Polyurethane Insulation Market Size & Share 2026-2035

Polyurethane Insulation Market Size

The global polyurethane insulation market was estimated at USD 7.7 billion in 2025. The market is expected to grow from USD 8 billion in 2026 to USD 13.1 billion in 2035, at a CAGR of 5.6%.

• The market for polyurethane insulation is witnessing growth due to implementation of strict energy efficiency standards and world climate targets. Governments and regulatory bodies worldwide are imposing greater energy-saving measures in commercial buildings and industrial plants to minimize greenhouse gas emissions and climate change. As per the International Energy Agency (IEA), nearly 30% of world energy use and 28% of energy-related CO2 emissions are attributable to buildings, leading to tighter regulations for increased energy efficiency. Polyurethane insulation, with its high thermal performance, is gaining popularity to reduce energy loss and meet changing building codes.
   
• In addition to this, there is the growing demand for sustainable construction and building retrofits. With the construction industry moving towards greener building, there is increased focus on materials that conserve energy and minimize environmental footprints. Polyurethane insulation is highly valued in new buildings as well as in renovation work due to its potential for lowering heating and cooling requirements, which in turn reduces a building's carbon footprint. The United Nations Environment Programme (UNEP) has emphasized that the construction industry must reduce its carbon emissions by 50% by 2030 to meet global climate targets, further increasing the adoption of energy-efficient materials like polyurethane insulation. Furthermore, the renovation of old buildings to meet modern energy standards is contributing to the increased demand for advanced insulation solutions.
   
• The growth of cold chain logistics and the refrigeration industry is also contributing significantly to market development. The increased international demand for temperature-sensitive products, including fresh produce, pharmaceuticals, and vaccines, has necessitated the rapid development of cold storage and transport facilities. The World Health Organization (WHO) highlights the importance of strong cold chain infrastructure in guaranteeing safe delivery of vaccines, especially during international health crises. Polyurethane insulation, due to its superior insulating properties, is commonly utilized in these industries to ensure consistent low temperatures and energy efficiency. As the cold chain sector continues to expand, the demand for high-performance insulation materials like polyurethane is expected to grow further.

Polyurethane Insulation Market Trends

• The polyurethane insulation industry is changing due to new industry trends and changing consumers need. The most notable trend is utilizing energy-efficient building materials. As people and businesses realize the importance of saving energy and lowering bills, they use polyurethane insulation because it performs better to keep heat in or out.
   
• Another important trend is the shift towards sustainable and environmentally friendly insulation solutions. With sustainability at the forefront of construction, there is an increasing demand for green polyurethane solutions. Companies are responding by producing insulation solutions from bio-based polyols and low-GWP blowing agents. These new solutions not only fulfill stringent environmental regulations but also respond to the increasing customer need for green construction solutions.
   
• In addition to this, new product and technological developments are transforming the market. Manufacturers are investing in research to improve polyurethane insulation products with enhanced features, such as improved fire resistance, greater R-values, and enhanced moisture resistance. Such improvements are increasing the applications for polyurethane insulation and ensuring that it serves the various purposes of present construction and industrial applications.
   

Polyurethane Insulation Market Analysis

Based on product type, the market of polyurethane insulation is categorized into rigid polyurethane foam boards, spray polyurethane foam (SPF), polyisocyanurate (PIR) boards and flexible polyurethane foam. The flexible polyurethane foam accounted for revenue of around USD 2.5 billion in 2024 and is anticipated to grow at a CAGR of 4.9% from 2025 to 2035.
 

• The expansion of the flexible polyurethane foam segment of the polyurethane insulation market is primarily triggered by its extensive applications and superior comfort properties along with growing demand from various industries. The versatile foam finds application in furniture, bedding, automotive interiors, and packaging, appreciated for its superior cushioning, resilience, and lightness. The growing consumer demand for comfort and ergonomics, particularly in furniture and vehicles, is driving demand for flexible polyurethane foam.
   
• Furthermore, emerging developments in manufacturing technologies, along with the creation of environmentally friendly and low-emitting foam varieties, are also driving the expansion of this market segment.
   

Based on installation method, market consists of new construction, retrofit/renovation and maintenance & replacement. The new construction emerged as leader and held 42.9% of the total market share in 2025 and is anticipated to grow at a CAGR of 5.8% from 2026 to 2035.
 

