Pipe Insulation Market - Forecast(2023 - 2028)

Overview

The Pipe Insulation Market size is forecast to reach $9 billion by 2025, growing at a CAGR of 3.22% during 2020-2025. Pipe insulation adds a protective covering to pipes and is used to limit heat gain or loss from surfaces operating at temperatures above or below the surrounding temperature. Increased global energy demand calls for substantial investment in environmental friendly supply infrastructures. Polyurethane is the insulant of choice for pipes and tanks in a wide range of industries.

Polyethylene foam pipe insulation is a flexible closed cell polyethylene pipe insulation, commonly used for thermal insulation and frost protection. It is flexible, easy to install and resistant to oils, grease and ozone. Flexible elastomeric foams insulation is a closed-cell foam based on nitrile or ethylene ... foams are widely used on refrigeration and air-conditioning pipework. Thermal insulation of pipelines is an inevitable phase in the engineering and design of pipelines. In addition, the thermal insulation pipeline in refineries, underwater pipelines, and cross-country pipelines are some of the key installations for managing energy losses and extended pipeline life.

Report Coverage

The report: “Pipe Insulation Market – Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the Pipe Insulation Industry.

Key Takeaways

• Asia-Pacific dominates the Pipe Insulation market owing to increasing demand from applications such as the building & construction and Power generation industries.
• The Building & Construction industry held the major share in the Application segment.
• The polyurethane foam segment held the highest share in the market by material.

By Material - Segment Analysis

Polyurethane foams accounted for the highest demand by material. There is high demand for the material in municipal heating and offshore oil and gas pipelines. Polyurethane foams are largely used for large diameter pipes. Also, the growing HVAC industry is expected to fuel the demand for polyurethane pipe insulation. The 2018 world AC demand reached 110.97 million units. When dividing the 2018 AC demand into the main markets of Japan, China, Asian countries other than Japan and China, Europe, North America, and other countries, the largest market is China, whose demand reached 44.63 million units with a 3% decrease. Chinese demand occupies 40.2%of the total world demand. The second largest market is Asia, excluding Japan and China, whose demand reached 17.82 million units. The third largest market is North America, whose demand reached 15.59 million units.

By End-Use Industry - Segment Analysis

The building & construction segment generated the most revenue in the market by application and is expected to grow with a CAGR of 4.11% over the forecast period from 2020 to 2025. The volume of construction output will grow by 85% to $15.5 trillion worldwide by 2030, with three countries, China, US and India, leading the way and accounting for 57% of all global growth. The 2018 world RAC demand is estimated to reach 96.07 million, which is the same as the previous year. The largest market is China, whose demand reached 42.15 million units with a 3% decrease. The second largest market is Asia, excluding Japan and China, whose demand reached 16.12 million units. The third largest market is Japan, whose demand reached 9.65 million units. North America reached 8.24 million units, followed by Latin America with 6.23 million units, and Europe with 6.17 million. This will drive the demand for pipe insulation in the market.

Geography - Segment Analysis

APAC dominated the Pipe Insulation market with a share of 45%, followed by North America and Europe. The economy of APAC is mainly influenced by the economic dynamics of countries such as China and India, but with growing foreign direct investment for economic development of South East Asia, the current scenario is changing. The commercial construction sector is directly related to the construction spending by the governments of individual countries.

Most of the construction projects in this sector are sanctioned by the global governments up to a certain extent due to the high risks and costs involved. Governments around the world pay for commercial construction projects by using the money generated by income taxes. Therefore, the GDP per capita plays an important role in the commercial construction business, though it is not directly related to the process itself.

Countries like Singapore, Qatar, UAE, Canada, and Malaysia have scored high ranks in the annual Global Infrastructure Investment Index for 2018. This essentially means that these countries are the most attractive from an investment point of view for construction practices. Major factors contributing in the growth of the market are rapid urbanization, resurgence of construction industry, rising infrastructure spending in both developed and developing nations, rising per capita income of the population in emerging economies, rising demand for aesthetically appealing products and technological advancements

Drivers – Pipe Insulation Market

• Growing demand for Green buildings

The Construction sector is expected to grow strong in economies such as India and Indonesia when comes to Asia-pacific region and in Europe UK is a stand out growth market for construction, where as in the Latin American region developing countries as such Brazil, Mexico and Argentina are expected to witness good construction growth. The rising demand for green buildings in the construction sector is driving the consumption of pipe insulation. A current survey shows that global green building activity continued its ascent, with significant increases expected in 19 countries over the next three years. Almost half of the total respondents say they expect to build more than 60 percent of their projects as green buildings by 2021. Building owners, especially, were excited about the growth in green building, with 57 percent planning to make the majority of their projects green by 2021.

Challenges – Pipe Insulation Market

• Rising Regulations

There are rising regulations of the EPA on the production of polyurethane foams. The original technology-based rule, issued in 1998, controlled emission of methylene chloride, 2,4-toluene diisocyanate (TDI), methyl chloroform, methylene diphenyl diisocyanate (MDI), propylene oxide, diethanolamine, methyl ethyl ketone, methanol and toluene. Methylene chloride comprised over 98 percent of the total hazardous air pollutant emissions from the industry.

Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Pipe Insulation market. In 2018, the top five players accounted for xx% of the share. Major players in the Pipe Insulation Market are Rockwool International A/S, Owens Corning, Saint-Gobain, Kingspan Group, Armacell International S.A., Huntsman Corporation, Johns Manville, Knauf Insulation, BASF SE, and Covestro AG, among others.