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Premium Report Details
Base Year: 2024
Companies covered: 15
Tables & Figures: 397
Countries covered: 18
Pages: 230
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Building Thermal Insulation Market
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Building Thermal Insulation Market Size
The global building thermal insulation market size was valued at USD 24.51 billion in 2024 and is estimated to grow at a CAGR of 6.6% between 2025 and 2034. Awareness of environmental issues is helping the building thermal insulation industry grow. Concerns about climate change and global warming have increased the need to reduce carbon emissions, as buildings use a lot of energy. Insulation improves energy efficiency by reducing the need for heating and cooling, which lowers greenhouse gas emissions. This supports global sustainability goals and increases demand for eco-friendly materials.
People, developers, and builders are choosing products that save energy and are better for the environment. Insulation materials made from natural or recycled sources, like cellulose or recycled fiberglass, are becoming more popular because they are environmentally friendly. Government rules and green building certifications, such as LEED and BREEAM, also encourage the use of energy-efficient insulation. Financial benefits like tax rebates are motivating both homes and businesses to use better insulation.
As more people become aware, they are investing in energy-efficient homes and buildings, with insulation being a keyway to save energy costs and reduce environmental harm. Overall, the focus on sustainability and energy efficiency is shaping the insulation market and making it an important part of building eco-friendly structures.
Building Thermal Insulation Market Trends
Urbanization and growing construction activities are driving the building thermal insulation industry. As more people move to cities, the demand for residential, commercial, and industrial buildings is rising. This rapid urban growth leads to more construction projects, all needing effective thermal insulation to improve energy efficiency, comfort, and meet building codes. Expanding cities require energy-efficient buildings to support larger populations without overusing energy. Insulation materials help by reducing the need for heating and cooling, which lowers energy use in crowded urban areas.
As construction increases, there is more focus on building homes and commercial spaces that meet modern energy standards and sustainability goals. Thermal insulation is essential for achieving these goals, especially in areas where controlling indoor temperatures is important. High-rise buildings, common in fast-growing urban areas, need specialized insulation to handle their complex energy needs. As cities grow, using thermal insulation becomes necessary to create energy-efficient, comfortable, and sustainable spaces for living and working.
Building Thermal Insulation Market Analysis
Based on the material, the market is segmented into open-cell materials and closed-cell materials. The open cell materials segment witnessed significant growth from 2025 to 2034, emerging as the dominant force, generating a revenue of USD 12.96 billion in 2024 and is expected to reach USD 23.84 billion by 2034. Open-cell materials are driving the growth of the building thermal insulation market because of their many benefits. They are more affordable than closed-cell materials, making them a popular choice for residential and commercial buildings, especially in areas with tight budgets.
Open-cell materials, like fiberglass and mineral wool, also provide excellent soundproofing, reducing noise in places like apartments, hotels, and offices. The demand for eco-friendly materials adds to their popularity, as options like cellulose are made from recycled materials and support green building efforts. These materials are also easier and faster to install. For example, spray foam insulation expands to fill gaps, saving time and labor costs.
Open-cell materials offer good thermal performance and help control moisture and humidity, preventing mold and keeping indoor spaces healthy. With more retrofitting and renovation projects happening, these materials are a top choice for improving energy efficiency in older buildings.
Based on the distribution channel, the building thermal insulation market is segmented into direct and indirect. In 2024, the indirect segment emerged as the market leader, commanding a 45.01% market share, and is anticipated to reach a valuation of USD 19.69 billion by 2034. Indirect channels are helping the market grow for several reasons.
First, they allow manufacturers to reach more customers by using distributors, wholesalers, and retailers. These intermediaries already work with builders, contractors, and construction firms, making it easier to sell insulation products. They also make it simpler to deliver products to different regions with fewer challenges.
By using indirect channels, manufacturers can focus on improving their products, production, and branding, while intermediaries handle sales, distribution, and customer service. This reduces the costs of direct sales, especially in markets with high demand. Wholesalers and distributors also keep a variety of insulation products available, making it easier for customers to buy them and increasing sales.
