Slag Wool Market - Forecast(2023 - 2028)

Slag Wool Market Overview

Slag Wool Market size is forecast to reach US$505.5 million by 2027, after growing at a CAGR of 3.4% during the forecast period 2022-2027. The slag wool has superior beneficial properties including highly recyclable, superior fire-resistant properties, superior inner insulation and others. These properties result in surging adoption of slag wool over other insulating materials such as polystyrene, glass fiber, aerogel, and more. The global slag wool market is primarily driven by the growth of building and construction activities across the world. Moreover, the growing oil and gas industry is anticipated to drive the demand for slag wool. This, in turn, will accelerate the slag wool market growth in the projected forecast period of 2022-2027. However, in 2020, the Covid-19 pandemic negatively impacted the growth of the global wool market. In 2021, the government eased the lockdown measures. As a result, the construction, oil & gas, and other industries flourished, which benefited the slag wool market. 

Report Coverage 

The report: "Slag Wool Market–Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Global Slag Wool Market. 

Key Takeaways 

The structural insulation segment held the largest share in the global slag wool market in 2021 and is forecasted to grow at a CAGR of 3.7% during the forecast period 2022-27. Slag wool insulation resists settling, and batt products rebound back after normal compression, ensuring that the product's installed thermal performance is maintained for the life of the product. Thermal efficiency is a key factor in considering an insulation product. As a result, the insulation application of slag wool contributes to the structure's long-term viability by protecting it against moisture and fire damage. Furthermore, slag wool insulation has a higher density than most other insulation products, enabling it to reach higher R-values (insulation values) in a normal wall cavity. Thus, to protect the structure from fire, the application of structural insulation is surging, which is accelerating the growth of the market.

Slag Wool Market Segment Analysis – By End-Use Industry 

The building and construction segment held the largest share in the global slag wool market in 2021 and is forecasted to grow at a CAGR of 4.1% during the forecast period 2022-27. In building and construction, slag wool is utilized to provide pipe insulation, structure insulation, and other types of insulation. The higher density and superior fire-resistant properties of slag wool make them ideal for building and construction. The key factors such as the increasing development of the urban sector, government initiatives, and more are propelling the growth of the building and construction industry. For instance, according to the German Federal Statistics Office, In 2020, Germany's residential and non-residential building and construction activities were 232,208 units, an increase of 4.3% over 2019. Moreover, in September 2020, the French government passed the “France Relance” plan of €100 billion (US$118.13 billion) to strengthen the construction and building industry. Hence, the growth of the building and construction industry is fueling the demand for slag wool, which, in turn, is aiding the market growth. 

Slag Wool Market Segment Analysis – By Geography 

The Asia-Pacific region is the dominating region as it holds the largest share in the global slag wool market in 2021 up to 41%. The key industries of the Asia-Pacific region are building and construction, oil & gas, and more. Factors such as the development of new industrial zones, construction projects, and more are expanding the growth of the building and construction industry in the Asia-Pacific region. For instance, the city of Hai Phong, Vietnam is building 15 new industrial parks with a total area of more than 6,400 hectares between 2021 and 2025. In addition, Hai Phong has approved seven housing projects for workers. The overall area is more than 20.7 hectares, with over 4,555 apartments, as of November 2021, two projects have been completed and five more are under construction. Moreover, according to Invest India, there is a total of 115 future construction projects which are under the planning phase in India, and the value of these projects is about US$11.63 million. These projects include the construction of hotels, office-buildings, shopping complex, and more. Therefore, the growth of the building and construction industry in Asia-pacific is anticipated to boost the demand for slag wool. As a result, the market will grow in the projected forecast period.