Global insulation demand is forecast to rise 5.5 percent annually to 23.1 billion square meters of R-1 value in 2016, a substantial acceleration from the 2006-2011 rate. In developing countries, insulation demand is expected to expand at a healthy pace due to rising building construction and industrial activity. In most developed countries, insulation sales are expected to rebound after falling in 2008 and 2009 due to housing market collapses in several countries. These and other trends are presented in World Insulation, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
Solid residential building construction gains will be the primary driver of demand. In North America alone, insulation sales for residential applications will rise 9.2 percent annually between 2011 and 2016, primarily due to a recovery of the housing market in the US. In Western Europe, a rebound in several countries’ housing markets will cause insulation demand to post moderate gains through 2016, as opposed to the decline of the 2006-2011 period. In many West European countries, government efforts to encourage insulation use in order to lower energy consumption will also contribute to demand. In developing countries in the Asia/Pacific region, Africa/Mideast region, and Central and South America, rural-to-urban migration will stimulate building activity in urban areas, and therefore insulation demand.
Demand for insulation in the industrial, HVAC, and OEM markets will be driven by expanding manufacturing activity, appliance output, and HVAC system installations. Worldwide shipments of refrigerators and freezers, for example, are expected to post gains of 2.6 percent annually through 2016. Additionally, global HVAC installations are projected to grow 6.1 percent annually during the same time.
The fastest growth in insulation demand through 2016 is forecast in the Asia/Pacific region, due to advances in building construction activity as well as manufacturing and industrial output. More than 53 percent of new global demand generated between 2011 and 2016 will be attributed to this region. Several Asia/Pacific countries are expected to post solid growth, including China, India, Indonesia, and Thailand.
