Building Thermal Insulation Market Size, Share & Trends Analysis Report By Product (Glass Wool, Mineral Wool, EPS, XPS, Cellulose), By Application (Roof, Walls, Floor), By End-use,By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global building thermal insulation market size was estimated at USD 31.40 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 4.5% from 2023 to 2030. Increasing residential and commercial application of the product to reduce the overall energy costs, coupled with rising awareness about energy conservation are key factors expected to drive the growth.

Favorable regulations owing to the focus on lowering the overall energy consumption is likely to emerge as a major factor driving the market for building thermal insulation. Thermal building insulation helps reduce the dependency on Heat, Ventilation, and Air Conditioning (HVAC) systems, thereby lowering the overall energy consumption, which is expected to benefit the growth.

The U.S. is expected to account for the largest share in North America. Various initiatives such as the Weatherization Assistance Program (WAP,) which is focused on large-scale product adoption in low-income households are expected to play a pivotal role in driving growth.

Favorable building codes in the U.S. and Canada, coupled with the establishment of energy certification agencies such as the Leadership in Energy and Environmental Design (LEED) and the U.S. Green Building Council (USGBC) are expected to have a positive impact on the demand for building thermal insulation. However, stringent regulations imposed by the United States Environmental Protection Agency (EPA) on the use of foamed plastics, owing to their low biodegradability and carcinogenicity may hurt the market growth.

The environmental impact of building insulation materials is likely to shift the industry’s focus on the development of environment-friendly products over the forecast period. Besides, increasing prices of plastic foam are expected to harm growth, thereby leading to the development of alternative products.

Recyclable insulation is gaining popularity due to the stringent regulations governing conventional products such as plastic foams. Increasing preference for green, biodegradable, and recyclable products by homeowners, architects, and businesses, owing to increasing environmental awareness is expected to boost the threat of substitutes in the building thermal insulation industry over the forecast period.

Product Insights

Expanded Polystyrene (EPS) is expected to exhibit the highest CAGR of 5.0% in terms of revenue over the forecast period, owing to its excellent thermal insulation property, and long life span. Also, increasing preference for the product owing to its non-toxic, rot-proof, and recyclable properties is expected to boost the growth.

Extruded Polystyrene (XPS) is estimated to witness significant growth over the forecast period, on account of its ability to reduce moisture-related damages, resistance to water, and the ability to enable energy savings. Besides, its ability to inhibit microbial or fungal growth in the insulated area is further expected to bolster growth.

Mineral wool insulation accounted for a market share of 12.3% in 2022 and is estimated to exhibit significant growth over the forecast period, owing to superior characteristics of the product including fire safety, efficient heat barrier, ecological compatibility, and dimensional stability. Increasing usage of mineral wool in thermal barrier applications is expected to drive its growth over the forecast period.

Other products such as aerogel, cotton wool, and wool slag are expected to register a moderate growth rate over the forecast period, owing to the increasing product penetration in North America. Also, a rising preference for thermal insulation as an alternative to foamed plastic insulation for buildings is estimated to drive growth.

Application Insights

Roof application accounted for a market share of 35% in 2022 and is expected to witness significant CAGR over the forecast period, owing to the rising requirement to avoid heat penetration from direct sunrays through the roof of buildings. Also, an increasing number of single housings are expected to boost the segment’s growth over the forecast period.

Wall application led the building thermal insulation market in 2022 and is estimated to expand at a CAGR of 4.7% in terms of revenue over the forecast period, owing to the rising application of the product on the exterior as well as interior walls. Also, increasing product penetration for the insulation of cavity walls is expected to bolster industry growth.

Insulation of the wall is also one of the essential elements to make the building more energy efficient. Insulated walls along with insulated roofs create a protective envelope that eliminate heat transfers from the external environment through conduction and convection radiation. Mineral and XPS are some of the most popular materials used for external wall insulation owing to their benefits such as low costs, high durability, and convenient installation.

