Cold Insulation - Global Market Trajectory & Analytics

CAPEX & Spending Cuts Across Industries Leaves the Cold Insulation Market Bleeding $854 Million in Losses

The global market for Cold Insulation is expected to slump by -18.7%in the year 2020 and thereafter recover to reach a projected US$5.4 billion by the year 2027, trailing a post COVID-19 CAGR of 5.7% over the analysis period 2020 through 2027. The chemicals & oil & gas industries account for over 58% of revenues in the cold insulation market. Evaporating cash reserves & declining new investments will shave off over $854 million in market revenues in the year 2000. Post pandemic, the pent-up infrastructure needs will help bring back growth fundamentals to normal. By 2040, the world will be looking at cumulative infrastructure modernization and upgrade needs averaging to over $95 trillion. Cold insulation constitutes the general insulation's low-temperature application. It is used for the main purpose of enhancing energy efficiency in applications that operate at below-ambient range temperatures and which need protection from heat. Cold insulation reduces leakage of energy from infrastructure/equipment and improves their operational efficiency. It prevents moisture intrusion, condensation and long term degradation. Materials used for cold insulation have closed structures for preventing heat flow. Applications requiring maintenance of lower temperatures for process control, for conserving refrigeration and for avoiding surface condensation typically use cold insulation materials. Cold insulation thus serves as barrier to flow of heat. Cold insulation materials also hold the ability to save environment from depletion of ozone layer. When selecting materials for cold insulation, many properties are considered including thermal conductivity, acidity or alkalinity, chemical passivity or reactivity, abrasion resistance, compression strength, breaking load, co-efficient of expansion and contraction, combustibility, etc., based on the application type. A properly selected cold insulation would be non-complaining and maintenance free providing smooth operation longer.

In the post pandemic period, growth will be driven by the ubiquity and ever-present importance of Industrial refrigeration in food processing, chemical, pharmaceutical manufacturing, refrigerated transport, and liquefied natural gas (LNG), among others. Few of the benefits of cold insulation include lower energy consumption/costs; prevents moisture condensation; enhances industrial process performance; enhances performance of refrigeration equipment; reduces emissions of pollutants; reduces noise; optimum maintenance of process temperatures and improved quality of product manufactured; ensures operating safety and protection of personnel; and prevents mold and mildew growth. Cold insulation also retards condensation by keeping surface temperatures above dew point and as a result restricts corrosion. This is an important advantage for cold pipeline insulation. Environment friendliness is also major economic and financial benefit for companies relying on process refrigeration. Lower energy consumption leads to parallel reduction in VOCs, CEs, NOX, SOX, carbon monoxide and mercury emissions. And in the current era of carbon taxes where companies are made to pay for pollution by punitive regulations, this is an important advantage. Few of the popular materials used in cold insulation include polyurethane foam, rubber foam, and foam glass. While polyurethane foam possesses characteristics such as low smoke emission and low water vapor permeability, rubber foam features high resistance to moisture vapor. Phenolic foams are also widely used. Phenolic foams have a fine cellular structure and a closed cell content of more than 95%. They are lightweight and easy to handle, transport, and install. In addition, they can be manufactured with varying densities, ranging between 35 kg/m3 and 200 kg/m3. High density variants, such as phenolic insulation boards offer superior stability and strength that make them ideal for floor insulation. Moreover, phenolic foams are mold, fungus, and vermin resistant and offer the capability of withstanding temperatures of up to 120oC.

Among the numerous application areas, cold chain storage, distribution, warehousing and logistics will continue to provide the largest growth opportunity. Cold insulation is vital in ensuring effectiveness of cold chain equipment like ice-lined refrigerators, on-grid freezers, cold boxes & refrigerated vehicles to ensure quality, health, and integrity of products being transported and delivered. With competition intensifying in the food cold chain, industry players are feeling the heat to keep refrigerated freight frosty. Few of the factors driving consumption of chilled and frozen foods worldwide include growth in quick service restaurants, fast food chains and hypermarkets; rise in demand for different ethnic and international cuisine; innovation in frozen food product packaging; changing consumer perception over the nutritional benefits of frozen foods; and launch of healthy frozen foods with as low sodium, low calorie and high fiber ingredients. The market is forecast to receive an adrenalin boost with globalization of food making cold chains more global, leading to refrigerated transport vehicles traveling extended distances. As e-commerce and logistics companies step up their investments for the establishment of cold chain warehouses, the market stands to richly benefit.

Select Competitors (Total 80 Featured):

• Arabian Fiberglass Insulation Company Ltd.
• Armacell International S.A.
• Aspen Aerogel Inc.
• BASF SE
• Bradford Insulation Industries Ltd.
• Covestro AG
• Daehyup Tech Co., Ltd.
• Fletcher Insulation
• G+H Group
• Huntsman Corporation
• Johns Manville
• Kingspan Group plc
• Knauf Insulation Ltd.
• Morgan Advanced Materials Porextherm Dämmstoffe GmbH
• Owens Corning
• Rockwool International A/S
• The Dow Chemical Company
• URSA Insulation, S.A