Study #: 3636 | Published: 06/2018 | Pages: 167 | Individual User License: US$ 4,900

What materials and markets are most important for commercial insulation?

Demand for insulation in the commercial building market is forecast to increase annually through 2022. Foamed plastic and fiberglass dominate the commercial insulation market, while all other insulation materials hold comparatively small market shares. Through 2022, foamed plastic and fiberglass insulation will continue to lead the commercial market. However, foamed plastics are expected to lose market share to fiberglass materials through 2022, due in part to the healthy growth prospects for fiberglass insulation use in the office, institutional, and industrial building segments.

What regions are covered in this market research report?

The Northeast, Midwest, South, and West regions are all covered in this study. Rising manufacturing activity in the Midwest will result in insulation being specified to both minimize energy consumption and ensure that plants retain their cost competitiveness relative to the South and West. In addition to being the fastest growing regional market, the South will remain the largest commercial insulation market in 2022.


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Commercial Insulation

Commercial Insulation in the US

Commercial Insulation Scope

This study analyzes US demand for insulation products used principally for their thermal performance in commercialbuildings by material, building type, project type, and region.

Materials broken out include:

  • foamed plastic
  • fiberglass
  • mineral wool
  • cellulose
  • other materials (e.g., reflective insulation, radiant barriers, perlite, vermiculite, and all other insulation materials)

Materials are also broken out by product form for fiberglass (batts and blankets, rigid boards, and loose fill) and, for foamed plastics, by type of resin (rigid urethanes and polystyrene).

The building types analyzed are:

  • retail and lodging
  • institutional
  • office
  • industrial
  • other commercial buildings

Project types include both new construction and retrofit.

Demand for commercial insulation is also segmented by the following US geographic regions:

  • Northeast
  • Midwest
  • South
  • West

Commercial Insulation Methodology 

Information and data on commercial insulation were obtained from numerous primary and secondary sources, including industry participants, government agencies, trade associations, online databases, company annual reports and investor presentations, and other Freedonia Group studies.

Estimates of overall insulation demand in R-1 terms were calculated using:

  • commercial building space and construction stock data from the US Census Bureau
  • internal estimates of commercial roof area and total floor space

Once overall insulation demand was calculated, estimates were developed for each building type based on the intensity of insulation use in each segment. Demand estimates for specific materials were estimated based on available industry data and primary interviews with industry experts.

Market share estimates were developed using sales data published in company annual reports, 10-K filings, investor presentations, trade articles, and internal estimates based on primary interviews with industry experts.

Sources used include primary information via consultations with personnel of participating companies and industry specialists.

Secondary data and background information were derived from numerous trade publications, including InsulationOutlook and Walls & Ceilings.

More detailed information about the methodology employed in the Commercial Insulation Study is available upon request. 

Office buildings spur demand for commercial insulation

Commercial Insulation Coverage

Materials broken out include:

  • Fiberglass Insulation
  • Foamed Plastic Insulation
  • Mineral Wool Insulation
  • Cellulose Insulation
  • Reflective Insulation
  • Radiant Barriers
  • Rigid Urethane
  • Polystyrene

Materials are also broken out by product form (batts, blankets, rigid boards, loose fill, blow-in, and spray-applied) and, for foamed plastics, by type of resin (rigid urethanes and polystyrene).

How Will the Economy Impact Demand for Commercial Insulation?   

The US economic expansion reached its eighth year in 2017, with real GDP growth accelerating from the prior year’s pace. 

Through 2022, real GDP is forecast to expand 2.3% per year, marginally faster than the pace achieved during the 2012-2017 period:

  • Nonresidential fixed investment will accelerate, spurred in part by a more favorable tax regime following the enactment of the Jobs and Tax Act of 2017.
  • Creation of intellectual property and expenditures on information processing equipment are expected to achieve above average growth.
  • Personal consumption and residential fixed investment will decelerate from their respective 2012-2017 paces.

R-1 Value

Thermal insulation is used to retard the transfer of heat from one side of the insulating material to the other. In building construction applications, this ability means that less energy is needed to keep a structure warm in winter or cool in summer. In industrial applications, insulation allows materials to pass through pipes without significant changes in temperature. R-values are a commonly used measure of an insulating material’s resistance to heat transfer.

Demographic Trends

The number of US households is projected to reach 132 million by 2022 on annual growth of 0.9%, reducing the average size of a household to 2.55 persons. In the forecast years, a reversion to pre-recession trends in household formation will reduce the average number of persons per household once again.

Commercial Building Construction

Commercial building construction expenditures are forecast to advance 5.0% per year through 2022. Most segments will have growth similar to the overall average:

Transportation buildings will offer growth prospects slightly above average, benefiting from infrastructure initiatives. Airport and port renovations will support building construction for associated facilities.

