Cleveland, Ohio -- Global insulation demand is forecast to rise 5.5 percent annually to 23.1 billion sq.m of R-1 value in 2016, "a substantial acceleration" from the 2006-2011 rate, according to new research from The Freedonia Group Inc.
In developing countries, insulation demand is expected to expand at a healthy pace due to rising building construction and industrial activity, while in developed countries, insulation sales are expected to rebound after falling in 2008 and 2009 due to housing market collapses in several countries.
These and other trends are taken from 'World Insulation,' a new study from Freedonia, a Cleveland-based industry market research firm.
Solid gains in residential building construction will be the primary driver of demand. In North America, Freedonia says insulation sales for residential applications will rise 9.2 percent annually between 2011 and 2016, primarily due to a recovery of the housing market in the US.
In Western Europe, a rebound in housing in several countries will cause insulation demand to post moderate gains through 2016, as opposed to the decline of the 2006-2011 period. In many West European countries, government efforts to encourage insulation use in order to lower energy consumption will also contribute to demand.
In developing countries in the Asia/Pacific region, Africa/Mideast region, and Central and South America, rural-to-urban migration will stimulate building activity in urban areas, and therefore insulation demand, according to Freedonia.
Demand for insulation in the industrial, HVAC (heating, ventilation and airconditioning), and OEM markets will be driven by expanding manufacturing activity, appliance output, and HVAC system installations. Freedonia says worldwide shipments of refrigerators and freezers, for example, are expected to post gains of 2.6 percent annually through 2016. Additionally, global HVAC installations are projected to grow 6.1 percent annually during the same time.
The fastest growth in insulation demand will be in the Asia/Pacific region, Freedonia forecasts, due to advances in building construction activity as well as manufacturing and industrial output. More than 53 percent of new global demand generated between 2011 and 2016 will come from this region. Several Asia/Pacific countries are expected to post solid growth, including China, India, Indonesia, and Thailand.
World insulation demand 2011-2016
(million sq.m R-1) % annual growth
2006 2011 2016 2006/11 2011-11
World demand 16440 17680 23100 1.5 5.5
North America 5533 4039 5500 -6.1 6.4
Western Europe 4115 3735 4215 -1.9 2.4
Asia/Pacific 4604 7358 10260 9.8 6.9
Cent/S America 477 580 700 4.0 3.8
Eastern Europe 942 1033 1235 1.9 3.6
Africa/Mideast 769 935 1190 4.0 4.9