Building Thermal Insulation Market (By Material: Foamed Plastic, Aerogels, Cellulose, Other Materials; By Product: Glass Wool, Mineral Wool, Expanded Polystyrene, Extruded Polystyrene, Other Products; By Application: Roof Insulation, Wall Insulation, Floor Insulation; By End-User: Residential, Commercial) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032


The global building thermal insulation market size was accounted for USD 29.75 billion in 2022 and it is expected to hit around USD 48.69 billion by 2032 and it is poised to grow at a CAGR of 5.1% over the forecast period 2023 and 2032. U.S. building thermal insulation market size was valued at USD 9.6 billion in 2022.

Building Thermal Insulation Market Size 2023 To 2032

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Key Takeaways:

  • Europe region captured more than 32% of revenue share in 2022.
  • By material, the foamed plastic segment held the maximum market share in 2022.
  • By product, the expanded polystyrene segment is expected to maintain the biggest share between 2023 and 2032.
  • By product, the mineral wool segment is predicted to grow at a remarkable CAGR from 2023 to 2032.
  • By application, the wall insulation segment is predicted to expand rapidly between 2023 and 2032.
  • By end-user, the residential segment is predicted to grow at the fastest CAGR between 2023 and 2032.
  • By end-user, the commercial construction segment generated more than 51% of total revenue in 2022.

Building Thermal Insulation Market Overview:

Thermal insulation in buildings inhibits heat from traveling from one compound to another as they come into thermal contact. Insulation thermal conductivity is measured and achieved by utilizing low thermally conductive substances.

The market's expansion can be caused by the growing use of building thermal insulators to achieve better heat/cold protection. They are widely used in areas with harsh weather for insulating buildings with either heating or cooling systems, as this saves both energy and money. Thermal insulators maintain the temperature inside the building and also save energy on electric heaters. Furthermore, they inhibit extreme cold or heat waves from penetrating the building.

The increasing use of cooling and heating systems in houses is expected to drive market growth. Furthermore, rising energy preservation awareness is projected to fuel market expansion. Global temperature increases, as well as climate change due to different human activities, are also expected to boost the market growth.

Building Thermal Insulation Market Scope:

Report Coverage Details
Market Size in 2023 USD 31.12 Billion
Market Size by 2032 USD 48.69 Billion
Growth Rate from 2023 to 2032 CAGR of 5.1%
Largest Market Europe
Base Year 2022
Forecast Period 2023 to 2032
Segments Covered By Material, By Product, By Application and By End-User
Regions Covered North America, Europe, Asia-Pacific, Latin America and Middle East & Africa


Building Thermal Insulation Market Dynamics:

Driver

Rising development of green buildings.

The increased development of green buildings is expected to drive the growth of the building thermal insulation industry over the coming years. Green building reduces or eliminates adverse impacts on the climate as well as the natural environment throughout design, construction, and operation. Green structures do not deplete natural resources and improve living standards.

Thermal insulation is utilized in the development of green buildings to produce more energy efficiency and to maintain them cool naturally. For example, as per Times Property, an India-based property purchases, and sale platform, in 2020, the development of green buildings rose in India. Furthermore, according to CBRE, a commercial real estate firm based in the United States, India's total amount of green assets has expanded to nearly 40%.

Furthermore, as stated by the singapore green building council, 49% of singapore's buildings will be green by 2021, and this is expected to rise to 80% by 2030. As a result, the growth of constructing thermal insulation is being fueled by a rise in the development of green buildings.

The adoption of energy certification organizations such as the US Green Building Council (USGBC), as well as Leadership in Energy and Environmental Design (LEED), as well as favorable building codes in the United States and Canada, are projected to increase the need for building thermal insulation.

Increasing global warming as well as climate changes

Air pollution is the primary cause of global warming, which is defined as the occurrence of rising temperatures on the earth's surface as a result of dangerous pollutants generated into our atmosphere as a result of uncontrolled energy use. The significance of improving building energy efficiency for decreasing greenhouse gas emissions, energy consumption, and costs has been widely recognized in Europe, and EU-level obligations for new building energy efficiency demands have been imposed.

Restraints

Existence of alternative material

Plastic foams as well as recyclable insulation, have been gaining popularity due to strict government laws regulating materials and programs. Rising demand for renewable, biodegradable, and recyclable goods in the commercial and residential industries, as a result of a greater focus on ecological sustainability, is projected to raise the risk of alternatives in the industry over the predicted period.

