Press release
Insulation Market Forecast: USD 119.23 Billion by 2032 | Expanding at 6.9% CAGR Amid Green Building Demand
Insulation Market
The global Insulation Market underpins energy efficiency across construction, industrial and automotive sectors. Stricter energy codes in Europe and North America, coupled with renewable energy integration in Asia Pacific, are reshaping market dynamics. Our independent market analysis highlights a shift toward high-performance materials, reflecting rising business growth requirements and tighter carbon regulations.
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Key Takeaways:
Region
- North America: Retrofit incentives drove 8% glass-wool demand growth in 2024.
- Latin America: Brazil's industrial sector saw a 5% rise in thermal insulation uptake.
- Europe: EU's 2025 energy code boosted stone wool shipments by 6%.
- Asia Pacific: China's new-build insulation consumption jumped 7.2% in 2024.
- Middle East: GCC oil-&-gas insulation contracts rose 9% in Q1 2025.
- Africa: South Africa's urban housing projects increased foam board usage by 4%.
Market Segments
By Material: Glass Wool, Mineral Wool, Rigid Foam; glass wool led residential wall retrofit use cases.
By Application: Building (residential/commercial) and Industrial (oil & gas/HVAC); HVAC ducts in petrochemicals grew 5% in 2024.
By End-Use: New Construction vs Renovation; renovation-driven spray polyurethane foam uptake rose 6.5% in North America.
Growth Factors:
- Energy-efficiency mandates: EU's 2024 Directive cut building heat loss by 12%, driving market growth.
- Raw-material innovation: Bio-based polyols adoption spiked 15% in 2025, reducing thermal conductivity by 0.02 W/mK.
- Construction rebound: Global non-residential construction investment reached USD 1.2 Tn in 2024, boosting insulation demand by 6.8%.
- Urbanization: Asia Pacific urban population growth of 2.1% in 2024 led to 7% more insulation installs in new housing projects.
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Market Trends:
- Sustainable materials: Recycled glass wool production climbed 10% in 2024, aligning with circular-economy goals.
- Digital specification: 30% of EU architects used BIM-integrated thermal simulation in 2025, expediting material selection.
- Prefab integration: Modular construction's share of global insulation volumes rose from 12% (2023) to 16% (2024).
- Nano-enhanced coatings: Aerogel composites penetration tripled in high-end acoustic and thermal markets in 2025.
Actionable Insights:
- Supply-side indicators:
- Global foam board production capacity increased by 5% in 2024, with China accounting for 40%.
- Average FOB price of mineral wool rose 4.5% to USD 1,050/ton in H1 2025.
- Exports from Germany grew 6.2% in 2024, driven by energy retrofit programs in Eastern Europe.
- Demand-side indicators:
- Imports into India rose 8% in 2024 for rigid polyurethane panels in cold-chain warehouses.
- Residential use cases in North America consumed 3.5 million sq m of recycled insulation in 2024.
- Micro/nano indicators:
- Average thickness of installed wall insulation increased from 80 mm (2023) to 85 mm (2024) for new builds.
- Nano-additive aerogel composites accounted for 4% of total revenue in 2025.
Market Key Players:
BASF SE; Saint-Gobain S.A.; Rockwool International A/S; Owens Corning; Knauf Insulation; Johns Manville; Kingspan Group plc; Armacell International S.A.; Covestro AG; Dow Inc.; Huntsman Corporation; URSA Insulation.
- Owens Corning expanded its Texas facility in Q2 2024, boosting global production by 15% and capturing additional market share.
- Saint-Gobain's 2025 digital-sales platform increased B2B orders by 10%, strengthening its insulation market revenue.
- BASF SE introduced a bio-polyol foam in 2024, securing an 8% stake in automotive thermal insulation, illustrating business growth through sustainability-driven product innovation.
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FAQs:
1. Who are the dominant players in the Insulation Market?
Key players include BASF SE, Saint-Gobain, Rockwool International and Owens Corning, holding leading industry share through capacity expansions and digital platforms.
2. What will be the size of the Insulation Market in the coming years?
The Insulation Market size is poised to grow from USD 74.69 Bn in 2025 to USD 119.23 Bn by 2032 at a 6.9% CAGR.
3. Which end-user industry has the largest growth opportunity?
Residential renovation leads, driven by retrofit incentives in North America and Europe where insulation demand rose over 8% in 2024.
4. How will market development trends evolve over the next five years?
Expect further decarbonization-driven material innovation, BIM-integrated specification growth, and modular construction integration boosting insulation market trends.
5. What is the nature of the competitive landscape and challenges in the Insulation Market?
Competition centers on cost-effective sustainable materials, scale-based capacity expansions and digital sales channels; raw-material price volatility remains a key market challenge.
6. What go-to-market strategies are commonly adopted in the Insulation Market?
Players leverage regional production hubs, digital procurement platforms, partnerships for green-certified products, and targeted retrofit programs as core market growth strategies.
Author of this marketing PR:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc.
About Us:
Coherent Market Insights leads into data and analytics, audience measurement, consumer behaviors, and market trend analysis. From shorter dispatch to in-depth insights, CMI has exceled in offering research, analytics, and consumer-focused shifts for nearly a decade. With cutting-edge syndicated tools and custom-made research services, we empower businesses to move in the direction of growth. We are multifunctional in our work scope and have 450+ seasoned consultants, analysts, and researchers across 26+ industries spread out in 32+ countries.
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