Global Insulation

Global Insulation

Global demand for insulation is forecast to rise 1.5% per year to $59.2 billion in 2026, with healthy increases in volume demand offset by falling prices. Prices for insulation products spiked in 2021 and 2022 because of supply chain issues and high raw material costs. These prices are expected to moderate significantly through the rest of the forecast period, restraining market value growth.

Volume demand is expected to grow 2.7% annually to 29.6 million metric tons in 2026, driven by:

• growing manufacturing activity, employees returning to offices on at least a part-time basis, and rising income levels spurring gains in the construction of factories, offices, retail buildings and other nonresidential structures
• efforts in the European Union and the United Kingdom to improve the energy efficiency of buildings
• rising production of HVAC equipment, industrial equipment, and appliances, particularly refrigerators and freezers

India, China, & Indonesia Provide Significant Growth Opportunities
India, China, and Indonesia are projected to be among the fastest growing insulation markets globally in volume terms through 2026:

• Gains in China will be driven by healthy growth in manufacturing activity, most notably for HVAC equipment (as air conditioning increasingly penetrates developing countries) and appliances (as demand increases for quieter and more energy-efficient products).
• Market advances in both India and Indonesia will be driven by solid growth in building construction, particularly in the nonresidential market as both countries continue to substantially increase their manufacturing bases, resulting in a larger stock of commercial buildings requiring insulation.

Despite Weakness, Residential Market Offers Opportunities in New & Retrofit Applications
Although continued weakness in housing construction in China and a decline in single-family housing starts in the US will restrain growth in the residential building market, absolute gains will be sizable, supported by trends in both new and retrofit applications:

• New housing construction will be robust in areas with rapidly increasing populations, such as the Africa/Mideast region and parts of the Asia/Pacific region, such as India, Pakistan, and Malaysia. As living standards improve in these areas, higher quality homes (which are often insulated) will be built.
• Retrofit applications will benefit from a major push among the European Union and the United Kingdom to improve the energy efficiency of homes, as most of Europe aims to reduce energy consumption as the region begins to phase out imports of oil and natural gas from Russia

Study Description
This Freedonia industry study analyzes the $54.9 billion global insulation industry. It presents historical demand data (2011, 2016, and 2021) and forecasts (2026 and 2031) by material (foamed plastic, fiberglass, mineral wool, all other insulation materials) and market (residential, nonresidential, industrial and plant equipment, HVAC/air distribution, appliances, transportation equipment, all other insulation markets). The study evaluates company market share and competitive analysis on industry competitors including Owens Corning, ROCKWOOL, Saint-Gobain, Knauf, DuPont, Carlisle Companies, and Johns Manville.