Contractors and construction firms, who often buy insulation materials in large quantities, prefer indirect channels because intermediaries can quickly supply the materials they need. Indirect channels also support online platforms, making it easier for customers to buy insulation products and increasing their availability.
The U.S. building thermal insulation market accounted for 53.5% of the revenue share in 2024 and is expected to grow at a CAGR of 6.3% through 2024. The country has a big and diverse construction industry, with constant demand for energy-efficient insulation in homes, businesses, and industries. Strict building rules focused on saving energy increase this demand, as insulation helps lower energy use for heating and cooling.
Government programs, like tax credits and green building certifications such as LEED, also encourage people and businesses to use energy-saving solutions. The U.S. is also a center for new insulation technologies, with top companies making advanced products. This, along with more consumers caring about sustainability, has increased the use of thermal insulation. The country’s different climate zones also make insulation important for handling extreme temperatures in various areas.
North America: In North America, especially in the U.S. and Canada, the building thermal insulation market is growing due to the need for energy-efficient solutions. High heating and cooling costs in extreme climates drive this demand. Government programs like Energy Star and tax incentives encourage people to make energy-efficient home improvements. Advanced insulation materials like spray foam, aerogel, and high-performance fiberglass are popular because they provide better thermal resistance and help save energy.
The rise of smart buildings, which combine automation with energy-saving technologies, is also increasing the demand for advanced insulation. As sustainability becomes more important, consumers and builders are choosing eco-friendly insulation materials to meet energy and environmental goals.
Asia Pacific.In the Asia-Pacific region, the building thermal insulation market is growing quickly due to urbanization and industrial development. Countries like China, India, and Southeast Asian nations are seeing a rise in construction as cities expand, and infrastructure projects grow. This increases the need for insulation materials that save energy and reduce air conditioning use, especially in hot and humid areas.
Governments in countries like China and India are enforcing stricter energy efficiency rules, which is driving the use of insulation materials. Cost-effective options like expanded polystyrene (EPS) and extruded polystyrene (XPS) are popular because they are affordable and perform well. With growing environmental concerns, there is also more demand for sustainable insulation materials like cellulose and recycled foams, aligning with global sustainability goals.
Europe: In Europe, the building thermal insulation market is growing because of the focus on sustainability and energy efficiency. Europe is a leader in green building practices, using certifications like BREEAM and LEED to promote energy-efficient insulation in both new buildings and renovations. The European Union's Energy Performance of Buildings Directive (EPBD) requires buildings to meet higher energy standards, which increases the need for insulation.
Many cities in Europe have older buildings that need upgrades to save energy, making retrofitting important. Eco-friendly materials like recycled cellulose, sheep wool, and hemp-based insulation are becoming more popular as sustainability remains a key focus. Both consumers and regulations are pushing for lower carbon emissions and energy savings, supporting these trends.
Building Thermal Insulation Market Share
Owens Corning, Saint-Gobain, Rockwool International, Kingspan Group, and Knauf Insulation are major companies in the building thermal insulation industry, holding a market share of 2% to 5%. Their strong position comes from several key factors. These companies are global leaders with a wide range of products, including fiberglass, mineral wool, and high-performance foams. They have large distribution networks and well-known brands, which help them compete in both residential and commercial construction markets.
They have also invested in sustainable and energy-efficient technologies to meet the growing demand for eco-friendly materials. These companies focus on innovation, regularly creating products that meet changing market needs, such as stricter regulations and customer demand for better energy efficiency. With operations in important regions like Europe, North America, and Asia-Pacific, they are well-placed to take advantage of the rising demand for construction and energy-efficient buildings.
Building Thermal Insulation Market Companies
Major players operating in the building thermal insulation industry are:
Building Thermal Insulation Market Industry News
The building thermal insulation market research report includes in-depth coverage of the industry, with estimates & forecasts in terms of revenue (USD Billion) and Volume (Million Units) from 2021 to 2034, for the following segments:
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Market, By Material
Market, By Format of Insulation
Market, By Application
Market, By End Use
Market, By Distribution Channel
The above information is provided for the following regions and countries: