Vacuum Insulation Panels Market Expected to Reach $12.7 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Vacuum Insulation Panels Market," The vacuum insulation panels market size was valued at $8.1 billion in 2022, and vacuum insulation panels industry is estimated to reach $12.7 billion by 2032, growing at a CAGR of 4.7% from 2023 to 2032.

The global vacuum insulation panels (VIPs) market is driven considerably owing to the growth in construction and consumer durables industries. With the emergence of new technologies, manufacturers are looking for advanced techniques to make vacuum insulation panels more effective. Vacuum insulated panels are specially designed panels that use the insulation of a vacuum in a board shape. They are a highly insulating material that have been implemented into many appliances such as refrigerators and freezers, and the transportation industry. It is also viable for high-temperature applications such as domestic ovens, furnaces, hot-water tanks, and concentrated solar plants, especially with heat-resistant glass-fiber core panels.

Thermal insulation of household appliances, such as pipe insulation, insulation of thermal storage tank, insulation for underfloor heating, but also refrigerators form the last area of application. The strong reduction in required thickness is a major driving factor for the growth of the market. The homeowners in the U.S. have focused on renovation activities such as ceiling, underfloor heating system, and interior remodeling to fuel the demand for vacuum insulation panels.

Rapid growth in the construction industry due to renovation of residential buildings and rapid climatic changes in developed countries such as UK, France, Germany, Rome, Italy, and Spain also augment the demand for vacuum insulation panels market growth. The construction sector in the Asia-Pacific region is the largest globally and is growing at a healthy rate, owing to the rising population, increase in middle-class income, and urbanization. Vacuum-insulated panels are widely used in different industrial applications; however, their use in building projects remains still limited.

The main reasons that hinder the development of the market are the relative high cost, compared to conventional insulation materials; their great sensibility to mechanical damage as puncturing the vacuum insulated panel envelope causes an increase in the thermal conductivity; and decreases their durability and consequent performance along their whole lifespan. Despite all the above-mentioned factors that hinder the development of the vacuum insulation panels market trends. Vacuum insulated panels represent a technological advancement in thermal insulation for building applications.

They are very promising when high insulation with very low thickness is required; thermal conductivities up to 10 times lower than traditional thermal insulation materials will especially be important when trying to achieve the standard and requirements of nearly zero-energy buildings. The presence of these promising attributes of vacuum insulation panel products will provide lucrative opportunities for the development of the market.

The vacuum insulation panels market forecast is segmented on the basis of raw material, core material, type, end use, and region. By raw material used for manufacturing, the market is segmented into plastics and metals. The core material segment of the vacuum insulation panels market is broadly classified into silica, fiberglass, and others. The type segment of the vacuum insulation panels market is broadly classified into flat panel and special shape panel. The end use of the market is categorized into construction, cooling & freezing devices, logistics, and others. The global vacuum insulation panels market is analyzed across North America, Europe, Asia-Pacific and LAMEA.

By raw material, the metal segment accounted for nearly three-fifths of the global market share in 2022. These panels will be used for insulation in buildings, offering energy efficiency, and meeting stricter building codes and regulations. The rise in e-commerce, cold chain logistics, and expansion of the construction industry across the globe is expected to drive vacuum insulation panels market growth. The increase in awareness related to sustainability and recycling of raw materials from waste products will provide many opportunities for the market's development during the forecast period.

By core material, the silica segment accounted for nearly half of the global vacuum insulation panels market share in 2022. It accounted for approximately 47.78% of the share of the global market in 2020, as silica-based vacuum insulation panel offers high thermal insulation properties compared to other materials. In addition, their long life, spanning over 60 years, is the reason they are used in building constructions. The presence of excellent properties compared to other conventional thermal insulation products will provide lucrative opportunities for the development of the market, during the forecast period.

