Insulation Market size was over USD 58.9 billion in 2023 and is anticipated to cross USD 135.7 billion by the end of 2036, witnessing more than 7.2% CAGR during the forecast period i.e., between 2024-2036. In 2024, the industry size of insulation is evaluated at USD 65.9 billion.
Insulation market has a key application in cold storage and transportation. In the design phase of a cold storage facility, several factors are considered to ensure optimal temperature control and energy efficiency. These include the use of vapor barriers for the building enclosures and advanced insulation materials, with typical R-values of up to R-40+ for walls, R-60 for the roof, and R-30+ for internal walls. Appropriate insulation is necessary to prevent structural damage from moisture ingress and frost heave and incorporating HVAC systems for cold storage environments is vital for safety and compliance. Continuous development of cold chain logistics and the demand for insulation materials are fostering insulation market growth.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
7.2% |
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Base Year Market Size (2023) |
USD 58.9 billion |
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Forecast Year Market Size (2036) |
USD 135.7 billion |
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Regional Scope |
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Product (Expanded polystyrene, Glass wool, Mineral wool, Cellulose, Calcium silicate)
Expanded polystyrene segment is expected to capture over 20% insulation market share by 2036. Polystyrene is expanded using rigid polystyrene. This lightweight plastic foam is high-tensile. These properties of expanded polystyrene driving the market during the forecast period. Polystyrene foam is often the most sustainable choice for its intended use when expanded using a blowing agent.
The expanded polystyrene foam cups are 95% air by volume, they take 35% less energy, 40% less water, and emit 40% less CO2 compared to materials such as paper cups. Polystyrene foam is utilized as a sub-layer in veneers and geo-forms for foundations, highways, and bridges because it insulates well. These insulating qualities are also seen in personal coolers and commercial refrigerated trucks. Polystyrene has been recycled over 25 million pounds by AmSty. AmSty almost reached five million pounds per year in 2022, surpassing the previous record by 55%.
Function (Thermal, Acoustic, Electric)
By the end of 2036, thermal segment is poised to dominate around 45% insulation market share, as it improves energy efficiency and lowers heating and cooling costs. Energy-saving measures become more crucial as energy costs rise and environmental concerns grow. Thermal insulation effectively prevents heat transmission, maintaining indoor temperatures and relieving HVAC systems.
Furthermore, the segment is growing owing to an ongoing influx of investments. In July 2024, VARM, the pioneering insulation business, received USD 6.1 million in seed funding from Emerge, Pale Blue Dot, noa (previously A/O), Fundamental, and angel investors. This investment will transform the insulation business, helping VARM decarbonize Europe.
End user (HVAC & OEM, Transportation, Packaging, Building & Construction)
In insulation market, building & construction segment is likely to dominate around 35% revenue share by the end of 2036, due to the rising demand for Urban insulation. Substantial lifestyle changes have driven up the insulation need for cold storage and transportation. Insulation materials are also in demand across refineries and petrochemical sectors. It reduces loss and gain of heat in such industries thus it is very energy-efficient.
In May 2024, TopBuild Corp., a leading installer and specialty distributor of insulation and building materials to the construction industry in the U.S. and Canada, acquired Wickes, Ark.-based Insulation Works. Insulation Works serves Arkansas and nearby states' residential and light business markets and agricultural structures nationally. Insulation Works brings in USD 28 million annually from three Arkansas facilities which may end by the month of May. Therefore, such initiatives propel the Insulation market at a faster pace.
Our in-depth analysis of the global market includes the following segments:
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Material |
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Function |
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End user |
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APAC Market Statistics
Asia Pacific in insulation market is expected to hold over 45% revenue share by the end of 2036. In this region, there has been a significant surge in oil output, leading to an increasing demand for insulation. The oil production business requires insulation solutions to prevent energy wastage. The reason for this is the increasing oil output in the economies of China and India, as well as growing worries about major energy waste and the demand for materials in refurbishment and restoration.
The insulation market in India is projected to have rapid growth, driven by the strong expansion of building construction. This growth is particularly attributed to the increasing emphasis on energy efficiency, which would result in higher installation of insulation materials in each building. In addition, the reasons contributing to the recovery in industrial equipment production include strong recoveries in HVAC systems, transportation equipment, and appliance manufacturing. Furthermore, manufacturers are using more insulation per product to enhance their quality and improve their competitiveness in the worldwide market.
The China insulation market has been seeing substantial growth and is projected to sustain its expansion in the foreseeable future. The transportation sector in China has witnessed substantial growth and demand, hence driving the expansion of the insulating materials market. In addition, the government has enforced a set of mandatory energy conservation standards and procedures to meet energy-saving goals. This has also stimulated market growth for refurbishment and remodeling projects.
The insulation market in Japan is currently experiencing transformations, with a rising focus on the significance of insulation in terms of energy efficiency, health, and sustainability. Despite the presence of obstacles including differing insulation requirements and market fluctuations, the business nevertheless presents prospects for expansion and advancement. Nippon aqua, specializes in spray polyurethane foam (SPF) insulation. It operates in more than 30 locations around Japan and is a subsidiary of Hinokiya Holdings, a prominent residential home builder. Thus, such firms propel the market expansion.
Europe Market Analysis
By the end of 2036, Europe insulation market is set to hold over 30% share. Due to the fast industrialization and the existence of important insulation product manufacturers, this region is expected to be an early user of developing insulation materials. The market expansion is also ascribed to the rising number of residential and commercial structures, together with governmental programs aimed at mitigating carbon emissions.
The UK insulation market consists of a range of different insulating materials and is influenced by factors including market size, predictions, construction activity, and industry developments. Knauf Insulation is delighted to declare a significant investment of around USD 200 million in a cutting-edge rock mineral wool production, specifically designed to cater to the UK market on May 14, 2024. This shows a strong dedication to meeting the increasing need for sustainable insulating solutions that do not produce combustion.
The insulation market in France is now growing due to numerous factors, including rapid economic expansion, increased investment in building, and a strong demand for acoustic and thermal insulation. Moreover, In December 6, 2023, Soprema Group has entered into an agreement with SaintGobain to acquire a controlling interest in the Polyisocyanurate insulation (PIR) business assets in france, namely under the Celotex brand.
The Germany insulation industry is marked by notable advancements and breakthroughs in insulation technologies, propelled by the need for energy-efficient solutions and environmentally friendly construction methods. The Ziegler Group now has a fully operational wood fiber insulation board (WFIB) factory, which was supplied by DIEFFENBACHER, a company situated in Eppingen. Production of the rigid WFIB line commenced on August 30, 2022. Ziegler Group submitted its order to DIEFFENBACHER on April 1, 2021.
Insulation companies that dominate deliver new materials with increased thermal performance, sustainability, and installation convenience. They aim to develop insulation materials that strictly adhere to energy efficiency and green building standards. These players are increasing their product portfolios by supplying diverse insulating materials for specific applications and performance needs. Major corporations that dominate market demand include:
Author Credits: Rajrani Baghel
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