With the earth’s population on the path to reaching close to 11 billion by 2100, as per the United Nations (UN), the construction sector around the world is growing. However, the overuse of fossil fuels to produce electricity has led to a surge in the amount of greenhouse gases (GHG) in the atmosphere, which is, in turn, resulting in global warming and the increasing cases of severe respiratory diseases. Therefore, the focus has shifted rapidly to energy efficiency, so that less fossil fuels are burned at power plants and air pollution can be controlled.
In this regard, a key reason behind the increasing demand for insulating materials is the expanding manufacturing sector around the world. A large number of machines in factories, including stacks, boilers, exhausts, incinerators, and turbines, require insulation, depending on where they are installed. With the rapid industrialization being witnessed in developing countries, such as India, Brazil, Mexico, China, and Indonesia, the usage of insulating materials in factories is rising constantly.
Industrial, heating, ventilation, and air conditioning (HVAC), original equipment manufacturers (OEM); residential construction; and non-residential construction are the categories when the market is segmented on the basis of application. Among these, the residential category held the largest share in the insulation market due to the wide usage of insulating materials during construction. During the forecast period, the industrial, HVAC, OEM category will grow the fastest owing to the rising usage of such materials in the marine and industrial sectors of Brazil, China, and India.
Owing to the proven effectiveness of insulation in reducing energy consumption, government bodies worldwide are encouraging its usage by implementing stringent laws. Additionally, tax credits are offered in the U.S. for qualifying insulation purchases. For this, insulating material with a varying thermal resistance (R-value) is recommended for different areas of houses, such as attics, floors, and walls. For instance, the Energy Performance of Buildings Directive (EPBD) of the European Union focuses on the usage of insulating material of different grades and their performance.
As a result of the EU’s strict mandates on energy efficiency, the demand for insulating materials has been the highest in Europe till now. Moreover, consumers are also realizing the benefits of insulated buildings, the biggest of which is electricity cost savings, which is why they are using more of such materials. With time, the increasing awareness about such advantages will lead to the fastest-rising demand for such materials in Asia-Pacific (APAC). Further, the region is witnessing numerous energy conservation initiatives, rapid industrialization, and quick economic growth.
In fact, a key opportunity for the players in the insulation market is the increasing infrastructure development activities in Mexico, Russia, India, South Africa, Brazil, China, and numerous other emerging economies. This, complemented by the rising concerns regarding GHG emissions from the power sector and surging government focus on energy-efficient buildings, is expected to drive the consumption of insulating materials in these nations. With the booming population and increasing disposable income making these countries increasingly urbanized, the market for insulation will keep growing.
Therefore, with the rising concerns regarding GHG emissions, the energy conservation initiatives being implemented to check the same will drive insulation efforts.
