Building Insulation Materials Market: Industry Analysis and Forecast (2024-2030) Trends, Statistics, Dynamics and Segmentation

Building Insulation Materials Market Definition/ Overview

Building Insulation materials are used in the construction industry to prevent heat, electricity, or sound from passing through electrical appliances and building materials. The insulation materials market is essentially classified in three broad categories, including thermal insulation, electrical insulation, and heat insulation. The proper installation of high-quality insulation materials is the key to a successful insulation system. Insulation is an important technology for reducing energy usage and preventing heat gain/loss in buildings. It acts as a heat barrier and is necessary for keeping homes warm in the winter and cool in the summer. The appropriate level and type of insulation are influenced by the weather. The thermal conductivity of insulating materials is typically less than 0.1 W/mK. Insulation materials include polyurethane foam, mineral wool, polyethylene, polyvinyl chloride, expanded polystyrene, and extruded polystyrene. These materials exist solely to save energy while also protecting and providing comfort to occupants.

 

A structure serves as an environmental divider. It divides the inside from the outside. Residential insulation is a critical technique for lowering energy consumption in homes by limiting heat absorption and loss via the building envelope. Insulation materials used in residential construction include polyurethane foam and extruded polystyrene. Increased demand for thermal insulators in residential, non-residential, and industrial buildings has resulted from rising global temperatures and significant climatic changes over the last few decades, in order to save energy and provide comfort for inhabitants.

 

 

 

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Building Insulation Materials Market Dynamics

Government housing policies – The expansion of the building insulation materials market is dependent on favourable government policies and assistance. Over the projected period, rising urbanisation and a shift toward developing private-partnership projects could propel the building insulation materials market to significant growth. Improved thermal and soundproof capabilities in building insulation materials as a result of technical advancements could be a significant growth driver. Various slum rehabilitation and housing projects implemented by governments across the globe may provide significant potential prospects for the building insulation materials industry. One of the best examples is the Indian government's Pradhan Mantri Awas Yojana, which was established in 2015. This is one of the major factors driving the Building Insulation Materials Market.

 

Green Buildings - Throughout the life cycle of a building, including siting, designing, construction, operation, maintenance, renovation, and deconstruction, green buildings involve the practise of creating structures and using processes that are environmentally friendly and resource efficient. Green building development is on the rise around the world as a result of fluctuating and high energy prices, worries about environmental effect, and tenant health and comfort. Green building rating systems, such as the Building Research Establishment Environment Assessment Methodology (BREEAM) in the United Kingdom and Leadership in Energy and Environmental Design (LEED) in the United States and Canada, among other countries, are also contributing to the rise in green building construction. As a result, a rise in green building projects is predicted to boost demand for building insulation material around the world and hence, being a great driver for building insulation material market. 

 

Environment issues and recyclable insulation materials – Over the projection period, the environmental impact of insulating materials is projected to shift the industry's focus to the development of environmentally friendly solutions. Furthermore, rising plastic foam prices are likely to stifle industry expansion, leading to the development of alternative goods. Due to the strict laws governing traditional goods such as plastic foams, recyclable insulation is gaining favour. Homeowners, architects, and businesses are increasingly preferring green, biodegradable, and recyclable items as a result of growing environmental awareness, which is likely to drive the building insulation material market throughout the forecast period.

 

High Cost of green insulation materials – The development of flexible and high availability of green and eco-friendly materials are the challenges that the Buildings Thermal Insulation Market faces. The high availability is linked to quality issues and cost implications, which will limit the market's potential to grow in line with forecasts for the forecast period, which ends in 2028. In addition, the market is hampered by a lack of awareness among the target population, which is dispersed around the globe, as well as rising demand for high-energy modules, which is preventing the market from expanding over the forecast period.

 

Health concerns regarding adoption of some insulation products - The health risks associated with the use of a few insulation materials are a major impediment to the growth of the Building Insulation Materials Market. When utilised throughout the laying process, glass wool, for example, might irritate the eyes and respiratory system. Carcinogen expanded and extruded polystyrenes have been prohibited during the manufacturing process due to styrene emissions. The health hazards associated with these insulating solutions, as well as the strict rules that govern their use, may limit their adoption, making market expansion difficult.

 

COVID-19 Impact on the Building Insulation Materials Market

Many building insulation materials production enterprises have shut down as a result of COVID-19's lockdown restrictions and cross-border import/export prohibitions, pending additional instructions from government authorities. Globally, there has been a substantial shortage of housing to meet demand. This provided a significant opportunity for investors and developers to use novel building technology and collaborations to speed up development. However, production at certain industrial companies' operations eventually resumed, which is a good omen. Residential construction is increasing in response to rising global population, but it still hinders the growth of Building Insulation Materials Market as new companies needs to open and this require huge initial investment.

