Thermal Insulation Materials Market is estimated to be valued at USD 72.77 Bn in 2025 and is expected to reach USD 112.34 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of6.4% from 2025 to 2032.
The global thermal insulation materials market is witnessing robust growth, driven by the rising construction activity, stricter energy efficiency regulations, and increasing focus on sustainability. Growing urbanization in Asia-Pacific, particularly in China, India, and Southeast Asia is significantly boosting thermal insulation materials market demand across residential, commercial, and industrial sectors.
Materials such as glass wool, mineral wool, EPS, XPS, and polyurethane foam remain popular for their cost-effectiveness and thermal efficiency. At the same time, bio-based options, aerogels, and vacuum insulated panels are gaining traction in high-performance and environmentally conscious applications.
Major players like Saint-Gobain, Owens Corning, Rockwool, and Kingspan are investing in innovative and eco-friendly solutions to meet the evolving demand for energy-efficient buildings worldwide.
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Between October 2023 and September 2024 (TTM), a total of 1,181 shipments of Thermal Insulation Materials were exported globally. These exports involved 375 exporters and 382 buyers, reflecting a 20% increase compared to the previous twelve-month period.
In September 2024 alone, 53 shipments of Thermal Insulation Materials were exported worldwide. The majority of these global exports were directed to Russia, Vietnam, and Kazakhstan.
On a global scale, the leading exporters of Thermal Insulation Materials are China, Russia, and Poland. China tops the list with 962 shipments, followed by Russia with 384 shipments, and Poland with 200.
India exported 4 shipments of Thermal Insulation Materials under HSN Code 68069000 from July 2023 to June 2024. These exports, carried out by 2 Indian exporters to 3 buyers, represent a 100% increase compared to the previous twelve-month period.
In terms of material type, the foam plastic segment dominated the global thermal insulation materials market, holding an estimated share of 45.0% in 2025, due to its exceptional thermal resistance, lightweight nature, and cost-effectiveness. Foam plastics, such as polyurethane (PU), polystyrene (EPS/XPS), and polyisocyanurate (PIR) have low thermal conductivity, which significantly reduces heat transfer and energy loss in buildings, appliances, and industrial systems. Its insulation is light, which reduces structural load and makes installation quicker and more cost-efficient compared to heavier insulation materials like mineral wool. These materials are chemically stable and provide long-term insulation performance without degradation, reducing maintenance needs over time. Thus, the combination of thermal efficiency, flexibility, durability, and evolving sustainability features makes foam plastic a key driver of thermal insulation materials market demand globally.
In January 2025, Washington State University researchers launched a plant-based alternative to fossil fuels for use in plastic foam production. The WSU-led team revealed an eco-friendly method to extract lignin from pine using a mild solvent, replacing up to 20 % of petroleum-derived chemicals in polyurethane foams. The resulting bio-based foam delivers comparable strength and flexibility to conventional plastic foam, making it suitable for kitchen sponges, packaging, coatings, insulation, adhesives and cushions, further accelerating the thermal insulation market growth.
In terms of temperature range, the 1 °C To 100 °C segment is expected to hold the largest share in the global thermal insulation materials market in 2025, as it aligns with the core requirements of residential, commercial, and light industrial applications. Most HVAC systems, hot water pipelines, and insulated walls or roofs operate within this temperature band. Insulation in this range enhances energy efficiency, reduces heat loss or gain, and ensures indoor comfort. In the food and beverage industry, cold storage rooms, refrigerated transport, and food processing areas require insulation to maintain safe temperatures slightly above or below room temperature. Insulation in this range preserves product freshness and reduces spoilage.
In March 2025, Armacell introduced ArmaFlex Ultima, a new elastomeric insulation solution specifically designed for the moderate temperature range, ideal for HVAC systems, plumbing, and refrigeration applications operating between 1 °C and 100 °C. Key features include ultra-low smoke emissions, exceptional moisture resistance, and enhanced long-term thermal stability.
