Insulation Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)

Insulation Market Emerging Trends & Growth Drivers

Regulatory Support to Encourage Insulation is a Key Trend

• The growing demand for energy and rising energy costs are leading to increased insulation demand because insulated homes can lower heating and cooling bills by up to 20%.
• Research from the U.S. Environmental Protection Agency (EPA) indicates that the installation of an insulation system can reduce cooling and heating bills by as much as 18%, an attractive, cost-effective way to improve energy efficiency.
• Spray polyurethane (PU) foams and rigid PU foams are both popular building insulation materials for reducing heat dissipation and improving energy conservation solutions, although insulation requirements vary according to the regional climate.
• The U.S. federal government provides tax credits for insulation purchases, and Europe is mature, with leading countries, such as Germany, France, and the U.K., establishing the most stringent insulation requirements.
• In October 2023, Kingspan announced the acquisition of IB Roof Systems, a provider of high-performance PVC membranes and an early leader in the U.S. market, based in Grapevine, Texas.

Rising Demand for Residential and Industrial Insulation Drives Market

• The increasing demand for housing in the U.S. and Europe, driven by economic recovery, is fueling new residential construction and boosting the insulation market.
• Re-insulation of older, under-insulated homes is gaining traction as homeowners look for energy-efficient solutions to cut costs.
• The U.S. recorded over 1.3 million privately owned housing completions in October 2022, further driving the need for insulation materials.
• Rapid urbanization, industrialization, and population growth in emerging markets like Russia, Mexico, South Africa, India, China, and Brazil are accelerating residential and industrial infrastructure development.
• Rising energy costs and growing government initiatives promoting energy efficiency are increasing the adoption of insulation products across various sectors.
• Countries are shifting their focus toward domestic trade and investment, supported by a strong local labor market and easier access to finance.
• Insulation is critical in manufacturing industries for thermal and acoustic efficiency, with usage varying by plant operations, including boilers, stacks, incinerators, exhausts, and turbines.
• APAC leads the industrial insulation market, driven by strong manufacturing growth in China, India, the Philippines, Thailand, Malaysia, and Indonesia.
• The combined impact of these factors is expected to sustain the increasing demand for residential and industrial insulation materials in the coming years.

Segmentation and Category Analysis

Product Analysis

• The glass wool is the largest category in the market. The largest segment of the world insulation market is Glass Wool, largely because of its universal acceptance in residential, commercial, and industrial usage.
• Its prevalence is also a result of the fact that it is cost-effective, hence an economical option for bulk insulation requirements. Glass wool is also very good at thermal and acoustic insulation, hence an effective product in cutting energy usage and noise pollution.
• Its fire-resistance characteristic also makes it more desirable since it satisfies the strict building safety standards.
• According to the JRC Publication Repository, Glass wool makes up about 36% of the thermal insulation market, which is the largest market globally.

The products analyzed in the report are:

• Expanded Polystyrene (Fastest-Growing Category)
• Glass Wool (Largest Category)
• Mineral Wool
• Cellulose
• Calcium Silicate

Application Analysis

• Transportation is the fastest-growing category as it is expected to grow at a CAGR of 6% during the forecast period.
• This is due to the growing adoption of electric vehicles, which require appropriate thermal and acoustic insulation to enhance battery performance, range, and the passenger experience.
• The International Energy Agency (IEA) states that over one in five new vehicles sold in 2024 was electric, highlighting the swift adoption of EVs into the mainstream automotive market.
• Motor vehicle companies and suppliers are looking for lightweight, high-performance insulation materials more than ever before to navigate today's fuel economy and CO2 emission regulations.
• Insulation will increasingly be preferred in the aerospace and marine sectors because it helps to control temperature, cancel noise, and enhance fuel efficiency.
• Global efforts towards sustainable mobility and CO2 emissions reductions through regulation are driving the insulation development for the transportation sector at a fast rate, enabling it to be termed as the fastest-growing segment in the market.

