Building Thermal Insulation Market

Updated on : July 15, 2024

Building Thermal Insulation Market

The market size of building thermal insulation is estimated at USD 29.2 billion in 2023 and is projected to reach USD 37.0 billion by 2028, at a CAGR of 4.8%. Environmental organizations are continuously working towards reducing the greenhouse gas emissions from residential and industrial sectors. The increasing use of building thermal insulation materials to reduce energy consumption and maintain indoor temperature is a major factor driving market growth. Additionally the increasing popularity of insulated green buildings with reduced energy consumption is expected to trigger the building thermal insulation demand. Another factor that is supporting the market growth is the introduction of several regulations and policies offering tax rebates to the homeowners that are meeting the insulation standards.

Building Thermal Insulation Market Size, Dynamics & Ecosystem

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Building Thermal Insulation Market Dynamics

Driver: Stringent environmental regulations

The need for green buildings is growing as people become more conscious of environmental issues. Energy efficiency and sustainability are given top priority in these buildings.  Thermal insulation in buildings is an essential component of green building design, which drives the market even more. Building thermal insulation is a vital element for projects aiming for green certifications since it lowers operating energy consumption and can improve a building's overall environmental rating.

Restraints:  Fluctuation in prices of plastic foam

The building thermal insulation market may become unstable due to frequent price variations. Research and development expenditures for novel, possibly more economically stable insulating technologies are discouraged as a result. Thermal insulation for buildings may become less economical due to sharp price rises in plastic foam, especially for homes on a tight budget. This may make it more difficult for energy-efficient building techniques to be adopted generally.

Opportunities: High energy requirements

The demand for thermal insulation in buildings depends on the growth of the construction and energy industries. The development of insulation materials that are more thermally resistant makes thinner applications possible. Even while the production process itself uses some energy; this can lower the total amount of material required. The manufacturing of insulation has a significant energy need, which drives innovation and the development of more environmentally friendly products. Currently, technology and awareness have significantly reduced the energy consumption in buildings through better insulation while improving comfort levels.

Challenges: Lack of awareness on building thermal insulation

The lack of awareness on building thermal insulation can indeed have a significant impact on the market of building thermal insulation. The market for these materials might not grow to its full potential if people are unaware of the advantages of thermal insulation. This may impede the creation of novel, even more effective insulation methods. Buildings with inadequate insulation use more energy, which increases their carbon footprint and releases greenhouse gases into the atmosphere. More sustainable building techniques may be encouraged by increasing awareness.

Building Thermal Insulation Market Ecosystem

The ecosystem includes companies manufacturing building thermal insulation, such as Kingspan Group PLC, Knauf Gips KG, Owens Corning, Rockwool A/S, Saint-Gobain SA, BASF SE, Dow Inc., Johns Manville Corporation, GAF Materials Corporation, CNBM Group Co., Ltd., and Aspen Aerogels, Inc.

Building Thermal Insulation Market Segmentation & Geographical Spread

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Based on the material, plastic foam was the largest segment of the building thermal insulation market, in terms of value, in 2022.

Plastic foam was the largest material used in the industry, in terms of value, in 2022. The cost and functionality of plastic foam are well-balanced. Because of this, it is a desirable choice for homeowners and builders seeking value without compromising effectiveness. Popular types such as EPS and XPS require less labor because they are lightweight and simple to install. Plastic foam may perform better than traditional insulation materials, yet it remains competitive due to continuous improvement. This makes plastic foam well-suited for use in various applications.

Based on application, wall insulation was the largest segment of the building thermal insulation market, in terms of value, in 2022.

Energy use for heating and cooling is significantly decreased when walls are properly insulated. This results in lower utility costs and a smaller environmental impact. The number of these buildings being retrofitted with wall insulation technologies is increasing as concerns about energy efficiency grow. The rise of the wall insulation segment is greatly accelerated by this trend.

Based on building type, residential was the largest segment of the building thermal insulation market, in terms of value, in 2022.

The residential building type stood out as a primary end-use industry for building thermal insulation, driven by its widespread application in residential construction projects. The demand in the residential segment was attributed to stringent energy efficiency standards, building codes mandating better insulation practices, and a growing focus on sustainable and eco-friendly construction methods. However, while residential building type dominates, its versatility extends to multiple industries, highlighting its significance beyond residential applications.

Europe accounted for the largest market share of the building thermal insulation market, in terms of value, in 2022.

Europe is estimated to maintain its position as the largest region for building thermal insulation, during the forecast period, due to several factors. Europe has stringent energy efficiency standards and building regulations, compelling the widespread use of high-performance insulation materials in construction. The region's focus on sustainable building practices, coupled with a robust construction industry and increased infrastructure development, has propelled the demand for extruded polystyrene across various applications. Moreover, the emphasis on retrofitting existing buildings for energy efficiency has further boosted the usage of building thermal insulation, solidifying Europe's dominance in the extruded polystyrene market in 2022.

Building Thermal Insulation Market Players

The key players in this market are Kingspan Group PLC (UK), Knauf Gips KG (Germany), Owens Corning (US), Rockwool A/S (Denmark), Saint-Gobain SA (France), BASF SE (Germany), Dow Inc. (US), Johns Manville Corporation (US), GAF Materials Corporation (US), CNBM Group Co., Ltd. (China), and Aspen Aerogels, Inc. (US). These are the key manufacturers that secured a major market share in the last few years.

Read More: Building Thermal Insulation Companies

Building Thermal Insulation Market Report Scope

This report categorizes the global building thermal insulation market based on material, application, building type, and region.

Based on material, the building thermal insulation market has been segmented as follows:

• Plastic Foam
  • Polystyrene Foam
    • Expanded Polystyrene Foam (EPS)
    • Extruded Polystyrene Foam (XPS)
  • PUR & PIR Foam
  • Other Plastic Foams
• Phenolic Foam
• Elastomeric Foam
  • Glass Wool
  • Stone Wool
  • Other Materials
    • Aerogel
    • Cellulose
    • Cellular Glass

Based on application, the building thermal insulation market has been segmented as follows:

• Wall Insulation
  • External Wall
  • Internal Wall
  • Cavity
• Roof Insulation
  • Flat Roof
  • Pitched Roof
• Floor Insulation

Based on building type, the building thermal insulation market has been segmented as follows:

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

Based on region, the building thermal insulation market has been segmented as follows:

• North America
• Asia Pacific
• Europe
• Middle East & Arica
• South America

Recent Developments

• In February 2022, Kingspan Group PLC completed its acquisition of THU PERFIL SL, the Valencian firm specializing in metal ceiling profiles.
• In January 2022, Knauf Gips KG expanded its business by setting up a new Glass Mineral Wool thermal insulation plant in Central Romania. The expansion will bring Knauf Gips KG solutions closer to customers in rapidly growing markets of Romania, Eastern Europe, & CIS.
• In December 2021, Saint-Gobain SA entered into a definitive agreement with Alghanim Group for the acquisition of its fully owned subsidiary, Rockwool India Pvt Ltd., a major manufacturer of stone wool in India with a wide range of insulation products for thermal, acoustic, and fire safety applications.
• In July 2021, Rockwool A/S expanded the commercial production capacity of stone wool insulation products at its newest US manufacturing facility, in Jefferson County, West Virginia.

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