& Forecast 2032
The global building thermal insulation market was valued at USD 32.53 billion in 2023 and is expected to increase from USD 33.98 billion in 2024 to USD 48.60 billion by 2032, registering a CAGR of 4.5% during the forecast period from 2024 to 2032. In 2023, Asia Pacific held the largest share of the market, accounting for 49.12%. The market in the U.S. is anticipated to grow substantially, reaching approximately USD 7.60 billion by 2032, driven by strong government support for energy-efficient technologies in the building and construction sector.
Importance of Building Thermal Insulation
Thermal insulation in buildings plays a crucial role in minimizing heat transfer between indoor and outdoor environments. This leads to lower energy consumption, better indoor temperature control, and reduced dependency on heating and cooling systems. As global energy demands grow, governments and building owners alike are prioritizing thermal insulation to reduce operational costs and carbon footprints.
Thermal insulation is no longer just an add-on but a necessity in both residential and commercial buildings. It contributes significantly to improved energy performance ratings and supports global sustainability goals. With increasing emphasis on green buildings and zero-energy standards, the use of insulation materials in construction is expected to rise further.
List of Top Building Thermal Insulation Companies:
BASF (Germany)
Atlas Roofing Company (U.S.)
Cellofoam North America Inc. (U.S.)
DuPont (U.S.)
Knauf Insulation (U.S.)
Owens Corning (U.S.)
Armacell S.A. (Luxembourg)
Beijing New Building Material (Group) Co., Ltd. (China)
Evonik (Germany)
PT. Bondor Indonesia (Indonesia)
BYUCKSAN (South Korea)
Key Growth Drivers
One of the major drivers of the market is the increasing number of energy efficiency policies and building codes that encourage or mandate the use of insulation materials. Several countries have introduced energy efficiency standards for both new and existing structures, leading to a surge in demand for highperformance thermal insulation products.
Rapid urbanization and industrialization, especially in emerging economies, are also supporting market growth. The rising construction of commercial complexes, residential apartments, and public infrastructure projects has amplified the need for insulation materials that ensure optimal thermal performance and occupant comfort.
In colder regions, building insulation is essential to retain heat, while in warmer climates, it helps keep interiors cool, reducing air conditioning needs. This global adaptability has made thermal insulation a fundamental component of climate-responsive architecture.
Read More : https://www.fortunebusinessinsights.com/building-thermal-insulation-market-102708
Material Insights
The building thermal insulation market includes a wide range of materials such as glass wool, stone wool, expanded polystyrene (EPS), extruded polystyrene (XPS), polyurethane foam, and more. Among these, EPS and XPS are widely used due to their excellent thermal resistance, lightweight nature, and moisture resistance. Glass wool is another leading material, favored for its cost-efficiency and widespread availability in residential applications.
Foam-based insulation materials like polyurethane and polyisocyanurate are gaining popularity in highperformance buildings and industrial settings where enhanced insulation is required. Increasing innovation in insulation materials is also leading to the emergence of eco-friendly alternatives, such as cellulose, hemp, and sheep wool, which are being adopted as part of sustainable building initiatives.
Application and Installation Trends
Thermal insulation is commonly installed in building components such as walls, roofs, floors, basements, and ceilings. Wall insulation accounts for the largest market share due to the surface area it covers and its critical role in maintaining thermal comfort. Roof insulation also holds a significant portion of the market, especially in areas with extreme weather conditions.
Both new construction and renovation projects are contributing to market growth. However, retrofitting existing buildings with insulation materials is becoming increasingly important, particularly in developed nations where older structures require energy performance upgrades. Government-backed initiatives and rebate programs are encouraging homeowners and building managers to invest in thermal insulation retrofits.
Regional Market Insights
Europe held the largest share of the global building thermal insulation market in 2023. The region benefits from strict energy efficiency regulations, high energy costs, and widespread awareness regarding environmental sustainability. Countries like Germany, France, and the UK are leading the way with robust green building programs and mandatory energy standards.
North America follows closely, with the U.S. being a major contributor. The presence of a mature construction industry, strong regulatory backing, and increasing demand for energy conservation are key factors driving regional growth.
Asia Pacific is projected to witness the highest growth rate during the forecast period. Rapid infrastructure development, a rising middle-class population, and favorable government initiatives aimed at promoting energy-efficient construction are fueling demand in countries like China, India, and Japan.
Latin America and the Middle East & Africa are also emerging markets for thermal insulation. Increased construction activities, coupled with growing awareness about energy savings and indoor comfort, are creating new opportunities in these regions.
Key Industry Developments:
April 2021 – Atlas Roofing Company introduced SureSlope prefabricated tapered products. The new product family of polyiso roof insulation components is ideal for roofing applications, reducing job site waste and decreasing installation time.
March 2021 - Owens Corning acquired vliepa GmbH, a company specializing in coating, printing, and finishing nonwovens, film, and paper for the construction industry. The acquisition widens the company’s nonwovens portfolio for European customers working in the regional construction industry.
Challenges and Opportunities
Despite the positive outlook, the building thermal insulation market faces challenges such as fluctuating raw material prices and limited awareness in some regions. Installation costs and lack of skilled labor may also hinder market expansion, particularly in developing nations.
However, increasing investments in sustainable construction, innovation in product development, and supportive government policies offer strong growth prospects. Manufacturers are focusing on developing recyclable, non-toxic, and high-performance insulation products to align with global environmental goals.
The building thermal insulation market is poised for sustained growth as energy efficiency becomes a global priority. With rising construction activity, regulatory support, and a strong push for sustainable building practices, the demand for thermal insulation materials is expected to remain robust over the coming years. As the construction industry evolves, thermal insulation will continue to play a critical role in achieving energy conservation and environmental sustainability across residential, commercial, and industrial spaces.