Office construction will benefit from general economic growth, but gains will be substantially slower than during the 2012-2017 period, when the segment was recovering from the aftermath of the Great Recession.

Commercial Insulation Market Overview

Demand for insulation in the commercial building market is forecast to increase annually through 2022, with gains from: 

  • healthy growth in office, retail and lodging, and institutional construction, as these structures use insulationintensively
  • concerns about reducing utility costs and minimizing energy consumption
  • the continued acceptance of green building codes such as LEED
  • increasingly stringent fire safety codes, particularly in high-rise commercial buildings, as properly insulated structures can greatly reduce the rate at which fire spreads through a building

Commercial Insulation Trends

Product Demand in the Commercial Insulation Market:

Suppliers of insulation in all building types will benefit from: concerns about reducing utility costs and minimizing energy consumption and the continued acceptance of green building codes such as LEED. Product growth will also be supported by: 

  • Rising installation of rigid urethane and polystyrene boards because of their high R-values

  • Advances in sprayed foam usage, as these products can significantly reduce the time and cost of insulating roofs, wall units, and foundations

This Study will answer questions like: 

  • What is the fastest growing material in the commercial insulation market? 
  • How will eco-friendly technologies change the future of the commercial insulation industry?
  • Which materials are the most cost-effective? 
  • Where are the best regional opportunities in the commercial insulation market?  

Table of Contents

EXECUTIVE SUMMARY

OVERVIEW

Key Findings

Historical Market Trends

Commercial Insulation Demand Forecasts

R-1 Value

Volume & Area

Market Value

Pricing Trends

Material Cost Comparison

Environmental & Regulatory Issues

Overview

Green Building

Indoor Air Quality & Health & Safety Issues

FOAMED PLASTIC

Key Findings

Definition & Scope

Market Size & Forecasts by Value, Volume, & Area

Material Advantages & Disadvantages

Product Trends

Rigid Urethane - Rigid Board Versus Sprayed-On Product Forms

Rigid Urethane Board

Sprayed-On Urethane - Open-Cell Versus Closed-Cell

Polystyrene - Expanded Polystyrene (EPS) Versus Extruded Polystyrene (XPS)

Demand by Building Type

New Construction Versus Retrofit Projects

Market Share

FIBERGLASS

Key Findings

Definition & Scope

Market Size & Forecasts by Value, Volume, & Area

Material Advantages & Disadvantages

Product Trends (Batts, Blankets, Loose Fill Materials, & Rigid Board)

Demand by Building Type

New Construction Versus Retrofit Projects

Market Share

MINERAL WOOL

Key Findings

Definition & Scope

Market Size & Forecasts by Value, Volume, & Area

Material Advantages & Disadvantages

Demand by Building Type

Market Share

CELLULOSE & OTHER MATERIALS

Key Findings

Definition & Scope

Cellulose

Market Size & Forecasts by Value, Volume, & Area

Material Advantages & Disadvantages

Demand by Building Type

Market Share

Other Materials (Reflective Insulation, Radiant Barriers, Perlite, Vermiculite, & All Other)

BUILDING TYPE

Key Findings

Commercial Insulation Demand by Building Type

Retail & Lodging

Institutional

Offices

Industrial

Other Commercial Buildings

NEW & RETROFIT INSULATION MARKETS

Key Findings

Commercial Insulation Demand by Project Type

New Construction

Retrofit

REGIONS

Key Findings

Regional Demand Forecasts

Northeast

Northeast: Overview

Northeast: Demand Forecasts

Midwest

Midwest: Overview

Midwest: Demand Forecasts

South

South: Overview

South: Demand Forecasts

West

West: Overview

West: Demand Forecasts

INDUSTRY STRUCTURE

Key Findings & Industry Composition

Market Share

Competitive Strategies

Product Differentiation

Intermaterial Competition

New Product Development

Marketing

Distribution

Cooperative Agreements

Acquisitions & Divestitures

List of Industry Participants

APPENDIX

Scope

Methodology

Sources

Associations & Agencies

Related Freedonia Group Studies

Definitions

Abbreviations

Macroeconomic Assumptions

Economic Environment

Demographics

Commercial Building Construction

Commercial Building Improvements & Repairs

Commercial Building Stock


List of Tables

OVERVIEW

Table 2-1 | Commercial Insulation Market, 2007 - 2017

Table 2-2 | Commercial Insulation Demand by Building Type & Material, 2007 - 2022 (billion square feet R-1)

Table 2-3 | Commercial Insulation Volume Demand by Building Type & Material, 2007 - 2022

Table 2-4 | Commercial Insulation Demand by Building Type & Material, 2007 - 2022 (million dollars)

