ALBANY, N.Y. — The global market for insulation was valued at $32.5 billion in 2011, and is expected to grow at a compound annual growth rate (CAGR) of 8.3 percent from 2012 to 2018, according to a report from Transparency Market Research. The demand for insulation is expected to be driven by the growth of the construction industry in the developing countries of Asia Pacific and the growth of the re-insulation market in the United States and Europe.

A growing need to conserve energy has resulted in increasing demand for insulation in homes and offices. Demand for insulation in factories is also expected to increase. However, volatile raw material prices and environmental concerns regarding the use of insulation act as deterrents to this market, and the foamed plastic insulation industry in particular is exposed to these challenges.

New environmentally friendly alternatives, such as cotton wool insulation and aerogel insulation, have been conceptualized and are in the process of gradual commercialization.