HVAC Insulation Market size is projected to expand during 2023 to 2032, driven by the high emphasis on energy efficiency as part of global decarbonization objectives. The insulation of HVAC components can help protect them from extreme temperatures and remain cost-effective and efficient while meeting residential and commercial heating and cooling needs.
In May 2022, the European Commission proposed a rise to the binding energy efficiency target from 9% to 13% as compared to the 2020 Reference Scenario in the EU. With the increasing household per capita income, the demand for energy-efficient HVAC systems embedded with superior features will rise and in turn, drive HVAC insulation market expansion over the years ahead.
HVAC insulation materials are utilized to improve system performance while generating savings through a reduction in energy consumption costs. These materials can deliver acoustic and thermal comfort as well as safeguard buildings and occupants from smoke and fire.
The escalation of construction projects is among the prominent factors bolstering the HVAC insulation market trends, especially in developed economies. As per data from the International Trade Administration, construction is set to witness a solid recovery between 2022 and 2027, with value growing by around 3.7%-4.7%.
Furthermore, the introduction of government schemes to support construction workers will boost the rate of residential and commercial construction and subsequently favor the growth of HVAC insulation foam and sheet developers. Despite the favorable growth trajectory, the rising costs of raw materials utilized in the development of essential HVAC systems may hinder industry development to some extent.
The glass wool material segment is expected to account for a considerable HVAC insulation market share by 2032, due to the product’s strong application scope in duct and pipe insulation. The rising awareness of its high performance is also encouraging manufacturers to design odorless and inert HVAC insulation compatible with all standard building materials. Glass wool is derived from recyclable materials with numerous attributes including lightweight, high tensile strength, and ease of installation. The strong demand for energy-efficient solutions to curb the carbon footprint of buildings will therefore stimulate the consumption of glass HVAC insulation products.
In terms of the application, the HVAC insulation market value from the commercial sector will increase substantially in the upcoming years, owing to the high requirement for these systems across educational sectors. As per the U.S. Government Accountability Office, 41% of public school districts require HVAC upgrades or replacements in at least half of their schools. In addition, the emphasis on old office modernization projects to increase longevity is likely to further boost the adoption of commercial HVAC insulation materials.
Latin America HVAC insulation market is slated to gain momentum by 2032, as a result of rapid urbanization and the mounting government funding for housing projects. For instance, in April 2022, the Brazilian government unveiled plans to invest nearly USD 52.7 billion in popular housing and urbanization by 2025. Additionally, the robust demand for air-cooling appliances will bolster HVAC installation and in consequence, fuel regional market trends over the estimated timeline.
The competitive landscape of the HVAC insulation industry comprises companies such as Saint-Gobain, Armacell International, Knauf Insulation, Owen Corning Corporation, Rockwool International A/S, and Johns Manville Corporation, among others. These companies are focusing on innovative product launches, acquisitions, partnerships, and business expansions to strengthen their presence in the industry.
Over recent years, the construction sector has observed the damaging impacts of labor shortages caused by forty-year inflation peaks and the recent COVID-19 outbreak that has increased financial crises. Based on a survey from the U.S. Chamber of Commerce, rising inflation has emerged as a key concern for small business owners. Such setbacks may result in low HVAC system installation across both commercial and residential sectors and impede HVAC insulation industry development to some extent.
Market, By Material
Market, By Application
The above information is provided on a regional and country basis for the following: