Insulation Market in North America

Report Overview

North American Insulation Market Surges Toward Sustainable Future

Key questions answered in this report:

• What role does the retrofit market play in driving insulation demand?
• How are green building goals affecting the insulation industry?
• How is the trend towards customization and design influencing insulation products?

Featuring 64 tables and 36 figures!

Demand for insulation in North America totaled $13.8 billion in 2023 and is forecast to grow 3.6% annually to $16.5 billion in 2028. Going forward, market advances will be supported by rising building construction and increasingly stringent energy efficiency and building code regulations.

Energy Standards & Green Goals Propel Demand for Insulation Materials

Energy efficiency standards and building codes are driving demand for high-performance, sustainable insulation materials like mineral wool and eco-friendly foams. Green building certifications and net-zero energy goals are boosting the use of advanced insulation with high R-values, such as spray foam, PIR, and XPS. Additionally, there is a push for optimizing building envelopes, thereby increasing demand for insulation that enhances the performance of walls, roofs, and floors. 

Spray Foam and Aerogels: Leading the Charge in High-Performance Insulation Solutions

Demand for spray foam insulation is rising in the building market due to its superior air sealing capabilities, thermal resistance, and moisture control. Its versatility and effectiveness in reducing energy loss makes it a top choice for many applications. Additionally, aerogels are gaining traction in industries like aerospace, electronics, and specialized nonresidential applications due to their extremely low thermal conductivity and high performance in thin applications, where space-saving is essential.

Modern Makeovers: Retrofitting Older Buildings with Insulation

The growing retrofit and renovation markets are significant contributors to insulation demand, largely driven by older buildings being brought into compliance with modern energy efficiency standards. Many existing structures were built with outdated insulation materials that no longer provide adequate thermal performance, leading to higher energy costs and reduced comfort; to address these issues, property owners are investing in retrofit projects that incorporate advanced insulation materials. 

Spray foam and rigid foam are among the most popular choices for such upgrades due to their superior thermal resistance and ability to seal gaps and prevent air leakage. These materials often lead to lower heating and cooling costs since they make buildings more energy efficient, improving the overall performance and sustainability of older structures. As energy prices continue to rise and environmental awareness grows, the trend toward retrofitting and renovating buildings with high-performance insulation is expected to accelerate and promote further growth in this market segment.

Historical Market Trends & Growth Factors

In any given year, demand for insulation is impacted by multiple factors. Among them are:

• levels of residential and nonresidential building construction spending

• the types of buildings being built; single-family houses have considerably more insulation than multifamily units, and the amount of insulation per office and institutional building is substantially higher than manufacturing facilities and warehouses

• government efforts to improve housing quality or meet current shortages

• changes to building codes

• energy efficiency regulations

• construction or repair of infrastructure

• appliance, HVAC equipment, industrial equipment, automobile, shipbuilding, and aerospace production

Given the importance and widespread use of these products across several industries, insulation demand volume does not experience high levels of volatility, even during times of economic crisis. Year-to-year volatility in market value is more significant because of fluctuations in the prices of chemicals used to make foamed plastic insulation. Additionally, supply chain issues and an inflationary environment caused prices for all insulation materials to spike in 2021 and 2022.

Insulation Demand in North America by Material

Fiberglass will continue to account for the largest share of volume demand by weight in North America. The material is popular because:

• the world’s leading fiberglass insulation producers – CertainTeed (Saint-Gobain), Johns Manville, Knauf Insulation, and Owens Corning – all have major manufacturing operations in North America, which boosts product availability and buyer familiarity with the material

• a significant share of consumers perform DIY projects, bolstering demand for fiberglass insulation due to its ease of installation and lower cost compared to foamed plastic

In volume terms, fiberglass insulation demand will return to growth as residential building construction in the region rebounds.

Volume demand gains for foamed plastic insulation will be supported by:

• rising nonresidential building construction, as these materials are most widely used in nonresidential applications

• growth in appliance and HVAC and industrial equipment production

• increasing popularity of spray polyurethane foam insulation for its ability to tightly seal spaces

Mineral wool will continue to make market inroads in the region because the region has stringent fire safety codes that require significant high-temperature resistance in certain applications, along with rising interest in adding insulation to reduce noise in buildings.

Demand for other insulation materials, such as cellulose, will be supported by consumers who prefer products that are perceived as more environmentally friendly.

Insulation Market in North America Report Details

Report Scope & Methodology

This study analyzes the supply of and demand for insulation in North America. Historical data (2013, 2018, and 2023) and forecasts for 2028 and 2033 are provided for insulation demand by material (in dollars and metric tons) and market (in dollars and square meters R-1), net exports (in dollars), and production (in dollars). Demand in value terms is shown at the manufacturers’ level and excludes distributor and retailer markups.

Materials broken out include:

• foamed plastic

  • expanded polystyrene, including graphite polystyrene

  • polyurethane and polyisocyanurate (e.g., rigid board and spray)

  • extruded polystyrene

  • other foamed plastics (e.g., elastomeric, phenolic, polyolefin, melamine)

• fiberglass (including batts, blankets, loose fill, roof deck, board, and pipe and duct wrap)

• mineral wool (including batts, blankets, board, and loose fill)

• other materials (e.g., aerogels, cellulose, reflective insulation, radiant barriers, perlite, vermiculite, and all other insulation materials)

Granulated mineral wool used in ceiling tiles is not included in the scope of this study.

The major market segments analyzed are:

• residential buildings (e.g., single-family, including manufactured homes, and multifamily)

• nonresidential buildings (including, office, retail and lodging, institutional, and industrial buildings)

• industrial and plant equipment (e.g., power generation, oil and gas, petroleum refining, chemicals, food and beverages, pharmaceuticals)

• HVAC/air distribution equipment (including residential, commercial, and heating and air ducts)

• appliances (e.g., refrigerators, freezers, ovens, dishwashers, clothes washers and dryers)

• transportation equipment:

  • motor vehicles (cabins, engines)

  • aerospace equipment (fuselages, air ducts)

  • ships and boats (hulls, cabins)

  • railroad equipment (railcars, insulated cars)

• other insulation markets, including nonbuilding construction, packaging, furniture, bedding, clothing, and off-road equipment

Both thermal and acoustic insulation are included in 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 one 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).