|Fastest Growing Market:||Asia Pacific|
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The global building insulation materials market (henceforth, referred to as the market studied) is estimated to be USD 27,843.45 million in 2020 and is expected to register a CAGR of 4.35% during the period of 2021-2026. The factors driving the growth of the market studied are the growing demand for energy efficiency, rising infrastructure, and industrialization in Asia-Pacific. On the flip side, the impact of the COVID-19 pandemic on the construction industry can act as a barrier to the growth of the market studied. Many insulating material manufacturing companies and raw material manufacturers extended the closure of all their operations at their manufacturing locations till receipt of further directions from the government authorities. Production at some of the manufacturing companies’ plants resumed, which is an encouraging sign.
- The non-residential industry is expected to dominate the building insulation materials market over the forecast period.
- Europe dominated the building insulation materials market and Asia-Pacific is forecasted to be the fastest-growing market during the forecast period owing to the increasing consumption for countries such as China and India.
Scope of the Report
Building insulation materials contribute significantly to reducing energy consumption in buildings and sustain the affordability of the construction sector by improving the cost and energy and performance in the building envelope (walls, roofs, floors, etc.), windows, mechanical systems as well as on-site renewable generation and thermal systems. The building insulation materials market is segmented by type, end-use sector, and geography, By type, the market is segmented into Fiberglass, Mineral Wool, Cellulose, Polyurethane/ Polyisocyanurate Foam, Polystyrene, and Other Types. By end-use sector, the market is segmented into Residential and Non-residential. The report also covers the market sizes and forecasts for the Building Insulation Materials market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of revenue (USD million).
|Polyurethane/ Polyisocyanurate (PUR/PIR) Foam|
Key Market Trends
Residential Sector to Dominate the Market
- Insulation of residential buildings is gaining popularity due to its architectural and energy efficiency benefits. Promoting energy efficiency (EE) requirements for new residential buildings has been proven an effective mandatory policy instrument to slow down the increase of energy consumption in the residential building sector. Residential construction across the globe has been witnessing significant growth over the past few years owing to factors like population growth, migration from rural areas to service sector clusters, and the growing trend of nuclear families. Besides, decreasing land-to-population ratio and the growing trend of constructing high-rise residential buildings and townships have been driving the application of building insulation materials in the residential construction segment across the globe.
- In the recent past, the highest growth rate regarding residential construction was expected to be registered in the Asia-Pacific region, owing to the expanding housing construction markets in China and India. Asia-Pacific has the largest low-cost housing construction segment, led by China, India, and various Southeast Asian countries. However, with most of the Asia-Pacific countries being severely affected by COVID-19, the growth is expected to notably slower down in the short run. Globally, there has been a significant undersupply to meet the demand for housing. This presented a major opportunity for the investors and developers to embrace alternative methods of construction and new partnerships, in order to bring forward development. For instance, China, residential investment grew by about 13.9% during the first eleven months of 2019, reaching CNY 9,707.1 billion. The area under residential construction during the period was recorded to have reached 6,276.73 million square meters, indicating a 10.1% growth.
- In the EU-27 countries, the investment in residential construction in 2019 was around 21.6% of the total investments in the construction industry and was around 2.7% greater than the investment for residential construction in 2018. Germany, France, and Spain were the major residential construction markets. However, most of the countries witnessed smaller growth rates for residential construction investment during 2018-19 in comparison to 2017-18, except few countries like Austria and Italy.
- While residential construction growth was prominent through 2019 in regions such as Asia-Pacific, North America, and the Middle East, the COVID-19 pandemic is expected to severely hit residential construction growth at least over the next two years. As COVID-19 has been severely increasing fatality rate across the globe, housing and new residential construction are likely to be moderate during the foreseeable future
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United States to Dominate the Global Demand
- The United States is the largest economy in the world. However, the economic growth of the country has been slowed in the recent past with the GDP growth rate dropping from 2.9% in 2018 to 2.3% in 2019. Additionally, the GDP of the country contracted by 4.8% in the first quarter of 2020, severely impacted by the COVID-19 pandemic. The drastic outbreak of COVID-19 in the country has led to a downfall in economic growth, owing to a fall in consumer spending and business shutdowns. With the coronavirus disease advancing all across the United States, various industries, and nearly all aspects of the supply chain have been impacted, including the construction industry. Construction work has been halted in Boston, in the state of Pennsylvania, and various other cities and states which is expected to affect the industry at least in the short turn.
- United States holds the world’s largest construction industry, which recorded an annual expenditure of over USD 1,306 million in 2019 (a decline of 0.1%, when compared to 2018). The residential construction sector of the country has witnessed a small setback in recent times owing to decreasing consumer demand. According to the United States Bureau of Economic Analysis, the annual value of construction in the residential sector has decreased from USD 5,63,877 million in 2018 to USD 5,50,942 million in 2019.
