Rapid Development and Investments In Building & Construction Industry To Boost Building Thermal Insulation Industry

Thermal insulation in buildings helps to reduce the carbon footprint as it utilizes less energy to maintain a temperature and limits the conduction of heat to the external environment. Increase in building and construction industry & construction industry will flourish the building thermal insulation market. Moreover, the pace of change in the construction industry  and rising investment in infrastructural development in developing and developed countries globally continues to accelerate the demand for building thermal insulation. Moreover, according to PwC report on infrastructure development in Asia Pacific, much of future spending in infrastructure will be driven by the faster-growing economies in Asia, where the share of  infrastructure spending in Asia Pacific is set to grow from 30% in 2012 to 40% in 2018 and 48% by 2025, largely driven by increasing demand from China. 

Alongside rising awareness about the energy saving practices in Asia Pacific and Latin America is likely to boost the demand for building thermal insulation in near future. Initiatives by the U.S. government through Weatherization Assistance Program (WAP) to promote thermal insulation through federal funding are expected to increase the demand for building thermal insulation. Building energy codes help ensure that new buildings use energy efficiently, and this can reduce building energy use by 50% or more compared to buildings designed without energy efficiency in mind. This is important because buildings typically last 30-50 years, and it is much less expensive and time-consuming to design for energy efficiency than to retrofit a building later.

The growth of building and construction industry directly influence the demand for building thermal insulation. The major driver for growth in infrastructure and construction industry is the rising wealth, urbanization, digital commerce and, finally, the continued economic integration of the region. Moreover, rising number of rural residents look hopefully towards big city life and are attracted by the promise of improved economic prospects and quality of life, including more culture, better healthcare and education which leads to increasing demand for infrastructure which ultimately results in rising demand for building thermal insulation. 

BASF SE, Saint-Gobain S.A, Owens Corning, Dow Building Solutions, Kingspan Group PLC, Johns Manville Corp, Rockwool International A/S, Paroc Group Oy, GAF Materials Corp, Beijing New Building Material (Group) Co., Ltd and Knauf Insulation, Inc. are some of the key manufacturers of building thermal insulation. Because of the rapid development of infrastructure in emerging regions, the major players are now focusing on achieving a first-mover advantage in the lucrative markets that this has generated. Mergers, Acquisitions and partnership are the prominent strategies adopted by the players to reinforce their position in the global market. In August 2018, Saint-Gobain acquired HKO which is a manufacturer of very high temperature thermal insulation and fire protection solutions made from various types of glass fibres.

According to Axiom MRC, Global Building Thermal Insulation Market was valued at USD 26.7 billion in 2017 and is projected to at a CAGR of 4.65% for the forecast period 2019 to 2025.