Global Building Insulation Market 2024–2033

Reports Description

Global Building Insulation Market was valued at USD 28.90 Billion in 2023 and is expected to reach USD 31.2 Billion by 2032, at a CAGR of 3.8% during the forecast period 2023 – 2032.

Building insulation refers to the material or combination of materials used to reduce the transfer of heat between the interior and exterior of a building. The primary purpose of insulation is to improve energy efficiency by minimizing the loss of heat.

Insulation helps maintain a comfortable indoor temperature, reducing the need for excessive heating or cooling, and thereby lowering energy consumption. Common insulation materials include fiberglass, foam boards, cellulose, and reflective foils.

Insulation is typically installed in walls, roofs, floors, and other structural components of buildings to create a thermal barrier, preventing the escape of heat in cold weather and the entry of heat in warm weather.

Building Insulation Market – Significant Growth Factors

The growing building and construction industry drives market growth

The demand for building thermal insulation has increased as the building and the construction sector have grown. Thermal insulation systems in buildings keep indoor temperatures consistent by minimizing heat transmission between adjacent environments.

Furthermore, they cut carbon emissions by reducing heat transfer to the outside environment and requiring less energy to maintain temperature. It has excellent properties for building structures, including fire and impact resistance.

Thermal insulation materials are required in the architecture and construction industry due to their great energy efficiency. Furthermore, rising industrialization encourages the installation of thermal insulation systems in commercial buildings to save energy, which is expected to fuel market growth.

For instance, according to the US Census Bureau and the US Department of Housing and Urban Development, 1,295,000 housing constructions were completed. In addition, building permits are scheduled to authorize 1,724,700 housing projects in 2021.

This is 17.2% (0.6%) greater than the 2020 figure of 1,471,100. Building thermal insulation market growth is expected to be aided by rising construction projects. In addition, rising energy prices are being driven mostly by rising demand for building thermal insulation materials in both residential and commercial applications. Inefficient energy consumption has two costs.

Significant energy usage may cost the consumer a lot of money due to recent price rises. Natural resources are also depleted as a result. As a result, consumers, particularly those who live in urban areas, make an effort to insulate their homes.

Creating low-energy insulating goods like foamed plastics represents a massive commercial opportunity. Some of these products can recover insulation expenditures in as little as 12 months through energy savings. Furthermore, according to the Indian Green Building Council, good building insulation saves money while also helping the environment.

It not only reduces monthly energy costs but also enhances overall comfort. Insulation maintains a pleasant temperature by reducing heat loss and leakage.

New product launches to flourish the market

Continuous improvements are being made to enhance the effectiveness of the green building solutions and hence, building insulation systems to maximize savings on energy expenses and reduce the carbon footprint.

For instance, organizations such as Leadership in Energy and Environmental Design (LEED), the US Environment Protection Agency (EPA), and Building Research Establishment Environmental Assessment Method (BREEAM) are setting up stringent rules and regulations to accommodate the building insulation systems in all new constructions to make the buildings more sustainable which in turn is anticipated to drive the growth of the market in the upcoming years.

In March 2022, BASF expanded its graphitic expandable polystyrene (EPS) granulate portfolio. BASF launched Neopor F5 McycledTM, which contains 10% recycled material and is suitable for numerous building applications, particularly facade insulation.

The North American region currently holds the larger share of the market due to its widespread construction and building market. However, the APAC region is advancing at a rapid rate due to the development of infrastructure for the residential segment, owing to urbanization as well as a non-residential segment, due to industrialization.

The large-scale investments directed towards the development of infrastructure by governments in the Asia-Pacific nations are expected to attract innovations and progress for the building insulation materials market.

Building Insulation Market – Restraints

High cost of green insulation materials and health risks associated with usage of building 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.

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 instance, 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.

Stringent rules for approval of Building Insulation

Stringent rules for the approval of building insulation often involve regulatory measures set by government authorities to ensure the safety, quality, and compliance of Building Insulation products. These regulations are typically in place to protect consumer health, promote fair trade practices, and maintain product consistency. Some of the common aspects covered by stringent rules may include:

• Fire Safety Standards: Building insulation materials must meet specific fire safety regulations to prevent or minimize the risk of fire. This involves assessing the flammability and smoke generation characteristics of the insulation.

• Thermal Performance: Insulation materials are evaluated based on their thermal resistance (R-value) to ensure they meet or exceed minimum requirements for energy efficiency. Higher R-values indicate better insulation performance.

• Energy Codes and Standards: Compliance with energy codes and standards is often a crucial aspect. Regulations may specify the acceptable levels of energy efficiency based on the location, climate, and type of building.

• Testing and Certification: Many regions require insulation materials to undergo testing by accredited laboratories and obtain certifications to verify that they meet specific standards and regulations.

