The global industrial insulation market is slated to reach USD 19.45 billion by 2025, growing at a CAGR of 6.0%, as per a new report published by Grand View Research, Inc. Adequate insulation and thermal mass provide an energy-efficient and economical design to industrial equipment and construction, nullifying the need for a heating system and curbing the operating costs. Manufacturers are striving to provide materials that improve the life cycle and thereby the efficiency of a product.
Foamed plastics are widely used to prevent heating and cooling losses, thus improving the overall energy efficiency of equipment used in end-use industries. Rising energy prices coupled with the growing importance of energy-efficient industrial infrastructure are slated to be major driving factors.
Blowing agents such as phenolic & PU foams contain ozone-depleting substances, such as hydro fluorocarbons (HFC), carbon dioxide, and pentane, which are greenhouse gasses known to pose serious threats to the environment. Stringent regulations by REACH to reduce the use of these toxic substances in insulation materials are expected to pose challenges towards the market growth.
The market is considered to be capital-intensive due to which entering and sustaining it requires a considerable amount of time, resources, and planning. Achieving economies of scale remains the top priority for the industry players.
Further Key findings from the study suggest:
- Foamed Plastic is expected to witness a high growth and penetration rate, owing to its high compressive strength, and superior moisture resistance
- Glass wool is anticipated to emerge as the second largest product segment
- Glass wool encompasses various features such as easy installation, low moisture absorption, ability to hold up the original shape despite the surrounding high temperatures and good recovery from packaged compression
- Petrochemical & Refineries application segment is expected to account for 37.8% of demand in 2025 and is likely to emerge as the largest as well as fastest application segment
- Europe is expected to be the largest growing region in the global industrial insulation market
- Strict insulation codes and laws effectuated by the European regulatory authorities have increased the awareness about rising energy costs and the need for energy efficiency.
- The major business players in the market include Rockwool Technical Insulation, Paroc, Knauf Gips KG, TechnoNICOL Corporation, etc.