In 2022, a total of 6mt (6 million tons) of PU rigid foam was produced globally for the construction and appliances markets. The largest production volume is in Asia, followed by EMEA and then North America. South America’s output is comparitively small and is dominated by Brazil. The Asian market is dominated by refrigeration rigid foam because PU panels are less popular in that region.
DATA: the global market for rigid foam
The largest category by some margin is refrigeration foam – used for domestic and commercial refrigeration, and water heaters – representing one third of production. The second-largest segment is flexible-faced panels, also known as PIR (or polyiso) boardstock. Sprayed rigid foam (SPF) is particularly dominant in North America.
Several factors are driving the increase in PU insulation foam production: legislation to improve the energy efficiency of building stock (eg the European Energy Performance of Buildings Directive); tightening building codes regarding insulation and air tightness; growth in residential and commercial construction and retrofitting home renovation subsidies; district heating and district cooling, particularly in the Middle East; cold chain; LNG infrastructure; urbanisation and electrification in developing regions; and stricter energy efficiency requirements for domestic refrigerators and water heaters.
For the period 2022-2027, IAL is forecasting average annual growth of 2.9% for rigid foam insulation. The highest growth is expected for discontinuous rigid panels and pre-insulated pipe. Lower growth is expected for rigid slabstock and one-component foam.
Competitive threat to this industry comes from products such as mineral fibre and expanded polystyrene but PU offers superior lambda values, durability, dimensional stability and resistance to moisture. Phenolics, vacuum insulation panels and aerogel could potentially compete with PU in the future but are hindered by price, workability and reputation.
At a regional level, the fastest growth over the period is expected in the Middle East, with a CAGR of 5.6%. Construction technology and environmental concerns have gained traction in this region, and there is widespread building activity as the countries seek to diversify their economies.
