US Building Insulation Market 2024–2033

Reports Description

The CMI Team’s most recent market research predicts that from 2024 to 2033, the US Building Insulation Market will experience a CAGR of 7.53%. In 2024, the market size is projected to reach a valuation of USD 10.88 Billion. By 2033, the valuation is anticipated to reach USD 18.37 Billion.

Thermal insulation is a material or system designed to impede heat transfer between objects in thermal contact or within the range of radiative influence. It is an important feature of building design, ensuring that buildings maintain stable internal temperatures as far as possible, minimizing heat loss during winter and heat gains during summer.

Increased new residential projects directly enhance the demand for insulation materials. With the construction of more houses, the importance of thermal insulation is increasing to meet building codes and consumer expectations. It focuses on materials with superior thermal performance, such as fiberglass, spray foam, and rigid foam.

US Building Insulation Market – Significant Growth Factors

The US Building Insulation Market presents significant growth opportunities due to several factors:

• Growing Construction Industry: The growing construction sector, especially residential and commercial buildings, primarily drives the demand for building insulation across the country. The high need for insulation material against heat and sound to enhance the overall comfort of the house is driving the market growth.

• Energy Efficiency Demand: Building insulation enhances the overall energy efficiency of a building by saving heat and electricity. Proper insulation significantly reduces a building’s heating and cooling costs and saves the overall energy needed for a building.

• Growing Demand for Sustainable and Eco-Friendly Materials: Concerns over the sustainability environment have heightened customer demand for eco-friendly insulation materials. Establishing products made from recycled, renewable, or biodegradable materials is promoted in support of greener building practices.

• Development of Advanced Insulation Materials: New materials and technologies, including aerogel, VIPs, and PCMs, emerge, representing higher insulation performance and greater flexibility. Innovative solutions begin to draw attention from builders and homeowners alike.

US Building Insulation Market – Mergers and Acquisitions

The US Building Insulation Market has seen several mergers and acquisitions in recent years, with companies seeking to expand their market presence and leverage synergies to improve their product offerings and profitability. Some notable examples of mergers and acquisitions in the US Building Insulation Market include:

• In May 2023, Dow and New Energy Blue signed a long-term supply agreement in North America, aiming to create bio-based ethylene from renewable agricultural residues. Dow plans to purchase this ethylene, which will reduce plastic production emissions and be used in recyclable applications like transportation, footwear, and packaging. This is Dow’s first agreement in North America to use corn stover for plastic production.

• In September 2021, GAF, North America’s largest roofing and waterproofing manufacturer, agreed to acquire FT Synthetics, a British Columbia-based manufacturer of synthetic underlayment for steep slope roofing. The acquisition will enable GAF to invest in scaling operations, fuelling sustained growth, and ensuring quality products and exceptional customer service. FT Synthetics will continue to operate independently within GAF’s portfolio, with CEO Gary Sandhar remaining in senior leadership.

• In February 2020, Atlas Roofing Corporation acquired StarRFoam, a leading manufacturer of molded polystyrene solutions, bringing its expertise and manufacturing footprint to the company. The acquisition provides significant geographic expansion, aligns with Atlas’s portfolio, and strengthens its position as the largest manufacturer of moulded polystyrene in North America.

These mergers and acquisitions helped companies expand their product offerings, improve their market presence, and capitalize on growth opportunities in the US Building Insulation Market. The trend is expected to continue as companies seek a competitive edge.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

US Building Insulation Market – Significant Threats

The US Building Insulation Market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:

• High Initial Costs: Spray foam, aerogels, and VIPs are more advanced insulation materials that cost more than others, like fiberglass or cellulose. The high initial cost of buying and installing these materials is a disadvantage for homeowners or builders when working with limited budgets for a specific project.

• Fluctuations in Prices of Plastic Foam: Since plastic foam is technically a petrochemical by-product, its prices are sensitive to oil price fluctuations. A rise in the oil price raises the production cost for plastic foam, leading to an increase in the price of insulation products. This can deter builders and consumers from investing in insulation, particularly for budget-sensitive projects.

• Availability of Green Insulation Materials: The supply side restricts green insulation substitutes available in the market, such as cellulose and sheep’s wool. This may limit manufacturers’ production capacity and availability to builders and consumers searching for green insulation solutions.

Category-Wise Insights

By Type:

• Mineral Wool: Mineral wool is one of the most common insulation materials used in the building industry. It contains natural or recycled ingredients, such as stone, molten glass, or industrial waste, which are processed to create this valuable fibrous structure.

