Thin Insulation Market - Forecast(2023 - 2028)

Thin Insulation Market size is forecast to reach around $3 billion by 2025, after growing at a CAGR of 6% during 2020-2025. Thin insulation offers great thermal resistance and provide protection against ultraviolet rays. Surging demand of thin insulated films from building and construction sector for making window panels is driving the growth of this market. Furthermore, the growing uses of thin insulation in pharmaceutical industries for protecting the medicines from heat and moisture during transportation is also contributing to the market growth. Moreover, increasing usage of thin, lightweight thermal insulation films in automotive for heat reduction and noise cancellation also augments the growth of market. However, environmental impacts of plastic-based insulation film restrain the growth of thin insulation market size.

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

By Type: Sheets & Films, Coatings, Foams, Vacuum Insulation Panels, and Others

By Material: Aerogels, Metals, Plastics (Expanded Polystyrene, Polyisocyanurate Foam, Extruded Polystyrene, Phenolic Foams, and Others), Fiberglass, and Others

By End-Use Industry: Building & Construction (Roofing, Window Panels, and Others), Automotive (Door & Window Panels, Engine Compartment, Sunroof, and Others), Electrical & Electronics (Wire & Cables, Sensors, and Others), Oil & Gas (Pipelines, Storage Tanks, and Others), and Others 

By Geography: North America, South America, Europe, APAC, and RoW

Sheets & Films segments holds the largest share of more than 30% in the thin insulation market in 2019. Thin insulation sheets & films are widely used in solar panels and oil and gas industries due to its lower thermal conductivity. Insulation in thermal solar collectors prevents the loss of accumulated heat, which in turn improves the efficiency and also provide electrical insulation between components. Increasing usage of solar energy for power generation boosts the demand of thin insulation films. According to International Energy Agency (IEA), solar PV generation represented the largest absolute generation growth of all renewable technologies and increased by 31% in 2018. Thin insulation films are also used for coating pipelines and storage tanks in oil and gas industries in order to prevent the heating which may cause fire later.

Based on the material, plastic segment holds the largest share of more than 25% in the thin insulation market in 2019. Cost effectiveness, low thermal, and electrical conductivity of plastic is the major factors driving the growth of thin insulation market. Moreover, the growing uses of plastic-based thin insulations for heat and electrical insulations in electric and electronics industry further boosting the growth of thin insulation market. According to Japan Electronics and Information Technology Industries Association (JEITA), total electronic production by Japanese electronics industry accounted for $9,509.5 Mn in March 2020 while it was $7,280.5 Mn in February 2020. 

Building and construction segment holds the largest share of more than 30% in thin insulation market followed by automotive in 2019. According to the U.S. Department of Energy, 50 to 70 percent of the energy are used in American homes only for heating or cooling purposes, thus better insulation reduces the energy consumption. Thin insulation films are used in window panels and roofing for protection against heat and ultraviolet radiations. Institution of Civil Engineers (ICE) forecasted that construction output will grow by 85% to $15.5 trillion worldwide by 2030, and three countries China, the US, and India will lead the way and account for 57% of all global growth. Thus, increase in construction activities may boost the growth of thin insulation market share.

The outbreak of coronavirus has badly impacted the thin insulation market. Industries are shuttered all around the world and supply chain has been disrupted. Government imposed lockdown that has decreased the construction activities. Furthermore, decrease in purchasing capital has impacted the automotive sector which in turn hampered the growth of thin insulation market. Thin insulation films are used in automotive to maintain the interior temperature as well as lower the noise of engine. According to the Society of India Automobile Manufacturers (SIAM), passenger vehicle sales declined by 51% to 143,014 units in March 2020 whereas the sales of commercial vehicles crashed 88% to 13,027 units. 

Asia Pacific dominated the thin insulation market with a share of more than 35% in 2019 followed by North America and Europe. The rapid population growth and urbanization has boosted the construction activities in emerging nations like China and India that propels the growth of this market in APAC region. Whereas the growing building and construction activities and surging oil and natural gas demand further contribute to the market growth in APAC region. Increasing oil demand has escalated the construction of pipelines and storage tanks which uses thin insulation coatings for protection against heat. For instance, In May 2020, Sinopec signed a contract with the government of Zhoushan city in China to build a $2.8 billion liquefied natural gas (LNG) terminal. The first phase includes two wharfs, four gas storage tankers each with capacity of 220,000 cubic meters and ancillary facilities and the construction is expected to begin in first half of 2021.

Thin insulation films are widely used for packaging pharmaceuticals and foods in order to prevent them from heat or exposure to sunlight. Increasing usage of thin insulation for packaging processed food has boosted the growth of thin insulation market. Chemical composition may change if pharmaceuticals are not stored under specified temperatures. Thus, thermal packaging is used to preserve the pharmaceutical products during transportation. According to World Health Organization, between year 2000 and 2017, global health spending grew by 3.9% a year while the economy grew by 3.0% a year. Rising health concerns and expansion of pharmaceutical sector has increased the use of thin insulation films for the protection of pharmaceuticals against heat and light.

Increasing use of oil and natural gas for power generation has boosted the use of thin insulation films for coating pipes and storage vessels to reduce the heating of gases which further may cause fire. According to International Energy Agency (IEA), global electricity demand grows at 2.1% per year to 2040 which in turn fuels the demand of oil & gas. Also, total energy generated by natural gas in the United States grew by 7.5%, accounting for 1,581,815 million kilowatt-hours in 2019. Furthermore, Smart City Mission and Indira Awaas Yojana which aims to bring the most innovative construction technologies to India through a competitive platform also boosts the growth of thin insulation market.

Plastics are non-biodegradable and do not decomposes in landmass. Increasing environmental concerns and government regulations on the manufacture and sale of expanded polystyrene restrain the growth of plastic based thin insulation films. For instance, in February, 2016 the City Council of Morro Bay has passed an ordinance regulating the use and sale of expanded polystyrene (EPS). Furthermore, heat insulating capabilities of thin insulation films are low, compared to thick insulating sheets also hamper the growth of thin insulation market.

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the thin insulation market report. In 2019, the market of thin insulation has been consolidated by the top 10 companies accounting for xx% of the share. Major players in the thin insulation market are Dow Chemical Company, BASF SE, Kingspan Insulation Ltd., Cabot Corporation, Armacell International GmbH, Johns Manville, 3M Company, Owens Corning, Actis Insulation Ltd., and Huntsman International LLC., R-50 Systems, Blueshift International Materials, Inc., among others.