World demand for insulation is forecast to increase 5.0 percent per year through 2014 to nearly 23 billion square meters of R-1 value, a substantial improvement over the 2004-2009 rate. Insulation consumption in most industrializing nations will continue to expand at a healthy pace. In developed countries, sales of insulation materials are expected to rebound after falling sharply in 2008 and 2009 because of the global financial crisis. These and other trends, including market share and product segmentation, are presented in World Insulation, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
Impressive residential building construction spending gains will be the primary driver of growth. Sales of insulation for residential applications in North America will rise at a double-digit pace between 2009 and 2014, as the US housing market recovers. In Western Europe, insulation demand will expand moderately, after declining between 2004 and 2009 due to a drop in residential construction activity in the latter part of the period. Ongoing rural-to-urban migration in Asia, the Africa/Mideast region, and Central and South America will stimulate housing construction in urban areas and thus insulation consumption. Nonresidential construction activity and associated insulation demand in industrializing regions are also forecast to expand at a healthy pace. The adoption of new insulation standards for buildings and the implementation of government programs to encourage insulation use will spur product sales in many countries.
The insulation market in North America will register the fastest growth through 2014, driven by the large US market. Insulation consumption in the US is expected to increase more than seven percent per year during this time, after it declined dramatically between 2007 and 2009 because of turmoil in the housing sector. The US residential segment will be responsible for nearly all insulation market gains in North America through 2014.
More than 40 percent of all new insulation demand generated during the 2009-2014 period will be attributable to the Asia/Pacific region. Insulation consumption in the region is predicted to increase almost six percent annually through 2014 because of solid advances in process manufacturing, appliance shipments, and residential and nonresidential building construction. Several Asian countries are forecast to record rapid growth, including India, China and Indonesia. China alone will account for 29 percent of all new global insulation demand between 2009 and 2014.
The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.