PUNE, India — The global HVAC insulation market is forecast to grow from $3.30 billion in 2015 to $5.29 billion by 2021, increasing at a compound annual growth rate (CAGR) of 8.20 percent, according to a new report published by MarketsandMarkets.
The market is being driven by the rising growth of the construction industry coupled with increasing demand for HVAC systems in developed and developing countries. The Middle East & Africa region is estimated to witness high growth during the forecast period of 2016 to 2021, whereas North America, Western Europe, and Asia-Pacific are expected to grow at a steady pace. The demand in the Middle East & Africa region is strengthened by the emerging markets, namely, the United Arab Emirates (UAE) and Saudi Arabia.
Asia-Pacific is currently the largest market for HVAC insulation. Significant growth in the building and construction industry of China, India, and Indonesia are driving the demand of HVAC insulation in this region. Moreover, growing awareness of the need to reduce energy consumption in buildings and imposition of stringent regulations to enhance energy efficiency of buildings in major countries such as Australia, Japan, and China are bolstering the market.
HVAC insulation is used in various sectors in the building and construction industry such as residential, commercial, and industrial buildings. The commercial building industry segment accounted for the largest market share, in terms of value, in 2015. As commercial buildings are larger than residential buildings, the HVAC systems installed in commercial buildings are likewise larger. Larger systems consume more insulation and consequently it incurs higher cost. The residential building industry is estimated to grow at the highest CAGR between 2016 and 2021, in terms of value, among all the applications considered in the report. Population growth and increasing urbanization are leading to residential building development, driving the demand for HVAC insulation in the residential buildings segment.
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Publication date: 7/12/2016