Technical Insulation Market size was valued at USD 7.9 billion in 2023 and is poised to cross USD 41.1 billion by the end of 2036, expanding at more than 3.4% CAGR during the forecast period i.e., between 2024-2036. In 2024, the industry size of technical insulation is estimated at USD 12.5 billion.
The market's progression of technological breakthroughs reveals the many uses for technical insulation. Its fire protection, thermal regulation, noise reduction, and corrosion-free behavior make it a suitable choice for floor ceilings, internal wall insulation, roof, HVAC, and acoustic insulation applications. Ongoing efforts to encourage the use of electric vehicles and electric airplanes is expected to help the technical insulation industry expand at higher levels. In April 2024, Huntsman announced the launch of new polyurethane systems, Shokless to protect electric vehicle batteries.
Moreover, increasing research and development projects on smart insulation systems is another key factor expected to increase sales of technical insulation across several sectors, especially modern infrastructure. For instance, in July 2023, Recticel Group announced the launch of a new range of polyurethane insulation solutions containing 25% biocircular raw materials that help in reducing on average 43% of the CO2 emissions compared to the conventional insulation boards.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
3.4% |
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Base Year Market Size (2023) |
USD 7.4 billion |
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Forecast Year Market Size (2036) |
USD 41.1 billion |
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Regional Scope |
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Material Type (Hot Insulation, Cold Flexible Insulation, Cold Rigid Insulation)
The hot insulation segment in the technical insulation market accounted for a revenue share of 40.1% in 2023. The growth of this segment can be attributed to rapid industrialization across the globe, growing efforts to lower CO2 emissions, and rising demand for energy conservation. Hot insulation stops heat from escaping from systems or equipment, which enhances machine performance.
Many manufacturers are developing advanced hot insulation solutions to cater to these issues. For instance, in October 2023, APL Aeroflex announced the launch of next-generation hot insulation, Aerocell Rail suitable for high-speed modern rail and metro rail coaches. The company announced that it is 100% recyclable and has passed all stringent fire rating tests by railways.
Application (Industrial & OEM, Heating and Plumbing, Acoustic, HVAC, Refrigeration)
In terms of application, the heating and plumbing segment in the technical insulation market is anticipated to hold a CAGR of 30% in 2023. The demand for technical insulation in heating and plumbing applications is expected to increase as insulated pipes and equipment are used more frequently in industrial settings to prevent heat loss. For instance, in May 2022, Armcell launched two residential products for connecting the indoor and outdoor components of external heat pumps and air-conditioners.
Our in-depth analysis of the technical insulation market includes the following segments:
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Material Type |
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Application |
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End use |
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APAC Market Statistics
The Asia Pacific is set to dominate the technical insulation market with a revenue share of 35% during the forecast period owing to increasing demand for power due to population growth and rapid industrialization. In March 2023, the International Energy Agency (IEA) stated that China, India, and Southeast Asia will account for 70% of the increase in global electricity demand between 2023 and 2025. Other factors such as increasing infrastructural activities, growing awareness about fire safety, and rising investments to develop novel products are expected to boost market growth in APAC.
The market in India is expected to account for a substantial market share during the forecast period owing to increasing industrialization and urbanization, rapid adoption of advanced insulation systems across several sectors, and stringent regulatory norms. In March 2022, ACC Ltd. announced the launch of a climate-control concrete insulation system, ACC Airium in India. This unique concrete system becomes a long-lasting roofing solution that insulates the surface at the time of construction.
China technical insulation market will encounter significant revenue growth between 2024 and 2036 owing to the rising need for electricity to cater to the large population and increasing infrastructural projects such as airports, power plants, and railways. Moreover, many international companies are launching advanced insulating products in China. One such example is when BASF partnered with Zhengming in June 2020 to develop high-quality insulating panels for constructing refrigerators used in the cold chain industry in China.
North America Market Analysis
The technical insulation market in North America is expected to register rapid revenue growth during the forecast period owing to rising awareness about energy efficiency, stringent regulations about Co2 emissions, and presence of leading key players. In June 2022, the Bide-Harris administration announced an initiative to modernize building codes, reduce energy costs, and improve climate resilience. It also states the importance of insulation solutions in construction in terms of resistance and reduction in heating and cooling costs.
In the U.S, the technical insulation market is expected to witness substantial growth during the forecast period owing to stringent energy efficiency norms, high usage of advanced technical insulation solutions across several industries, and rising investments in developing advanced insulation technology and solutions. For instance, in January 2024, Whirlpool Corporation announced its plan to feature SlimTech insulation in a refrigerator in the North America market. The thickness of SlimTech insulation walls reduces thermal conductivity, allowing the refrigerator to be 50% more energy efficient than usual.
The technical insulation market in Canada is anticipated to grow at a steady pace between 2024 and 2036. This growth can be attributed rising usage of technical insulation for several industrial applications and government efforts to reduce the overall environmental footprint. In February 2020, the Government of Canada collaborated with small businesses to develop greener insulation products.
The technical insulation market is highly competitive, comprising key players operating at global and regional levels. Key players in the market are focusing on developing novel solutions and materials to control temperature, noise, and energy efficiency across industrial and commercial settings. Rockwell International A/S, Owens Corning, Saint-Gobain Isover, and Knauf Insulation are some of the leading players that use several strategies to maintain their market position and enhance their product base. Here is a list of key players dominating the global technical insulation market:
Author Credits: Shweta Patidar
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