Global Building Insulation Market (by Product Type, Application, End Users, & Region): Insights & Forecast with Potential Impact of COVID-19 (2022-2026)

Insulation in buildings keeps heated spaces warmer in the winter and air-conditioned spaces cooler in the summer. Reducing thermal energy transfer not only makes spaces more comfortable, but it is also essential for regulating energy expenses.

Building insulation refers to any material in a building that is used as insulation for thermal management. The building insulation sector is expanding globally as a result of the increased interest in green building concept. At the time, existing infrastructure has been discovered to have a high potential for incorporating smart and green elements into their infrastructure, resulting in an increase in demand for building insulation. The global building insulation market is anticipated to reach US$30.14 billion in 2023, growing at a CAGR of 3.07% during the forecast period..

Segment Covered

By Product Type: The report divides the global building insulation market into three different categories based on the type of product: stone wool, glass wool, foam, and others. The foam building insulation space segment held the highest share in the market, due to increased demand from building & construction end-use industry.

By Application: According to the report, the global building insulation market is segmented into three segments on the basis of application: wall insulation, roof insulation, and floor insulation. Floor building insulation segment is the fastest growing segment during forecasted period due to the rising demand for smart and energy-efficient buildings.

By End-Users: In this report, the market is segmented into three major segments, on the basis of end users: residential, commercial, and industrial. Due to the rising product demand for improving equipment efficiency and process performance across application sectors such as power generation, among others, the industrial building insulation segment is the fastest growing segment during the forecasted years.

Geographic Coverage

The report provides insight into the building insulation market based on the geographical operations, namely Europe, North America, Asia Pacific, Latin America and Middle East & Africa. The countries covered in Europe region include Germany, France, UK, Spain, Italy, and Rest of Europe, while North America includes the US and Rest of North America. Moreover, China, Japan, India, Australia & New Zealand, South Korea, and Rest of Asia Pacific are included in the Asia Pacific region. The European building insulation market enjoyed the largest share in the global market, primarily owing to an increase in the number of residential and commercial buildings across the region. On the other hand, the Latin America building insulation market is the emerging region in the global market, due to the growing investments in affordable housing, along with rising demand for new commercial buildings.

Top Impacting Factors
Growth Drivers

- Growing Urban Population
- Rapid Change in Climate
- Growth in Construction Output
- Surge in Renovation Activities of Old Buildings

Challenges

- Unstable Raw Material Prices
- Labor Shortage

Trends

- Increasing Number of Large-scale Housing Projects
- Growth in Green Construction Activities
- Sustainable Building Insulation Materials
- Growing Inclination Toward the Adoption of Smart And Energy-efficient Building Concepts

Driver: Rapid Change in Climate

Rapid climate change occurs when the climate system is compelled to transition at a rate specified by the energy balance of the climate system, which is faster than the rate of change of the external forcing, however it may include abrupt forcing events such as meteorite strikes. Since the Industrial Revolution, human activity has increased the amount of greenhouse gases in the atmosphere, causing higher heat retention and an increase in surface temperatures. This has resulted in increased heat, drought, and insects outbreaks, all of which are connected to climate change and have contributed to an increase in wildfires. Throughout this, awareness has affected the market for green products, which would assist to curb greenhouse gas emissions while also providing relief from rising temperatures. Building insulation is in high demand because it helps to manage interior and outdoor temperatures, decreasing the usage of appliances such as heat systems and/or cooling systems, which also helps to control greenhouse gas emissions..

Challenge: Unstable Raw Material Prices

The present ups and downs in raw material prices are mostly influenced by supply and demand. Prices are volatile as a result of the recession and pandemic-related economic behavior, with prices of sand, plywood, glass, Plaster of Paris (PoP), and other construction materials constantly rising. In recent years, the building insulation business has seen similar changes, posing a threat to the whole market. Since the cost of raw materials is growing, the cost of producing building insulation systems will rise, influencing the cost accessible to customers. This makes it difficult for building insulation manufacturers to strike a balance between selling and cost pricing. Therefore, the building insulation market would face challenges in the coming years, owing to unstable raw material prices.

Trend: Growth in Green Construction Activities

Green building refers to both a structure and the use of environmentally responsible and resource-efficient techniques throughout the life-cycle of a building. To make green buildings more sustainable, buildings are constructed with four primary elements or components: materials, energy, water, and health. In order to make the building energy efficient, building insulations are used in green buildings. Green building remains a global priority, possibly as a result of growing extreme weather occurrences and despite other developing concerns such as the global pandemic. Therefore, growth in green construction activities will be driving the building insulation in coming years.

The COVID-19 Analysis

The COVID-19 pandemic had a detrimental impact on the global building insulation market. As a result of the pandemic, a decline in demand for building insulation systems were observed, with decline in construction sector, halting of new and renovation of building activities, some enterprises closing their operations, and disruptions in supply chain. In coming years, the market is predicting to grow and recover to the pre-COVID marks, with the increased understanding of the benefits of installing a building insulation system, large public investments to renovate old buildings with green building insulation systems, and encouragement of private investment in the building insulation industry.

Analysis of Key Players

The global building insulation market is fragmented market. The leading industry participants are favorably investing in technology developments as well as product innovation in order to grow their global presence. Furthermore, corporations are forming strategic alliances, and merging with holding companies in order to reduce operating expenses. The key players of the global building insulation market are Owens Corning, Berkshire Hathaway Inc. (Johns Manville Corporation), Rockwool International A/S, Kingspan Group PLC, Compagnie de Saint-Gobain S.A., Holcim Group (Firestone Building Products), Carlisle Companies Incorporated, China National Building Material Company Limited (Beijing New Building Materials PLC), Huntsman Corporation, Recticel Group, Kaneka Corporation, Hood Companies, Inc. (Atlas Roofing Corporation), Synthos SA, Knauf Gips KG (Knauf Insulation), and Xella International GmbH (URSA).

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