Global Industrial & OEM Insulation

Report Overview

This study analyzes global supply of and demand for industrial and OEM insulation. Historical data (2008, 2013, and 2018) and forecasts for 2023 and 2028 are provided for demand by material (in dollars and metric tons) and market (in metric tons) on a country-by-country basis. Demand is also provided in square meters R-1. Demand in value terms is shown at the manufacturers’ level and excludes distributor and retailer markups.

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Scope and Summary

Materials broken out include:

• foamed plastic
• fiberglass
• mineral wool
• other materials (e.g., aerogels, calcium silicate, cotton, foamed glass, perlite, radiant barriers, reflective insulation, vacuum panels, and vermiculite)

The major market segments analyzed are:

• industrial and plant equipment (includes coverings for machinery, boilers, pipes, and tanks)
• commercial HVAC/air distribution equipment (coverings and linings for HVAC equipment and ductwork)
• major household appliances (includes clothes washers and dryers, dishwashers, freezers, ovens, refrigerators)
• transportation equipment (includes motor vehicles, aerospace equipment, ships and boats, and railroad equipment)
• other insulation markets (includes insulated coolers and thermoses, insulated packaging, furniture, bedding, nonbuilding/infrastructure construction, and heavy off-road equipment)

Both thermal and acoustic insulation are included in the scope of this study.

Demand for insulation in both residential and commercial buildings installed in wall, ceiling, attic, floor, roof, crawl space, and garage applications is excluded from the scope of this study. HVAC/air distribution insulation used for ductwork in the residential market is also excluded from the scope of this study.

The metric measures of thermal value used in this study cannot be converted to English units (those used in the Freedonia Group’s US insulation studies) simply by converting square meters to square feet. The metric version of thermal value defines heat transfer in metric units (watts) and is based on a material sample one meter thick; the English version of thermal value defines heat transfer in British thermal units and is based on a material sample 1 inch thick.

Taking into account all of the differences in measurement, approximately 16.4 square meters of R-1 value (metric system) is equal to 1,000 square feet of R-1 value (English system).

Through 2023, global demand for industrial and OEM insulation is forecast to rise 3.1% per year to 5.6 million metric tons valued at $17.5 billion. Market advances will be driven by:

• rising industrial machinery production
• increasing commercial HVAC output
• rising consumer interest in improved acoustics in motor vehicles and appliances
• growth in refrigerator and freezer production, as well as ongoing shifts in the product mix toward high-end, energy-efficient models that use more insulation
• rapid expansion of manufacturing bases in the Asia/Pacific and Africa/Mideast regions

Key Findings in the Global Industrial & OEM Insulation Study:

Foamed Plastic Insulation Will Continue to Gain Market Share Going Forward

Foamed plastic insulation will remain the most popular insulation material and will continue to gain market share through 2023 as a result of the material’s higher R-values and comparatively lower installation costs relative to fiberglass and mineral wool. Demand gains will also be supported by increasing appliance and motor vehicle production, where foamed plastic is frequently favored for its ability to provide superior insulation from both heat and noise.

Asia/Pacific Region Expected to Account for the Majority of Gains Through 2023

The Asia/Pacific region will continue to drive growth in the global industrial and OEM insulation market, as the region is the global leader in the production of industrial machinery, HVAC equipment, appliances, and transportation equipment. China alone will account for 37% of additional global sales in volume terms and demand will accelerate as both appliance and commercial HVAC production increase.

Rising Income Levels & Consumer Preferences Fuel Appliance Insulation Demand

The major household appliances market is projected to be fastest growing through 2023, fueled by a global increase in refrigerator and freezer production. Rising income levels will increase access to major household appliances in developing countries, stoking demand for these products and in turn boosting associated demand for insulation.

Consumer preferences for quieter and more energy efficient appliances will encourage manufacturers to increase the amount of insulation installed in their products:

• Dishwashers tend to be the loudest major household appliance, necessitating significant amounts of acoustic insulation to reduce noise levels.
• Energy-efficient refrigerators are especially important for consumers, as these appliances contribute to a significant portion of household energy bills.

Study Coverage

Through 2023, global demand for industrial and OEM insulation is forecast to rise 3.1% per year to 5.6 million metric tons valued at $17.5 billion. Market advances will be driven by:

• rising industrial machinery production
• increasing commercial HVAC output
• rising consumer interest in improved acoustics in motor vehicles and appliances
• growth in refrigerator and freezer production, as well as ongoing shifts in the product mix toward high-end, energy-efficient models that use more insulation
• rapid expansion of manufacturing bases in the Asia/Pacific and Africa/Mideast regions

Key Findings in the Global Industrial & OEM Insulation Study:

Foamed Plastic Insulation Will Continue to Gain Market Share Going Forward

Foamed plastic insulation will remain the most popular insulation material and will continue to gain market share through 2023 as a result of the material’s higher R-values and comparatively lower installation costs relative to fiberglass and mineral wool. Demand gains will also be supported by increasing appliance and motor vehicle production, where foamed plastic is frequently favored for its ability to provide superior insulation from both heat and noise.

Asia/Pacific Region Expected to Account for the Majority of Gains Through 2023

The Asia/Pacific region will continue to drive growth in the global industrial and OEM insulation market, as the region is the global leader in the production of industrial machinery, HVAC equipment, appliances, and transportation equipment. China alone will account for 37% of additional global sales in volume terms and demand will accelerate as both appliance and commercial HVAC production increase.

Rising Income Levels & Consumer Preferences Fuel Appliance Insulation Demand

The major household appliances market is projected to be fastest growing through 2023, fueled by a global increase in refrigerator and freezer production. Rising income levels will increase access to major household appliances in developing countries, stoking demand for these products and in turn boosting associated demand for insulation.

Consumer preferences for quieter and more energy efficient appliances will encourage manufacturers to increase the amount of insulation installed in their products:

• Dishwashers tend to be the loudest major household appliance, necessitating significant amounts of acoustic insulation to reduce noise levels.
• Energy-efficient refrigerators are especially important for consumers, as these appliances contribute to a significant portion of household energy bills.

Study Coverage

This Freedonia industry study analyzes the $13.7 billion global industrial and OEM insulation industry. It presents historical demand data (2008, 2013, and 2018) and forecasts (2023 and 2028) by market (industrial and plant equipment, commercial HVAC/air distribution, major household appliances, and transportation equipment) and material (foamed plastic, fiberglass, mineral wool, other). The study also evaluates company market share and analyzes industry competitors including Armacell, Aspen Aerogels, BASF, Berkshire Hathaway (Johns Manville), Covestro, Easter Polymer Group, Fuxin Dare Automotive Parts, Hongbaoli Group, Huntsman, K-FLEX, Kingspan, Knauf, Luyang Energy Saving Materials, Morgan Advanced Materials, NICHIAS, Owens Corning, ROCKWOOL, and Saint-Gobain.