & latest building codes that will propel the demand for building thermal insulation usage.

Various international building codes and regulations plays an important role in building thermal insulation market. These codes act as a catalyst for growth but they also sometime act as a restraining factor by restricting the use of certain materials in specific applications. For instance, due to the introduction of new building codes in United Kingdom, Nigeria, China, Italy, Australia, Russia, and Mexico, these countries reduced their energy intensity by 2% annually.

Rising investments in new and aging infrastructure, renovation of non-residential buildings, and new housing projects in the U.S., China, India, and Brazil also propelling the overall growth market growth. Major players operating in building thermal insulation market includes Saint-Gobain S.A. (France), Dow Corning Corporation (U.S.), Owens Corning (U.S.), BASF SE (Germany), Covestro AG (Germany), Huntsman Corporation (U.S.), Knauf Insulation, Inc. (U.S.), Rockwool International A/S (Germany), GAF Materials Corporation (U.S.), URSA Insulation, S.A. (Spain), Atlas Roofing Corporation (U.S.), and Beijing New Building Material (Group) Co., Ltd. (China), among others.

"Rising Demand for Efficient and Cheap Energy Saving Materials from Building & Construction Industry, Making Plastic Foam the Leading Segment"

Plastic Foam represented the largest share of over 40% in 2017, in terms of value and volume both. Plastic foam includes polystyrene foam (EPS and XPS), polyurethane (PUR) & polyisocyanurate (PIR) foam, and others (phenolic foam, elastomeric foam, etc.). Expanded polystyrene (EPS) foam is the most widely used plastic foam material for external wall insulation especially in cold regions owing to its low price. Polyurethanes (PU) foams follows the expanded polystyrene foam in terms of volume consumption as its offers some advantages in the context of higher requirements for thermal insulation being less volumetric than other insulation materials for the same insulation efficiency.

Glass wool was the second largest material type in 2017 and expected to maintain its position over the forecast period. Glass wool is also identified as the fastest growing material type during the forecast period owing its excellent eco-friendly and fire resistant properties.

"Wall Insulation Dominated the Application Segment of Building Thermal Insulation Market in 2017"

Wall application accounted for the largest value share of over 40% in 2017. Need of enhancing energy efficiency and weather proofing coupled with stringent construction standards will drive the segment growth during the forecast period. Also, walls are subject to majority of the heat loses therefore require more insulating material than roof and floor. Plastic foams are mainly used in wall insulation owing to its low cost and excellent insulating properties. Wall application includes external wall, internal wall, and cavity wall, wherein external wall accounted for the largest market value share in 2017.

Roof application is the second largest application segment of building thermal insulation market during 2017-2018. Roof insulation is projected to exhibit the fastest growth during the forecast period. Roof application is further segmented into flat roof and pitched roof.

"Residential Building will retain its Top Position Owing to Increasing Number of Housing Projects and Rural to Urban Migration of People especially In Developing Economies"

In terms value, Residential building sector dominated the market in 2017 and expected to grow at the CAGR of 4.8% during the forecast period. Increasing residential construction activities in emerging economies such as India, China, Mexico, Brazil, and South Korea coupled with refurbishment and re-insulation activities for old homes are also likely to aid the increasing demand. Also, rural to urban migration of people especially in developing economies contributing to the overall demand for building thermal insulation.

Non-residential building is projected to witness the fastest growth during the forecast period. Non-residential building segment includes commercial building and others (educational building, religious building, government offices, etc.). Rising awareness and the need for energy efficient structures to reduce high-energy costs in commercial and public buildings anticipated to drive the market for non-residential building segment.

"Europe Dominated the Building Thermal Insulation Market and Expected to Maintain Its Dominant Position during the Forecast Period"

Europe held the largest market value share of over 30% in 2017. Stringent regulations from the European Commission and REACH to promote thermal insulation as a means of energy conservation to mitigate the energy cost expected to support the market growth. The Nordic countries, Germany, France, and the U.K. are amongst the highest consumers of home insulation. European Commission’s Energy Performance of Buildings Directive (EPBD) governs the usage of insulating materials and their environmental impact in order to standardize the market in the region promoting the demand for building thermal insulation.

Europe is closely followed by North America and Asia-Pacific with significant market share in terms of market value and volume. Asia-Pacific is the fastest growing region owing to increasing government spending on construction activities in countries such as China, India, etc. along with energy conservation initiatives to reduce greenhouse gas emissions triggering the regional market growth.

"Building Thermal Insulation Market is Moderately Competitive"

Building thermal insulation market is highly fragmented with the presence of established players offering complete range of building insulation solution. Geography & capacity expansion and introduction of new environmentally friendly green products to address the stringent environment regulations are key strategies adopted by the leading players in the market. For instance, On June 2017, BASF SE launched the new generation of eco-friendly spray foam insulation Elastospray® LWP suitable for all areas of the building envelop.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Building Thermal Insulation market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Building Thermal Insulation market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Building Thermal Insulation market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Building Thermal Insulation market?
• Which is the largest regional market for Building Thermal Insulation market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Building Thermal Insulation market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Building Thermal Insulation market worldwide?