Cleveland. Ohio -- Demand for insulation materials in the US is projected to increase 7.4 percent annually from a weak 2009 base to reach $10200 million in 2014.
The principal driver of demand will be recovery of residential construction from weak 2009 levels, while insulation demand will also benefit from greater production of appliances and transport equipment, as these markets also rebound, according to 'Insulation,' a new study from The Freedonia Group, Inc., a Cleveland-based market research firm.
Freedonia says that, traditionally, residential markets have consumed the largest portion of insulation by value, often accounting for two-fifths or more of the total. However, the sharp decline in new home construction (particularly single-family homes) from 2006 through 2009 caused a steep reduction in demand. As a result, residential markets accounted for only 29 percent of the total in 2009. Conversely, non-residential markets accounted for an unusually high percentage of the total in 2009.
Foamed plastic and fibreglass are "by far the two leading insulation products in use, together accounting for more than 90 percent of demand in 2009," said the company.
Demand for fibreglass insulation is projected to increase 9.1 percent annually. "As new housing construction rebounds through 2014, demand for fibreglass insulation will benefit," said Freedonia. As a result, fibreglass will once again become the leading insulation material in use in value terms, after briefly falling behind foamed plastic in 2009.
Consumption of foamed plastic insulation materials is forecast to expand by 5.3 percent annually to $4400 million in 2014. While gains in demand were slight in the period 2004-2009, foamed plastic insulation did not register the same sharp decline as fibreglass, reflecting the fact that foamed plastic insulation is less heavily concentrated in residential markets.