Thermal Insulation Analysis Report 2025: Market to Grow by a CAGR of 3.6 to 2033, Driven by Government Incentives, Popularity of Virtual Assistants, and Strategic Partnerships

Key Insights

The global thermal insulation market size was valued at USD 23 billion in 2025 and is projected to expand at a compound annual growth rate (CAGR) of 3.6% from 2025 to 2033. The growing demand for energy efficiency in buildings and industrial applications is driving the market growth. The increasing adoption of strict building codes and regulations promoting energy conservation measures is further fueling the demand for thermal insulation materials.

Key market trends include the rising popularity of green building initiatives, which prioritize the use of sustainable and energy-efficient materials. Additionally, the expanding construction sector in developing economies is creating new opportunities for thermal insulation manufacturers. The market is segmented based on type (granular, cellular, fibrous), application (building & construction, mechanical systems, oil & gas, aerospace & aviation, automotive, others), and region. Key players in the market include Armacell, BASF SE, Asahe Kasei Corporation, Johns Manville, Covestro AG, The Dow Chemicals Company, DuPont, Isolatek International, Kingspan Group Plc, Owens Corning, Saint-Gobain S.A., URSA Insulation S.A., Thermax Jackets LLC, ROCKWOOL Group, and more.

Thermal Insulation Trends

The thermal insulation market is expected to exhibit a robust growth trajectory, driven by increasing demand for energy efficiency and growing construction activities worldwide. According to Granview Research, the global thermal insulation market size was valued at $25.6 billion in 2021 and is projected to reach $42.7 billion by 2028, expanding at a CAGR of 6.7%. The rising awareness of thermal comfort and the need to reduce energy consumption in buildings and industrial applications are key factors propelling the demand for thermal insulation materials.

Driving Forces: What's Propelling the Thermal Insulation

• Stringent Building Regulations: Governments worldwide are implementing stricter building codes mandating the use of energy-efficient materials and practices. This has led to a surge in the adoption of thermal insulation solutions to meet energy efficiency standards and reduce building energy consumption.

• Rising Energy Costs: The escalating energy prices have made businesses and homeowners seek ways to reduce their energy bills. Thermal insulation plays a crucial role in conserving energy by minimizing heat loss in buildings and industrial applications, thereby lowering energy consumption and expenses.

• Environmental Concerns: The increasing awareness of climate change and the need to reduce carbon emissions is driving the demand for sustainable thermal insulation materials. Many thermal insulation products are made from recycled or renewable materials, contributing to environmental sustainability.

Challenges and Restraints in Thermal Insulation

• Fluctuating Raw Material Prices: The thermal insulation industry relies heavily on raw materials such as polymers, metals, and minerals. Volatility in the prices of these raw materials can impact the production costs and profitability of thermal insulation manufacturers.

• Technical Limitations of Insulation Materials: Different types of thermal insulation materials have their limitations in terms of temperature resistance, moisture absorption, and durability. The selection of appropriate insulation materials for specific applications is crucial to ensure optimal performance and longevity.

• Environmental Regulations: The use and disposal of thermal insulation materials can have environmental implications. Some traditional insulation materials may release hazardous substances during production, disposal, or when exposed to extreme temperatures, prompting the development of eco-friendly alternatives that comply with environmental regulations.

Key Region or Country & Segment to Dominate the Market

• Region: Asia Pacific is expected to lead the global thermal insulation market throughout the forecast period, driven by rapid industrialization, urbanization, and infrastructure development in countries like China, India, and Japan.

• Segment: Building & Construction: This segment is anticipated to account for the largest share of the thermal insulation market, with increasing construction activities in residential, commercial, and industrial sectors. Thermal insulation is essential for regulating building temperatures, reducing energy consumption, and enhancing occupant comfort.

Growth Catalysts in Thermal Insulation Industry

• Advancements in Insulation Technologies: Continuous research and development efforts are leading to the development of innovative thermal insulation materials with enhanced properties such as high thermal resistance, improved durability, and reduced environmental impact. These advancements are expected to drive market growth.

• Growing Demand in Developing Economies: The rising population and urbanization in developing countries are driving the construction sector, creating a significant demand for thermal insulation materials to meet energy efficiency and thermal comfort requirements.

• Government Incentives: Many governments offer incentives and tax credits for the installation of thermal insulation systems, further stimulating market growth. These incentives encourage businesses and homeowners to invest in energy-saving measures and contribute to reducing their carbon footprints.

Leading Players in the Thermal Insulation

• Armacell
• BASF SE
• Asahi Kasei Corporation
• Johns Manville
• Covestro AG
• The Dow Chemical Company
• DuPont
• Isolatek International
• Kingspan Group Plc
• Owens Corning
• Saint-Gobain S.A.
• URSA Insulation S.A
• Thermax Jackets LLC
• ROCKWOOL Group

Significant Developments in Thermal Insulation Sector

• In 2021, Saint-Gobain acquired CertainTeed, a leading manufacturer of building materials including thermal insulation products. This acquisition strengthens Saint-Gobain's position in the North American building materials market.

• In 2022, Johns Manville launched a new line of sustainable thermal insulation products made from recycled plastics. These products offer high thermal performance and contribute to reducing plastic waste.

• In 2023, Kingspan Group announced a partnership with Borealis, a leading plastics provider, to develop a new generation of circular thermal insulation solutions. This partnership aims to create innovative and environmentally friendly insulation products.

Comprehensive Coverage Thermal Insulation Report

This report provides a comprehensive analysis of the global thermal insulation market, covering market trends, driving forces, challenges, key segments, growth catalysts, leading players, and significant developments. The report offers valuable insights for manufacturers, investors, policymakers, and other stakeholders involved in the thermal insulation industry.

Thermal Insulation Segmentation

• 1. Type
  • 1.1. Overview: Global Thermal Insulation Consumption Value
  • 1.2. Granular Material
  • 1.3. Cellular Material
  • 1.4. Fibrous Material
• 2. Application
  • 2.1. Overview: Global Thermal Insulation Consumption Value
  • 2.2. Building & Construction
  • 2.3. Mechanical Systems
  • 2.4. Oil & Gas
  • 2.5. Aerospace & Aviation
  • 2.6. Automotive
  • 2.7. Others

Thermal Insulation Segmentation By Geography

• 1. North America
  • 1.1. United States
  • 1.2. Canada
  • 1.3. Mexico
• 2. South America
  • 2.1. Brazil
  • 2.2. Argentina
  • 2.3. Rest of South America
• 3. Europe
  • 3.1. United Kingdom
  • 3.2. Germany
  • 3.3. France
  • 3.4. Italy
  • 3.5. Spain
  • 3.6. Russia
  • 3.7. Benelux
  • 3.8. Nordics
  • 3.9. Rest of Europe
• 4. Middle East & Africa
  • 4.1. Turkey
  • 4.2. Israel
  • 4.3. GCC
  • 4.4. North Africa
  • 4.5. South Africa
  • 4.6. Rest of Middle East & Africa
• 5. Asia Pacific
  • 5.1. China
  • 5.2. India
  • 5.3. Japan
  • 5.4. South Korea
  • 5.5. ASEAN
  • 5.6. Oceania
  • 5.7. Rest of Asia Pacific