ID: MRFR/CnM/0884-CR | February 2018 | Region: Global | 110 pages
Global building insulation material market research report projects that the building insulation material market will exhibit a CAGR of 3.49% during the forecast period from 2018 to 2023 to cross a USD 30 billion mark by 2023.This market has witnessed yet another year of steady growth in 2016-2017 with an upward trend. The growth was sustained by the expansion of the construction sector, in particular geographies such as the South America and the Asia Pacific, which helped in maintaining global sales at an upright position for the market.
The construction sector has maintained the product demand from some of the fast-developing countries in Asia region. However, inconsistent supply and price fluctuation of raw materials is one of the major concern that is hindering the market growth. On the other hand, rising adoption of advanced constructions materials and increased focus on infrastructural development (residential and commercial) will help to retain the growth rate for the building insulation materials market during the forecast period.
BASF SE, Rockwool International A/S (Denmark), Owens Corning Corporation, Paroc Group Oy, Lloyd Insulations Limited, Knauf Insulation Inc., Johns Manville Inc., GlassRock Insulation Company SAE, Saint-Gobain SA and Kingspan Group Plc.
The report offers insights on the leading market players and evaluates their current market share. Company information with regards to revenue, segmental share, geographical income, SWOT, growth strategies, new product launch, M&A activities, and the latest R&D initiatives.
The report provides in-depth information of the recent market scenario, historical market trends, and correlations between the market dynamics and forecasts. The market size in report covers both the parameters of the market i.e. market by value and volume. Along with market size, the study segments the building insulation material market based on material, application, end-user, and region, delivering actionable insights. This section helps the report users to identify the segments that are highly lucrative and capitalize on growth opportunities while minimizing risks. The report also explores market dynamics such as drivers, trends, opportunities, and restraints, impacting the growth of the market segments. The section also sheds light on the key micro and macroeconomic factors influencing the growth of the market.
The market by material type is segmented into stone wool, glass wool, EPS, and XPS. Furthermore, the market estimation for the application segment covers through the floors, walls, and roofs. The end user industries considered for this market are segmented as residential and nonresidential. All the segments and sub-segments are profiled under four major geographies– North America, Europe, Asia Pacific and rest of the world, with the respective country-level market sizes. For the scope of the research, definition of the product “building insulation material market” is also included in the report. The report discusses the current and future prospects of the market and delivers an unbias growth assessment.
MRFR applied an innovative and fail-safe research methodology to compile this market research report. Statistical conclusions drawn in the report are the result of an exhaustive investigation and analysis of the key market elements. A multi-level data collection procedure, which includes both primary and secondary research inputs ensures the delivery of an impactful intelligence. To support the statistical findings and projections, full-scale industry extensive primary research was conducted to gain a deeper insight of the market and industry performance. Primary research includes surveys and interviews with the key personnel from the manufacturers/ supplier (VPs, CEOs, Marketing Directors, Business Development Managers and others) in the market. Additionally, the primary data collected from manufacturers is verified with the primary research information collected from distributors, wholesalers, and end users. Secondary research was mainly used to collect and identify information useful for extensive, technical, market-oriented, and commercial study of the building insulation material market.
The market size estimation was done using both Top-down and bottom-up approach to estimate market values and volumes for respective segments and countries. Other than this, the market sizes were also calculated based on building insulation material consumption by the end-use industry and market share analysis of the most competitve players in the market. Revenue and demand forecasting was done through historical analogy, weighted moving average, time series analysis, panel consensus, and exponential smoothening mtehods. MRFR is committed to provide market data that is highly relevant and factually correct, and helping stakeholders to develop cohesive growth strategies.
For the scope of the research, MRFR’s report offers a comprehensive segmental analysis of the global market for building insulation material
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Frequently Asked Questions (FAQ) :
The building insulation material market is predicted to grow at a 3.49% CAGR between 2018-2023.
The global building insulation material market is predicted to touch USD 30 billion by 2023.
Key players profiled in the building insulation material market include Kingspan Group Plc., Saint-Gobain SA, GlassRock Insulation Company SAE, Johns Manville Inc., Knauf Insulation Inc., Lloyd Insulations Limited, Paroc Group Oy, Owens Corning Corporation, Rockwool International A/S (Denmark), and BASF SE.
Volatile raw material prices and inconsistent supply may restrict the building insulation material market growth.
Demand for energy efficiency in construction and government regulations on building insulation are boosting market growth.
The global building insulation material market is set to grow from USD 24,102 million in 2016 to USD 30,446.3 Mn in 2023. This projects that the market will expand at a modest rate during the forecast period. Growth of the construction sector in emerging economies is creating growth opportunities for suppliers and manufacturers of building insulation materials. Market players are expanding their operations in countries such as China and India, as the construction sectors in these countries are witnessing a boom.
