Polyisocyanurate Insulation Market - Forecast(2023 - 2028)

Polyisocyanurate Insulation Market Overview

The Polyisocyanurate Insulation Market size is estimated to reach US$18.1 billion by 2027, after growing at a CAGR of 6.2% during the forecast period 2022-2027. Polyisocyanurate (PIR) or polyiso is a thermoset plastic produced as a foam for thermal insulation prepared using polyol and isocyanate. The materials are similar to polyurethane except for a high proportion of methylene diphenyl diisocyanate and polyester-derived polyol instead of polyether polyol. Polyisocyanurate insulation has major applications in commercial roof structures, walls and floor insulation, refrigeration products and others, owing to superior thermal insulation, installation ease and reusability, thereby acting as a driver in the polyisocyanurate insulation industry. In addition, the rising trend for sustainable energy standards is propelling growth scope for the polyisocyanurate insulation market. Moreover, the disruptions led by the covid-19 outbreak due to disturbance in construction activities, supply chain disruption, falling demand and other lockdown restrictions impacted the growth scope. However, significant recovery in the major end-use sector is boosting the demand for polyisocyanurate insulation for a wide range of applicability and utilization in automotive, construction and consumer goods. Thus, the polyisocyanurate insulation industry is anticipated to grow rapidly and contribute to the polyisocyanurate insulation market size during the forecast period.

Polyisocyanurate Insulation Market Report Coverage

The report: “Polyisocyanurate Insulation Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Polyisocyanurate Insulation Industry.

By Type: Liquid, Spray and Rigid Foam/Board.
By Application: Walls, Roofs, Ceilings, Heating Ventilation and Air Conditioning (HVAC) Systems, Refrigerators and Others.
By End-use Industry: Building & Construction (Residential, Commercial, Industrial and Infrastructural), Automotive [Passenger Vehicles [PVs], Light Commercial Vehicles 9LCVs) and Heavy Commercial Vehicles (HCVs)], Consumer Goods and Others.
By Geography: North America (the USA, Canada and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Belgium and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and Rest of South America), Rest of the World [Middle-East (Saudi Arabia, UAE, Israel and Rest of the Middle-East) and Africa (South Africa, Nigeria and Rest of Africa)].

Key Takeaways

• North America dominates the Polyisocyanurate Insulation Market, owing to growth factors such as the flourished base for the residential, commercial and industrial sectors, initiatives towards infrastructural projects and fast-paced urbanization, thereby boosting growth in this region.
• The flourishing building & construction sector across the world is propelling the demand for polyisocyanurate insulation for various applications in thermal, hybrid and acoustic insulation for walls and roofs, ceilings and others, thereby influencing the growth in the polyisocyanurate insulation market size.
• The rigid foam type segment has high demand over liquid and sprays owing to superior R-value per inch and preference for wall and flat roof applications in construction.
• However, the arising health hazards and availability of substitutes for polyisocyanurate foams act as a challenging factor in the polyisocyanurate insulation industry.

Figure: Polyisocyanurate Insulation Market Revenue Share, By Geography, 2021 (%)

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Polyisocyanurate Insulation Market Segment Analysis – By Type

The rigid foam/board segment held a significant Polyisocyanurate Insulation Market share in 2021 and is estimated to grow at a CAGR of 6.1% during the forecast period 2022-2027. The rigid foam/board has high demand due to superior features such as lightweight and high efficiency in building & construction activities. The preference for polyisocyanurate insulation foams or polyurethane is flourishing in the construction sector for the majority of flat roofs and wall assembles compared to spray and liquid types as it offers a high R-value per inch and great efficiency across a wide range of temperatures. Thus, with the flourishing utilization of rigid foam/board polyisocyanurate insulation in the building & construction sector, the rigid foam/boards type segment is projected to grow rapidly in the polyisocyanurate insulation market during the forecast period.

Polyisocyanurate Insulation Market Segment Analysis – By End-use Industry

The building & construction segment held a significant Polyisocyanurate Insulation Market share in 2021 and is projected to grow at a CAGR of 6.5% during the forecast period 2022-2027. The lucrative growth in the building & construction sector is influenced by growth factors such as rising government for infrastructural projects and residential housing and rapid industrialization. According to World Bank data, the growth of the construction sector in the South Asia region is 6.6% in 2022. According to European Construction Industry Federation (FIEC), construction activity increased by 10.3% in volume in France for the year 2021 compared to 2020. With the robust production and growth scope for the building & construction sector, the demand for polyisocyanurate insulation for applicability in ceilings, walls, roofs, HVAC systems and others is growing, which, in turn, is projected to boost its growth prospect in the building & construction industry during the forecast period.

