Thermal Insulation Material Market Set to Reach $127.7 Billion by 2031, Driven by Stringent Energy Efficiency Regulations and Growing Sustainable Construction Practices

The Global Thermal Insulation Material Market Size reached US$ 63.9 billion in 2022 and is expected to reach US$ 127.7 billion by 2031, growing with a CAGR of 9.2% during the forecast period 2024-2031.

According to DataM Intelligence has published a new research report on "Thermal Insulation Material Market Size 2025". The report explores comprehensive and insightful Information about various key factors like Regional Growth, Segmentation, CAGR, Business Revenue Status of Top Key Players and Drivers. The purpose of this report is to provide a telescopic view of the current market size by value and volume, opportunities, and development status.

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➣ Recent Developments:

United States: Recent Industry Developments - Thermal Insulation Materials

✅ In 2024, the U.S. led the North American thermal insulation materials market, driven by energy‐efficient building demand, stricter energy codes, and strong construction and industrial activity. Fiberglass, stone wool, and plastic foam remained the primary choices due to cost‐effectiveness and easy installation across residential, commercial, and industrial projects.​

✅ The U.S. insulation market is projected to almost double from around USD 11 billion in 2025 to over USD 21 billion by 2034, with thermal insulation accounting for the largest functional share. Growth is supported by urbanization, building stock expansion, and sustainable construction practices that prioritize improved building envelope performance.​

✅ Advanced thermal insulation is seeing rising adoption in U.S. electric vehicles, HVAC systems, and cold‐chain infrastructure to reduce energy loss and enhance system efficiency. These emerging applications complement core demand from wall, roof, and floor insulation in new build and retrofit projects.​

Europe: Recent Industry Developments - Thermal Insulation Materials

✅ Europe's thermal insulation market, valued at over USD 21 billion in the mid‐2020s, is set for steady growth supported by strict energy‐efficiency regulations and climate‐neutrality goals. Key materials include glass wool, mineral wool, EPS and XPS boards, used extensively in walls, roofs, and floors across residential and non‐residential buildings.​

✅ EU thermal insulation materials sales are forecast to rise from about USD 18 billion in 2025 to over USD 31 billion by 2035 as renovation and retrofit activity accelerates. Germany, France, Nordic countries, Spain, and Italy are major demand centers, driven by tighter building codes and large‐scale renovation programs.​

✅ The EU Energy Performance of Buildings Directive and the Renovation Wave initiative are pushing deeper insulation upgrades to cut heating and cooling loads. This is boosting demand for both conventional mineral wool and EPS, as well as advanced solutions such as aerogels, vacuum insulation panels, and prefabricated insulated panels for space‐constrained and historic buildings.

➣ Top Industry Players:

Saint-Gobain S.A.
Owens Corning
BASF SE
Knauf Insulation
Rockwool International A/S
Armacell International S.A.
Dow
Johns Manville
Kingspan Group
L'Isolante K-Flex S.p.A.

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➣ Key Segments:

By Product: Fiberglass, Stone Wool/Mineral Wool, Foam, Cellulose, Aerogel, Calcium Silicate, Others.

By Temperature Range: -75°C to 16°C, 16°C to 315°C, 315°C to 815°C, Above 815°C.

By Technology: Radiation Cure, High Solids, Powder, Waterborne, Others.

By Application: Flat Roof, External Wall, Internal Wall, Floor Insulation, HVAC Systems, Industrial, Others.

By End-User: Construction, Automotive, Electronics, Medical, Retail, Consumer Goods, Furniture, Others.

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➣ Market Growth Drivers:

✅ Stringent Energy Efficiency Regulations: Governments worldwide enforce policies and building codes to reduce energy consumption in construction and industry, boosting demand for high-performance insulation.​

✅ Rising Demand for Sustainable Buildings: Urbanization and green building initiatives drive adoption of eco-friendly insulation materials that lower carbon emissions and support energy savings.​

✅ Increasing Construction and Industrial Activity: Rapid global urbanization, along with needs in HVAC and manufacturing, fuels market expansion as insulation becomes essential for thermal management.​

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