Expanding Thermal Insulation Industry Forecast to Reach a worth of 43.7 Billion Dollars by 2034
The Building Thermal Insulation Market is set to experience substantial growth in the coming years, with estimates suggesting a CAGR of around 5.5% to 8% from 2025 to 2034. This growth is driven by the increasing demand for energy-efficient buildings and eco-friendly solutions, as well as stringent energy efficiency standards worldwide.
In 2024, the market was valued at USD 28.4 billion, with the Global Building Thermal Insulation Market projected to surpass USD 100 billion by 2034. The Asia Pacific region, North America, and the Residential segment are experiencing rapid growth.
Glass Wool led the By Product segment in 2024, accounting for a 34.8% share, while the Roof segment dominated the By Application category with a 43.5% share. Notable companies like Knauf Gips KG, Kingspan Group PLC, CNBM Group Co. Ltd., Rockwool A/S, and Dow Inc. are introducing innovative eco-friendly materials and expanding their production of recyclable insulation materials.
Knauf Gips KG, for instance, has introduced "Knauf Insulation ECOSE Technology", a bio-based binder for eco-friendly mineral wool, enhancing fire-resistant insulation for high-rise buildings. Kingspan Group PLC has launched "QuadCore LEC", a low-carbon insulation board, and is expanding its recycled content insulation range.
The Natural Bio-based Insulation Materials Market is projected to reach USD 114.27 billion by 2034, growing from USD 69.28 billion in 2024 at a CAGR of 6.2%. The Rigid Insulation Market, which includes materials frequently used in building insulation like PIR, XPS, and EPS, is forecasted to grow at a CAGR of 8% from 2023 to 2031.
The growth of the Building Thermal Insulation Market significantly impacts the global economy by fostering energy efficiency and sustainable construction. This market expansion is expected to offer exciting opportunities for innovation and investment in the coming years.
| Market Segment | Projected Size (around 2034) | CAGR (2024/25 to 2034) | |----------------------------|------------------------------|-----------------------| | Natural Bio-based Insulation | USD 114.27 billion[1] | 6.2%[1] | | Thermal Insulation Coatings | USD 19.6 billion by 2035[2] | 5.5%[2] | | Rigid Insulation Market | — | 8% (to 2031)[4] | | Green Building Materials (incl. insulation) | 1,271.6 million tons by 2034[5] | 7.8%[5] |
Increasing construction activities in North America are boosting the demand for building thermal insulation, with the region leading the market in 2024, holding a 46.2% share and a value of USD 13.1 billion. The Residential segment commanded a 59.3% share in the By End-Use category in the Building Thermal Insulation Market.
Dow Inc. has launched "V PLUS Perform", a next-gen PU foam insulation, and is collaborating with builders on energy-efficient housing projects in Europe and Asia. The market for Building Thermal Insulation is poised to offer exciting opportunities for innovation and investment in the coming years.
[1] Source: Grand View Research [2] Source: MarketsandMarkets [4] Source: Allied Market Research [5] Source: MarketsandMarkets
- The growth of the Natural Bio-based Insulation Materials Market, estimated to reach USD 114.27 billion by 2034, will present promising opportunities for investment in the future.
- The Rigid Insulation Market, which includes materials frequently used in building insulation like PIR, XPS, and EPS, is projected to grow at a CAGR of 8% from 2023 to 2031, attracting significant finance in the industry.
- The Residential segment, commanding a 59.3% share in the Building Thermal Insulation Market, indicates a substantial demand for energy-efficient housing solutions, particularly in the growing housing-market.
- In the Commercial segment, companies like Dow Inc. are launching innovative products, such as "V PLUS Perform", a next-gen PU foam insulation, to cater to the increasing need for energy-efficient buildings in the industry.
