A rebound in building construction expenditures, changes in building codes and consumer
interest in reducing energy consumption and utility bills will spur US demand for insulation.
US demand to approach
$9 billion in 2016
US demand for insulation is forecast to
rise 7.8 percent annually to $8.9 billion in
2016. Gains will be driven by a rebound
in building construction expenditures
from a depressed 2011 base. Further
growth will be spurred by changes in
building codes and continuing consumer
interest in reducing energy consumption
and utility bills. Home owners and
building owners will add or upgrade
insulation to achieve these goals.
Residential market to
offer most rapid growth
The residential market will post the most
rapid gains through 2016, advancing at a
double-digit pace as housing starts rebound.
Moreover, builders will construct
homes with larger amounts of insulation
to make them more desirable to potential
buyers. Residential insulation demand
will also be aided by the attic reinsulation
and home improvement and replacement
markets. The large stock of older
US homes -- many of which are underinsulated
-- will offer growth potential as
home owners add insulation to attics,
walls and basements to lower utility bills.
Insulation demand in the nonresidential
market will also register solid advances.
Rebounding nonresidential building
construction expenditures, particularly in
the office and commercial segments, will
promote gains. Continuing interest in
environmentally friendly construction
practices will boost insulation use, as
building codes and “green” building
standards call for using more insulation
to reduce energy consumption. Industrial
insulation demand will be supported by
rising industrial construction spending.
to remain dominant
Fiberglass insulation accounted for the
largest share of insulation demand in
2011 with 48 percent of the market by
value. Fiberglass insulation will remain
the market leader in 2016, with growth
spurred by a rebound in the residential
market. Fiberglass insulation remains a
popular choice with builders and contractors
due to its low cost, favorable insulative
properties and ready availability.
Demand for foamed plastic insulation,
the second largest insulation type used
in 2011, will experience gains driven by
the rebound in building construction
spending. Further growth will come from
building code changes that call for structures
to be better sealed against leaks.
Foamed plastics are well suited to seal
hard-to-reach areas such as crawl spaces.
Demand for radiant barrier and reflective
insulation is forecast to benefit from the
rebounding housing market, with further
growth supported by gains in industrial
and nonresidential building construction
spending. Growth will be strongest in the
South and West regions, as structures in
those regions are exposed to more sunlight,
and thus best benefit from their use.
This study analyzes the $6.1 billion US insulation industry. It presents historical demand data for the years 2001, 2006 and 2011, and forecasts for 2016 and 2021 by product (e.g., fiberglass, foamed plastics, cellulose, mineral wool, reflective insulation and radiant barriers), market (e.g., residential buildings, nonresidential buildings, industrial and HVAC equipment) and US geographic region.
The study also considers market environment factors, details industry structure, evaluates company market share and profiles 34 industry players, including Owens Corning, Johns Manville and CertainTeed.