Building Thermal Insulation Market Report 2025

This Building Thermal Insulation market report covers market characteristics, size & growth, segmentation, regional & country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The building thermal insulation market size has grown steadily in recent years. It will grow from $30.55 billion in 2024 to $31.56 billion in 2025 at a compound annual growth rate (CAGR) of 3.3%. The growth in the historic period can be attributed to energy efficiency regulations and building codes driving demand for insulation, increasing awareness of environmental sustainability and energy conservation, increased construction industry, fluctuating energy prices, and government incentives.

The building thermal insulation market size is expected to see steady growth in the next few years. It will grow to $38.13 billion in 2029 at a compound annual growth rate (CAGR) of 4.8%. The growth in the forecast period can be attributed to climate change mitigation efforts andThe need for energy-efficient buildings, adoption of green building certifications and standards, research and development of high-performance and sustainable insulation materials, increasing demand for passive house and zero-energy building designs, and urbanization and population growth. Major trends in the forecast period include biodegradable and sustainable insulation materials, aerogel insulation, prefabricated insulation panels, high-performance insulation for cold climates, and insulation for aging buildings.

The anticipated rise in global energy costs is expected to propel the growth of the building thermal insulation market in the future. Various factors influence global energy costs, including supply and demand dynamics, geopolitical tensions, production and distribution expenses, environmental regulations, and the shift towards renewable energy sources. These elements impact the overall cost of energy for consumers and industries worldwide. As energy costs increase, property owners are motivated to invest in building thermal insulation to lower energy consumption, thereby driving demand for insulation materials and benefiting the market. For example, data from the Energy Institute, a U.S.-based organization, shows that global energy costs increased to 81.9% in 2022, then slightly decreased to 81.5% in 2023. Consequently, the ongoing rise in global energy costs is expected to contribute to the growth of the building thermal insulation market throughout the forecast period.

The growth of the building thermal insulation market is further expected to be fueled by the rise in global energy costs. Factors such as supply and demand dynamics, geopolitical tensions, and environmental regulations contribute to the overall energy costs for consumers and industries globally. In response to increasing energy costs, property owners are incentivized to invest in building thermal insulation to reduce energy consumption. A Utility Dive report in January 2023 revealed a 14.3% increase in electricity prices, reaching 15.07 cents per kilowatt-hour in 2022, twice the rate of overall inflation. Projections indicate a continued rise, reaching 15.45 cents per kWh in the current year. This escalation in energy costs is expected to drive the demand for insulation materials, fostering the growth of the building thermal insulation market.

In the building thermal insulation market, technological advancement emerges as a key trend, with major companies focusing on introducing innovative technologies for a competitive edge. ACC Ltd., an India-based building material manufacturer, exemplifies this trend by introducing ACC Atrium in March 2022. ACC Atrium is a thermal insulating climate control concrete system that utilizes innovative insulating technology. This technology enables insulation during the construction of roofs, making the product suitable for both residential and commercial construction. The emphasis on technological innovation highlights the industry's commitment to providing sustainable, fire-resistant, and efficient solutions in building thermal insulation.

Major players in the building thermal insulation market are striving for a competitive edge by introducing innovative and sustainable products, such as the Ultra-Fast 70 foam formulation by Covestro in collaboration with Selena Group. This polyurethane (PU) foam is designed to significantly reduce the installation time for doors and windows, thus enabling an increased number of projects to be completed within the same timeframe. The Ultra-Fast 70 formulation is not only focused on faster installation but also emphasizes sustainability, with ISSC Plus certification confirming the use of plant-based feedstocks through the mass balance method. This approach leads to a substantial 60% reduction in carbon emissions compared to materials derived from fossil sources. The innovation addresses the need for efficient building thermal insulation while aligning with environmentally friendly practices.

In February 2024, Compagnie de Saint-Gobain S.A., a French multinational corporation, purchased International Cellulose Corporation for an undisclosed amount. This acquisition is part of Compagnie de Saint-Gobain S.A.'s strategy to broaden its market presence and improve its product offerings. International Cellulose Corporation is a U.S.-based manufacturer specializing in sustainable spray insulation products.

Major companies operating in the building thermal insulation market include Johns Manville, Saint-Gobain S.A., Kingspan Group PLC, Owens Corning, Rockwool International A/S, GAF Materials Corporation, Guardian Building Products Inc., CertainTeed Corporation, Knauf Insulation, Armacell International S.A., Dow Inc., Huntsman Corporation, Cabot Corporation, Recticel NV, Paroc Group, URSA Insulation S.A., Superglass Insulation Ltd., Kaimann GmbH, Thermaflex International Holding B.V., Lapinus Fibres, KCC Corporation, Beijing New Building Material (Group) Co. Ltd., Fletcher Insulation Pty Ltd., TechnoNICOL Corporation, Unifrax I LLC, Aspen Aerogels Inc., Evonik Industries AG, Alutech Systems Ltd.

Building thermal insulation is a method that prevents the transfer of heat from one substance to another when they are in thermal contact. It utilizes materials with low thermal conductivity to achieve effective insulation.

The primary materials in the building thermal insulation market include foamed plastic, mineral wool, aerogels, cellulose, and others. Glass wool, a type of insulating material made from glass fibers bound together, is designed to resemble wool in texture. It is employed to reduce the movement of sound, heat, and cold within buildings. Various products in this market include glass wool, mineral wool, expanded polystyrene (EPS), extruded polystyrene (XPS), and others, utilized for roof insulation, wall insulation, and floor insulation. End-users encompass residential, commercial, and industrial sectors.

The building thermal insulation market research report is one of a series of new reports that provides building thermal insulation market statistics, including building thermal insulation industry global market size, regional shares, competitors with a building thermal insulation market share, detailed building thermal insulation market segments, market trends and opportunities, and any further data you may need to thrive in the building thermal insulation industry. This building thermal insulation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Asia-Pacific was the largest region in the building thermal insulation market in 2024. The regions covered in the building thermal insulation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

The countries covered in the building thermal insulation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The building thermal insulation market consists of sales of polyurethane foam and fiberglass. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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