The international insulation market was valued at 42.48 billion euros in the year 2017 & is expected to grow at a compound annual growth rate of 8.6 percent. There has been a rising use of insulation materials in residential and non-residential projects, due to the growing focus on energy conservation. Developing countries are the major markets which are driving up the growth for insulation products. And this trend is expected to continue on account of rising construction activity, rising industrial output and the rise in the disposable income available at hand.
If the demand trend is predicted, over half of the new demand generated in the global market between the years 2017-2020 will happen in the Asia - Pacific region. Indonesia, India and China are the most important drivers of the insulation products in the global market. In these countries, it is the new demand which is driving up the growth, whereas, in western economies, it is the push to make the existing buildings energy efficient which is driving up the growth.
The demand for insulation in OEM, HVAC and industrial markets is growing at the rate of 3.2 percent per annum, and is expected to shoot up to 9.2 billion sq. meters of R1 value in 2020. In industry, insulation is used for making coverings of boilers, pipes, machinery and tanks. HVAC makes use of insulation for linings and coverings for HVAC equipment. Insulation is used in OEM applications, which includes major household appliances like ovens, freezers & refrigerators, motor vehicles, shipping, refrigerated transport, fire doors, aircraft, containers, coolers and solar panels. However, the pace of growth for insulation in this field is expected to be lower than that in the construction space.
When it comes to the industrial demand for insulation products, China is contributing significantly to its manufacturing units. They are making appliances for the world over. This segment is growing quite rapidly in developed countries of North America and Western Europe. And this is happening due to the maturity of the industrial sectors and the higher per capita incomes.
When we talk about Western Europe and UK markets, the demand for insulation products totaled 3.8 billion sq. mtrs, of R1 value in the year 2015. This demand equaled 17 percent of the global demand. The main contributors to this demand included the matured construction sector and the diverse industrial sector. It is also the cold weather here, which contributed to the rise in insulation demand in the construction space driven by clever marketing and brand awareness.
Market Share Insights for insulation
Major companies working in the market include include Knauf, NOVA Chemicals Corp., GAF Materials Corp.,Owens Corning Corp., Bayer, BASF, Dow Building Solutions, CertainTeed & Kingspan. The insulation products manufactured usually obey the std. protocol for supply chains and reach the end customers using distribution channels like retailers, wholesalers, lumber yards, online distribution & government contracts. In a few cases, the insulation product manufacturers directly establish associations with the integral affiliates of the supply-chain & provide end users like building contractors, home owners or OEM and HVAC equipment manufacturers with solutions.