Global insulation demand to grow 5% each year through 2018

A new study from The Freedonia Group puts global insulation demand squarely on the map at 24.9 billion square meters of R-1 value by 2018. This marks a significant turnaround for the market since the 2008-2013 period, indicating a growth rate of 5.0% each year through 2018.

The Freedonia Group attributes the increase to ramped up construction and industrial activity in developing countries, as well as a rebound in residential activity in high-income countries. Additionally, new environmental regulations may lead to a spike in insulation demand as homebuilders strive to comply with new building codes.

Demand for insulation in residential applications is expected to grow 6.5% per year in R-1 value in North America; for insulation as a whole, that rate is slightly above the global average at 5.2%.

At 6.4%, the Asia/Pacific region will see the fastest growth of all in overall insulation demand, which The Freedonia Group attributes to increases in construction, manufacturing and industrial output.

Within the insulation category, foamed plastic insulation is expected to grow the fastest in terms of value demand.