According to a new report published by Allied Market Research, titled, " Insulation Materials Market by Type and Application: Global Opportunity Analysis and Industry Forecast, 2020-2030,"

The global insulation materials market was valued at $61.6 billion in 2020, and is projected to reach $101.9 billion by 2030, growing at a CAGR of 5.2% from 2021 to 2030.

Insulation materials are used to stop heat, electricity, or sound from going into or out of materials used in the electrical appliances and in the construction sector. Insulation materials industry is primarily segmented in three broad categories, namely thermal insulation, electrical insulation, and heat insulation. Insulation materials contribute significantly to reduce 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, and on-site renewable generation and thermal systems. Insulation of residential buildings is gaining popularity due to its architectural and energy efficiency benefits. Promoting energy efficiency (EE) requirements for new residential buildings proves to be 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 such as 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 drive the application of building insulation materials in the residential construction across the globe.

The driving factors of global insulation materials market includes rise in disposable income among the developing countries. The presence of disposable income is directly proportional to increasing purchase power and hence there is a demand surge in the purchase of electronic goods. These electronic goods need to have insulating properties; hence these equipment are equipped with electrical insulators. The rapid urbanization and industrialization across the globe leads to surge in demand for the construction and automotive industry globally. Fiberglass insulator materials are used as an insulator in the construction sector, whereas silicone foams, polyester, polyurethane, and others are used as an insulator in the automotive industry.

The growth in the construction market and automotive industry has positive impact on the growth of the market. Increase in the extensive use of different kinds of insulators contributes in the growth of the market. Technological advancements over conventional insulating materials, such as the use of field grading materials in the making of insulators further provide opportunities for the growth of the market. The market looks poised for growth with the rise in construction activities in emerging economies, such as the countries of South Asia. The rise in cost of raw materials is a factor that hinders the development of the market across the globe.

The insulation materials market is segmented on the basis of type, application, and geography.

On the basis of type, the market is segmented into mineral wool, polyurethane foam, polyethylene, polyvinyl chloride, expanded polystyrene, extruded polystyrene, and others. The application type segment of the insulation materials market is broadly classified into residential construction, HVAC & OEM, non-residential, wires & cables, automotive, oil & gas, and others. The wires & cables sector accounted for the highest market share, owing to increased installation of Insulation Materials products in commercial, infrastructure, and other construction projects. The insulation materials market is segmented into four regions, namely North America, Europe, Asia-Pacific and LAMEA. Asia-Pacific is the leading region in terms of demand for insulation materials, and is expected to maintain its dominance during the forecast period. The high adoption of insulation materials products in the region is expected to continue to drive the insulation materials market size.

Key players profiled in the report include BASF SE, Bayer AG, Saint-Gobain S.A, Rockwool International, Huntsman Corporation, Atlas Roofing Corporation, Bridgestone, Evonik Industries AG, GAF Materials Corporation, Kingspan Group PLC, and The DoW Chemical Company.

Other key players in the market value chain include, Ibiden Co. Ltd., Morgan Thermal Ceramics, Aspen Aerogels, Inc. Knauf Insulation, Asahi Kasei Corporation, and E. I. du Pont de Nemours that are competing for the share of the market through product launch, joint venture, partnership, and expanding the production capabilities to meet the future demand for the insulation materials market during the forecast period.

Impact Of Covid-19 On Global Insulation Materials Market

• Emergence of COVID-19 had a less impact on the growth of the global insulation materials market during the pandemic period in 2019.
• This impact is mostly attributed to the significant disruptions in the raw material transportation and presence of low-labor, which led to shutdown of many manufacturing industries and decline in demand for insulation materials during COVID-19.
• The decrease in demand for many non-essential products and shut down of construction created a negative impact on the development of global insulation materials market.
• Thus, the abovementioned factors are expected to have negative impact the global insulation materials market growth during the pandemic period.

Key Findings of Study

• By region, Asia-Pacific accounted for the largest market share in 2020.
• By type, the polyurethane foam segment held the largest market share in 2020.
• By application, the wires & cables segment held the largest market share in 2020.