SAN FRANCISCO — The global market for insulation is expected to reach $67.16 billion by 2020, according to a new study by Grand View Research. Expansion in building energy efficient homes especially in the Asia Pacific and Latin American countries coupled with growth in the global construction market is expected to remain a key driving force for the market over the forecast period. However, the volatile pricing nature of key raw materials is expected to hamper market growth over the next six years.
Fiberglass has emerged as the leading product segment and accounted for 43.9 percent of total market revenue in 2013. Fiberglass along with being the largest segment is also expected to be the fastest growing insulation product at an estimated compound annual growth rate (CAGR) of 9.1 percent from 2014 to 2020. Fiberglass was closely followed by foamed plastic, with market revenue estimated to reach $26.96 billion by 2020.
Other key findings are:
• Applications in residential construction emerged as the most dominant segment and accounted for over 50 percent of total market revenue in 2013. In addition to being the largest application, residential construction is also expected to be the fastest growing application segment, at an estimated CAGR of 10 percent from 2014 to 2020. Global demand for insulation products in nonresidential applications is expected to exceed $16 billion by 2020, growing at an estimated CAGR of 7.9 percent from 2014 to 2020.
• Asia Pacific emerged as the leading regional market for insulation and accounted for 41.8 percent of total revenue in 2013. It is expected to be the fastest growing regional market for insulation at an estimated CAGR of 9.4 percent from 2014 to 2020.
• North America and Europe, on the other hand, are fairly mature markets for insulation and are expected to grow below global industry growth rates over the forecast period. The North American market for insulation is expected to exceed $13 billion by 2020 at an estimated CAGR of 8.1 percent from 2014 to 2020.
An executive summary of the report, “Insulation Market By Product (Fiberglass, Foamed Plastic, Mineral Wool), By Application (Residential Buildings, Non-Residential Buildings, Industrial, HVAC & OEM) And Segment Forecasts To 2020,” is available here.
Publication date: 7/14/2014