• The dominance of the new construction industry in the polyurethane insulation industry is attributed to the accelerated urbanization, ongoing infrastructure development, and enforcement of stringent building energy codes worldwide. Governments and regulatory agencies are increasingly calling for higher energy efficiency standards for new buildings, builders and developers are turning to high-performance insulation products like polyurethane to meet the standards and optimize overall building performance.
   
• Polyurethane insulation is particularly in demand for new building applications because of its excellent thermal resistance, moisture management, and durable longevity, all which significantly help to minimize energy consumption and operating costs.

Based on distribution channel, polyurethane insulation market consists of direct and indirect. The indirect distribution channel emerged as leader and held 59.8% of the total market share in 2025 and is anticipated to grow at a CAGR of 5.4% from 2026 to 2035.
 

• The indirect channel of distribution has emerged as the leading segment of the polyurethane insulation industry due to its wide coverage, accessibility, and ability to cover a large and diversified customer base. Such indirect distributorship channels that include distributors, dealers, retailers, and web sites enable manufacturers to penetrate multiple regional markets effectively and reach large-scale customers as well as small-scale customers. Such channels also offer value-added services like technical support, after-sales support, and speedy delivery, all of which are important to contractors, builders, and end users who need help in product selection and installation.
   
• Furthermore, the growing availability of web sites and specialty distributors has made it easier for customers to access a wide range of polyurethane insulation products, further making the indirect distribution channel more popular. With the construction activities and renovation work ongoing at a rising pace globally, the indirect channel is likely to entrench its leadership and register steady growth over the forecast period.
   

North America Polyurethane Insulation Market

The U.S. dominates an overall North America market and valued at USD 1.6 billion in 2025 and is expected to grow at a CAGR of 5.1% during the forecast period from 2026 to 2035.
 

• The growth is due to strong construction activity, tight energy efficiency regulations, and focus on green building practices. Residential, commercial, and industrial segments in the country continue to spend on better insulation solutions to meet new building codes and save on energy. Moreover, more people are retrofitting and rehabilitating existing buildings to enhance energy performance, which aids growth in the market. Availability of top manufacturers, ongoing technology innovation, and higher awareness of the environmental advantage and cost savings of polyurethane insulation also aid the U.S. in leading the market.
   

Europe Polyurethane Insulation Market

The polyurethane insulation industry in Europe, Germany is expected to experience significant and promising growth from 2026 to 2035.
 

• This growth is primarily attributed to the strong emphasis of the country on energy efficiency, stringent building codes, and ambitious climate targets to reduce carbon emissions. Germany's continued investments in green building, along with an enormous number of building renovations and modernization, are driving the demand for such high-end insulation products such as polyurethane. Also, having a very strong manufacturing industry and increasingly more individuals utilizing green building certifications are driving the demand for high-end insulation products.
   

Asia Pacific Polyurethane Insulation Market

The Asia Pacific market, the China held 32.5% market share in 2025 and is expected to grow at a CAGR of 6.5% during the forecast period from 2026 to 2035.
 

• The growth is due to China's high urbanization rate, vast infrastructure development, and strong growth in the construction industry. The initiative of the government to enhance energy efficiency in buildings, and the establishment of more stringent building codes and environmental protection regulations, is propelling the use of high-tech insulation materials like polyurethane. The growth of industries like cold storage, food processing, and automotive manufacturing also boosts the market. While China continues to invest in sustainable development and urbanizes its building stock, it is expected that demand for polyurethane insulation will grow steadily during the forecast period
   

Middle East & Africa Polyurethane Insulation Market

In the Middle East and Africa market, South Africa held 29.3% market share in 2025 and is anticipated to grow at a CAGR of 5% from 2026 to 2035.
 

• The Country's growing industrial and commercial sectors, and an increasing emphasis on minimizing energy use and operational expenses, are continuing to drive the use of polyurethane insulation. Furthermore, the requirement for efficient temperature management across multiple industries, including cold storage and food processing, is also driving market growth. Consequently, South Africa is anticipated to be a vital source for the expansion of the Middle East and Africa market during the forecast period.
   

Polyurethane Insulation Market Share

• In 2025, the prominent manufacturers in polyurethane insulation industry are BASF SE, Covestro AG, DuPont, Dow Inc. and LANXESS together these companies hold the market share of ~30-35%.
   
