INDUSTRIAL INSULATORS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Industrial Insulators Market Size and Trends

The global industrial insulation market is estimated to be valued at USD 4.29 Bn in 2024 and is expected to reach USD 6 Bn by 2031, growing at a compound annual growth rate (CAGR) of 4.9% from 2024 to 2031.

To learn more about this report, request sample copy

The industrial insulation market is expected to witness significant growth over the forecast period. Rising energy costs across major industries, such as petrochemicals, oil & gas, power generation, and cement, is encouraging end users to focus on energy efficiency through the optimum utilization of insulation systems. Furthermore, stringent government regulations regarding energy efficiency and greenhouse gas emissions from industrial facilities is further promoting the utilization of insulation systems. Manufacturers are hence increasingly developing innovative, sustainable, and cost-effective insulation solutions to cater to the growing demand. Significant investments by major economies in the expansion of their oil & gas and petrochemical industries will also drive the consumption of insulation materials in the coming years.

Rising adoption of energy efficiency standards and regulations

With growing environmental concerns and increasing focus on reducing carbon emissions, many countries and organizations have implemented stringent regulations mandating higher levels of energy efficiency in industrial facilities and operations. Industrial insulation plays a crucial role in improving energy efficiency by reducing heat transfer and thermal bridging. It helps lower energy costs significantly by minimizing energy losses. Various governments around the world have passed legislations that industrial and commercial facilities must meet certain insulation standards to minimize heat gain and loss. For instance, according to the data published on December 7, 2023, the EU Energy Performance of Buildings Directive (EPBD) sets minimum energy performance requirements for new and existing buildings including industrial and commercial facilities. According to the same source, Each Member State would adopt its own national trajectory to reduce the average primary energy use of residential buildings by 16% by 2030 and 20-22% by 2035. This is driving greater demand for advanced insulation materials that can help organizations comply with the new energy efficiency protocols. Major industries like oil & gas, petrochemical, power, and manufacturing have to abide by these regulations and optimize insulation levels, thereby promoting the increased adoption of high-performance insulation systems. The enforcement of stricter policies to curb greenhouse gas emissions and fossil fuel usage is expected to continue supporting the industrial insulation market growth.

Rising industrial activities have fuelled significant investments in new plants, machinery, and infrastructure expansion activities across major process industries. The oil and gas, petrochemical, power, mining, and other core sectors are spending heavily on setting up new production facilities to meet the burgeoning demand. At the same time, existing manufacturing setups also require the revamping and upgrading of their facilities at regular intervals. All such new construction and renovation projects involve extensive installation of insulation systems for thermal management, corrosion protection, personnel safety as well as compliance with energy codes. Growing investments in expanding production capacities and building new process plants augur well for sustained demand for industrial insulation from the infrastructure perspective. For instance, according to data published by the International Energy Agency report on July 11, 2023, the operations of buildings account for 30% of the global final energy consumption and 26% of the global energy-related emissions (8% being direct emissions in buildings and 18% indirect emissions from the production of electricity and heat used in buildings). Prominent industry players are also continuously carrying out major capital expenditure towards insulation retrofitting and recoating works at their operational sites leading to recurring sales opportunities.