Cold Insulation Market size and forecast, 2015-2025
Growing demand for cryogenic insulation equipments coupled with the rising demand for natural and industrial gases for oil & gas industry is expected to drive the cold insulation market over the next few years. Cryogenic operations require reduction in energy losses to maintain very low temperature. Increasing use of LPG, LNG and other cryogenic gases is driving cryogenic industry in both developed and developing countries. Furthermore, increased environmental awareness is expected to drive the market in developing countries. Environment regulatory agencies are compelling companies to improve existing infrastructure to reduce energy loss. Different energy related standards are in place for building energy efficient infrastructure. In addition, demand for refrigeration and air conditioning devices are expected to drive the market. Owing to rise in disposable income of consumer and warm climatic conditions in Asia-Pacific region, the demand for air conditioning and refrigeration devices is expected to witness tremendous growth. Additionally, rise in industrialization in emerging economies around the globe is expected to drive the cold insulation market.
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Owing to cheap labor and proximity to raw materials, bigger companies are investing in emerging economies of South Africa and Asia Pacific. However, huge investment cost, lack of quality control and cost of raw materials are expected to hamper the market growth. Quality control standards in developing countries are poor due to less government intervention and poor environmental awareness. Cost of developing new cold insulation materials with less environment impact is huge and only big companies having substantial turnovers can afford to research and develop innovative products. Development of innovative materials such as perlite and aerogel are expected to provide immense opportunities for the players in cold insulation market. Further, development of bio-based and renewable material based insulation materials is expected to be opportunities in the near future.
North America was the largest consumer of cold insulation market owing to use of advanced materials to improve energy efficiency of operations and to offer better process control. Large scale research & development activities are being carried out in North America to develop new materials which have minimal effect on environment. Asia Pacific followed North America in terms of consumption owing to industrialization in China. Due to huge investments in construction and manufacturing industry, China and other countries are expected to grow at higher pace. Energy efficiency laws are expected to be introduced in countries such as South Africa, Kenya and Nigeria that are expected to drive the market in rest of the world over the next few years. Further, increasing infrastructure spending in this region is driving the cold insulation market. Growth rate for Europe was low owing to submissive demand from residential and industrial infrastructure sectors. However, demand for cold insulation market is expected to increase with substantial growth rate over the next few years in Europe, owing to energy efficiency standards and improvement of existing infrastructural activities.
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Key players in this market include BASF SE, Bayer Material Science, Huntsman Corporation, Aspen Aerogels Inc., Armacell International Holding GMBH, Bradford Insulation Industries Ltd., Evonik Industries, The Dow Chemical Company, Fletcher Insulation Group, Kingspan Group PLC, Knauf Insulation, Pittsburgh Corning Corporation, Arabian Fiber Glass Insulation Company Ltd., Itw Insulation Systems among others.
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