Insulation Market Analysis

Product (Expanded polystyrene, Glass wool, Mineral wool, Cellulose, Calcium silicate)

Expanded polystyrene segment is expected to capture over 20% insulation market share by 2037. 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 2037, 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 2037, 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: