Industrial Building Insulation Market Report 2025

The industrial building insulation market size has grown strongly in recent years. It will grow from $10.19 billion in 2024 to $10.83 billion in 2025 at a compound annual growth rate (CAGR) of 6.3%. The growth in the historic period was driven by increased industrial construction activities, greater awareness of operational cost savings, expanding green building initiatives, growth in retrofitting projects, and stricter energy efficiency regulations.

The industrial building insulation market size is expected to see strong growth in the next few years. It will grow to $13.62 billion in 2029 at a compound annual growth rate (CAGR) of 5.9%. In the forecast period, growth is expected to be supported by rising energy prices, wider adoption of pre-insulated panels, expansion of renewable energy facilities, increasing demand for fire-resistant insulation, and growth in cold storage and logistics infrastructure. Key trends anticipated include the development of advanced aerogel materials, enhancements using nanomaterials, deployment of vacuum insulation panels, integration of sensors and digital monitoring systems, and the rise of eco-friendly and bio-based insulation products.

The growing adoption of energy-efficient infrastructure is expected to drive the expansion of the industrial building insulation market. Energy-efficient infrastructure refers to buildings and systems designed to reduce energy consumption while maintaining performance and minimizing environmental impact. This trend is largely motivated by rising energy costs, prompting businesses to lower long-term operational expenses and improve energy efficiency. Industrial building insulation plays a key role by reducing heat loss, making it essential for factories and large facilities. It enhances energy performance, cuts operational costs, and supports environmental sustainability. For example, in February 2024, the US Green Building Council reported a 9% increase in LEED certifications in 2023 compared to 2022, along with 21 additional certifications for single-family homes. New project registrations also surged by 51%, indicating strong growth in sustainable construction. This increasing focus on energy-efficient infrastructure is fueling market growth.

Leading companies in the industrial building insulation market are developing advanced products, such as high-performance insulation panels, to improve energy efficiency, fire safety, and sustainability in industrial buildings. High-performance insulation panels are engineered materials that provide superior thermal resistance, energy savings, fire protection, and moisture control. For instance, in March 2025, Kingspan Group, an Ireland-based building materials company, introduced Therma TA41, a polyisocyanurate (PIR) insulation panel designed for superior thermal efficiency with a thermal conductivity of just 0.022 W/mK. It is ideal for flat roofs and other demanding industrial applications requiring robust energy performance and moisture resistance. Additionally, it offers enhanced fire resistance, dimensional stability, and long-term durability, making it a reliable choice for energy-efficient and safety-conscious building projects.

In February 2024, Saint-Gobain S.A., a France-based construction materials company, acquired International Cellulose Corporation (ICC) for an undisclosed amount. This acquisition aims to broaden Saint-Gobain’s building envelope solutions by adding ICC’s specialty spray-applied insulation products, strengthening its portfolio for energy-efficient and sustainable commercial and industrial buildings. ICC is a U.S.-based company specializing in industrial building insulation solutions.

Major players in the industrial building insulation market are BASF SE, Dow Inc., Compagnie de Saint-Gobain S.A., 3M Company, Covestro AG, Owens Corning, Kingspan Group plc, Huntsman Corporation, Cabot Corporation, Johns Manville Corporation, Rockwool A/S, Knauf Insulation Inc., GAF Materials LLC, Armacell International S.A., Atlas Roofing Corporation, Paroc Group Oy, Dongsung Finetec Co. Ltd., Aspen Aerogels Inc., URSA Insulation S.A., Recticel Insulation NV, and Lloyd Insulations Limited.

North America was the largest region in the industrial building insulation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in industrial building insulation report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the industrial building insulation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the construction sector, particularly in materials procurement and project costs. Higher duties on imported steel, aluminum, lumber, and machinery have driven up expenses for builders, contractors, and infrastructure developers, leading to increased project bids and delayed timelines. Construction equipment manufacturers face similar challenges, with tariffs on essential components and raw materials inflating production costs and squeezing margins. Additionally, retaliatory tariffs in international markets have curtailed exports of U.S.-made construction equipment and materials, further affecting profitability. The sector must now prioritize local sourcing, modular construction techniques, and supply chain diversification to control costs and ensure project viability amid ongoing trade uncertainties.

Industrial building insulation refers to the materials and systems employed to reduce heat transfer, manage moisture, and minimize sound within industrial facilities such as factories, warehouses, and plants. Its main goals are to improve energy efficiency, maintain stable indoor temperatures, enhance worker comfort, and protect equipment from environmental extremes.

Common materials used for industrial building insulation include fiberglass, mineral wool, cellulose, polyurethane foam, polystyrene, and others. Fiberglass insulation is made from fine glass fibers and is designed to reduce heat transfer while boosting energy efficiency in industrial settings. It also provides sound absorption and fire resistance. Available in various thicknesses - such as under 1 inch, 1 to 2 inches, 2 to 4 inches, and over 4 inches - it can be installed through methods such as new construction, retrofit, pre-insulated panels, insulated roof systems, and structural insulated panels (SIPs). Typical applications include roof, wall, and floor insulation, serving diverse industries such as pharmaceuticals, food and beverage, aerospace, automotive, and electronics.

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

The industrial building insulation market consists of sales of thermal insulation materials, acoustic insulation products, fireproofing insulation, and pipe and equipment insulation. 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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