Table 2-5 | Average Insulation Prices by Material, 2007 - 2022

Table 2-6 | US Commercial Insulation Market: Environmental & Regulatory Issues

FOAMED PLASTIC

Table 3-1 | Commercial Foamed Plastic Insulation Demand, 2007 - 2022

Table 3-2 | Foamed Plastic Insulation Advantages & Disadvantages

Table 3-3 | Commercial Rigid Urethane Insulation Demand, 2007 - 2022

Table 3-4 | Commercial Rigid Urethane Board Insulation Demand, 2007 - 2022

Table 3-5 | Sprayed-On Urethane: Open-Cell & Closed-Cell Commercial Insulation Demand, 2007 - 2022

Table 3-6 | Polystyrene: Extruded Polystyrene & Expanded Polystyrene Insulation Demand, 2007 - 2022

Table 3-7 | Commercial Foamed Plastic Insulation Demand by Building Type, 2007 - 2022

Table 3-8 | Commercial Foamed Plastic Insulation Demand by Project Type, 2007 - 2022

FIBERGLASS

Table 4-1 | Commercial Fiberglass Insulation Demand, 2007 - 2022

Table 4-2 | Fiberglass Insulation Advantages & Disadvantages

Table 4-3 | Commercial Fiberglass Insulation Demand by Product Form, 2007 - 2022

Table 4-4 | Commercial Fiberglass Insulation Demand by Building Type, 2007 - 2022

Table 4-5 | Commercial Fiberglass Insulation Demand by Project Type, 2007 - 2022

MINERAL WOOL

Table 5-1 | Commercial Mineral Wool Insulation Demand, 2007 - 2022

Table 5-2 | Mineral Wool Insulation Advantages & Disadvantages

Table 5-3 | Commercial Mineral Wool Insulation Demand by Building Type & Project Type, 2007 - 2022

CELLULOSE & OTHER MATERIALS

Table 6-1 | Commercial Cellulose Insulation Demand, 2017 - 2022

Table 6-2 | Cellulose Insulation Advantages & Disadvantages

Table 6-3 | Commercial Cellulose Insulation Demand by Building Type, 2007 - 2022

Table 6-4 | Other Commercial Insulation Materials by Building Type, 2007 - 2022

BUILDING TYPE

Table 7-1 | Commercial Insulation Demand by Building Type, 2007 - 2022

Table 7-2 | Retail & Lodging Insulation Demand by Material, 2007 - 2022

Table 7-3 | Institutional Insulation Demand by Material, 2007 - 2022

Table 7-4 | Office Insulation Demand by Material, 2007 - 2022

Table 7-5 | Industrial Building Insulation Demand by Material, 2007 - 2022

Table 7-6 | Other Commercial Building Insulation Demand by Material, 2007 - 2022

NEW & RETROFIT INSULATION MARKETS

Table 8-1 | Commercial Insulation Demand by Project Type, 2007 - 2022

Table 8-2 | New Commercial Insulation Demand by Building Type, 2007 - 2022

Table 8-3 | Retrofit Commercial Insulation Demand by Building Type, 2007 - 2022

REGIONS

Table 9-1 | Commercial Insulation Demand by Region, 2007 - 2022 (million dollars)

Table 9-2 | Northeast Commercial Insulation Demand by Subregion & Building Type, 2007 - 2022 (million dollars)

Table 9-3 | Midwest Commercial Insulation Demand by Subregion & Building Type, 2007 - 2022 (million dollars)

Table 9-4 | South Commercial Insulation Demand by Subregion & Building Type, 2007 - 2022 (million dollars)

Table 9-5 | West Commercial Insulation Demand by Subregion & Building Type, 2007 - 2022 (million dollars)

INDUSTRY STRUCTURE

Table 10-1 | US Commercial Insulation Product Sales for Selected Companies, 2017 (million dollars)

Table 10-2 | Selected Cooperative Agreements

Table 10-3 | Selected Acquisitions & Divestitures

APPENDIX

Table 11-1 | Study Scope: US Geographic Regions & Subregions

Table 11-2 | Relevant Industry Codes

Table 11-3 | Relevant HS/HTS Codes

Table 11-4 | Insulation R-Values by Material

Table 11-5 | Abbreviations Used in Study

Table 11-6 | Macroeconomic Indicators, 2007 - 2022 (billion 2009 dollars)

Table 11-7 | Population & Households, 2007 - 2022 (million persons)

Table 11-8 | Commercial Building Construction Expenditures, 2007 - 2022 (billion dollars)

Table 11-9 | Commercial Building Improvement & Repair Expenditures, 2007 - 2022 (billion dollars)

Table 11-10 | Commercial Building Stock by Type, 2007 - 2022 (billion 2009 dollars)


List of Figures

EXECUTIVE SUMMARY

Figure 1-1 | Key Trends in the US Commercial Insulation Market

OVERVIEW

Figure 2-1 | US Commercial Insulation Market Overview

Figure 2-2 | Commercial Insulation Demand Versus Commercial Building Construction Expenditures, 2007 - 2017