Due to their poor biodegradability and carcinogenic effects, the US Environmental Protection Agency (EPA) imposed stringent rules on the use of foamed plastics, potentially impeding market growth. Moreover, rising plastic foam expenses are anticipated to restrict market expansion, encouraging the development of alternative materials.

Opportunity

Technological advancement

Technological progress is a crucial trend that is gaining traction in the building thermal insulation industry. Large businesses functioning in the building thermal insulation industry are concentrated on developing novel technologies to achieve a competitive edge. For example, in March 2022, ACC Ltd. introduced the ACC Atrium, a better thermal temperature control concrete system produced using based insulating technology. This unique technology insulates the ceiling while it is being built.

With its thermal insulation, the component is appropriate for both residential and commercial buildings and is sustainable and fire-resistant. The market is also anticipated to increase due to rising usage in spacecraft, aircraft, marine vessels, railcars, and other sectors.

Impact of COVID-19:

The COVID-19 pandemic significantly hindered the sales and production of thermal insulation products. Restrictions enacted on the automotive and construction sectors had a substantial impact on the industry. The halt in the supply of raw materials also impacted the manufacturing of thermal insulating products.

Due to the lockdown, transportation services were stopped, and this impacted sales of products across various regions. On the other hand, the need for infrastructure especially linked with the healthcare division has aided in diminishing some losses. The development of hospitals with proper insulation properties grew after COVID-19, which led to a rise in the development of the building thermal insulation industry.

Material Insights:

The plastic foam sector held the largest market share in 2022 and is projected to maintain its place throughout the forecast period. Because of its rising use in exterior facade insulation, exterior wall insulation, sandwich panel insulation, and cavity wall insulation, plastic foam is projected to rule the market over the coming years.

Plastic foam's higher compressive strength and energy efficiency, particularly EPS foam, are expected to drive its requirement in building thermal insulation. Versatility, greater thermal resistance (R-Value), strength, and lifespan are key characteristics driving the segment's dominant position in the worldwide market.

Product Insights:

The expanded polystyrene sector is anticipated to maintain the largest share between 2023 and 2032. This is because of its long life and excellent thermal insulating materials capabilities. Furthermore, increasing consumer interest in the product due to its rot-proof, recyclable, and non-toxic properties is anticipated to drive growth due to its water resistance, capacity to save energy, and ability to minimize moisture-related damage. Furthermore, growth is anticipated to be assisted by its ability to prevent fungal or microbial development in the insulated area.

The mineral wool sector is anticipated to grow at a significant CAGR from 2023 to 2032. The growth is owing to the unique qualities of the product, such as an efficient heat barrier, environmental compatibility, dimensional stability, and fire safety. Volcanic rocks produce mineral wool like diabase, basalt, and dolomite that are generated in abundance. The increasing need for mineral wool in applications as a thermal barrier is anticipated to propel its growth during the predicted period.

Application Insights:

During the projected period 2023-2032, the wall insulation sector is projected to expand rapidly. This is due to an increase in the use of the product on the interior as well as exterior walls. Insulated walls and roofs form a shielded envelope that prevents heat transfer from the outside environment via convection, conduction, and radiation. Mineral and XPS are the two primary materials used for the insulation of external walls because of their low cost, high durability, and ease of installation. Furthermore, higher product permeation for cavity wall insulation is anticipated to encourage market growth.

Floor insulation is anticipated to witness remarkable growth over the projected period due to increasing demand to lower the energy expenses of HVAC functions. Thermal insulation is used in flooring, such as for garages, crawl spaces, cantilevers, and basements. Rising product demand for floor insulation in cold regions is anticipated to propel the growth of the building thermal insulation market.

End-User Insights:

The residential sector is expected to expand at the fastest pace over the projection period, attributed to the consistent growth of single-family housing, as well as increased refurbishment as well as re-insulation operations of existing and older homes. Moreover, a rise in multi-family residential development activities is expected to support future requirements for building thermal materials.

The increasing significance of energy preservation in public buildings as a result of high energy costs, which also lead to greater maintenance costs, is a significant factor anticipated to contribute to this segment's revenue rise during the projection period.