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Asia Pacific region is expected to hold the dominant position with estimated share of 37% of the global thermal insulation materials market in 2025, due to rapid urbanization, industrial expansion, and increasing focus on energy efficiency. Countries such as China, India, and Indonesia are experiencing a surge in residential and commercial construction, which is driving the need for effective insulation to reduce energy consumption in buildings. Additionally, the region’s strong industrial base—especially in manufacturing, automotive, and electronics—requires high-performance insulation materials for process safety and efficiency. Government initiatives promoting green buildings, sustainable infrastructure, and energy conservation further support the market. Moreover, the expansion of cold chain logistics for pharmaceuticals and perishable goods has boosted the use of thermal insulation in refrigeration and transport. With affordable labor, easy raw material access, and growing technological innovation, Asia Pacific has become the fastest-growing region in the global thermal insulation materials market.
For instance, in February 2025, BASF introduced Basotect® EcoBalanced, a new melamine resin foam engineered to reduce carbon footprint while maintaining outstanding thermal insulation performance. The product is targeted at Chinese construction and industrial sectors keen on meeting tighter environmental regulations and sustainability expectations.
North America is expected to be the fastest growing region in the thermal insulation materials market, holding an estimated share of 23% in 2025 and is projected to grow further during the forecast period. The expansion of the region is driven by a mix of regulatory mandates, sustainability goals, and industry trends. Governments across the U.S. and Canada have implemented strict energy efficiency regulations, prompting widespread adoption of insulation materials in both new construction and retrofitting projects. Additionally, the region's focus on sustainable building practices and certifications like LEED has further accelerated the use of high-performance insulation solutions. Aging infrastructure across major cities is also undergoing thermal upgrades, contributing to market expansion. Moreover, the rapid growth of cold chain logistics, driven by pharmaceutical distribution and e-commerce in perishable goods, has increased the need for efficient temperature control. The region’s diverse climate, ranging from extreme cold in Canada to hot and dry conditions in the southern U.S., underscores the necessity of reliable insulation for maintaining indoor comfort and reducing energy consumption. These factors collectively fuel the strong thermal insulation materials market demand in North America.
For instance, from January 2023, as part of the Inflation Reduction Act, the U.S. Internal Revenue Service expanded tax credits for building energy efficiency. Homeowners can now claim up to $1,200 annually for installing qualifying insulation and air-sealing materials that meet International Energy Conservation Code (IECC) standards, offsetting a significant portion of retrofit costs.
China is a key driver of thermal insulation materials market demand due to rapid urbanization, energy-efficiency mandates, and industrial growth. The government’s push for carbon neutrality by 2060 is accelerating green building adoption, with stricter insulation standards in residential and commercial projects. Expansion of district heating in northern regions and growth in cold chain logistics for food and pharma are boosting demand. Additionally, heavy industries like steel and petrochemicals require effective thermal control, further supporting the thermal insulation market revenue.
In the United States, thermal insulation materials are in high demand due to strict energy codes (like IECC), government incentives for energy-efficient home retrofits, and the expansion of cold chain logistics. These factors are driving insulation use in residential and commercial upgrades, HVAC systems, and temperature-controlled warehouses, making the U.S. a key contributor to global thermal insulation materials market growth.
| Report Coverage | Details | ||
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| Base Year: | 2024 | Market Size in 2025: | USD 72.77 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 6.4% | 2032 Value Projection: | USD 112.34 Bn |
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Key players operating in the global thermal insulation materials market are Saint-Gobain S.A., Kingspan Group, Dow Chemicals Company, Asahi Kasei Corporation, BASF SE, Owens Corning, Bayer AG Rockwool International, E. I. du Pont de Nemours and Company, and Berkshire Hathaway. |
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As the building and construction industries have expanded, so has the demand for thermal insulation for buildings. Building thermal insulation techniques reduce heat transfer between surrounding environments to maintain stable interior temperatures. Additionally, they reduce carbon emissions by needing less energy to maintain temperature and limiting heat transmission to the outer environment. It offers outstanding structural qualities, fire resistance. Due to their excellent energy efficiency, thermal insulation materials are essential for the building and construction sector. Additionally, increasing industrialization encourages the installation of thermal insulation systems in commercial buildings to reduce energy consumption, which is projected to fuel market growth.
