Freedonia Market Research Analyzes Insulation Industry

Demand for insulation materials in the United States is forecast to advance 5.3 percent per annum through 2012 to $11 billion.  Demand will benefit primarily from renewed growth in residential building construction, particularly single-family homes, from a very low 2007 base.  Consumption will also benefit from greater insulation use on a per structure basis, as well as insulation upgrades for existing buildings. These and other trends, including market share and company profiles, are presented in US Insulation, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Fiberglass insulation will remain the leading insulation material in use, accounting for more than half of demand in dollar and volume terms in 2012.  Growth will be driven primarily by the rebound in new home building, the dominant market for fiberglass insulation.  Demand will also benefit from more intensive use of fiberglass insulation per new housing unit, sparked by growing concerns about energy efficiency, and by ease of installation and favorable cost factors.

Foamed plastic insulation is the second largest insulation product in use in the US, accounting for nearly 45 percent of demand in value terms in 2007. Advances will derive from growth in nonresidential building construction activity and increasing penetration of residential markets.  Smaller uses, such as the production of appliances and transportation equipment, will trail overall gains. 

Other insulation materials, including reflective insulation and radiant barriers, cellulose, mineral wool, perlite, vermiculite, cotton and other materials, all have niche applications.  Reflective insulation and radiant barriers will see the fastest growth (albeit from a small base).  These insulating materials will find increasing use in metal buildings and other nonresidential structures, as well as in pipe wrap, appliances and duct insulation, as a means of reducing energy costs.  Cellulose insulation is used primarily in residential applications, largely in attic insulation.  Mineral wool insulation has high temperature resistance, making it useful in industrial and HVAC applications.

In 2012, residential construction (new and replacement) will account for over 45 percent of demand for insulation in value terms and 60 percent in terms of R-1 insulating value.  Gains will be most robust in new construction applications, as the industry recovers from a dreadful 2007 trough.  Nonresidential construction markets will also provide growth opportunities, although value gains will be about the same as in the 2002-2007 period, and below the overall average. 

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.