Insulation Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The insulation market attained a value of USD 62.91 Billion in 2024. The industry is expected to grow at a CAGR of 4.30% during the forecast period of 2025-2034. By 2034, the market is expected to reach USD 95.84 Billion.

Rising global energy costs and environmental awareness are pushing governments and businesses to prioritize energy-efficient building solutions. Insulation plays a central role in minimizing heat transfer, reducing HVAC loads, and cutting utility bills. Mandatory energy efficiency codes, such as the IECC and EU Energy Performance of Buildings Directive, drive adoption. Building owners seek solutions that deliver long-term savings, prompting demand for high-R-value insulation materials.

Rapid urbanization, especially in Asia-Pacific and Africa, is fuelling insulation market expansion due to robust construction of residential, commercial, and industrial infrastructure. According to the Asian Development Bank, over 55% of Asia’s population will be urban by 2030. As cities expand, the demand for energy-efficient and noise-reducing insulation materials surges. Infrastructure megaprojects in China, India, and Southeast Asia include insulation as a critical component in reducing long-term operational costs.

Key Trends and Recent Developments

May 2025

Saint Gobain unveiled plans for its first low carbon stone wool insulation plant in the United Kingdom, at its Melton Mowbray site in Leicestershire. Set to begin production in 2027, the facility initially will produce 50,000 tons per year, with potential to scale to 100,000 tons, featuring an all electric furnace powered by renewable electricity, slashing embodied CO₂.

March 2025

Knauf Insulation APAC launched its Earthwool® Metal Roofing Roll range in Thailand by partnering with local distributor Mineral Wool, marking the first availability of this high-performance glass mineral wool roofing insulation in the market. The range includes foil faced and unfaced options, both manufactured using ECOSE® binder and TwinTech® finishing.

September 2024

Armacell opened a state of the art aerogel insulation plant in Pune, India for doubling its global aerogel blanket capacity to one million m²/year. The facility produces its next generation ArmaGel XG product family, including high temperature XGH up to +650 °C and cryogenic XGC variants compliant with ASTM C1728 standards.

August 2024

PPG introduced PITT‑THERM® 909, a silicone‑based spray‑on insulation coating specifically for the oil & gas, petrochemical and infrastructure sectors. The product withstands continuous temperatures up to 500 °F, keeping external surfaces safe to touch, reduces corrosion under insulation, needs fewer thick coats, and can be applied without shutting operations down.

Sustainability and Green Building Practices

Sustainability is a key trend influencing choices in the insulation industry. Builders and developers are choosing materials with low embodied carbon, high recycled content, and minimal environmental impact. Insulation products made from natural fibres, bio-based foams, and recyclable materials are gaining popularity. For instance, in December 2024, Knauf Insulation partnered with Carters to replace EcoInsulation with Knauf-branded glasswool, maintaining quality and sustainability.

Innovation in Insulation Materials

Ongoing research & development is driving innovation in insulation technologies. In January 2024, Whirlpool Corporation introduced its SlimTech™ insulation technology, marking a significant advancement in refrigeration. Aerogels, vacuum insulation panels (VIPs), and phase-change materials (PCMs) are being explored for their superior thermal properties and space efficiency. These innovations cater to both residential and industrial applications, offering customized performance.

Stringent Building Energy Codes and Regulations

Global tightening of energy codes and building performance standards has become a powerful driver for the growth of the insulation market. Regulations, such as the U.S. ASHRAE standards, EU EPBD, and national green codes mandate minimum insulation levels in building envelopes. These rules require higher thermal resistance and airtightness, encouraging the use of high-performance insulation. Compliance is further tied to financial incentives or penalties, accelerating demand.

Digitalization and Smart Building Integration

Digital tools are reshaping how insulation is specified, modelled, and installed. In September 2022, Kingspan Insulated Panels North America launched “BIM Bundle” and “BIM Configure,” offering downloadable Revit-format products and customizable panels with AR preview options for architects and engineers. Sensors and smart materials are also embedded to monitor moisture, temperature, and insulation integrity over time. These technologies reduce construction errors and support predictive maintenance.

Focus on Lightweight and Easy-to-Install Products

Labor shortages and tighter construction schedules are driving insulation demand to offer lightweight, easy to handle, and quick to install benefits. Blown-in fiberglass, pre-cut panels, and spray foam offer efficient installation with minimal labour. Lightweight materials also reduce structural load and transportation costs. In May 2024, Huntsman Building Solutions unveiled its Icynene Series spray polyurethane foam insulation line at SprayFoam 2024 and IBS 2024 events. This trend supports faster project completion and cost savings for contractors.

Insulation Industry Segmentation

The report titled “Insulation Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Product

• Glass Wool
• Mineral Wool
• EPS
• XPS
• CMS Fibres
• Calcium Silicate
• Aerogel
• Cellulose
• PIR (Polysio)
• Phenolic Foam
• Polyurethane

Key Insight: Glass wool is the most dominant insulation product globally due to its affordability, fire resistance, and thermal performance. Major players continuously invest in product improvements. In March 2022, Saint Gobain’s insulation subsidiary ISOVER invested EUR 120 million in France to expand glass wool capacity and decarbonize production. Its lightweight, easy-to-install properties and widespread availability make glass wool a preferred choice in North America and Europe, securing its top position in the insulation market.

Market Breakup by Application

• Infrastructure
• Residential Construction
• Non-residential and Commercial Constructions
• Industrial
• HVAC and OEM
• Transportation
• Automotive
• Marine
• Aerospace
• Appliances
• Furniture
• Packaging

Key Insight: The infrastructure segment, comprising residential construction and on-residential and commercial construction, drives the market due to extensive renovation of buildings, bridges, tunnels, and public utilities. Insulation materials, such as mineral wool, glass wool, and spray foam are widely used to improve energy efficiency, fire resistance, and soundproofing in commercial and residential projects. In September 2024, Knauf Insulation launched Performance+™ line to offer formaldehyde-free, asthma-friendly fiberglass products for healthier indoor air. The sector’s large-scale projects and long service life ensure steady demand, making infrastructure the largest market driver for insulation globally.

Market Breakup by Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Key Insight: North America is the most dominant region in the global insulation market, driven by stringent energy efficiency regulations, high demand for sustainable construction, and advanced research & development. Major companies are actively launching innovations to meet evolving building codes and consumer demand. For instance, Natural Resources Canada (NRCan) has been actively supporting the development of next-generation bio-based foam insulation products. Government incentives for retrofitting and green building certifications further support insulation growth.

Insulation Market Share

Mineral Wool & EPS Insulation to Gain Traction

Mineral wool is a significant segment due to its excellent fire, acoustic, and thermal resistance. It is commonly used in industrial, commercial, and high-rise residential projects. Leading manufacturers like Rockwool and Saint-Gobain have capitalized on its popularity. Mineral wool is especially preferred in Europe due to its fire safety standards and recyclability. Although heavier and more expensive than glass wool, its durability and performance in harsh environments keep it competitive in insulation markets globally.

EPS (expanded polystyrene) holds a strong position in the insulation market, particularly in packaging and lightweight construction applications. EPS is widely used in regions with developing infrastructure. Manufacturers are developing fire-retardant and recycled EPS variants to remain relevant. In December 2024, HIRSCH Isolation launched EPS insulation products made entirely from recycled materials, eliminating the use of virgin material. EPS further remains highly favoured in emerging markets due to its affordability and easy handling.

Thriving Insulation Adoption in Industrial & HVAC and OEM Applications

Industrial insulation is a major segment focused on thermal management, fire protection, and energy conservation in manufacturing plants, refineries, and power generation facilities. In February 2024, Owens Corning launched its EcoTouch® PIR (polyisocyanurate) insulation line to enhance energy efficiency and sustainability in industrial applications. The segment is also critical for reducing operational costs and emissions in oil and gas, chemical processing, and heavy manufacturing, securing its position as a leading market segment.

HVAC and OEM applications are vital for the insulation industry revenue for improving system efficiency and reducing noise in heating, ventilation, air conditioning, and original equipment manufacturing. Foam insulations, flexible fiberglass, and reflective barriers are widely used to insulate ducts, pipes, and machinery components. Companies like Johns Manville and Owens Corning supply insulation tailored for HVAC systems that enhance thermal performance and reduce energy consumption. This segment benefits from growing demand for energy-efficient HVAC solutions in residential and commercial buildings, making it a significant but somewhat smaller part of the overall insulation market compared to industrial and infrastructure.

