Building Thermal Insulation Market Report 2026

The building thermal insulation market size has grown steadily in recent years. It will grow from $31.24 billion in 2025 to $32.68 billion in 2026 at a compound annual growth rate (CAGR) of 4.6%. The growth in the historic period can be attributed to growing demand for energy-efficient buildings, reliance on conventional insulation materials, expansion of residential and commercial construction, steady availability of polymer feedstock, historical cost competitiveness of fiberglass and foam insulation.

The building thermal insulation market size is expected to see steady growth in the next few years. It will grow to $38.92 billion in 2030 at a compound annual growth rate (CAGR) of 4.5%. The growth in the forecast period can be attributed to shift toward sustainable insulation materials, rising regulatory pressure for energy efficiency, growth in retrofitting activities, increasing adoption of advanced insulation technologies, expanding use of low-conductivity materials. Major trends in the forecast period include increasing demand for high-performance insulation materials, rising adoption of fire-resistant insulation solutions, growth in retrofitting and energy-efficiency upgrades, expansion of lightweight and flexible insulation products, advancement in manufacturing processes for foamed plastics.

The growing construction of green buildings is anticipated to drive the expansion of the building thermal insulation market in the coming years. Green buildings are eco-friendly structures that are designed and built using sustainable methods to lower resource usage, reduce environmental impact, and enhance occupant health and comfort. The rise in green building development is mainly fueled by initiatives to combat climate change and the enforcement of stricter government regulations mandating higher energy efficiency standards. Green buildings depend on high-performance insulation solutions to meet their energy efficiency objectives and sustain ideal indoor environmental conditions while minimizing heating and cooling energy use. For example, in July 2024, the Green Building Council, a US-based non-profit organization, reported that more than 46,000 residential projects received LEED green building certification, marking nearly a 5% increase in new registrations compared to 2023. Therefore, the increasing construction of green buildings is boosting the growth of the building thermal insulation market.

Major companies operating in the building thermal insulation market are introducing innovative and sustainable polyurethane (PU) foam solutions, such as the Ultra-Fast 70 foam formulation, which drastically shortens the installation time for doors and windows, thereby increasing the number of projects that can be completed within the same period to strengthen their competitive position in the market. These PU foams are intended to improve building thermal insulation with quicker installation while enabling seamless integration into existing workflows without compromising quality. For instance, in September 2023, Covestro, a Germany-based provider of innovative solutions for vehicles and infrastructure, in partnership with Selena Group, a Poland-based producer of PU foams and construction-related chemicals, launched a new polyurethane (PU) foam called the Ultra-Fast 70 formulation that significantly reduces the time needed to install doors and windows, considerably boosting the number of projects that can be completed within the same duration to enhance building thermal insulation. The material has received ISSC Plus certification, confirming its use of plant-based feedstocks through the mass balance approach, which is reported to result in a 60% reduction in carbon emissions compared to fossil-based materials. The Ultra-Fast 70 foam formulation greatly shortens the installation process for doors and windows, thereby substantially increasing the volume of projects that can be completed within a given timeframe.

In February 2024, Compagnie de Saint-Gobain S.A., a French multinational corporation, purchased International Cellulose Corporation for an undisclosed amount. This acquisition is part of Compagnie de Saint-Gobain S.A.'s strategy to broaden its market presence and improve its product offerings. International Cellulose Corporation is a U.S.-based manufacturer specializing in sustainable spray insulation products.

Major companies operating in the building thermal insulation market are Johns Manville, Saint-Gobain S.A., Kingspan Group PLC, Owens Corning, Rockwool International A/S, GAF Materials Corporation, Guardian Building Products Inc., CertainTeed Corporation, Knauf Insulation, Armacell International S.A., Dow Inc., Huntsman Corporation, Cabot Corporation, Recticel NV, Paroc Group, URSA Insulation S.A., Superglass Insulation Ltd., Kaimann GmbH, Thermaflex International Holding B.V., Lapinus Fibres, KCC Corporation, Beijing New Building Material (Group) Co. Ltd., Fletcher Insulation Pty Ltd., TechnoNICOL Corporation, Unifrax I LLC, Aspen Aerogels Inc., Evonik Industries AG.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are influencing the building thermal insulation market by increasing costs of key raw materials such as foamed plastics, mineral wool inputs, and specialty chemicals, leading to higher production expenses and delayed supply of insulation products across residential, commercial, and industrial applications. Regions dependent on imported polymers and fiberglassespecially Asia-Pacific and Europeexperience the strongest impact. Despite these challenges, tariffs can stimulate domestic material production, promote local supply-chain resilience, and support innovation in cost-efficient insulation technologies.

The building thermal insulation market research report is one of a series of new reports that provides building thermal insulation market statistics, including building thermal insulation industry global market size, regional shares, competitors with a building thermal insulation market share, detailed building thermal insulation market segments, market trends and opportunities, and any further data you may need to thrive in the building thermal insulation industry. This building thermal insulation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Building thermal insulation is a method that prevents the transfer of heat from one substance to another when they are in thermal contact. It utilizes materials with low thermal conductivity to achieve effective insulation.

The primary materials in the building thermal insulation market include foamed plastic, mineral wool, aerogels, cellulose, and others. Glass wool, a type of insulating material made from glass fibers bound together, is designed to resemble wool in texture. It is employed to reduce the movement of sound, heat, and cold within buildings. Various products in this market include glass wool, mineral wool, expanded polystyrene (EPS), extruded polystyrene (XPS), and others, utilized for roof insulation, wall insulation, and floor insulation. End-users encompass residential, commercial, and industrial sectors.Asia-Pacific was the largest region in the building thermal insulation market in 2025. The regions covered in the building thermal insulation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa. The countries covered in the building thermal insulation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The building thermal insulation market consists of sales of polyurethane foam and fiberglass. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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