- According to the survey ‘Non-residential building spending to grow through 2020’ by the American Institute of Architects, the overall non-residential sector is expected to increase by 0.9% in 2020 and 1.5% in 2021. However, the construction of hotels is expected to dip by 1% in 2020 and 0.7% in 2021. On an optimistic note, construction of office spaces is however expected to increase by 0.5% in 2020 and further by 3% in 2021.
- However, at present various cities and states across United States such as Boston, San Francisco Bay Area, and Pennsylvania amongst others has shut down construction work owing to the COVID-19 pandemic. This is expected to hamper the market at present; however, is expected to recover through the years to come.
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The global building insulation materials market is fragmented in nature, with no player occupying a significant position in the market. Still, the top four-five players in the market enjoy a considerable share in the global market. The major companies of the market studied include BASF SE, Saint-Gobain, ROCKWOOL International A/S, Knauf Insulation, and Owens Corning, among others.
- In September 2020, Saint-Gobain announced the acquisition of Strikolith, a Netherlands company, specialized in the production of external insulation systems, interior finishing, and renovation products and solutions. The company offers a wide range of expanded polystyrene boards and sheets for façade insulation.
- In September 2020, Johns Manville (JM), a global building and specialty products manufacturer and a Berkshire Hathaway Company had broken ground to build a polyiso production plant in Hillsboro, Texas. The expansion is anticipated to be completed in mid-2022.
- In September 2020, Paroc became one of the first companies in Finland to launch a recycling system for stone wool. The REWOOL system allows the off-cuts of stone wool produced by the construction industry and building sites to reuse, efficiently, which helps the construction industry's goal of carbon neutrality.
- In July 2020, DuPont announced the phased launch of a new, reduced global warming potential (GWP) Styrofoam Brand Insulation. Beginning January 1, 2021, the Styrofoam Brand Insulation family of products will include lower GWP options.
- In February 2020, Atlas Roofing Corporation announced the acquisition of StarRFoam located in Arlington, Texas. StarRFoam is a leading manufacturer of molded polystyrene solutions with manufacturing facilities in Texas and Arizona. The acquisition further establishes Atlas as one of the largest manufacturers of molded polystyrene in North America.
- In February 2020, Huntsman International LLC announced that it has completed the acquisition of Icynene-Lapolla, a leading North American manufacturer and distributor of spray polyurethane foam insulation systems for residential and commercial applications. Huntsman acquired the business from an affiliate of FFL Partners LLC, for USD 350 million. The acquisition of Icynene-Lapolla is in line with Huntsman’s strategy of growing its downstream polyurethanes business.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1.1 Growing Demand for Energy Efficiency
4.1.2 Rising Infrastructure and Industrialization in Asia-Pacific
4.2.1 Harmful Effects as a Result of Exposure to Certain Insulation Materials
4.2.2 Unfavorable Conditions Arising due to the Impact of COVID-19
4.3 Industry Value Chain Analysis
4.4 Porter’s Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Degree of Competition
5. MARKET SEGMENTATION
5.1.2 Mineral Wool
5.1.4 Polyurethane/ Polyisocyanurate (PUR/PIR) Foam
5.1.6 Other Types
5.2 End-user Industry
220.127.116.11 Others (Civic, Religious Buildings, etc.)
18.104.22.168 South Korea
22.214.171.124 Rest of Asia-Pacific
5.3.2 North America
126.96.36.199 United States
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
5.3.4 South America
220.127.116.11 Rest of South America
5.3.5 Middle-East and Africa
18.104.22.168 Saudi Arabia
22.214.171.124 South Africa
126.96.36.199 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Atlas Roofing Corporation
6.4.2 BASF SE
6.4.3 Beijing New Building Material (Group) Co., Ltd.
6.4.6 Huntsman International LLC
6.4.7 Johns Manville
6.4.8 Kingspan Group
6.4.9 Knauf Gips KG
6.4.10 Owens Corning (including Paroc Group)
6.4.11 ROCKWOOL International A/S
6.4.13 Synthos S.A
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Use of Organic Products for Insulation
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Frequently Asked Questions
What is the study period of this market?
The Building Insulation Materials Market market is studied from 2016 - 2026.
What is the growth rate of Building Insulation Materials Market?
The Building Insulation Materials Market is growing at a CAGR of 4.35% over the next 5 years.
Which region has highest growth rate in Building Insulation Materials Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Building Insulation Materials Market?
Europe holds highest share in 2020.
Who are the key players in Building Insulation Materials Market?
ROCKWOOL International A/S, Knauf Insulation, Owens Corning, BASF SE, Saint-Gobain are the major companies operating in Building Insulation Materials Market.