Insulation Market Regional Analysis

Europe & Asia-Pacific to Drive Insulation Industry Expansion

Europe is a strong and mature insulation market, driven by aggressive carbon reduction goals and strict building energy codes under the European Union Green Deal. Germany, France, and the United Kingdom emphasize retrofitting old housing stock with mineral wool, stone wool, and cellulose insulation. Europe also invests heavily in digital tools for insulation specification and promotes natural fibre solutions to reduce environmental impact, making it a progressive yet saturated market.

Asia-Pacific is the fastest growing market due to lower baseline adoption and regional disparities. Rapid urbanization in China, India, and Southeast Asia fuels demand for thermal and acoustic insulation in residential and commercial projects. Government programs to improve building efficiency are boosting adoption. Japan and South Korea are mature markets with high-tech insulation materials, while India is seeing increased activity. In October 2023, ALP Aeroflex launched 'Aerocell Rail,' a rubber-based thermal insulation material designed for modern rail and metro coaches in India.

Competitive Landscape

Key players in the insulation market are adopting a range of key strategies to strengthen their market position, drive innovation, and meet evolving sustainability and regulatory demands. Product innovation is a central focus, with companies investing in advanced materials like aerogels, vacuum insulation panels, and bio-based insulations to enhance thermal performance and environmental friendliness. Sustainability and decarbonization have become core to strategic growth, as firms develop low-carbon or recyclable products and invest in cleaner production technologies.

Geographic expansion is also prevalent, particularly into emerging markets, where construction and industrial activity is rising. To support this, companies are building local manufacturing plants to reduce logistics costs and emissions. Strategic partnerships and acquisitions help expand product portfolios, enter new sectors, or gain technological expertise. Additionally, digitalization is being used to streamline operations, improve energy modelling, and enable smarter installation techniques.

GAF

Founded in 1886, GAF is headquartered in Parsippany, the United States. As North America's largest roofing manufacturer, it has pioneered innovations like advanced roofing membranes and reflective technologies. GAF has significantly contributed to sustainable roofing with its energy-efficient systems and recycling initiatives, helping reduce landfill waste and promote green building practices.

Huntsman International LLC

Established in 1970 and based in Texas, the United States, Huntsman is a global leader in specialty chemicals. It has advanced the development of high-performance polyurethane insulation, enabling energy-efficient construction. Huntsman is known for its innovation in MDI-based foam systems, which enhance thermal resistance and reduce emissions across residential and industrial applications.

Johns Manville

Founded in 1858 and headquartered in Denver, Johns Manville is a Berkshire Hathaway company specializing in insulation, roofing, and engineered products. It is recognized for developing formaldehyde-free fiberglass insulation and advanced vapor barrier systems. The company prioritizes sustainability and performance, supplying energy-efficient solutions for building, industrial, and transportation sectors globally.

Cellofoam North America Inc.

Cellofoam North America Inc., founded in 1965 and headquartered in Conyers, the United States, specializes in EPS products. Known for innovation in lightweight, moisture-resistant insulation, the company serves construction, packaging, and marine markets. Its advanced EPS manufacturing methods contribute to cost-effective, energy-efficient building insulation with reduced environmental impacts.

Other players in the insulation market are ROCKWOOL International A/S, DuPont de Nemours, Inc., and Owens Corning, among others.

Key Features of the Insulation Market Report

• Comprehensive quantitative analysis of global insulation market size and growth forecasts.
• Detailed segmentation by product type, application, and region for targeted insights.
• Examination of emerging trends and technological advancements shaping the industry.
• Competitive landscape profiling key players with strategies and market shares.
• Impact assessment of regulatory policies and sustainability initiatives on market dynamics.
• In-depth market drivers, restraints, opportunities, and challenges analysis.

Why Choose This Research?

• Trusted data backed by rigorous research methodologies and verified sources.
• Actionable insights tailored for strategic business decisions and market planning.
• Regularly updated reports reflecting the latest industry developments and forecasts.
• Expert analysts providing personalized support and detailed market interpretations.