Figure 2-3 | Commercial Insulation Material Cost Comparison, 2017 (dollars per thousand square feet R-1 value)

FOAMED PLASTIC

Figure 3-1 | Commercial Foamed Plastic Insulation Market

Figure 3-2 | Commercial Foamed Plastic Insulation Market Position & Growth, 2017 - 2022 (million dollars)

Figure 3-3 | Open-Cell Versus Closed-Cell Insulation Demand, 2007 - 2022 (million dollars)

Figure 3-4 | Extruded Polystyrene Versus Expanded Polystyrene Insulation Value Demand Shares, 2007 - 2022 (million dollars)

Figure 3-5 | Commercial Foamed Plastic Insulation Demand by Building Type, 2017 (billion dollars)

Figure 3-6 | Commercial Foamed Plastic Insulation Market Share, 2017 (billion dollars)

FIBERGLASS

Figure 4-1 | Commercial Fiberglass Insulation Market

Figure 4-2 | Commercial Fiberglass Insulation Market Position & Growth, 2017 - 2022 (million dollars)

Figure 4-3 | Commercial Fiberglass Insulation Demand by Product Form, 2017

Figure 4-4 | Commercial Fiberglass Insulation Demand by Building Type, 2017 (million dollars)

Figure 4-5 | Commercial Fiberglass Insulation Market Share, 2017 (million dollars)

MINERAL WOOL

Figure 5-1 | Commercial Mineral Wool Insulation Market

Figure 5-2 | Commercial Mineral Wool Insulation Market Size, Position, & Growth, 2017 - 2022 (million dollars)

Figure 5-3 | Commercial Mineral Wool Insulation Market Share, 2017 (million dollars)

CELLULOSE & OTHER MATERIALS

Figure 6-1 | Commercial Cellulose & Other Insulation Materials Markets

Figure 6-2 | Commercial Cellulose Insulation Market Size, Position, & Growth, 2017 - 2022 (million dollars)

Figure 6-3 | Commercial Cellulose Insulation Market Share, 2017 (million dollars)

Figure 6-4 | Other Commercial Insulation Materials Market Size, Position, & Growth, 2017 - 2022 (million dollars)

BUILDING TYPE

Figure 7-1 | Commercial Building Type Insulation Trends

Figure 7-2 | Commercial Insulation Demand by Building Type, 2017 (billion dollars)

Figure 7-3 | Retail & Lodging: Insulation Demand Versus Building Construction Expenditures, 2007 - 2022

Figure 7-4 | Institutional: Insulation Demand Versus Building Construction Expenditures, 2007 - 2022

Figure 7-5 | Offices: Insulation Demand Versus Building Construction Expenditures, 2007 - 2022

Figure 7-6 | Industrial: Insulation Demand Versus Building Construction Expenditures, 2007 - 2022

NEW & RETROFIT INSULATION MARKETS

Figure 8-1 | New Construction & Retrofit Insulation Markets

Figure 8-2 | Commercial Insulation Demand Share by Project Type, 2007 - 2022 (million dollars)

Figure 8-3 | New Commercial Insulation Demand Versus Commercial Building Construction, 2007 - 2022

Figure 8-4 | Retrofit Insulation Demand Versus Existing Commercial Building Space, 2007 - 2022

REGIONS

Figure 9-1 | Regional Commercial Insulation Demand Trends

Figure 9-2 | Commercial Insulation Demand Shares by Region, 2007 - 2022 (million dollars)

Figure 9-3 | Northeast: Commercial Insulation Market Position & Indicators, 2017

Figure 9-4 | Midwest: Commercial Insulation Market Position & Indicators, 2017

Figure 9-5 | South: Commercial Insulation Market Position & Indicators, 2017

Figure 9-6 | West: Commercial Insulation Market Position & Indicators, 2017

INDUSTRY STRUCTURE

Figure 10-1 | Commercial Insulation Market Share, 2017 (billion dollars)

Figure 10-2 | Leading US Commercial Insulation Supplier, 2017

Figure 10-3 | Second Leading US Commercial Insulation Supplier, 2017

Figure 10-4 | Third Leading US Commercial Insulation Supplier, 2017

Figure 10-5 | Fourth Leading US Commercial Insulation Supplier, 2017

Figure 10-6 | Co-Fifth Leading US Commercial Insulation Supplier, 2017

Figure 10-7 | Co-Fifth Leading US Commercial Insulation Supplier, 2017

APPENDIX

Figure 11-1 | Annual Growth in Real GDP, 2000 - 2017, Compared to 1980 - 2005 Average (percent)

Figure 11-2 | Annual Population Growth, 2002 - 2017 (percent)


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