1. Market Research
  2. > Construction Market Trends
Building Insulation Materials Market - Growth, Trends, COVID-19 Impact, and Forecast (2021 - 2026)

Building Insulation Materials Market - Growth, Trends, COVID-19 Impact, and Forecast (2021 - 2026)

  • September 2021
  • 195 pages
  • ID: 6155699
  • Format: PDF
  • Mordor Intelligence LLP


Table of Contents

Search Inside

The Global Building Insulation Materials Market is estimated to be USD 26,170 million in 2020, and it is expected to reach USD 32,790 million by 2026, registering a CAGR of over 3.9% during the forecast period.

The market was negatively impacted due to COVID-19. Owing to pandemic scenario, many insulating material manufacturing companies and raw material manufacturers extended the closure of all their operations at their manufacturing locations till receipt of further directions from government authorities. The COVID-19 pandemic had an adverse effect on the global economy, which included disruptions in the supply chain. Supply of many components from China were delayed, resulting in insulation materials’ end-user industries, globally, running out of components to assemble. The supply chain is opening again now, but it is taking some time to fill. Thus, there are shortages of many items in the market. Lead times doubled, and the shortage was compounded by the shortage of air and ocean freight options to move products to and from manufacturing countries. Also, China’s dominant role as the raw material supplier means that any major disruption can put global supply chains at risk.

Key Highlights
Over the medium term, the factors driving the growth of the market studied are the growing demand for energy efficiency, and rising infrastructure and industrialization in Asia-Pacific.
On the flip side, harmful effects as a result of exposure to certain high-temperature insulation materials and unfavorable conditions arising due to the impact of COVID-19.
The residential industry is expected to dominate the building insulation materials market over the forecast period.
Europe dominated the building insulation materials market and Asia-Pacific is forecasted to be the fastest-growing market during the forecast period owing to the increasing consumption for countries such as China and India.

Key Market Trends

Residential Sector to Dominate the Market

Insulation of residential buildings is gaining popularity due to its architectural and energy efficiency benefits. Promoting energy efficiency (EE) requirements for new residential buildings has been proven an effective mandatory policy instrument to slow down the increase of energy consumption in the residential building sector.
Residential construction across the globe has been witnessing significant growth over the past few years owing to factors like population growth, migration from rural areas to service sector clusters, and the growing trend of nuclear families. Besides, decreasing land-to-population ratio and the growing trend of constructing high-rise residential buildings and townships have been driving the application of building insulation materials in the residential construction segment across the globe.
In the recent past, the highest growth rate regarding residential construction was expected to be registered in the Asia-Pacific region, owing to the expanding housing construction markets in China and India. Asia-Pacific has the largest low-cost housing construction segment, led by China, India, and various Southeast Asian countries. However, with most of the Asia-Pacific countries being severely affected by COVID-19, the growth is expected to notably slower down in the short run.
Globally, there has been a significant undersupply to meet the demand for housing. This presented a major opportunity for the investors and developers to embrace alternative methods of construction and new partnerships, in order to bring forward development. For instance, China, residential investment grew by about 13.9% during the first eleven months of 2019, reaching CNY 9,707.1 billion. The area under residential construction during the period was recorded to have reached 6,276.73 million square meters, indicating a 10.1% growth.
In Europe, Germany, which leads the construction sector in the region, is embarking on a new era of high-rise living. Germany has the largest construction industry in Europe. The construction sector in Germany accounts for nearly 3.3% of the GDP. According to Statistisches Bundesamt (Destatis), the construction of new dwellings increased to 327.26 thousand in 2020 compared to 317.82 thousand in 2019, which is expected to boost the construction industry. Additionally, more than 50 projects are under construction or in the planning phase, at the time. Cities, such as Berlin, Munich, Stuttgart, Frankfurt, Düsseldorf, Cologne, and Hamburg, have driven the construction market of high-rise residential buildings.
While residential construction growth was prominent through 2019 in regions, such as Asia-Pacific, North America, and the Middle East, the COVID-19 pandemic severely hit the residential construction growth in the early 2020. However, COVID-19 has been severely increasing the fatality rate across the world and housing and new residential construction are likely to be moderate during the foreseeable future.
The abovementioned factors are likely to affect the demand for building insulation in the residential construction sector during the forecast period.

