WORLD INSULATION
Demand to increase 5% annually / Residential building construction to be main growth driver / Foamed plastic to record fastest value gains / Asia Pacific to see highest growth / Freedonia report
Global demand for insulation is forecast to rise by 5% annually up to 2018, when it will reach 24.9 bn m2 of R-1 value (R-value is a measure of thermal resistance), a significant increase on the 2008-2013 period, according to a recent report, "Global insulation", published by market researcher Freedonia (Cleveland, Ohio / USA; www.freedoniagroup.com). Strong growth in residential building construction activity will drive demand worldwide.
In value terms, insulation demand is projected to outpace volume growth, with the foamed plastic insulation segment posting the fastest gains in value demand. Foamed plastic insulation will be used more frequently in construction applications because of its high insulation value, allowing it to capture market share from glass fibre and mineral wool products.
The Asia/Pacific region is forecast to post the fastest growth in insulation demand in the period, boosted by advances in building construction activity as well as manufacturing and industrial output – over half of the additional global insulation demand generated between 2013 and 2018 will be from the region, with China, India and Indonesia among the countries expected to post solid growth.
Rising building construction and industrial activity in developing countries will lead to increased demand for insulation while in many high-income countries insulation demand will rebound from recent downturns that resulted in part from sharp declines in housing construction. Government efforts, particularly in western Europe, to reduce energy consumption will lead to the adoption of new building codes that require increased insulation usage.
Rural to urban migration in developing countries will stimulate building activity in urban areas and therefore insulation demand, as urban buildings tend to be more insulation intensive than those in rural areas, the researcher said. In the industrial, HVAC, and OEM markets for insulation, demand will be driven by expanding manufacturing activity, appliance output and HVAC system installations.
In value terms, insulation demand is projected to outpace volume growth, with the foamed plastic insulation segment posting the fastest gains in value demand. Foamed plastic insulation will be used more frequently in construction applications because of its high insulation value, allowing it to capture market share from glass fibre and mineral wool products.
The Asia/Pacific region is forecast to post the fastest growth in insulation demand in the period, boosted by advances in building construction activity as well as manufacturing and industrial output – over half of the additional global insulation demand generated between 2013 and 2018 will be from the region, with China, India and Indonesia among the countries expected to post solid growth.
Rising building construction and industrial activity in developing countries will lead to increased demand for insulation while in many high-income countries insulation demand will rebound from recent downturns that resulted in part from sharp declines in housing construction. Government efforts, particularly in western Europe, to reduce energy consumption will lead to the adoption of new building codes that require increased insulation usage.
Rural to urban migration in developing countries will stimulate building activity in urban areas and therefore insulation demand, as urban buildings tend to be more insulation intensive than those in rural areas, the researcher said. In the industrial, HVAC, and OEM markets for insulation, demand will be driven by expanding manufacturing activity, appliance output and HVAC system installations.
14.11.2014 Plasteurope.com [229729-0]
Published on 14.11.2014
German version of this article...