The global thermal insulation market addresses the rising
need to reduce energy consumption, improve building performance, and meet tight
environmental regulations. Materials which minimize the heat transfer between
objects in thermal contact-thermal insulation-play an important role in
construction (walls, roofs, roofs), industrial process insulation, and HVAC
systems.
The Thermal Insulation Market was valued at US$ 53.39 billion in 2022 and is
expected to reach US$ 72.90 billion by 2028; it is expected to grow at a CAGR
of 5.3% from 2022 to 2028.
Growth Strategies
Capacity Expansion & Investment
Large companies are investing heavily to scale up
production: BASF SE announced a 50,000 tons/year increase in output of
Neopor®-graphite-enhanced EPS-to meet growing demand for energy-efficient
building insulation.
ROCKWOOL A/S has committed around €450 million, ≈ MEUR 450,
in 2025 for new factories, capacity expansion (US, India, Romania), and
electrification of production lines.
Sustainability & Circular Economy
Recently, BASF piloted EPS insulation boards made of about
10% recycled content, together with ABG Frankfurt Holding and Sto, without
compromising quality.
ROCKWOOL is reducing CO₂ intensity via decarbonized
production, for example, by converting to electric melting technology.
Mergers, Acquisitions & Geographic Expansion
In 2024, ROCKWOOL acquired Khai Hoan Insulation of Vietnam
and Wetherby Building Systems of the UK to further improve its geographical
presence in Asia and Europe.
Strategic partnerships, such as between BASF and
construction firms, to introduce advanced insulation systems that are more
efficient and/or sustainable.
R&D and Innovation
Development of advanced materials: bio-based insulation,
aerogels, vacuum insulation panels, phase-change materials.
Combining smart insulation solutions with digital tools
further enables the optimization of performance in building and industrial
applications.
Future Trends and Opportunities
Net-Zero Buildings & Renovation Boom: Tightening
global energy codes combined with scaling renovation programs will drive strong
growth in demand for high-performance insulation, including mineral wool, PIR,
and aerogel.
Green Materials: Eco-insulation made from either
recycled content or bio-based sources will attract both regulators and
customers.
Industrial Process Insulation: Technical insulation
for pipes, tanks, and equipment will see growth; the technical insulation
market is expected to reach ~ USD 69.9 billion by 2035.
Decarbonisation of Production: Firms will further
switch furnaces to electric, enhance energy efficiency, and decrease emissions.
Regional Growth: The Asia-Pacific, particularly China
and India, will remain a hotbed of demand due to rapid urbanization and
infrastructure development.
Key Players & Recent Developments
BASF SE
Upgraded Neopor® EPS capacity by 50,000 tons/year to meet
demands for insulation.
Piloted insulation boards using recycled EPS at ~10% with
ABG Frankfurt Holding & Sto.
The focus is also on more sustainable variants of EPS, such
as Neopor® BMB and Mcycled.
Bayer AG
Curiously, Bayer AG does not figure in any of the important
thermal insulation market reports or as a major insulation material
manufacturer in key studies on the thermal-insulation market. (Note: Though an
important chemical company, Bayer is not recognized as a leading player in the
thermal insulation materials market in recent analyst reports.)
ROCKWOOL A/S
H1 2025: reported revenue of €1,947 million, up 1%
organically, and including recently acquired businesses.
Invest in capacity expansion: new factories- US, Romania,
and India- and electrification and digitalization.
Invested €387 million in 2024, converted factories to
electric melters, acquired companies in UK and Vietnam.
Sustainability push: Lowered CO₂ intensity 23% (vs 2015
baseline), according to a 2024 report.
Conclusion
The thermal insulation market presently stands at a very
crucial juncture. Mounting pressure to cut carbon emissions, strictly laid-down
building regulations, and growing awareness of sustainable infrastructure have
raised demand for efficient insulation solutions to unprecedented levels. Key
players like BASF and ROCKWOOL are also aggressively expanding capacity,
investing in green materials, and prioritizing decarbonization in an effort to
capture this opportunity.
Frequently Asked Questions (FAQs)
What drives the thermal insulation market growth?
Drivers include more stringent energy efficiency
regulations, net-zero building targets, growing retrofit activities, and
energy-saving needs in industrial processes.
Which are the most demanded insulation materials?
Mineral wool (stone wool, glass wool), foamed plastics (EPS,
PIR) and high-performance materials such as aerogel.
Why is sustainability important in insulation?
Sustainable insulation reduces embodied carbon, helps in
attaining the circular economy principles of builders and governments, and
meets ESG targets.
Which regions hold the highest growth potential?
APAC, especially India and China, because of urbanization,
and Europe and North America because renovation and energy standards create
demand.
What are the major risks?
Price volatility of raw materials, energy costs for
production, supply chain constraints, and changes to regulatory policy.
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