Insulation Market Growth Steady Thanks to These ‘Hot’ Drivers

Over the past decade, there has been a steady growth in the insulation market: between 2000 and 2010, it increased, on average, by just under 3 percent. Thermal insulation resources for commercial use, including materials used in floor, roof and wall applications, amounted to 37.1 million tons in 2012 alone with an estimated value of $84.4 million. Analysts project that these figures will rise further in the next few years. Let’s take a look at the main drivers responsible for the sustainable growth of the global insulation market.

Building Codes and Regulations

Diverse international building codes and regulations are the primary influencers for insulation resources. While these codes and regulations provide the means for growth, they also limit the use of certain resources in specific jobs. The launch of new codes can have a noticeable effect on the insulation market in the near future, particularly in countries like Mexico and Russia.

Construction of New Buildings

The consequences of the global financial crisis on the creation of new buildings are also apparent, particularly in Spain and the United States. Construction did get a boost after the recession in recent years, specifically during 2011 and 2012. Although there is no reliable forecast available, the consensus when it comes to the insulation industry is that a recovery will happen in most countries. The only exception to this consensus is Spain, as their construction industry stayed flat even after the recession.

Energy Costs

Considered as another major driver in the utilisation of insulation resources, people generally accept energy costs as the key stimulator promoting growth in residential and commercial insulation. Energy often takes up a huge share of the production costs, particularly in the mineral wool and glass, which consumes sizeable quantities of energy in ovens and furnaces.

Incidentally, people see the production of shale gas as a raw material for several polymers and monomers as an important opportunity for the insulation market: it will aid in keeping the production expenses down and may provide fresh projects. This, however, may have a harmful effect on insulation demand as it may likely reduce heating expenses.

These drivers will sustain the growth of the insulation market for years to come. Companies in the insulation industry looking to position themselves to success should take note of the drivers and use it to their benefit.

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