by Corinne Gangloff
November 23, 2021
Following declines in most markets in 2020, particularly building construction, the global insulation market will rebound strongly in 2021 and maintain a solid pace of recovery through 2025, finds a new Freedonia Group analysis. Rebounds in the global construction and manufacturing markets as they return to pre-pandemic levels will be a main source of growth, especially as polystyrene insulation is among the most commonly used insulation products in the world.
In addition to growth in real demand, the market will benefit from particularly strong value gains in 2021. A surge in polystyrene prices caused by government regulations aimed to eliminate the use of HFC-134a in XPS blowing agents in the US and Canada, as well as pandemic-related closures of some of the world’s largest polystyrene manufacturing plants, have constricted supply and given rise to above average price inflation.
Global demand for insulation is forecast to rise 6.1% per year to $56.9 billion in 2025, when sales in volume terms will total 28.0 million metric tons. Gains will be driven by:
However, below average building construction outlooks in the US and Japan, as well as continued declines in single-family housing construction in China, will provide a check on even faster gains.
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Global Insulation analyzes global supply of and demand for insulation (including thermal and acoustic). Historical data (2010, 2015, and 2020) and forecasts for 2025 and 2030 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) on a country-by-country basis.
Materials broken out include:
The major market segments analyzed are:
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