By type, the flat panel segment accounted for nearly three-fifths of the global market share in 2022. . It is characterized by a compact size and high thermal resistance values, which result in high thermal insulation. These panels can be used in building constructions, cooling & freezing devices, and also in the logistics industry. Growth of the segment is driven by the design flexibility and ease-to-manufacture attributes of flat panels. Increasing stringent regulations promoting energy-efficient materials, and R&D initiatives to introduce automated panels, with an aim to reduce VIPs cost are expected to provide opportunities for the market, during the forecast period.

By end use, the construction segment held nearly half of the global market share in 2022. The construction sector accounted for the highest market share, owing to increased installation of vacuum insulation panels products in commercial, infrastructure, and other projects.  This is mostly due to the maximum consumption of vacuum insulation panels in residential & underground constructions. Vacuum insulation panels also offer other advantages in the construction sector, such as the reduced thickness of building components, providing increased indoor space and optimization of land use, and recyclability of constitutive materials after their service life. Hence, all such attractive properties have made it popular for applications in the construction sector.

Moreover, the rising number of building codes and policies mandating energy-efficient structures is further facilitating an increase in the usage of eco-friendly and energy-conserving materials in the construction sector. This is expected to increase the application of vacuum insulation panels in the construction industry during the forecast period.

By region, Asia-Pacific accounted for more than two-fifths of the market share in 2022. Asia-Pacific is the leading region in terms of demand for vacuum insulation panels and is expected to maintain its dominance during the forecast period. The high adoption of vacuum insulation panels products in the region would continue to bolster the vacuum insulation panels market size.

Key findings of the study

• As per vacuum insulation panels market analysis, by raw material, the metal segment accounted for nearly three-fifths of the global market share in 2022.
• By core material, the silica segment accounted for nearly half of the global market share in 2022.
• By type, the flat panel segment accounted for nearly three-fifths of the global market share in 2022.
• By end use, the construction segment held nearly half of the global market share in 2022.
• By region, Asia-Pacific accounted for more than two-fifths of the market share in 2022.

Impact of COVID-19 on Global Vacuum Insulation Panels Market

The COVID-19 pandemic had a significant impact on the vacuum insulation panels market. Disruptions in the global supply chain due to lockdowns and factory closures have led to potential delays and shortages in the production and distribution of vacuum insulation panels. The construction industry, a major consumer of vacuum insulation panels, experienced a slowdown as projects were put on hold or delayed, thereby affecting the demand for building materials, including vacuum insulation panels.

Changes in consumer behavior, such as remote work and reduced travel, may have influenced the demand for energy-efficient materials like vacuum insulation panels. However, government stimulus packages and policies focused on promoting sustainability and energy efficiency in construction could have positively influenced the market. It is important to note that the exact impact of COVID-19 on the vacuum insulation panels market may vary depending on regional factors, industry dynamics, and individual company circumstances.

Impact of Russia-Ukraine War on Global Vacuum Insulation Panels Market

The conflict between Russia and Ukraine potentially impacts the vacuum insulation panels market in several ways. Supply chain disruptions may arise due to trade restrictions and political instability, leading to a shortage of raw materials and delays in production. Market uncertainty may discourage investments and hinder market growth as businesses become cautious amid unpredictable situations. Geopolitical factors, such as economic sanctions, will affect the global trade of vacuum insulation panels, requiring companies to adapt their supply chains.

Additionally, a decline in construction activities and regional demand for vacuum insulation panels may occur if the conflict leads to economic downturns in Russia and Ukraine. However, the precise impact on the vacuum insulation panels market will depend on the duration and severity of the conflict and the responses of the various stakeholders involved.

Competitive Landscape

The key players operating in the global vacuum insulation panels market are BASF SE, Kingspan Group plc, Panasonic Holdings Corporation, Microtherm, Evonik Industries AG, va-Q-tec AG, Avery Dennison Corporation, Morgan Advanced Materials, Kevothermal, LLC, and Knauf Insulation. The above-mentioned companies are competing for the share of the market through product launches, joint ventures, partnerships, and expanding their production capabilities to meet the future demand for the vacuum insulation panels market opportunities in the forecast period.