• Glass Wool: Glass wool is one of the most popular mineral wool insulation and possesses some of the finest thermal and sound properties. The product is made from recycled glass and, thus, extensively used in homes and commercial environments. The material possesses fire resistance, low density, and flexibility, so it is mostly preferred for wall, ceiling, and attic insulation. Air entrapped within its matrix of fibres reduces heat transfer by a significant amount; thus, highly energy efficient. As energy efficiency standards continue to advance, glass wool continues to be in demand due to ease of installment and lower cost.

• Stone Wool: Stone wool is also known as rock wool and is made from volcanic rock for natural origin. It is recognized as a friendly insulating product with advantages over its peers in fire resistance and sound-proofing. Durable and resistant to moisture, stone wool is applied to many applications in industrial, commercial, and residential buildings. The demand for stone wool increases because it can perform over time and helps maintain healthier air quality indoors. This is so since stone wool does not allow moisture to trigger mold and bacterial growth.

• Foamed Plastics: Foamed plastic is the most commonly used type of building insulation and is valued for its lightweight, energy-eficient characteristics. This category includes polyisocyanurate, expanded and extruded polystyrene, and polyurethane. All of these materials are crucial to modern building practice within the tight limits imposed on energy loss and act to optimize building performance.

• Expanded Polystyrene (EPS): This lightweight, rigid insulation material is characterized by good insulating properties and value. It is made of expanded beads of polystyrene, manufactured for residential and commercial buildings for wall and roof insulation and in below-grade construction. Its resistance to moisture and ease of installation have seen EPS emerge as one of the most popular materials within the construction industry. However, the environmental implications of being petroleum-based are prompting the industry to move toward more ‘eco-friendly’ alternatives.

• Extruded Polystyrene (XPS): Extruded Polystyrene (XPS) is similar to EPS but offers better thermal performance and superior moisture resistance because it has a closedcell structure. XPS, like below-grade insulation, foundation walls, and inverted roofs, is utilized wherever excellent compressive strength is desired. It is highly resistant to water absorption and can withstand tough environmental conditions. Energy-efficient building designs have mainly influenced the demand for XPS. Environmental and regulatory issues may influence the growth of its market, especially the restrictions on a few blowing agents.

• Polyurethane (PU): Polyurethane is an insulation material with high thermal resistance and the ability to adhere to various surfaces. It can be used in a spray foam application. PU has been the most popular insulation in residential, commercial, and industrial applications, with superior energy efficiency and excellent air sealing for years. Demand for PU insulation is driven by its lightweight nature, high R-values, gap-filling, and irregular space-fill efficacy.

• Polyisocyanurate (PIR): Polyisocyanurate is a rigid foam insulation that provides higher thermal resistance than traditional polyurethane foam. It is used in roofing, wall, and ceiling applications. PIR insulation boards are very light and easy to handle. Its efficiency in reducing energy consumption spurs its use to help meet stringent building regulations, though cost considerations may reduce its use in budget-sensitive projects.

• Others: This encompasses the other forms of foamed plastics, with uses, particularly for insulations, such as phenolic and melamine foam. These materials have distinct characteristics, such as flame retardance and low smoke production, that can be appropriate for niche applications. The growth drivers for this segment are niche applications of high-performance insulation within industries that can provide similar opportunities for those high performance insulation applications.

• Fiberglass is the most common type of insulation in the US, and it is the cheapest and easiest option. It provides maximum R-values and greatly assists in building energy efficiency. It is one of the most installed insulation types in new construction and retrofitting projects.

• Cellulose: Cellulose insulation has recently become the most promising ‘green’ option for builders and homeowners who are ecologically conscious and budget-oriented. A by-product mainly from post-consumer paper products, it boasts an eco-friendly status while offering efficient energy-saving capabilities, thus becoming one of the favorite choices among US environmentally aware builders and homeowners.

• Aerogels: Aerogels possess superior thermal insulation properties and have recently been used extensively for high-performance building applications. They are more expensive than many other insulating materials. Still, their lightweight nature and extraordinary capacity to act as an insulator make aerogels ideal products for specialized projects requiring maximum energy efficiency.

• Others: The others category includes the insulation types foam board, spray foam, and reflective insulation. They are applied mainly according to certain application requirements, such as higher resistance against moisture or to facilitate easier installation and fulfill specific niches in the US building insulation marketplace.

