Thermal insulation material are insulating materials that restrict the flow of heat energy flow and ultimately save the energy cost. The thermal insulation can be classified into cellular, fibrous, and granular. These materials are used in the construction, chemical, and healthcare industry for conserving the energy cost used across heating and cooling areas. The thermal insulation materials are categorized into fiberglass, plastic foam, and stone wool. Some of the plastic forms are polyurethane, polystyrene, and EPS. These plastic forms are widely in the transportation of LNG in barrels and pipelines. In the construction industry, thermal insulation materials are used in residential buildings to reduce the consumption of energy and save costs.
The global thermal insulation materials market was estimated to account for slightly less than US$ 50 billion in terms of revenue in 2018 and is predicted to grow at a CAGR of 4.2% during the forecast period (2019 to 2027)
Growing demand for LNG is expected to foster the market growth of thermal insulation materials. The material used for transportation of LNG/cryogenic gas requires thermal insulation materials for the lining of pipelines and barrels in order to maintain the required temperature level. Polyurethane and polystyrene are some of the insulation materials used for transportation LNG in barrels. Hence, the rising demand for LNG is augmenting the market growth of thermal insulation materials.
Many manufacturers are adopting growth strategies such as partnership and agreement to cater to rising demand insulating material is expected to foster the market growth. For instance, in November 2018, the Wienerberger Group, a building material producers in Europe, has entered into a strategic partnership with the Interbran Group, a specialist in innovative materials and technologies. Together, the two companies intend to develop new and sustainable materials with optimal insulating features.
The volatile price of raw material prices used in the production of thermal insulation materials is expected to curb market growth. The manufacturing of raw materials used is highly dependent on crude-oil prices, and the price of crude oil is highly volatile in nature. This ultimately makes affect the price of raw material which further affects the manufacturing costs of end products. This is expected to hinder the market growth.
On the basis of temperature range, in 2018, (1⁰ C to 100⁰ C) range accounted the largest market share of 60% in terms of revenue, followed by (-49⁰ C to 0⁰ C) and (101⁰ C to 650⁰ C), respectively.
Rising shifting preferences for non-combustible materials in China especially for residential construction is expected to foster market growth. Implementation of fire safety rules in China is creating concern which is fueling the demand for non-combustible thermal insulation material such as stone wool thermal material. This is expected to stimulate the market growth of thermal insulating material in the near future.
Increasing investment by major players in order to expand the production capacity of thermal insulation materials is propelling market growth. For instance, in June 2017, Recticel announces that its Insulation division – a leading PIR insulation board manufacturer - plans to invest in a new Greenfield production site in Finland, in order to serve the growing demand for high-performance thermal insulation materials in the Nordic region (Finland, Norway, Sweden, Denmark, and the Baltic countries). The investment is expected to amount to about US$ 24.5 million.
Key players operating in the 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.
By Material Type
By Temperature Range