Cleveland, Ohio-A recent study says demand for insulation materials in the US will rise nearly 5 percent a year to 2010, to $9800 million, with renewed growth in nonresidential building construction, coupled with gains in appliance and transportation market, driving this increase.
Use of a greater amount of insulation per structure, plus upgrades of insulation for existing buildings (both residential and non-residential) will also boost insulation demand, according to a new study from market research firm. The Freedonia Group Inc., based in Cleveland, Ohio.
The study predicts 4.9 percent yearly growth in US insulation use from 2005-2010, with foamed plastics having higher growth-5.7 percent annually-than fibreglass, at 3.9 percent.
This will bring foamed plastics share of the market, by value, close to 50 percent, the study indicates. Out of total demand for insulation of $9785 million by 2010 ($7715 million in 2005), foamed plastics will account for $4500 million (2005: $3410 million), and fibreglass $4705 million (2005: $3890 million).
Freedonia said fibreglass remains the leading insulation material in use. It accounted for more than half of demand by both value and volume in 2005. More intensive use of insulation per new housing unit is driving growth, said Freedonia, "sparked by expanded concerns about energy efficiency, ease of installation and favourable cost factors." Counteracting this will be an expected weakening in the housing market to 2010. "Better prospects exist … in reinsulation applications," Freedonia said.
Foamed plastic insulation accounts for nearly 45 percent of US insulation by value and almost 30 percent in volume, the research group adds. Advances here will come from accelerating construction of nonresidential buildings as well as production of appliances and transport equipment.
Freedonia adds that reflective insulation and radiant barriers will see good growth (from a small base) as they find increasing use in metal buildings and other non-residential structures, as well as in pipe wrap, appliances and duct insulation, as a means of reducing energy costs.
"Gains will be more robust in replacement markets, as the decline in single-family home construction inhibits demand in new residential building," Freedonia continued. Construction of office, commercial, industrial and other nonresidential buildings should recover following sustained decline during 2000 to 2005, giving the major growth route, Freedonia said. Transport uses will see above-average gains to 2010, the group added.
Insulation (published 03/2006, 277 pp) is available for $4300 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, OH 44143-2326. Further details from Corinne Gangloff, tel 440 684 9600, fax 440 646 0484, e-mail [email protected], or see www.freedoniagroup.com.