Building Thermal Insulation Market Share, By End-User, 2022 (%)

In 2022, the commercial construction sector accounted for more than 51% of total revenue. The growing importance of public and commercial building energy efficiency because of elevated energy prices that result in higher costs of maintenance is projected to drive growth. Buildings for universities, office spaces, hypermarkets, department stores, supermarkets, shopping malls, restaurants, hotels, hospitals, and resorts are included in this segment. One of the primary drivers behind the expansion of building thermal insulation is the rapidly ongoing trend of sustainable buildings.

Furthermore, rising office space in emerging nations, particularly in the subtropical region, is projected to generate significant demand for insulating materials to maintain energy standardization and regulate temperature levels.

Regional Insights:

Europe is anticipated to influence the Building Thermal Insulation Market. In 2022, the Europe region generated more than 32% of the revenue share and is projected to have the largest share of the market. The energy-saving benchmark by European Commission's and REACH's initiative to promote thermal insulation is anticipated to contribute to regional market expansion.

Building Thermal Insulation Market Share, By Region, 2022 (%)

The rapidly growing construction of residential and commercial building industries in North America and strong green building standards that have been adopted to lower power consumption per structure are projected to fuel market expansion in North America. Furthermore, favorable federal regulations regarding the utilization of the product in commercial and residential facilities are predicted to propel development over the projected time frame.

Due to the remarkably cold weather conditions in Canada as well as some areas of the US, the market in North America is expected to gain the most significant share of the market throughout the projected period.

Recent Developments:

  • In May 2021, Saint-Gobain SA purchased Buitex Industries.  This acquisition helped the company expand its multi-material insulating materials solutions.
  • Owens Corning plans to open a new facility in Joplin, Missouri, in July 2020 to produce Thermafiber mineral fiber insulation for commercial, residential, and industrial applications.
  • Owens Corning declared the acquisition of vliepa GmbH in July 2021. The merger of these companies increased the company's global nonwoven investments, accelerating growth as well as strengthening options for European construction and building markets.
  • Saint-Gobain announced the acquisition of Strikolith, in September 2020. The company offers a wide variety of expanded polystyrene sheets and boards for façade insulation.
  • In September 2020, Paroc launched a stone wool recycling system. The REWOOL system efficiently reuses off-cuts of stone wool generated by building projects and building sites, enabling the sector to attain its carbon neutrality objective.

Building Thermal Insulation Market Companies:

  • BASF SE
  • Johns Manville Corporation
  • Kingspan Group plc
  • Saint-Gobain SA.
  • Knauf Insulation, Inc.
  • Huntsman Corporation
  • Owens Corning
  • Rockwool International A/S
  • Cabot Corporation
  • Firestone Building Products Company
  • Dow Corning Corporation
  • URSA Insulation, SA.
  • Covestro AG
  • Atlas Roofing Corporation
  • Paroc Group Oy

Segments Covered in the Report:

By Material

  • Foamed Plastic
  • Aerogels
  • Cellulose
  • Other Materials

By Product

  • Glass Wool
  • Mineral Wool
  • Expanded Polystyrene
  • Extruded Polystyrene
  • Other Products

By Application

  • Roof Insulation
  • Wall Insulation
  • Floor Insulation

By End-User

  • Residential
  • Commercial

By Geography

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • The Middle East and Africa

Frequently Asked Questions

What is the building thermal insulation market size?
The global building thermal insulation market size was accounted at USD 29.75 billion in 2022 and it is expected to reach around USD 48.69 billion by 2032.
What will be the CAGR of global building thermal insulation market?
The global building thermal insulation market is poised to grow at a CAGR of 5.1% from 2023 to 2032.
Who are the prominent players operating in the building thermal insulation market?
The major players operating in the building thermal insulation market are BASF SE, Johns Manville Corporation, Kingspan Group plc, Saint-Gobain SA., Knauf Insulation, Inc., Huntsman Corporation, Owens Corning, Rockwool International A/S, Cabot Corporation, Firestone Building Products Company, Dow Corning Corporation, URSA Insulation, SA. Covestro AG, Atlas Roofing Corporation, Paroc Group Oy and Others.
Which are the driving factors of the building thermal insulation market?
The driving factors of the building thermal insulation market are the increased development of green buildings, the significance of improving building energy efficiency for decreasing greenhouse gas emissions, energy consumption and costs, and increasing spending on construction and rapid urbanization.
Which region will lead the global building thermal insulation market?
Europe region will lead the global building thermal insulation market during the forecast period 2023 to 2032.

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