The applications analyzed in the report are:

• Industrial
• Construction (Largest Category)
• Residential
• Non-residential & Commercial
• Transportation (Fastest-Growing Category)
• Automotive
• Marine
• Aerospace
• Appliances
• Packaging
• Furniture

Function Analysis

• Thermal insulation was the most dominating category 2024.
• The demand for thermal insulation is due to the need for post-COVID-19 recovery for residential, commercial, and industrial buildings to improve energy efficiency to work towards the cost-cutting associated with heating/cooling due to rising energy costs.
• Governments around the world are enforcing stricter building energy codes and sustainability standards, causing demand for thermal insulation materials such as fiberglass, mineral wool, and polyurethane foams.
• For instance, in March 2025, the UK government announced a £1.8 billion investment to support energy efficiency upgrades, including insulation, solar panels, and heat pumps, particularly targeting low-income and social housing sectors. This investment aligns with the goal to lower energy costs and achieve net-zero emissions by 2050.
• Relatedly, other industries such as HVAC, oil & gas, and automotive use thermal insulation to ensure optimum operating conditions, reduce energy loss, and maintain a safe working environment.

The functions analyzed in the report are:

• Thermal
• Acoustic
• Electric

Form Analysis

• The foam category will grow at the higher CAGR, of 6.5%, during the forecast period.
• This is because in both construction and industrial markets, spray polyurethane foam (SPF) and rigid polyurethane foam are gaining popularity because they provide continuous insulation, limit air leakage, and improve energy efficiency.
• The increasing adoption of green buildings and tighter energy regulations in regions such as the U.S., Europe, and certain parts of the Asia-Pacific are increasing the demand for insulation based on foam.
• Furthermore, the growth of cold chain logistics, HVAC systems, and industrial applications is expected to further enhance this segment’s growth.

The forms analyzed in this report are:

• Blanket (Largest Category)
• Foam (Fastest-growing Category)
• Board
• Pipe

Insulation Market Regional Growth Dynamics

North America is the largest insulation market, especially in the U.S., due to the widespread construction industry, strong energy efficiency building codes, and good acceptance of insulation products for residential, commercial, and industrial applications. The government of the U.S. endorses building code energy conservation and tax credits that further drive insulation demand. In addition, the region has many leading insulation companies and technologies, such as spray polyurethane foams and vacuum insulation panels. Consistent needs for insulation in the industrial space also contribute to the market's keystones, around the application of insulation in HVAC, automotive, and manufacturing.

Regions covered in the report:

• North America (Largest Region)
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (Fastest-Growing Region)
  • Japan
  • China
  • India
  • South Korea
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of LATAM
• Middle East & Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.
  • Rest of MEA

Insulation Market Share Analysis

The Insulation Market is extremely and broadly fragmented, with a large number of local, regional, and national players competing in different types of insulation material and applications. The insulation market is different than other markets that have only a few major corporations because it will have a multitude of manufacturers specializing in fiberglass, mineral wool, polyurethane foam, and sustainability insulation products. The fragmentation exists because there are different insulation requirements in different regions and climate conditions building codes and regulations surrounding energy efficiency also play a role. There are many multinational companies including Owens Corning, Saint-Gobain, and Kingspan Group, which hold a significant share of the insulation market, but also several local manufacturers serving specific geographical markets, and more application-specific, niche markets, further dissipating control.

Another primary reason for market fragmentation is due to the number of end-use industries and applications including, but not limited to residential and commercial, and industrial buildings, automotive, HVAC, etc. Furthermore, with changes in material science, new sustainable insulation products are appearing, and that in and of itself encourages new players into the market resulting in greater competition and fragmentation.

Insulation Market Developments

• In October 2023, a contract was signed by Holcim to buy OX Engineered Products, which specializes in advanced insulation technologies for residential and commercial markets.
• In September 2023, the first vacuum-insulated structure technology for refrigerators was unveiled in North America by Whirlpool with their SlimTech insulation; this product reduces the wall thickness of a refrigerator by as much as 66% to create 25% more internal volume.