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The industrial insulators market size is forecast to increase by USD 3.68 billion, at a CAGR of 5.03% between 2023 and 2028. The growth rate of the market depends on several factors such as the growing need for energy efficiency in buildings, high demand for industrial insulators from developing nations, and expansions of manufacturing plants by market vendors. Our market report examines historical data from 2018-2022, besides analyzing the current and forecasted market scenario.
APAC is witnessing acceleration, driven by the shift of manufacturing bases from Western Europe and North America to APAC. In this landscape, API Group Corp provides industrial insulators like Anco Products TextraFINE insulation and TextraFINE Post Frame Insulation, catering to the metal and mining industries. Additionally, Armacell International contributes to the market with offerings such as ArmaFlex aerogel, ArmaPet, and ArmaGel products, featuring gel-based insulation and high-performance foams for sophisticated applications and industrial energy solutions. These offerings address the demands of an increasingly responsive customer base, further propelling the growth of the market in APAC.
Market Forecast 2024-2028
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Our researchers studied the market research and growth data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The industrial insulation market experiences significant growth driven by the pressing need to enhance energy efficiency in industrial buildings. Insulators play a crucial role in reducing energy leakage and increasing building efficiency, particularly in controlling condensation and providing freeze protection. With the global rise in energy costs, governments emphasize the use of products that consume less energy, aligning with insulators' ability to reduce dependence on fossil fuels and mitigate negative environmental pollution from emissions.
Moreover, modern industrial buildings adopting energy-efficient technologies for thermal insulation outperform older counterparts, resulting in lower energy consumption. Industrial insulation not only enhances process efficiency but also offers substantial protection from external noise, contributing to increased profitability through energy savings. Therefore, the growing demand for energy-efficient solutions in buildings positively influences the industrial insulation market growth during the forecast period..
The shift from conventional industrial construction themes and styles to drywall industrial construction, associated with the construction industry, has influenced the focus of industrial insulator manufacturers on their product offerings. Premium eco-friendly industrial insulator products meet stringent requirements by providing superior thermal insulation properties and contributing to energy-efficient building envelopes. Companies in the market have shown an increased inclination toward manufacturing eco-friendly insulator materials, such as calcium silicate boards that complement the construction of industrial green buildings.
For instance, the focus of the vendors is more on the manufacture of calcium silicate boards, as 100% non-asbestos products, to eliminate the production of harmful radiation and toxic gases. In addition, the eco-friendly properties of these sheets are coupled with other properties, such as resistance to termites and insects, high strength, lightweight, and anti-corrosiveness. This emerging trend is expected to propel the growth of the market during the forecast period.
The market has been adversely affected by the lack of technical expertise and installation challenges, impacting various facets of the industry. One significant impact stemming from the lack of technical expertise is the compromised quality of insulation installations. Without the necessary knowledge and skills, installations are prone to errors and subpar workmanship. Furthermore, the absence of technical proficiency has led to safety concerns within the industrial insulation sector. Improperly installed insulators can pose fire hazards or fail to meet safety regulations, jeopardizing the well-being of workers and the integrity of industrial operations.
Similarly, installation challenges, such as access constraints and complex industrial environments, have compounded the negative impact on the market in focus. Industrial facilities often present intricate layouts and hard-to-reach areas, increasing the complexity of insulator installations. This has led to project delays, cost overruns, and logistical complications for industrial insulator contractors. Thus, such factors are expected to hinder the growth of the market during the forecast period.
The market share growth by the thermal insulator segment will be significant during the forecast period. The growth of the segment is primarily attributed to the growth of the power generation, oil and gas, iron, and steel industries, as thermal insulators are widely used in these industries. The rising industrialization and the growing construction and manufacturing industries, among others, are constantly driving the demand for insulation products, thereby supplementing the growth of the market.
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The thermal insulator segment was the largest and was valued at USD 5.47 billion in 2018. Furthermore, various research and development activities are being carried out globally to develop enhanced and more effective thermal insulator materials. The growth in R&D activities will further drive the growth of the thermal insulators segment during the forecast period. Moreover, there is an increase in the demand for lightweight and high-performance thermal insulation materials from various end-user industries. These advanced lightweight and high-performance thermal insulators can be used in various industrial applications to gain benefits from their energy-saving and wear-resistance properties. They are preferred in high-friction applications as thermally conductive materials. These materials are used extensively in the aerospace defense and automobile industries. The rising inclination of vendors toward innovating eco-friendly thermal insulator materials to meet sustainable development targets will contribute to the growth of the thermal insulators segment of the market during the forecast period.
