Chinese demand for insulation materials is predicted to grow at 9.4% per year up to 2016, when it will reach CNY 65.7 bn (about EUR 7.8 bn), a new study by market researcher Freedonia (Cleveland, Ohio / USA; www.freedonia.com) has found. The total market value stood at EUR 5 bn in 2011, with most gains in the coming years driven by rising construction and manufacturing output. A key driver will be new building codes that call for the reduction of energy consumption on building applications and the attempt to reduce energy use during manufacturing.

According to the study, titled “Insulation in China”, foamed plastics will continue to dominate the country’s insulation market, maintaining the 82% market share they held in 2011 in 2016 as well. The high percentage is a result of the material’s high insulating value, moisture resistance and ease of installation – all factors that will continue to drive demand gains. However, the researcher says, Chinese demand for fibreglass and mineral wool will see faster growth in the lead-up to 2016, mostly as a result of their better fire retardant qualities.

The main sector driving insulation demand is building and construction, which Freedonia says accounts for more than two-fifths of overall demand. Both the country’s residential and nonresidential segments are expected to expand at 10% each year in the next three years. Other key factors include the country’s rising urbanisation, ongoing investment in office, commercial, institutional and other insulated structures as well as the improvement and replacement of insulation in existing buildings to raise energy efficiency.

Another key driver is the industrial and heating, ventilation and air conditioning (HVAC) equipment sector, whose demand for insulation products is expected to rise by 8.4% each year up to 2016, Freedonia says. As China continues on the path to industrialisation, demand in this sector will increase, too, in part as a result of governmental and private initiatives to reduce energy consumption and costs in these applications (including refrigerators, freezers and transportation equipment).