For instance, according to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, 1,295,000 housing constructions were constructed. This is further propelling the adoption of thermal insulation materials.
Rising energy prices are being driven mostly by rising demand for building thermal insulation materials in both residential and commercial applications. Inefficient energy usage has two costs. Significant energy use may cost the consumer a lot of money due to recent price rises. It also contributes to the depletion of natural resources. As a result, consumers, particularly those who live in urban areas, make an effort to insulate their homes. Creating low-energy insulating goods such as foamed plastics represents huge commercial potential. Some of these solutions can recover insulating expenditures in as little as 12 months through energy savings.
Furthermore, according to the Indian Green Building Council, good building insulation saves money and protects the environment. It not only reduces monthly energy costs but also enhances overall comfort. Insulation maintains a suitable temperature by keeping heat loss and leaks at bay. With the implementation of green technology and practices, the potential for energy savings through design may now be as high as 40% to 50%. Building insulation is becoming increasingly essential since it may cut energy usage by up to 8%, further enhancing the thermal insulation market share.
The thermal insulation materials market value is undergoing a structural shift in demand patterns, propelled by a convergence of decarbonization mandates, energy price volatility, and stringent building efficiency norms. The future of this market lies not in volume consumption but in value-driven innovation, particularly in the medium-temperature range (1 °C to 100 °C), which is fast becoming the most competitive battleground due to its applicability across both industrial and HVAC sectors.
From an analyst standpoint, the overreliance on legacy materials like fiberglass and polystyrene will limit competitiveness, especially in regions like the EU and Japan, where EN 12667 and other building codes are pushing for higher R-values with lower environmental impact. Advanced materials such as aerogels, vacuum insulated panels (VIPs), and bio-based polyurethane foams are not merely alternatives, they are fast becoming regulatory imperatives. For instance, Germany’s GEG (Gebäudeenergiegesetz) mandates thermal transmission values that conventional materials are struggling to meet without thickness penalties.
In Asia-Pacific, particularly in China and India, demand is increasingly tied to industrial insulation in chemical processing and LNG terminals. For example, India’s gas-based economy transition plan estimates a 15–18% increase in thermal insulation material deployment in gas processing units by 2027, particularly in the 1 °C to 100 °C range for piping and storage tanks. This segment, often overlooked, is capitalizing on a blend of affordability and thermal performance, with crosslinked polyethylene (XLPE) and elastomeric foams gaining traction.
In contrast, North American demand is pivoting around retrofit markets, with federal incentives accelerating thermal upgrades in older buildings. The U.S. Department of Energy’s Weatherization Assistance Program alone saw a 23% rise in insulation material disbursal in 2023, underscoring how policy-led refurbishment is a stronger driver than new construction. Materials that offer ease of retrofit, low VOCs, and acoustic insulation, such as mineral wool composites are emerging as clear winners.
*Definition: Thermal insulation materials are used to restrict the flow of heat energy from two ends of different temperatures. Usually, heat flows from high temperature to low temperature. Thermal insulation material offers insulation, in which the radiative heat is reflected heat is reduced than being absorbed. Some of the common thermal insulation materials are fiberglass, stone wool, and plastic foam. These materials find application across buildings, clothing, mechanical systems, natural animal insulation, spacecraft, and automotive. Fiberglass material used for industrial applications is covered with aluminum cladding material. In the construction industry, it helps in enhancing the duration of thermal comfort without depending on mechanical air-conditioning particularly during inter-seasons periods.
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About Author
Yash Doshi is a Senior Management Consultant. He has 12+ years of experience in conducting research and handling consulting projects across verticals in APAC, EMEA, and the Americas.
He brings strong acumen in helping chemical companies navigate complex challenges and identify growth opportunities. He has deep expertise across the chemicals value chain, including commodity, specialty and fine chemicals, plastics and polymers, and petrochemicals. Yash is a sought-after speaker at industry conferences and contributes to various publications on topics related commodity, specialty and fine chemicals, plastics and polymers, and petrochemicals.
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