End-user Segment Analysis:
Based on end-user, the market has been segmented into oil and gas, power generation, chemicals and petrochemicals, cement and others. The oil and gas segment will account for the largest share of this segment.? The oil and gas segment includes the sales of industrial insulators to the owners of oil and gas firms to process oil, gas, and process fluids more efficiently, safely, and cost-effectively. Industrial insulators help oil and gas processing systems maintain consistent temperatures and performance by insulating the parts against heat, cold, and potential chemical or moisture damage. Furthermore, industrial insulators also help in providing customized fit around complex upstream equipment configurations. Such factors can improve the efficiency of oil and gas production and transportation systems. All such developments are expected to increase the deployment of industrial insulators in the oil and gas segment, which, in turn, is anticipated to drive the growth of the market during the forecast period.
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APAC is estimated to contribute 31% to the growth by 2028. Technavio's analysts have provided extensive insight into market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Growing infrastructure development in the region, coupled with the rise of China as a global manufacturing hub, is boosting insulation product consumption in the region. Therefore, the increasing number of construction projects in the country will be the major factor driving the growth of the market. Also, the presence of numerous companies in the market in countries such as India in the region and its use in different application sectors will boost the growth of the regional market during the forecast period.
For instance, Aaditya Birla Group is one of the largest manufacturers of electrical insulators for the industrial sector, including railways. Moreover, there is an increasing focus on investment in transmission networks. For instance, in 2022, Power Grid Corporation of India plans to invest USD 34 billion by 2030 by setting up an interstate transmission network. Such developments are expected to increase the demand for industrial insulators among end-users, which, in turn, is anticipated to drive the growth of the regional market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Aspen Aerogels Inc - The company offers industrial insulators such as Pyrogel and Cryogel aerogel insulation. They can be used in Refining and Petrochemicals industries.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including API Group Corp., Armacell International SA, Aspen Aerogels Inc., Berkshire Hathaway Inc., Cabot Corp., Compagnie de Saint Gobain, Etex NV, Grasim Industries Ltd., Ibiden Co. Ltd., IPCOM NV, Kingspan Group Plc, Knauf Insulation, Modern Insulators Ltd., Morgan Advanced Materials Plc, Nichia Corp., Owens Corning, Rath Aktiengesellschaft, ROCKWOOL International AS, TECHNONICOL Group of companies, and Yoshino Gypsum Co. Ltd.
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
Market Analyst Overview
The industrial insulation market serves as a critical component in enhancing process efficiency and mitigating environmental pollution across various sectors, particularly amidst the challenges posed by the pandemic and fluctuating crude oil prices affecting the oil & gas sector. Insulation solutions effectively condensation control, reduce noise, provide freeze protection, and optimize energy consumption in machinery, boilers, pipes, storage tanks, heat exchangers, cooling towers, and ventilation & air conditioning systems.
Investments in insulation technologies are driven by the need for improved efficiency and sustainability, attracting private investments despite fluctuations in GDP. Independent distribution channels cater to customized products, ensuring high-profit margins while maintaining product quality and meeting stringent regulations. Entry barriers, such as the specialized knowledge required for selecting the appropriate degree of insulation and materials like perlite, underscore the market's complexity and potential for growth.
The market analysis and report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Industrial Insulators Market Scope |
|
Report Coverage |
Details |
Page number |
179 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.03% |
Market Growth 2024-2028 |
USD 3.68 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.87 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 31% |
Key countries |
US, China, India, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
API Group Corp., Armacell International SA, Aspen Aerogels Inc., Berkshire Hathaway Inc., Cabot Corp., Compagnie de Saint Gobain, Etex NV, Grasim Industries Ltd., Ibiden Co. Ltd., IPCOM NV, Kingspan Group Plc, Knauf Insulation, Modern Insulators Ltd., Morgan Advanced Materials Plc, Nichia Corp., Owens Corning, Rath Aktiengesellschaft, ROCKWOOL International AS, TECHNONICOL Group of companies, and Yoshino Gypsum Co. Ltd. |
Market dynamics |
Parent market growth analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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