Building Insulation Material Market

Building Insulation Material Market Outlook (2024 to 2034)

The global building insulation material market size is pegged at US$ 37.56 billion in 2024, according to a new study published by Fact.MR. Worldwide demand for building insulation materials is forecasted to increase at 6.7% CAGR and reach a market value of US$ 71.85 billion by the end of 2034.

Implementation of stringent building codes and regulations aimed at improving energy efficiency in construction projects is predicted to encourage the adoption of insulation materials to minimize energy consumption for cooling and heating. In addition, rising awareness about climate change along with the increasing need to reduce carbon emissions is forecasted to result in a growing focus on energy-efficient buildings. Further, effective insulation systems are predicted to help in reducing energy use, thus subsequently lowering carbon footprints.

Constant fluctuations in energy prices along with growing costs of cooling and heating buildings are projected to stimulate property owners to increase their expenditure on insulation techniques to reduce energy bills. Advancements in insulation materials, including easier installation methods, eco-friendly compositions, and improved thermal performance are projected to make them more effective and appealing.

• Worldwide demand for reflective building insulation materials is predicted to increase at 6.8% CAGR and reach a market value of US$ 41 billion by the end of 2034.
• The market in Japan is forecasted to advance at a CAGR of 7% and reach US$ 5.74 billion by 2034-end.
• East Asia is projected to account for more than 27% of the building insulation material market share by the end of 2034.

Incentives, tax credits, or subsidies from local authorities or governments for using energy-efficient materials are predicted to encourage the adoption of building insulation materials in construction projects. Rising urban populations along with an increasing number of construction activities are forecasted to generate demand for insulation materials with the construction of new infrastructure and buildings. Growing need to upgrade existing buildings with improved energy efficiency through retrofitting and renovations is projected to stimulate demand for insulation materials.

Report Attributes	Details
Building Insulation Material Market Size (2024E)	US$ 37.56 Billion
Forecasted Market Value (2034F)	US$ 71.85 Billion
Global Market Growth Rate (2024 to 2034)	6.7% CAGR
China Market Growth Rate (2024 to 2034)	5% CAGR
North America Market Share (2034F)	21%
Japan Market Value (2034F)	US$ 5.74 Billion
Revenue Share of Industrial Segment (2034F)	41.3%
Key Companies Profiled	BASF SE GAF Insulation Types Corporation Dow Inc. Knauf Insulation Rockwool International A/S Saint-Gobain S.A. Owens Corning Inc. GlassRock Insulation Company SAE Lloyd Insulations Limited Kingspan Group Plc. Covestro AG Beijing New Building Insulation Type Johns Manville Cabot Corporation Aspen Aerogels Inc. Huntsman International LLC CNBM Group Co. Ltd.

Which Factors are Projected to Contribute to Building Insulation Material Market Growth?

“Increasing Focus on Energy Conservation and Rising Trend of Green Buildings”

The building & construction sector is one of the prominent contributors to greenhouse emissions and energy consumption. The increasing requirements for understanding energy utilization are pivotal in the construction sector. Rising government initiatives and increased environmental awareness are forecasted to result in the development of more green construction activities around the world.

Rising urban population, surging energy consumption, and increasing building & construction activities are leading to the implementation of stringent codes for energy. Implementation of these energy codes in developing as well as developed countries and establishment of several green building rating systems such as LEED (Leadership in Energy and Environmental Design) are predicted to positively impact demand for building insulation materials.

What is Limiting Demand Growth for Building Insulation Materials?

“Increased Cost of Insulation Materials Restricting Product Demand”

Due to their relatively high costs, the demand for polyurethane and polyisoprenecyanurate foam as insulation materials for walls is constrained. Several regions import these insulation types to match the demand, which is predicted to increase their prices thus posing a limitation to the expansion of the building insulation material market size.

What Opportunities Await Start-ups in This Business?

“Growing Emphasis on Development of High-performance Insulation Products”

Several federal and state governments around the world are putting efforts into launching various projects to minimize emissions of carbon dioxide. The increasing requirements for renewable energy sources along with efforts to decrease energy waste are attributed to increasing awareness about climate change. The development of efficient building insulation materials by start-ups with improved mechanical features is forecasted to contribute to the building insulation material market trend.

Country-wise Insights

According to the report published by Fact.MR, a market research and competitive intelligence provider, East Asia is predicted to account for more than 27% share of the global market by 2034. Market growth in East Asia is attributed to the increasing number of building activities to meet the needs of the increasing population.

Why is Demand for Building Insulation Materials High in the United States?

