Industrial Insulation Market

Industrial Insulation Market Research, 2031

The global industrial insulation market size was valued at $7.8 billion in 2021, and is projected to reach $12.7 billion by 2031, growing at a CAGR of 5.1% from 2022 to 2031.

The COVID-19 pandemic negatively impacted the demand for industrial insulation from a wide range of end-use sectors, including power, oil and gas, chemical, food & beverage, and cement. Owing to the needs for energy conservation, energy efficiency, and the reinforcement of pipelines, machinery, tanks, boilers, and other equipment, power is the greatest market for industrial insulation, favorably impacting the global industrial insulation market growth.

Insulation promotes improved machine performance and eliminates the heat transfer out of the equipment system. It also provides frost protection to pipelines at low temperatures, making it ideal for transportation equipment.

Increase in demand for enhancing equipment efficiency and process performance among application industries is expected to serve as a crucial growth factor for the industrial insulation market. Also, increase in demand for industrial insulation due to rise in construction, industrial, and infrastructure activities globally, and the growing demand for energy conservation further propel the industrial insulation market. Further, industrial insulation has been used to safeguard boilers, furnaces, chimneys, temperature storage tanks, and other power sector equipment. It is a vital part of power plant installation and operation. It assists steam-generating boilers in maintaining specific temperatures. Consequently, the increasing demand from boilers, furnaces, chimneys, and temperature storage tanks industry of insulation coupled with growth in power industry is predicted to surge the demand for industrial insulation during the forecast period.

Moreover, the industrial insulation industry is heavily influenced by the needs of oil and gas, steel, manufacturing, electricity, and other industries operating on high temperature or radiant systems. The expanding industrial sector and associated stringent safety and emission standards are expected to stimulate demand for industrial insulation. In addition, companies are focused on improving performance by reducing losses by adhering to regular maintenance practices that often require insulation replacement. This practice is expected to accelerate market growth during the forecast period.

However, the cost of installing insulating materials is relatively high due to the need for different approvals, regulation citations, and professional personnel. This hampers the growth of the industrial insulation market. On the contrary, growth in the building & construction industry is expected to generate lucrative opportunities for the global industrial insulation market growth.

The industrial insulation market is segmented into material, form, end-use industry, and region. By material, the market is categorized into mineral wool, plastic foam, and others. On the basis of form, the market is categorized into pipe, blanket, board, and others.  On the basis of end-use industry, the market is categorized into power, oil and gas, chemical and petrochemical, cement, food & beverage, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. The industrial insulation market share is analyzed across all significant regions and countries.

The major players operating in the global industrial insulation market include, Armacell International SA, BASF SE, Cabot Corporation, Johns Manville, Kingspan Group PLC, Knauf Insulation, Nichias Corporation, NMC Group, Owens Corning, Polyguard Materials Inc., Promat, Rockwool Group, Saint Gobain, Solvay, and Thomas Insulation Corporation.

Region-wise, Asia-Pacific dominated the market with the highest revenue share in 2021. Asia-Pacific is projected to register a robust growth during the forecast period. This growth is attributed to the rapid growth in the automotive, construction, and telecommunications sectors in the region. In addition, low labor costs, production unit installation costs, and low insulation costs are driving the market.

On the basis of material, the mineral wool segment dominated the global industrial insulation market in terms of revenue, in 2021. Mineral wool insulation is an insulator that is widely used in the piping and construction industries. Mineral wool insulation is a poor thermal conductor, and has superior flame-resistant properties. Besides, it is also used as an acoustic dampener. These factors are predicted to surge the demand for mineral wools during the forecast period.

On the basis of form, the pipe segment dominated the global industrial insulation market in terms of revenue, in 2021. Pipe insulation has been a prominent shift in the market towards the development of environment-friendly insulation materials and the utilization of recycled products. With continuous increase in environmental concerns, manufacturers are increasingly adopting eco-friendly alternatives for insulation materials, such as cellulose, mineral wool, and more. These factors are predicted to surge the demand for insulated pipes during the forecast period.

On the basis of end-use industry, the oil and gas segment dominated the global industrial insulation market owing the extensive use of industrial insulation materials in maintaining equipment temperatures. The increasing usage of oil and gas for energy, growing population, and rise in demand for petrochemicals are driving the segment growth.

COVID-19 Analysis:

• The COVID-19 pandemic negatively impacted the demand for industrial insulation from a wide range of end-use sectors, including power, oil and gas, chemical, food & beverage, and cement. Power is the greatest market for industrial insulation, owing to the needs for energy conservation, energy efficiency, and the reinforcement of pipelines, machinery, tanks, boilers, and other equipment, which favorably impact the global industrial insulation market.
•  Demand for industrial insulation has faced a dip due to the outbreak of COVID-19 globally. As most countries are on lockdown, new building operations are halted, and hence no insulating material is utilized. Ancient buildings that are required to be insulated owing to new rules and regulations enacted by the local government are likewise on hold because neither the material nor the personnel to install it is available. Due to the outbreak of COVID-19, prices of insulation materials, such as industrial insulation has declined, especially post May 2019. In countries such as Germany, France and Poland, where the maximum demand is generated and fulfilled with the local production, a decline in price has impacted the overall market of industrial insulation.
• In countries such as the U.S, Canada, Australia, and New Zealand, industrial insulation is used in numerous end-use industries such as power generation, refinery, and chemicals & petrochemicals. Industrial insulation is primarily used as pipe and pulp, refining, oil and gas materials, owing to the importance of pipe insulation, boards, and blankets following the COVID-19. Consumer demand was impacted by cover boilers, furnaces, chimneys, heat storage tanks during the COVID-19 pandemic. Sales initially increased as customers concerns about safety and their protection pushed market purchases of industrial insulation.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the industrial insulation market analysis from 2021 to 2031 to identify the prevailing industrial insulation market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the industrial insulation market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global industrial insulation market trends, key players, market segments, application areas, and market growth strategies.

 Industrial Insulation Market Report Highlights