Germany to Dominate the European Market

The German economy is the largest in Europe and the fifth-largest in the world. In 2019, it grew by about 0.6%, the weakest growth rate in the last six years. More substantial private consumption, higher state spending, and booming construction helped support growth in 2019, as struggling manufacturers dragged on activity.According to the IMF, in 2020, the country recorded a decline in GDP growth of about -4.8% due to COVID-19. However, the GDP is expected to increase to 3.6% in 2021, subject to the post-pandemic global economic recovery.
Germany has the largest construction industry in Europe. The construction industry in the country is growing at a slow pace, majorly driven by the increasing number of new residential construction activities.?
The non-residential and commercial buildings in the country are expected to witness significant growth prospects during the forecast period. The growth is likely to be supported by lower interest rates, increased real disposable incomes, and numerous investments by the European Union and the German government.
According to the Statistisches Bundesamt (Destatis), the construction of new dwellings increased to 327.26 thousand in 2020, compared to 317.82 thousand in 2019. The construction industry registered significant growth in the country despite the severe impact of the pandemic.?
Also, the stock of new dwellings in residential and non-residential buildings amounted to 42.8 million by the end of 2020, rising by 0.7% compared to the previous year. When compared to 2010, the stock has increased by 5.7% or 2.3 million dwellings.?
Furthermore, according to Federal Statistical Office (Destatis), in May 2021, the construction of a total of 32,384 dwellings was permitted in Germany, which was an increase of 8.7 % compared with April 2021.
Moreover, millions of immigrants may arrive in Germany in the coming years and may require thousands of new dwellings. The German government announced around 1.5 million new apartments by 2021 (a delay is expected due to the COVID-19 situation).
However, the German economy is estimated to be severely affected by the pandemic due to expected production halts and decreasing investments, owing to the ongoing lockdown situation. The market in the country is expected to recover only after the country shows positive economic growth.
Overall, the demand for building insulation materials in Germany, is expected to be moderate for a short term, which is expected to recover during the forecast period.

Competitive Landscape

The global building insulation materials market is fragmented in nature, with no player occupying a significant position in the market. Still, the top four-five players in the market enjoy a considerable share in the global market. The major companies of the market studied include BASF SE, Saint-Gobain, Rockwool International A/S, Knauf Gips KG, and Owens Corning, among others.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 150+ Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.

ReportLinker may already be registered as a supplier with your company. If you want to Order by PO, check with us first and we'll let you know if we are a registered supplier and what the vendor number is. Otherwise, we'll provide you with the necessary information to register ReportLinker as a vendor.

Ahmad helps you find the right report:

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

  • How we can help
    • I am not sure if the report I am interested in will fulfill my needs. Can you help me?
    • Yes, of course. You can call us at +33(0) 4 37 65 17 03 or drop us an email at [email protected] to let us know more about your requirements.
    • We buy reports often - can ReportLinker get me any benefits?
    • Yes. Set up a call with a Senior Research Advisor to learn more - [email protected] or +33(0) 4 37 65 17 03.
    • I have had negative experiences with market research reports before. How can you avoid this from happening again?
    • We advise all clients to read the TOC and Summary and list your questions so that we can get more insight for you before you make any purchase decision. A research advisor will accompany you so that you can compare samples and reports from different sources, and choose the study that is right for you.

  • Report Delivery
    • How and when I will receive my Report?
    • Most reports are delivered right away in a pdf format, while others are accessed via a secure link and access codes. Do note that sometimes reports are sent within a 12 hour period, depending on the time zones. However, you can contact us to escalate this. Should you need a hard copy, you can check if this option is offered for the particular report, and pay the related fees.
  • Payment conditions
    • What payment methods do you accept?
      1. Credit card : VISA, American Express, Mastercard, or
      2. You can download an invoice to pay by wire transfer, check, or via a Purchase Order from your company, or
      3. You can pay via a Check made out in US Dollars, Euros, or British Pounds for the full amount made payable to ReportLinker
    • What are ReportLinker’s Payment Terms?
    • All payments must normally be submitted within 30 days. However, you can let us know if you need extended time.
    • Are Taxes and duties included?
    • All companies based in France must pay a 20% tax per report. The same applies to all individuals based in the EU. All EU companies must supply their VAT number when purchasing to avoid this charge.
    • I’m not satisfied. Can I be refunded?
    • No. Once your order has been processed and the publisher has received a notification to send you the report, we cannot issue any refund or cancel any order. As these are not ‘traditional’ products that can be returned, reports that are dispatched are considered to be ‘consumed’.
  • User license
    • The license that you should acquire depends on the number of persons that need to access the report. This can range from Single User (only one person will have the right to read or access the report), or Department License (up to 5 persons), to Site License (a group of persons based in the same company location), or Corporate License (the entire company personnel based worldwide). However, as publishers have different terms and conditions, we can look into this for you.
Purchase Reports From Reputable Market Research Publishers


Reportlinker.com © Copyright 2021. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.

Make sure you don’t miss any news and follow us on