Modern buildings and housing infrastructures are far more pragmatic in design as compared to their predecessors. Various aspects are considered during their construction to create the best possible living conditions for the occupants. Greater emphasis is laid on aspects such as room ventilation, temperature, airflow, and insulation for buildings.
The global building insulation material market has been segmented based on material, application, end-user, and region. On the basis of material, glass wool accounted for the largest market share in 2016. This segment is projected to witness the highest CAGR to cross a market share of USD10 billion, by 2023. Some of the factors driving the market are the government initiatives to promote and develop their construction sectors, the rise in FDI in developing countries, and the increased purchasing power of the end-use industries. Glass wool segment is followed by EPS, in terms of share. The increased popularity of EPS in a variety of insulation installations in buildings aids to the growth of this segment.
On the basis of application segment, walls are expected to hold a huge market share in 2023. It is also projected to witness the highest CAGR to remain the dominant application during the assessment period. The floors segment is expected to hold the second position in the market. These sub-segments are highly driven by their efficiency of functioning as barriers to heat loss and gain in roofs, ceilings, walls, and floors. Additionally, insulation in any building provides resistance to heat flow and lowers the heating and cooling costs. These efficiency characteristics have increased the demand for building insulation materials, especially in the construction sector, thereby, driving the market growth.
On the basis of end-user, the residential segment has the largest share of the building insulation market; is projected to have the highest CAGR of 3.61% during the forecast period. The residential segment has been witnessing growth over the last 5 years on account of increased private construction activities. This is primarily a result of the high demand for housing infrastructure, in various parts of the world, due to a rise in the disposable income.
Regional Market Summary
Led by the U.S., North America holds the largest share of the building insulation material market. It is expected to lead the market throughout the forecast period. In 2016, North America accounted for more than one-third share of the global market; is expected to retain its position during the forecast period. North America building insulation material market is driven by various factors, such as consumer preference for green buildings, sustained investments in commercial real estate, and growing popularity of modular & penalized housing.
The construction sector in the U.S has gained its strength that had been lost during recession. Thus, the number of private construction projects in the country is rising. This has created a demand for building insulation products and materials in the country.
However, in Asia Pacific, economic acceleration and growth of the construction sector have triggered a strong demand for building insulation products. It is also expected to be the fastest growing region for the building insulation market. Increasing rate of industrialization, rising urbanization, and the high disposable income in countries, such as China, India, and Japan, account for a significant share of the Asia Pacific market.
The key players of the global building insulation material market include BASF SE (Germany), Rockwool International A/S (Denmark), Owens Corning Corporation (U.S.), Paroc Group Oy (Finland), Lloyd Insulations Limited (India). Knauf Insulation Inc. (U.S.), Johns Manville Inc. (U.S.), GlassRock Insulation Company SAE (Egypt), Saint-Gobain SA (France), and Kingspan Group Plc (Ireland) are some other players. Between 2014 and 2017, the key growth strategies adopted by the market players were that of expansion and mergers & acquisitions. The extensive growth in building insulation material market is highlighting the heavy investments into expanding across borders by the companies.
Building Insulation Material players adopt geographical expansion for operational efficiencies
The global building insulation material market is currently dominated by a few players namely, BASF SE, Saint-Gobain S.A, Kingspan Group Plc, Rockwool International A/S, Owens Corning Corporation, and others.
Extensive growth in building insulation material market has brought to light that companies are investing heavily in expanding their presence across borders. Increasing demand and private construction have led to investment by manufacturers so to increase the market share and improve brand name. The other strategies followed by the companies are mergers & acquisitions, and product development. Product development is a key strategy adopted extensively by the players to expand their product portfolio and meet expanding customer base. The market is governed by favorable government regulations pushing the use of insulation in the construction to balance the energy conservation.
BASF SE pursued a strategy product innovation and technologies in close collaboration with the end-users by focusing on specialities and system solutions. The company leverages their expertise in chemicals and performance materials to develop new technologies and products. Furthermore securing their position in Europe market remains one of the other strategies along with their expansion plans in North America, Asia, South America, Eastern Europe, and the Middle East.
Rockwool International see focusing on expanding manufacturing capabilities to enhance efficiency, as key strategy along with creating new products. In FY2017, the company invested more in their brands and majorly in their online channels. This would also ensure the visibility of their products to a wider audience.
Owens Corning Corporation is focussing on capitalizing on the positive trend in United States housing starts. In the mid-term of FY2016, the company expanded Insulation segment to benefit from an overall strengthening of the United States housing market, higher capacity utilization and improved pricing.
The other prominent players in the market include, Paroc Group Oy, Lloyd Insulations Limited, Knauf Insulation, Inc., Johns Manville Inc., and GlassRock Insulation Company SAE. Other players accounted for a share of 50.90% in the market in 2016.