High rates of urbanization and industrialization are creating an increased requirement for energy. The growing need for energy efficiency in buildings will drive the growth prospects of the global insulation market for the next four years.
Commercial and residential buildings use several temperature regulation systems, and it is important to ensure there are no energy leakages to make efficient use of these systems. These buildings increasingly use refrigeration and air conditioners and witness a high-energy demand, which contributes significantly to the global energy consumption.
A major benefit of using insulation materials is energy leakage reduction, which increases building efficiency. The global insulation market is expected to grow at a CAGR (compound annual growth rate) of more than 8 percent from 2017 to 2021.
The energy efficiency provided by insulation systems will drive market growth in the APAC (Asia-Pacific) region. The APAC accounted for the largest market share during 2016 and will continue to dominate the market until the end of 2021. Some of the major factors responsible for the growing demand for insulation in new projects are infrastructural growth and the increased awareness about insulation advantages.
Retrofitting activities in both residential and non-residential sectors will be the major revenue contributor in North America. Continual focus on optimizing energy consumption and lowering operations and maintenance costs is expected to provide momentum to the insulation market in the U.S. and Canada.
LEED certifications are pushing for adoption of insulation products in the region. The drive toward sustainability, green construction and net-zero emissions will push this market even further in the future.