By Application

• Floor Basement: Insulation of floors and basements ensures better energy efficiency by reducing heat loss and preventing moisture buildup. The demand for advanced solutions to improve insulation at the level of thermal comfort and air quality in US basements is growing in volume. The rising trend of home improvement projects and living space conversions, particularly basements becoming spaces like home offices or entertainment rooms, further fuels this.

• Wall: Wall insulation is one of the most critical parameters for providing indoor comfort and lesser energy bills. It is one of the most essential segments in the US Building Insulation Market, mainly driven by stringent energy efficiency regulations and the growing trend towards green buildings. The reasons for adopting wall insulation are large heat transfer reduction, enhancing acoustic performance, and contributing to sustainability objectives, thus ensuring utmost attention in its implementation in new and retrofitting works.

• Roof and Ceiling Insulation: Roof and ceiling insulation plays a crucial role in minimizing heat gain and loss, thus ensuring energy efficiency and occupant comfort. In such extreme climatic conditions, high demand is experienced in the US market for roof and ceiling insulation, as controlling a stable indoor temperature is critical. Improved materials and technology have led to more effective solutions, which include reflective and radiant barrier insulations, gradually being adopted in residential and commercial buildings to achieve energy savings.

By End Users

• Residential: As energy costs and awareness of energy efficiency rise, the residential sector is a significant driver of the US building insulation market. Homeowners prioritize insulation to enhance comfort and reduce utility bills, supported by government incentives and building codes promoting sustainable practices.

• Non-Residential: The demand for energy compliance and adherence to sustainability standards like LEED certification emphasizes energy efficiency and environmental stewardship. Maintaining indoor comfort while lowering operational expenses is thus of significance in commercial buildings like offices, retail, and hotels.

• Industrial: Insulation solutions for the industrial segment must be quite niche, particularly for heat loss and safety measures. As a growing number of industrial units come up in the US, the latest insulation materials, such as mineral wool and foam glass, are being applied to enhance the energy efficiency of buildings and comply with strict regulatory norms. Indirect advantages through process temperature control, lesser energy intake, and reduction in greenhouse gas help boost growth in this segment.

• Commercial: The commercial segment involves office, retail, and hospitality buildings. Insulation of commercial buildings is crucial in ensuring that the inside air is clean and comfortable while lowering operational costs. The rise in green buildings and the need for LEED certification has expanded the demand for energy-efficient insulation with adherence to energy codes and standards across the US. Technologies in this category are innovations in commercial space through aerogels and other phase-change materials related to insulation.

• Others: Many applications, like agriculture, healthcare, and education institutions. In all those fields, insulation serves other purposes, such as improving the inner climate in agricultural buildings, providing patient comfort in healthcare facilities, etc. Each class has specific requirements for that certain class, dictating how special solutions need to address areas like moisture, soundproofing, and temperature regulation.

Report Scope

Competitive Landscape – US Building Insulation Market

The US Building Insulation Market is highly competitive, with many manufacturers and retailers operating across the US. Some of the key players in the market include:

• ACH Foam Technologies
• Addison Building Materials
• Aspen Aerogels Inc.
• Atlas Roofing Company
• Cellofoam North America Inc.
• Dow Inc.
• Bay Insulation Systems
• Firestone Building Products
• GAF Inc.
• Huntsman Corporation
• Johns Manville
• Kingspan Group
• Knauf Insulation
• Ownes Corning
• Rockwool Group
• Others

These companies operate in the market through various strategies such as product innovation, mergers and acquisitions, and partnerships.

New players entering the US Building Insulation Market are adopting innovation and development to differentiate themselves and gain traction. These players often focus on sustainable product development, advanced technology integration, and focusing on energy efficiency. Many new entrants focus on eco-friendly insulation materials to meet the growing demand for sustainable building practices.

This includes developing insulation products from recycled materials or natural fibers, such as cellulose and sheep’s wool. Investing in R&D enables new market players to innovate continuously and improve their product offerings. This includes developing new insulation materials with enhanced properties, such as improved fire resistance, moisture control, and soundproofing capabilities, which are essential in meeting the evolving needs of the construction industry.

The US Building Insulation Market is segmented as follows:

By Type

• Mineral Wool
  • Glass Wool
  • Stone Wool
• Foamed Plastics
  • Expanded Polystyrene (EPS)
  • Extruded Polystyrene (XPS)
  • Polyurethane (PU)
  • Polyisocyanurate (PIR)
  • Other
• Fiberglass
• Cellulose
• Aerogels
• Others

By Application

• Floor Basement
• Wall
• Roof Ceiling

By End User

• Residential
• Non-Residential
  • Industrial
  • Commercial
  • Others