US demand for insulation is forecast to rise 7.8 percent annually to $8.9
billion in 2016. Advances will be driven by a rebound in
building construction expenditures from a depressed 2011 base. Further
growth will be spurred by changes in building codes and continuing consumer
interest in reducing energy consumption and utility bills. Home owners
and building owners will add or upgrade insulation to achieve these goals.
These and other trends, including market share and product segmentation, are
presented in US
new study from The Freedonia Group, Inc., a Cleveland-based industry
market research firm.
The residential market will post the most rapid gains through 2016,
advancing at a double-digit pace as housing starts rebound.
Moreover, builders will construct homes with larger amounts of insulation to
make them more desirable to potential buyers. Residential insulation
demand will also be supported by the attic reinsulation and home improvement
and replacement markets. Insulation demand in the nonresidential market will
also see solid advances. Rebounding nonresidential
building construction expenditures, particularly in the office and commercial
segments, will promote gains.
Fiberglass insulation accounted for the largest share of insulation
demand in 2011 with 48 percent of the market by value.
Fiberglass insulation will remain the market leader in 2016, with demand rising
8.1 percent annually to $4.4 billion. Growth will be spurred by a rebound
in the residential market. Fiberglass insulation remains a popular choice
with builders and contractors because of its low cost, favorable insulative
properties and ready availability.
Demand for foamed plastic insulation, which accounted for the second
largest share of the market in 2011, is expected to rise 7.3
percent per year to $3.9 billion in 2016. Advances will be driven by the
rebound in building construction spending. Demand for radiant barrier
and reflective insulation is anticipated to grow 8.7 percent per year to $190
million in 2016. The rebounding housing market will boost
demand, with further gains supported by increases in industrial and
nonresidential building construction spending. Growth will be
concentrated in the South and West regions, as structures in those regions are
more often exposed to sunlight, and thus best benefit from the use of radiant
barriers and reflective insulation.
The Freedonia Group is
a leading international business
research company, founded in 1985, that publishes more than 100 industry
research studies annually. This industry analysis provides an unbiased outlook
and a reliable assessment of an industry and includes product
segmentation and demand forecasts, industry trends, demand history, threats
and opportunities, competitive strategies, market share determinations and