Polyisocyanurate Insulation Market Segment Analysis – By Geography

North America held the largest Polyisocyanurate Insulation Market share in 2021 up to 41%. The significant growth for polyisocyanurate insulation in this region is influenced by the established production base for the construction activities, flourishing infrastructural projects and rapid urbanization. According to the Conference Board of Canada, the residential construction investment rose by 7.6% in March 2021 to US$10.99 billion over the past 11 months. According to the United States Census Bureau, the total privately-owned housing units completed in the U.S rose from 1326 thousand units in December 2021 to 1465 thousand units in May 2022. According to Statistics Canada, the total investment in building construction saw an increase of 2.7% in April 2022 over the previous month. With the rising building & construction projects, the utilization of polyisocyanurate insulation for thermal, hybrid and acoustic insulation in the residential, commercial and industrial sectors is growing, which, in turn, is projected to boost the growth prospects for polyisocyanurate insulation in North America region during the forecast period.

Polyisocyanurate Insulation Market Drivers

Surging Utilization in Residential Building & Construction Sector :

The polyisocyanurate insulation which is shaped by a mixture of isocyanate and polyol has major utilization in the residential sector for green buildings, private houses and others for thermal insulation and lower energy consumption. The residential sector is growing rapidly owing to factors such as a rise in residential building projects, initiatives by the government and rapid urbanization. According to the National Investment Promotion & Facilitation Agency, the construction industry in India is expected to reach US$ 1.4 trillion by 2025. According to the States Census Bureau, the total residential construction in the US increased from US$797.728 in May 2021 to US$947,272 in May 2022. With the flourishing residential housing and building activities, the utilization of polyisocyanurate insulation in walls and roofs, ceilings and HVAC systems is rising, which, in turn, is fueling its demand and driving the polyisocyanurate insulation industry.

Flourishing Growth of the Automotive Industry:

Polyisocyanurate Insulation has significant applications in the automotive industry for heat transfer between solid, liquid and gas phases. The automotive sector experiences lucrative growth owing to growth factors such as rising public transportation, demand for fuel-efficient and vehicle electrification and rising income levels. According to the European Automobile Manufacturer Association, South America car production grew by 11% while US car production grew by 3.1% in 2021. According to the China Association of Automotive Manufacturers (CAAM), the production and sales of new energy vehicles reached 1.29 million units and 1.25 million units in quarter 1st of 2022 respectively, showing an increase of 140% year-on-year. With the increase in automotive vehicle production, the applicability of polyisocyanurate insulation for heat transfer, HVAC in vehicles and others is rising, which, in turn, is boosting its demand, thereby driving the polyisocyanurate insulation industry.

Polyisocyanurate Insulation Market Challenge

Health Hazards Associated with Polyisocyanurate and Availability of Alternative:

The polyisocyanurate insulation foams are prepared by reacting polyols and isocyanates and usually contain TCPP, a halogenated flame retardant, which is considered hazardous to health and leads to toxicity. This act as a growth-restraining factor for the polyisocyanurate insulation market. In addition, various alternatives for polyisocyanurates such as spray foam polyurethane for insulation create competition in the market. Moreover, various foams such as engineered polystyrene insulation offer superior features over polyisocyanurates such as high moisture absorption, more R-value and recyclability. Thus, the utilization and demand for PIR insulation foams face major growth hindrances; thereby the polyisocyanurate insulation industry anticipates a slowdown.

Polyisocyanurate Insulation Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Polyisocyanurate Insulation Market. The top 10 companies in the Polyisocyanurate Insulation Market are:

1. DowDuPont Inc.
2. Saint-Gobain
3. Atlas Roofing Corporation
4. GAF Materials Corporation
5. BASF SE
6. Owens Corning Insulating Systems
7. Kingspan Group plc
8. Honeywell International Inc
9. IKO Industries Ltd
10. Rmax Operating LLC

Recent Developments

• In November 2021, GAF announced the expansion of commercial roofing operations with the start of production at the polyisocyanurate insulation manufacturing plant for its EnergyGuard line of products, thereby increasing the capacity and growth scope.
• In March 2021, Belgium-based Recticel signed an agreement to acquire the thermal polyisocyanurate insulation business of the Gor-Stal, intending to further expand the insulation business and growth scope.
• In November 2019, Johns Manville (JM) acquired ITW Insulation Systems, well known for premium, low-temperature polyisocyanurate insulation foam, intending to expand the insulation business and offer a well-rounded portfolio.

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