“Implementation of Stringent Insulation Standards to Minimize Energy Consumption”

Attribute	United States
Market Value (2024E)	US$ 6.73 Billion
Growth Rate (2024 to 2034)	4.8% CAGR
Projected Value (2034F)	US$ 10.72 Billion

The United States is forecasted to account for 70.3% share of the market in North America by the end of 2034. Stringent regulations and building codes aim to improve energy efficiency. Federal and state regulations in the United States generally mandate higher insulation standards in renovations and new construction to minimize energy consumption, which is predicted to stimulate demand for sustainable building insulation materials.

What is Set to Boost Demand for Building Insulation Materials in China?

“Noteworthy Growth of Building & Construction Sector”

Attribute	China
Market Value (2024E)	US$ 6.85 Billion
Growth Rate (2024 to 2034)	5% CAGR
Projected Value (2034F)	US$ 11.16 Billion

China is predicted to hold 57.3% share of the East Asia market by 2034. Increasing population, rising urbanization, and rapid industrialization are forecasted to contribute to the growth of the building & construction sector in China. The growing construction of commercial and residential buildings is projected to generate demand for effective insulation materials. Further, significant growth of several end-use industries, including metal & mining, manufacturing, oil & gas, and others, is predicted to result in rising demand for building insulation materials.

Category-wise Insights

Based on material, worldwide demand for polystyrene-based building insulation materials is predicted to increase more due to their waterproof properties. As a good insulator of sound and temperature, the adoption of polystyrene-based building materials is increasing. In addition, lightweight, easy installation, and simple trimming are some other advantages of these materials.

Which Material is Widely Used in Building Insulation Solutions?

“Widespread Use of Polystyrene-based Materials for Sound and Thermal Insulation”

Polystyrene-based building insulation materials are waterproof and act as good insulators of sound and temperature. In comparison to fiberglass, it is comparatively easy to install these materials. Installing these materials is relatively easy compared to fiberglass. They can be easily trimmed to fit into ceilings and walls. Several advantages of polystyrene compared to other material types are forecasted to stimulate their demand across geographies.

Why are Building Insulation Materials Gaining Traction in the Industrial Sector?

“Growing Environmental Concerns Fueling Demand for Sustainable Building Insulation Materials”

Attribute	Industrial Sector
Segment Value (2024E)	US$ 16.11 Billion
Growth Rate (2024 to 2034)	6.3% CAGR
Projected Value (2034F)	US$ 29.7 Billion

The industrial sector is predicted to account for 41.3% share of the global market by the end of 2034. There is an increased focus on sustainability and minimizing carbon footprints. Effective insulation systems assist in minimizing energy consumption, thus subsequently decreasing greenhouse gas emissions. There is an increased consideration of eco-friendly options in the industrial sector to minimize their environmental impact.

Competitive Landscape

Prominent market players are focusing on the expansion of their global footprints and production capabilities. Several key players are putting efforts into developing eco-friendly products to address increased environmental concerns and changing regulatory scenarios. In addition, they are also engaged in improving product quality, new developments, and management of supply chain systems.

For instance :

• Evonik, in November 2022, developed a new range of specialized feedstocks, named TEGO Therm®, which is predicted to enhance the functionality of TICs (thermal insulation coatings). TEGO Therm® HPG 4000 and TEGO Therm® HPG 6806 are two microporous granules based on silica, which are included in this new product line. In addition, TEGO Therm® L 300 is a heat-resistant silicone binder, which is also a part of this newly developed product line of the company.

Key players in the building insulation material market include BASF SE, GAF Insulation Types Corporation, Dow Inc., Knauf Insulation, Rockwool International A/S, Saint-Gobain S.A., Owens Corning Inc., GlassRock Insulation Company SAE, Lloyd Insulations Limited, Kingspan Group Plc., Covestro AG, Beijing New Building Insulation Type, Johns Manville, Cabot Corporation, Aspen Aerogels Inc., Huntsman International LLC, and CNBM Group Co. Ltd.

Segmentation of Building Insulation Material Market Research

• By Material :

  • Fiberglass
  • Mineral Wool
  • Cellulose
  • Polyurethane Foam
  • Polyisoprenecyanurate Foam
  • Polystyrene
  • Aerogels
  • Others

• By Insulation Type :

  • Bulk
  • Reflective

• By Application :

  • Wall Insulation
  • Underfloor Insulation
  • Ceiling/Roof Insulation
  • Window Insulation

• By End Use :

  • Residential
  • Commercial
  • Industrial

• By Region :

  • North America
  • Europe
  • East Asia
  • Latin America
  • Middle East & Africa
  • South Asia & Oceania