 

Building Insulation Materials Market Segment Analysis

By Product, the Building Insulation Materials Market is segmented as Expanded Polystyrene (EPS), Extruded Polystyrene (XPS), Mineral Wool, Others. Expanded Polystyrene dominates the Building Insulation Materials Market with the market share of 49.6% in 2023 because of its outstanding thermal insulating qualities and long service life Increased demand for the product due to its non-toxic, rot-proof, and recyclable features is also predicted to drive growth. Extruded Polystyrene has the market share of 30.5% in 2023 because of its ability to decrease moisture-related damages, its water resistance, and its ability to save energy Furthermore, its ability to prevent microbial or fungal growth in the insulated area is predicted to aid growth. Mineral wool has the market the market share of 12.3 % in 2023 due to outstanding product qualities such as fire safety, efficient heat barrier, ecological compatibility, and dimensional stability, the market is expected to develop significantly throughout the forecast period. Mineral wool's rise is predicted to be driven by its increasing use in thermal barrier applications over the projection period. Other materials such as aerogel has the market share of 9.6% in 2023 as a result of the growing product penetration in North America Growth is also expected to be fuelled by a growing preference for building thermal insulation over foamed plastic insulation.

 

 

By Application, the Building Insulation Materials Market is segmented as Roof, Wall, and Floor. Wall dominates the Building Insulation Materials Market with the market share of 42% in 2023 and is expected to grow at CAGR of 4.9% owing to the increasing use of the product on both external and interior walls Increased product penetration for cavity wall insulation is also projected to boost industry growth. Roof has the market share of 35% in 2023 because of the growing need to keep direct sunrays from penetrating the roof. In addition, over the projection period, an increase in the number of single-family homes is expected to support market growth. Floor has the market share of 23% in 2023 as a result of increased desire to lower the energy costs of HVAC applications Basement, garage, cantilever, and crawl space floors all benefit from thermal insulation. Market expansion is likely to be fuelled by increased product penetration for floor insulation in extremely cold locations.

 

Building Insulation Materials Market Regional Insights

Europe dominates the Building Insulation Materials Market with the market share of 35.6% due to Initiatives by the European Commission and the Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) to encourage thermal insulation as a measure of energy conservation are likely to help the region expand. North America has the market share of 28.4% in 2023. The growth is likely to be driven by booming residential and commercial construction activity in North America, as well as the introduction of strict green building rules to reduce energy consumption per structure. Additionally, favourable government regulations for the use of the product in both residential and commercial structures are expected to boost growth during the forecast period. Asia Pacific has the market share of 24% in 2023 as a result of increased construction activity in the region to meet the needs of a growing population Due to several government attempts to develop its public infrastructure; China is expected to account for the highest share in the area. Middle East and Africa has the market share of 8% followed by South America with the market share of 4% in 2023. South America's political and economic turmoil is projected to stifle regional market growth. However, the government's attempts to develop the economy are expected to boost growth in the near future.  

 

In the report, Porter’s Five Forces model is used which gives us help to design the business strategies in the market. It tells us about our competition and the buyers which are the 2 most influencing factors for our company. It tells that how buyers are will or will not gain more bargaining powers than the suppliers and also the difficulty level for another company to enter the industry or for a company to exit it.

 

The report also has PESTEL analysis, which gives an overview of the whole business and its strategies. Political angles help in analysing the role of govt. in the shaving industry and economics obviously influence it to the core. Social and Environmental analysis helps in understanding the future of the company and hance helps in making decisions for the future. Technological factors help in analysing the production aids that we can give to the company. And legal analysis helps in smooth functioning without any legal hindrance.

 

 

Building Insulation Materials Market Scope

Building Insulation Materials Market
Market Size in 2023	USD 32.82 Bn.
Market Size in 2030	USD 41.93 Bn
CAGR (2024-2030)	3.56%
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segment Scope	by Product   Expanded Polystyrene (EPS) Extruded Polystyrene (XPS) Mineral Wool Others
	by Application Floor Roof Wall
Regional Scope	North America- United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

 

Building Insulation Materials Market Key Players

• Johns Manville Corporation (US)
• Saint-Gobain S.A. (France)
• BASF SE (Germany)
• Kingspan Group plc (Ireland)
• Knauf Insulation, Inc. (US)
• Owens Corning (US)
• Huntsman Corporation (US)
• Rockwool International A/S (Denmark)
• Firestone Building Products Company (US)
• Cabot Corporation (US)
• Dow Corning Corporation (US)
• Covestro AG (Germany)
• URSA Insulation
• S.A. (Spain)
• Paroc Group Oy (Finland)
• Atlas Roofing Corporation (US)