Floor application is projected to witness moderate growth over the forecast period, owing to rising demand to reduce the energy costs of HVAC applications. Thermal insulation finds applications in flooring including basements, garages, cantilevers, and crawl spaces. Increasing product penetration for floor insulation in extremely cold regions is expected to fuel the building thermal insulation industry’s growth.

End-use Insights

The residential construction segment is estimated to witness the highest CAGR of 4.7% during the forecast period, owing to the high growth of single-unit houses, coupled with refurbishment and re-insulation of old houses. Besides, growth in multi-family housing construction activities is also predicted to aid the building thermal insulation industry’s growth.

The residential construction segment is inclusive of residential buildings, apartments, complexes, and small houses. The growth in the number of single-family houses in developing economies and the rising disposable income of consumers are among the various factors projected to drive residential construction activities. Thus, the growth of the sector along with growing building energy consumption norms are projected to positively influence the demand for insulation in above mentioned applications.

The commercial construction segment accounted for around 50.4% of the total revenue share in 2022. Increasing importance for energy efficiency of commercial and public buildings on account of high energy costs that lead to increased maintenance costs is expected to fuel the growth. The segment is inclusive of buildings for office spaces, universities, hypermarkets, supermarkets, departmental stores, shopping malls, hospitals & clinics, restaurants & hotels, resorts, and others.

The rapidly emerging trend of sustainable buildings is one of the major factors driving the growth of building thermal insulation. In addition, rising office spaces in emerging economies especially located in the subtropical region are expected to drive notable demand for insulation systems to maintain energy benchmarking as well as regulate temperature levels.

Regional Insights

Europe has been one of the mature markets with a share of 33% in 2022 and is predicted to remain a major market for building thermal insulation by 2030. Initiatives by Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) and the European Commission to promote thermal insulation as a means of energy conservation are expected to aid regional growth.

Burgeoning residential and commercial construction activities in North America, coupled with the implementation of strict green building codes to reduce the energy consumption per structure are expected to aid growth. Furthermore, favorable government regulations for the adoption of the product for residential as well as commercial structures are expected to boost the growth over the forecast period.

The Asia Pacific region is expected to exhibit the highest growth during the forecast period, owing to the rising construction activities in the region to cater to the requirements of a growing population. China is estimated to account for the largest share in the region, owing to the various government initiatives to improve its public infrastructure.

Political and economic instability in Central and South America is expected to harm the regional building thermal insulation industry growth. However, efforts undertaken by the government to improve economic conditions are likely to boost growth soon.

Key Companies & Market Share Insights

The market players are focused on increasing their share through mergers and acquisitions. Industry participants are focusing on research and development activities to expand their product portfolio by developing cost-effective products with enhanced properties. Manufacturers also focus on expanding their manufacturing capabilities to cater to the ascending product demand.

The market is mature and is witnessing slow but stable growth in most of the application segments. The market remains highly price-sensitive, owing to the high demand for insulation materials. New constructions and implementation of energy efficiency codes are likely to result in high industry rivalry. Some prominent players in the global building thermal insulation market include:

• Rockwool International A/S

• GAF Materials Corporation

• Guardian Building Products, Inc.

• Huntsman International LLC

• Johns Manville Corporation

• Cellofoam North America, Inc.

• Atlas Roofing Corporation

• CertainTeed Corporation

• Roxul, Inc.

• Dow Building Solutions

• Owens Corning Corporation

• Saint-Gobain S.A.

• Byucksan Corporation

• Kingspan Group PLC

• BASF Polyurethanes GmbH

Building Thermal Insulation Market Report Scope

Global Building Thermal Insulation Market Segmentation

This report forecasts volume and revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global building thermal insulation market report based on product, application, end-use, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Glass Wool

  • Mineral Wool

  • EPS

  • XPS

  • Cellulose

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Roof

  • Walls

  • Floor

• End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Residential

  • Commercial

• Regional Outlook (Volume, Kilotons; Revenue; USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Spain

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Indonesia

    • Malaysia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • UAE

    • Qatar

    • South Africa