Building Thermal Insulation Market is Expanding Due to Increasing Development of Green Buildings

Published Date : 10 Apr 2023

The global size of the building thermal insulation market was USD 32.74 billion in 2022, and it will grow at a rate of CAGR 3.85% in the years to come to touch USD 47.77 billion by 2032.

The global building thermal insulation market growth is driven by the rising use of heating and cooling systems in houses, increasing development of green buildings, increasing residential, commercial, and industrial application of the product to lower the overall energy expenses, and growing adoption of wall and roof insulations.

Market Overview:

Thermal insulation in buildings reduces the flow of heat through the building. This lowers the building's heating or cooling costs while also improving the building's cooling or heating. Thermal insulation in buildings contributes to the maintenance of a comfortable and clean indoor atmosphere at low ambient temperatures. They are commonly employed in harsh weather zones to insulate buildings with either cooling or heating systems, which saves money as well as energy. Thermal insulation is referred to as the crucial technology for reducing energy consumption in buildings by limiting heat loss or gains through the building envelope. 

Thermal insulation is a material for construction having a low thermal conductivity, typically less than 0.1W/mK. The purpose of these materials is to save energy while both protecting and comforting residents. Thermal insulation is widely used for building envelopes such as roofs, floors, and walls. The development of phase change materials (PCMs) and the innovative use of raw natural components as thermal insulation are the leading trends in thermal insulation development.

The thermal conductivity coefficient is the most important parameter defining a thermal insulating material. The smaller the value of this coefficient, the more effective the thermal insulation of the material, and hence the more energy efficient the building. When selecting the thermal insulating material to use for a residential, commercial, or industrial application, householders and contractors have numerous options available to them.

Thermal insulation materials commonly used in buildings include mineral wool, sawdust, cellulose, polyurethane foam, fiberglass, reflective cladding sheets, polystyrene foam, and others. Thermal insulation reduces energy expenses by keeping the home cool in the summer and the house warm in the winter. In the summer, thermal insulation helps in reducing the overheating of buildings by limiting the transfer of solar radiation absorbed on the building’s outside surfaces to the inside.

In the winter, thermal insulation assists in energy saving, reducing heating demand and therefore helping to safeguard the environment. It is considered in both renovations of existing buildings and new construction. Additionally, the market has grown as a result of the increasing energy preservation awareness. Furthermore, the increase in global temperature and climate change caused by various human activities are also anticipated to fuel market expansion.

Building Thermal Insulation Market Report Scope:

Report Coverage Details
Market Size in 2022 USD 32.74 Billion
Projected Forecast Value in 2032 USD 47.77 Billion
Growth Rate 3.85% from 2023 to 2032
Largest Market Europe
Base Year 2022
Forecast Period 2023 to 2032
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
Regions Covered North America, Europe, Asia-Pacific, Latin America and Middle East & Africa

Report Highlights:

  • By Material, the plastic foam segment accounted for the larger revenue share owing to its expanding usage in external façade insulation, cavity wall insulation, sandwich panel insulation, and external wall insulation. Sealing a building with a plastic foam insulation solution reduces drafts and maintains inside temperature, which can minimize energy consumption. It is an essential technique used by designers to prevent thermal bridging, a major source of energy loss. It has a high R-value per thickness inch. R-value measures the ability of insulation to resist the flow of heat.
  • By Product, In 2022, the expanded polystyrene segment is predicted to expand at the fastest rate due to its outstanding thermal insulation properties, and longer shelf life. Polystyrene is a synthetic aromatic polymer made from monomer styrene. Polystyrene is available in both solid and foamed forms. Polystyrene foams are composed of 95-98% air. Polystyrene foams are excellent thermal insulators and are frequently used as building insulation materials in applications. Expanded polystyrene (EPS) is a closed-cell foam that is rigid and tough. Building and construction applications account for around two-thirds of EPS demand, and it is used for cavity insulation on walls, roofs, and concrete floors.
  • By Application, the wall insulation segment is projected to register a considerable CAGR during the forecast period owing to a rise in the application of the product on both interior and exterior walls. Insulated walls and roofing provide a protected envelope that restricts heat transmission from the outside environment.
  • By End-User, the residential segment is expected to expand at a robust growth rate during the forecast period owing to the increasing construction activities of single-unit houses, multi-family housing along with the renovation and re-insulation of old houses.

Regional Insights:

Europe accounted for a revenue share of more than 32% in 2022, It is also anticipated to have the largest share of the market. The region’s growth is attributed to the increasing usage of building thermal materials and favorable government programs. For instance, The European Commission's and REACH's initiative to encourage thermal insulation is expected to support market expansion in the region.

On the other hand, North America is expected to register a rapid CAGR during the forecast period due to stringent government regulations, increasing awareness regarding environmental degradation, favorable government initiatives, and rapid growth in the construction of residential and commercial buildings.

The increasing development of green buildings is expected to boost the growth of the market in the region. Owing to the severe cold weather conditions in the United States and Canada, the market is projected to drive market growth in the North America region. Additionally, favorable building codes in the United States and Canada, as well as the existence of energy certification bodies such as LEED and the U.S. green building Council, are projected to boost the market growth.

Market Dynamics:


Growth in the development of green buildings

The growth in the development of green buildings is projected to fuel the growth of the building thermal insulation market during the forecast period. Green building prevents negative effects on the climate and the surrounding environment during construction. Green constructions save natural resources while boosting living standards. Thermal insulation is used in the development of green buildings to become energy efficient, improve air quality and prevent the implications of the climate crisis.

The widespread acceptance of energy certification bodies including the US Green Building Council (USGBC), Leadership in Energy and Environmental Design (LEED), and favorable building codes in Canada and the United States, are anticipated to enhance the requirement for building thermal insulation.


The increasing threat of substitutes

The rising threat of substitutes is projected to hamper the growth of the market. In addition, the rising threat of new entrants and It is also likely to limit the expansion of the global building thermal insulation market during the forecast period.


Increasing demand for roof and wall insulations

There is a significant increase in demand for roof and wall insulations. Exterior wall insulation is a thermally insulated, weatherproof, attractive exterior cladding system that provides the necessary thermal efficiency. Roof insulation helps to keep the warmth from passing through the ceilings. It is an effective way to reduce energy use. The roof insulation is highly used to get protection from harsh weather conditions.

Recent Developments:

  • In July 2021, Owens Corning announced the acquisition of vliepa GmbH. The acquisition expands Owens Corning's considerable worldwide nonwovens portfolio, allowing the company to better serve European customers and stimulate growth in the region's building and construction market applications.
  • In May 2021, Saint-Gobain SA acquired Buitex Industries. This purchase helped the company's efforts to broaden its multi-material insulating material solutions.

Major Key Players:

  • 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

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