• BASF SE continues to assert its leadership in the market by emphasizing sustainability, driving innovation, and fostering regional collaborations. The company has developed advanced PU composites with water-borne coatings that significantly reduce carbon footprints, positioning them as ideal solutions for energy-efficient applications. Through initiatives like the “Loop” program, BASF incorporates recycled content into its product offerings. Furthermore, its investments in local R&D facilities, such as the Polyurethane Technical Development Center in India, enable the co-creation of tailored solutions with customers. These strategic initiatives, combined with advancements in lightweight and durable materials for automotive and solar applications, reinforce BASF’s position as a market leader in both performance and environmental responsibility.
   
• Covestro AG leverages advanced material science and a strong commitment to circular economy principles to maintain its competitive edge in the polyurethane insulation sector. Its rigid PU foam products dominate the German market, delivering superior insulation for industrial and construction applications. Covestro is pioneering the use of CO₂-based raw materials and bio-aniline, significantly reducing reliance on fossil fuels. The company also embraces digitalization to optimize production processes and enhance customer service. By focusing on high-performance, sustainable materials with exceptional mechanical and thermal properties, Covestro effectively meets the rising demand for energy-efficient and eco-friendly insulation solutions.
   

Polyurethane Insulation Market Companies

Major players operating in the polyurethane insulation industry include:

• Armacell
• BASF SE
• Compagnie de Saint-Gobain SA
• Covestro AG
• Dow Inc.
• DuPont
• Foam Supplies Inc. (FSI)
• FoamPartner
• Gallagher Corporation
• Huntsman Corporation
• IMA Srl
• LANXESS
• Nitto Denko Corporation
• Tosoh Corporation
• Wanhua Chemical Group
   

LANXESS sets itself apart in the polyurethane insulation market by offering innovative bio-based PU systems and specialized additives that enhance both performance and sustainability. Its Adiprene Green Line, developed using renewable raw materials, acts as a seamless drop-in replacement for traditional PU systems, reducing environmental impact without compromising quality. LANXESS also leads in developing hot cast and cold cure systems that significantly lower energy consumption during production. Additionally, its portfolio includes advanced flame retardants and stabilizers designed for insulation applications, enabling manufacturers to meet stringent safety and regulatory requirements while enhancing product durability and efficiency.
 

Polyurethane Insulation Industry News

• In December 2025, BASF SE introduced WALLTITE RSB, an innovative closed-cell spray polyurethane foam insulation system designed to meet the increasing demand for sustainable construction materials. This next-generation product is formulated using a combination of recycled and bio-based raw materials, significantly reducing embodied carbon emissions. WALLTITE RSB incorporates a proprietary resin formula that enhances its performance and sustainability credentials.
   
• In April 2025, Armacell launched ArmaGel XGC, a cutting-edge aerogel insulation blanket engineered for extreme low-temperature applications. This advanced insulation solution is specifically designed to perform efficiently in environments with temperatures as low as −196°C, making it ideal for cryogenic and dual-temperature applications.
   
• In June 2025, Armacell inaugurated a new aerogel insulation manufacturing facility in Pune, India, marking a significant milestone in the company’s global expansion strategy. This state-of-the-art facility has doubled Armacell's global production capacity for aerogel blankets, enabling the company to meet the growing demand for high-performance insulation solutions.
   

The polyurethane insulation market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) from 2022 to 2035, for the following segments:

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Market, By Product Type

• Rigid polyurethane foam boards
• Spray polyurethane foam (SPF)
• Polyisocyanurate (PIR) boards
• Flexible polyurethane foam

Market, By Installation Method

• New construction
• Retrofit/Renovation
• Maintenance & replacement

Market, By Application

• Residential buildings
• Commercial buildings
• Industrial buildings
• Infrastructure

Market, By End-user

• Roof & ceiling insulation
• Wall insulation
• Floor insulation
• Pipe insulation
• Cold storage & refrigeration
• Tank & vessels
• Others (HVAC, automotive interiors)

Market, By Distribution Channel

• Direct
• Indirect

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Malaysia

• Latin America
  • Brazil
  • Mexico

• MEA
  • Saudi Arabia
  • UAE
  • South Africa