North America Industrial Insulation Market Growth & Trends
The North America industrial insulation market size is expected to reach USD 2.85 billion by 2030, according to a new report by Grand View Research, Inc. This growth is attributed to the rising awareness regarding energy conservation in North America along with increasing demand for energy efficient building materials.
Insulation system provides long-term as well as immediate benefits to the industry, including protection of equipment, personnel, system and budget. In addition, industrial insulation is responsible for enhancing the efficiency of the machinery and process performance in the system, which results in reduction of manufacturing and energy costs.
The acoustic performance of insulation in large-scale factories helps to curb high frequency noises made by machines on the job floor. The application of insulation aids in reducing the capacity and size of new requirement of mechanical equipment. Furthermore, it protects all industrial appliances from fire, prevents the condensation of moisture on the equipment and protects the equipment at extremely low or high temperatures leading to reduced accidental risks.
Manufacturers are striving to provide insulation materials for improving the product life cycle and increasing efficiency of the end products. In addition, the rising awareness regarding the benefits of insulating materials in industrial application and its cost effectiveness is expected to drive the market in North America, over the coming years.
The industrial growth is relatively slow performing and thus can be considered a steady contributor. The industry has witnessed slow but steady growth in majority of the product segments. Insulating materials have been in demand in North America for a long time, and hence the industry is highly price sensitive. The presence of key market players is a major factor, which is likely to support the industry growth in North America.
North America has been dominating the global industrial insulation market over the years, owing to highly developed industrial and power generation sector influencing the demand. U.S. holds the largest market share in North America industrial insulation market, which can be attributed to its extremely advanced industrial sector, which accounts for the largest energy consumption in the region. In addition, stringent regulations regarding the reduction in energy consumption and greenhouse gas emission is expected boost the market growth over the forecast period.
The industry is competitive nature, owing to the presence of large number of major players in the region. Major players, such as Rockwool Technical insulation and Knauf Insulation accounts for majority of market share, due to their vast product portfolio and wider geographical reach. These companies develop a strong business model in order to adapt to the market volatility and any technological & geographical change. The players prefer to maintain strategic relationship with their raw material suppliers in an attempt to maintain a steady supply.
Unlike other regions, the players focus on increasing their market share through organic growth, rather than mergers and acquisitions. Companies in the market are focusing on expanding their product portfolio by developing cost-effective insulating solutions with enhanced properties. Manufacturers are also focusing on expanding their manufacturing capabilities in order to cater to the ascending product demand in the region.
Increasing demand for energy-efficient buildings, owing to the stringent government regulations and rising awareness regarding environmental degradation, is anticipated to fuel the demand for insulation for industrial buildings in North America. Favorable government policies coupled with increasing awareness in consumers is expected to remain the key driving factor for the growth of industrial insulation in North America. Growing awareness related to energy conservation is projected to have a significant impact on the demand for energy efficient buildings is likely to benefit the industry growth over the forecast period.
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North America Industrial Insulation Market Report
North America Industrial Insulation Market Report Highlights
- The U.S accounted for the largest revenue share of 85.5% in 2022 in North America industrial insulation market. The increasing awareness regarding energy conservation and stringent government regulations regarding global warming initiatives and renewable programs is forecasted to drive the demand for industrial insulation in North America.
- On the basis of material, the glass wool segment accounted for the largest revenue share and is expected to grow at a CAGR of 3.4% by 2030 in North America. Glass wool also offers energy efficient thermal and acoustic protection, as well as fire safety. It also helps to reduce energy consumptions and fluctuation in the temperature.
- Based on product, the North America industrial insulation market is dominated by pipe segment. This aids in increasing the energy efficiency of the process or plants, thereby reducing the operating expenses. It also controls and stabilizes the process temperatures, and prevents formation of condensation and limit pipe corrosion.
- The demand for industrial insulation in North America in LNG/LPG transportation & storage industry is forecasted to grow at a CAGR of 3.6% by 2030. This is owing to the increasing market demand for LNG & LPG across countries in North America.
- The Mexico industrial insulation market is forecasted to grow at a significant rate of 4.3% over the coming years on account of growing industrialization in the country.
