Cleveland, Ohio -- US demand for insulation is forecast to rise by 7.8 percent annually to $8.9 billion in 2016, driven by a rebound in building construction from a depressed 2011 base.
Further growth will be spurred by changes in building codes and continuing consumer interest in reducing energy consumption and utility bills, according to a new study by Cleveland, Ohio-based market research group Freedonia Group Inc.
Demand for foamed plastic insulation, which accounted for the second largest share of the market in 2011, is expected to grow by 7.3 percent a year to a value of $3.9 billion in 2016, said Freedonia.
Demand for rigid urethane foamed plastic insulation is projected to increase 5.9 percent per year to 1.6 million lb (710 kilotonnes) in 2016, according to Freedonia, 53 percent of this in rigid PU boardstock, and the rest for spray PU foam.
Growth in PU insulation will be spurred by the rebound in construction spending from a low 2011 level. The residential market will see the most rapid growth, albeit from a lower base. Rebounding housing starts and improvement and repair spending will also fuel gains, as will growth in non-residential construction spending.
Rigid PU insulation demand will be supported by increasing consumer interest in enhancing energy efficiency. Owners of homes and commercial structures will seek to reduce utility bills by installing insulation to fill gaps. Rigid urethane foams are suitable for this application, as they can be more easily placed between walls or crawlspaces than fiberglass batts.
US Insulation demand ($ million) % Annual Growth
Item 2006 2011 2016 2006-2011 2011-2016
Insulation 8450 6115 8900 -6.3 7.8
Fiberglass 4191 2955 4370 -6.8 8.1
Foamed Plastic 3696 2750 3910 -5.7 7.3
Reflective/Radiant 140 125 190 -2.2 8.7
Mineral Wool 117 115 145 -0.3 4.7
Cellulose 212 85 175 -16.7 15.5
Other 94 85 110 -2.0 5.3