Product Development to Emerge as Key Focus Point for Manufacturers of Insulation Materials

Published Date : Nov 04, 2016

The leading companies operating in the global insulation market hold a large share and thus the market is moderately concentrated. The presence of regional players in the market is expected to further intensify the level of competition in the market. In order to gain a strong position in the global insulation market, manufacturers are striving to develop products that are high in quality and produced in an environment friendly manner. Region-wise, the market is classified into Europe, North America, Europe, and the Rest of the World. Amidst these, Asia Pacific emerged dominant owing to the deployment of insulation materials in new constructions of countries such as India, South Korea, Japan, and China. It is expected that Asia Pacific will maintain a lead until 2020 with a share of 43.9% in the same year. However, implementation of regulations in the European Union and the U.S. regarding the construction of energy efficient complexes is likely to enhance the adoption of insulation in these regions.

Building Regulation Codes to Boost Market Growth

In developed as well as developing countries the demand for energy is at the peak. Owing to explosion of unmet energy needs, the price of energy has also extensively increased. Insulation is known for reducing the energy cost of a structure by plummeting the energy requirement by 75%. To ensure use of insulation materials in new buildings, governments across the world have implemented regulations mandating insulation. Moreover, the rise in the number of new constructions, especially across developing economies is likely to augment the growth of the global insulation market.

Volatile Prices to Act as Road Block

Insulation materials such as EPS, elastomers, and polyethylene are derived from crude oil. The sudden decrease and increase the crude oil prices disturb the productivity of manufacturers of insulation materials. As a result of this, the market for insulation faces major road blocks. However, insulation materials manufacturers such as Atlas Roofing Corporation, The Dow Chemical Companu, Duro-Last Roofing Inc., and Owens Corning among other can gain from the rising popularity of green buildings across the globe. The global insulation market was worth US$44,375.9 mn in 2015 and is expected to rise to US$64,910.5 mn by 2020.