Building thermal insulation market to hit $31 Bn by 2026: Study

The market valuation for building thermal insulation will cross US $31 billion by 2026, estimates Global Market Insights in its recent report. It said, “Strict norms and policies regarding the significant reduction in atmospheric GHG emission levels will provide a positive scope for industry growth.”

Building thermal insulation offers a high level of energy efficiency compared to traditional wooden framed and concrete constructions. As per the U.S Environmental Protection Agency, adding insulation can save 15% on heating and cooling costs. Insulation materials, such as ICF systems, reduce the requirements for active heating & cooling systems in tropical and semitropical regions. They also increase the time taken for the interior temperature to change with respect to the exterior temperature. Since a major part of the energy consumed nowadays is for operating air conditioners, reduced temperature changes decrease the energy consumed by air conditioners, thereby contributing to the reduction of carbon dioxide.
Several governments across the globe have set tough carbon emission standards through international commitments with the UN Framework Convention on Climate Change. Increasing concerns on global warming and various government initiatives to reduce carbon emissions with collective support from the emerging countries are boosting the demand for structural insulation panels. However, the economic slowdown due to the COVID-19 pandemic has lowered construction output, creating a challenge for industry players.

The increase in demand for stone wool materials in the thermal insulation market is attributed to its natural fire protection characteristics. Stone wool insulation products are widely used across the globe due to various properties such as fire resistance and water-repellency. The segment is expected to reach USD 44.41 billion by 2026.

Floor insulation is done by introducing the insulation material under floorboards, generally on the ground floor of the house. The stringent regulatory environment in Europe and North America will drive floor insulations demand. Floor insulation will help in reducing the amount of heat that escapes from the floor, contributing around 15%. The floor insulation segment is expected to register a 3.6% CAGR by 2026.

The emergence of different industry players in the power, oil & gas, chemicals, automotive, and HVAC sectors are supplementing building thermal insulation’s market growth. Global initiatives to reduce carbon emissions by improving energy efficiency and sustainability will propel the use of thermal insulation products in the industrial segment. The industrial segment held more than a 15% market share in terms of volume.

The Asia Pacific building thermal insulation market is anticipated to grow at a significant rate owing to the rising government spending on infrastructure and rapid urbanization across the region. This will also lead to increased energy consumption due to the increasing demand for eco-friendly building insulation products. The region held around a 20% revenue share in 2019, Global Market Insights report said.