Insulation Market Projected to Reach $93.34 Billion by 2024
Regulation in the EU and U.S., increasing construction in Asia Pacific and the Middle East are driving growth
SAN FRANCISCO — The global insulation market is forecast to reach $93.34 billion by 2024, according to a new report by Grand View Research Inc. The rising importance of energy efficient buildings owing to escalating energy costs is expected to remain a key driving factor for the global insulation market.
Legislative initiatives such as new building codes by the European Union (EU), energy efficiency regulations by the U.S. Department of Energy, etc., are also seen as stimulating market growth. Increasing construction spending, particularly in Asia Pacific and the Middle East, is likewise expected to have a positive influence on market growth. The volatile prices of key raw materials are expected to challenge market profitability.
Foamed plastic was the leading product segment with demand share exceeding 45 percent in 2015. Favorable properties of the material, such as higher R-value (thermal resistance) and fire resistance are expected to propel foamed plastic demand over the forecast period. Increasing demand from construction, as well as the refrigeration industry, will have a considerable impact on market growth. This segment is expected to witness the highest growth — 8.9 percent — from 2016 to 2024.
Key findings include:
• Residential construction emerged as the leading application segment and accounted for 39.1 percent of total market revenue in 2015. Increasing construction spending in Asia Pacific, along with stringent regulations pertaining to the energy efficiency of households in North America and Europe, is expected to spur market growth.
• Nonresidential construction is expected to witness the highest growth of 9.1 percent over the forecast period. An increasing number of shopping malls and commercial complexes in Asia Pacific and the Middle East is expected to drive this segment.
• The Asia Pacific region led the global insulation industry with demand share estimated at 42.4 percent in 2015. Rapid industrialization along with construction growth due to rising income levels has spurred insulation products demand in this region. Asia Pacific is also expected to witness the highest growth of 9.4 percent over the forecast period. The North American and European insulation markets will mainly be triggered by the recent regulations supporting energy efficient buildings.
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Publication date: 7/5/2016