US HVAC Insulation Market - 2025-2032

US HVAC insulation market is estimated to grow at a CAGR of 5.4% during the forecast period (2025-2032) from its current value of US$ 2,375.74 Million in 2024 to reach a value of US$ 3,593.32 Million in 2032. US HVAC insulation market is a vital component of the construction and energy efficiency sectors, driven by the increasing demand for sustainable building practices and energy-efficient systems. HVAC insulation plays a crucial role in reducing energy consumption, minimizing heat loss or gain and improving indoor air quality. Buildings, as stated by the US Energy Information Administration, account for 75% of the electricity and 40% of the total energy used in US HVAC systems contribute a large percentage to this general figure. The utilization of advanced insulation materials, fiberglass, foam and mineral wool among others, has been driven with the primary purpose of augmenting the performance of the system. The market is also driven by stricter government standards and regulations like IECC and ASHRAE, requiring increased energy efficiency for buildings. Besides, the Inflation Reduction Act has added rebates on efficiency and electrification worth US$ 4.5 billion under Home Energy Performance-Based, Whole-House Rebates that include HVAC, which adds up to an effective market expansion opportunity. US HVAC insulation market is witnessing a significant shift toward sustainable and eco-friendly materials, driven by increasing environmental awareness and regulatory pressures. Traditional insulation materials such as fiberglass are still widely used, but interest in bio-based and recycled materials, including cellulose, cotton and aerogels, is increasing. These materials provide better thermal performance but also align with US's Paris Climate Agreement pledge to reduce net greenhouse gas emissions by 50–52 % in 2030, pledged net zero emissions by 2050. The Environmental Protection Agency (EPA) has recently pointed out that insulation is among the best options for reducing greenhouse gas emissions. This increases demand for green insulation solutions. In commercial and residential sectors, this trend is prominent as builders and homeowners opt for insulation materials that have low global warming potential (GWP) and are recyclable

Market Dynamics

Increasing Demand for Energy-Efficient Solutions
US HVAC insulation market is growing fast, mainly due to the importance of energy efficiency in residential and commercial buildings. According to the International Energy Agency (IEA), Electricity accounts for about 35% of buildings' energy use in 2022, with HVAC systems being among the largest contributors to this usage.
As energy costs increase and environmental concerns become more prominent, optimizing HVAC systems with advanced insulation materials has become a key strategy to reduce energy loss and enhance thermal performance. This shift is not only helping businesses and homeowners to lower their energy bills but also contributing to broader sustainability goals by minimizing carbon emissions.
Government regulations are playing an important role in the increasing demand for insulation solutions in HVAC as well. The US Department of Energy, for instance, has a strict program on energy efficiency known as the Building Energy Codes Program, which requires high-performance insulation in HVAC systems to reduce heat loss and optimize their operational efficiency.
The regulations have compelled manufacturers to come up with innovative insulation solutions, such as thermal and acoustic insulation jackets, which improve energy efficiency and comfort indoors. For instance, the collaboration between Armacell and AIS focuses on producing customized insulation jackets tailored for US market. Such initiatives are of utmost importance for meeting the surging demand for energy-efficient HVAC systems. Rising investment in energy-efficient buildings is another significant driving force behind the HVAC insulation market. According to the US Census Bureau, construction spending in US was estimated at US$ 1.98 trillion in 2022, a significant portion of which was attributed to energy-efficient building upgrades. As construction activity continues to gain momentum, demand for high-quality HVAC insulation compatible with modern energy standards is rising.

Segmentation Analysis

The HVAC insulation market can be segmented on type, compounds, application.

US HVAC Insulation Market for Duct was US$ 912.76 million in 2024 and is expected to reach US$ YY million by 2032, growing with a CAGR of 5.5% between 2025 and 2032.

Duct insulation plays a pivotal role in the HVAC market by enhancing system efficiency, improving energy savings and contributing to environmental sustainability. As HVAC systems are increasingly relied upon for residential, commercial and industrial applications, the demand for high-performance duct insulation has surged. Insulating HVAC ducts helps maintain the desired temperature within the ducts, preventing energy loss due to heat transfer, which significantly reduces operational costs for both end-users and service providers.

For instance, according to an article published in Trilogy AC company, reveled that adding insulation to air ducts reduces or prevents heat transfer, which cuts down on energy loss. The greater the temperature difference between the outside and inside of ducts, the more energy that can be wasted. Therefore, ducts in unconditioned spaces such as garages and attics are most vulnerable.

Ductwork insulation keeps cold air colder and hot air hotter. Without it, heat can get into uninsulated ducts and increase the temperature of air AC has cooled. Heat can also escape from ducts circulating air warmed by furnace or heater, so proper insulation can yield energy savings year-round.

In addition, as much as 30% of conditioned air can be lost through unprotected ducts, according to research conducted by NAIMA. Insulating air ducts effectively prevents that from happening and protects HVAC system from leaks, poor connections and energy transfer. It also supports residential HVAC system in moving conditioned air at specified temperatures without causing the energy source to become overtaxed

Competitive Landscape

The US HVAC insulation market is led by a few key players, with Owens Corning taking the largest share at 15.13%, followed by Saint-Gobain at 10.92% and Rockwool International at 9.92%. Other notable companies include Armacell International and Knauf Group, holding 8.71% and 7.69%, respectively. The companies dominate the market through their diverse, energyefficient product portfolios that cater to both residential and commercial HVAC needs, with a focus on sustainability and performance. Despite the strong presence of these major players, nearly half of the market (47.63%) is made up of smaller companies, indicating a fragmented competitive landscape. This presents opportunities for niche players to innovate and cater to specific market demands, particularly in energyefficient, sustainable and cost-effective HVAC insulation solutions

Owens Corning Corporation

Owens Corning is a global leader in building and industrial materials, specializing in fiberglass composites, insulation and roofing. Founded in 1938 and headquartered in Toledo, Ohio, the company operates through three primary business segments: Composites, Insulation and Roofing. Owens Corning is known for its innovation in developing advanced materials that enhance energy efficiency and sustainability across various industries. The company's Composites segment focuses on producing glass fiber materials used in a wide range of applications, from automotive to construction. The Insulation segment offers products designed to improve energy efficiency in residential and commercial buildings, while the Roofing segment provides durable roofing solutions. It emphasizes sustainability and technological advancement, striving to create products that contribute to a more energy-efficient and resilient built environment.