Building Insulation Market – Market Opportunities

Rising energy efficiency regulations

The escalating demand for building insulation materials due to the stringent energy efficiency regulations is contributing to the growth of the market. In line with this, governing agencies of various countries are implementing stringent regulations to combat climate change. These regulations often mandate specific insulation requirements to reduce heat loss and improve energy efficiency in buildings.

Moreover, these regulations not only create a need for insulation materials but also incentivize builders and property owners to invest in enhanced insulation to meet compliance. As a result, manufacturers of insulation materials are focusing on developing products that meet industry standards and compliance.

Apart from this, the increasing focus on improved insulation and reduced energy consumption is supporting the market growth. Furthermore, builders and contractors are adhering to building codes and energy efficiency standards while selecting and installing insulation materials.

Besides this, regulations encourage the use of innovative insulation technologies, such as spray foam, rigid foam, or advanced fiberglass insulation, that offer superior thermal performance.

Building Insulation Market – Segmentation Analysis

Building Insulation market is segmented by type, application, end-user and region.  Based on type, the market is classified into fiberglass, mineral wool, cellulose, polyurethane, polystyrene, and others. Fiberglass dominated the market in 2022 with a market share of 35% and is expected to keep its dominance during the forecast period 2024-2032.

Fiberglass significantly drives the building insulation market due to its exceptional thermal insulating properties, lightweight nature, and cost-effectiveness. Widely used in residential and commercial construction, fiberglass insulation efficiently minimizes heat transfer, reducing energy consumption for heating and cooling.

Its flexibility allows easy installation in various building components. Moreover, fiberglass is non-combustible, contributing to fire safety compliance. As a versatile and efficient insulation material, fiberglass meets stringent building codes and standards, making it a popular choice that drives market growth by providing an effective and economical solution for enhancing energy efficiency in buildings.

Based on application, the market is classified into floor basement, wall, and roof ceiling. Wall dominated the market in 2022 with a market share of 40% and is expected to keep its dominance during the forecast period 2024-2032.

The wall segment in the building insulation market is driven by diverse applications that enhance energy efficiency and comfort. Increasing demand for insulation in residential, commercial, and industrial walls arises from a focus on reducing energy consumption.

Stringent building codes and a growing awareness of sustainability further boost this trend. Insulating walls help regulate indoor temperatures, reducing the reliance on heating and cooling systems.

As a result, the market experiences growth due to the widespread adoption of insulation materials to meet the demands for thermal performance, thereby contributing to overall energy savings and environmental sustainability in diverse building applications.

Based on end users, the market is classified into residential and non-residential. The residential segment dominated the market in 2022 with a market share of 60% and is expected to keep its dominance during the forecast period 2024-2032.

The residential segment propels the building insulation market as homeowners increasingly prioritize energy efficiency and comfort. Stringent building codes and a growing awareness of sustainability drive demand for insulation to enhance thermal performance.

Homeowners seek insulation solutions to reduce energy consumption, lower utility costs, and create a more comfortable living environment. Rising concerns about climate change further amplify the importance of energy-efficient homes.

Consequently, the residential sector’s demand for building insulation materials has experienced substantial growth, fuelled by a combination of environmental consciousness, regulatory pressure, and the desire for cost-effective energy solutions.

Report Scope

Building Insulation Market – Regional Insight

By region, Building Insulation market is segmented into North America, Europe, Asia-Pacific and LAMEA. The Asia-Pacific dominated the global market in 2022 with a market share of 40% in 2022 and is expected to keep its dominance during the forecast period 2024-2032.

The Asia-Pacific segment propels the building insulation market due to a confluence of factors. Rapid urbanization, increased construction activities, and a growing awareness of energy efficiency drive the demand for insulation materials in the region.

Government initiatives promoting sustainable building practices and stringent energy efficiency regulations further boost the market. With a rising focus on creating environmentally responsible structures and a surge in construction projects across countries like China and India, the Asia-Pacific region plays a pivotal role in the increased adoption of building insulation solutions, contributing significantly to market growth.

Building Insulation Market Competitive Landscape

• Johns Manville Corporation (US) Owens Corning
• Saint-Gobain
• BASF SE
• Rockwool International A/S
• Kingspan Group
• Knauf Insulation
• Johns Manville
• GAF Materials Corporation
• DowDuPont Inc.
• Fletcher Building Limited
• Recticel Insulation
• URSA Insulation
• Armacell International S.A.
• Beijing New Building Material (Group) Co. Ltd. (BNBM)
• Superglass Holdings PLC
• Huntsman Corporation
• L’Isolante K-Flex
• Paroc Group
• Xtratherm Limited
• Atlas Roofing Corporation
• Others

These key players are adopting various growth strategies such as mergers & acquisitions, joint ventures, expansion, strategic alliances, new product launches, etc. to enhance their business operations and revenues.

Building Insulation Market Segmentation-

By Type

• Fiberglass
• Mineral Wool
• Cellulose
• Polyurethane
• Polystyrene
• Others

By Application

• Floor Basement
• Wall
• Roof Ceiling

By End User

• Residential
• Non-Residential

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America