Thermal Insulation Material Market 2017 – 2027
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.
The global thermal insulation materials market is projected to reach US$ 70 billion by the end of 2027, in terms of revenue, growing at CAGR of 4.2% during the forecast period (2019 to 2027).
Increasing spending on the construction industry by the Indian government is predominantly fueling the market growth of thermal insulation materials. According to the India Brand Equity Foundation, in 2018, the infrastructure sector in India witnessed private equity and venture capital investments worth US$ 1.97 billion. Hence, growing investment by the government is expected to favor market growth over the forecast period.
Increasing government initiatives for promoting the construction of the green building is expected to accelerate the market growth of thermal insulation materials. According to the Concerted Action for the Energy Performance of Buildings Directive (a joint initiative of member states of the European Union and the European Commission), all buildings constructed in member states should comply with zero-energy standards by 2020.
Regionally, Asia-Pacific dominated the global thermal insulation materials market in 2018, reporting 44% market share in terms of revenue, followed by Europe and North America, respectively.
Figure 1. Global Thermal Insulation Materials Market, Revenue Share (%), By Region, 2018
High capital cost of insulation materials is expected to hinder the demand for thermal insulation material in residential buildings and this is projected to hamper the market growth. The use of thermal insulation material in buildings saves a significant amount of energy in the form of electricity. However, due to the high capital cost of these materials, not all the owners opt for thermal insulation material and this is restricting the market growth.
The inadequate infrastructure of distribution channels is creating challenges for manufacturers to reach the target audience is projected to hamper the market of thermal insulation material. Also, lack of awareness regarding the benefits of insulation materials is expected to restrict the adoption of these materials this, in turn, is hindering the market growth.
Growth in smart city projects is expected to provide lucrative growth opportunity to the market of thermal insulation materials. Increasing infrastructure development initiatives in developing as well as developed economies are projected to foster the demand for thermal insulation products. Also, an increasing number of energy-efficient buildings across the developed region is accelerating market growth.
Growing investment Asian region especially in Japan & China by key players in the thermal insulation material market is expected to propel the growth of thermal insulation materials over the forecast timeframe. For instance, in 2015, it started a new production line in China for Duranol polycarbonatediol (PCD), which is used to make high-performance polyurethanes. Thus, such investment is expected to fuel market growth.
Figure 2. Global Thermal Insulation Materials Market – Opportunity Analysis
The growing focus of manufacturers on reducing thickness of material in order to enhance the performance of the material is expected to accelerate the market growth. Low thickness materials provide superior benefits in material handling and also improve the load-bearing capacity of the infrastructure. Hence of the use of low thickness material enable the manufacturing of efficient building structure, this is raising the demand for low-thickness material, in turn, propelling the market growth.
Increasing focus of manufacturers towards lightweight products such as plastic form is expected to augment the market growth. For example, the heavier insulation material is used in refrigerators to increase the labor costs for installation whereas lightweight thermal insulation material requires very little effort and time for installation. This is expected to augment the market growth of thermally insulating material over the forecast period.
Figure 3. Global Thermal Insulation Materials Market, Revenue Share (%), By Material Type, in 2018
On the basis of material type, in 2018, fiber glass accounted the largest market share of 42% in terms of revenue in the global thermal insulation materials market, followed by plastic foam and stone wool, respectively.
Figure 4. Global Thermal Insulation Materials Market – Value Chain Analysis
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.