Why Are Insulating Material Used in HVAC Systems?

Published on March 12 2021

Manufacturing plants are increasingly deploying insulating materials in turbines, boilers, exhaust systems, incinerators, and stacks, on account of the high demand for acoustic and thermal insulation in such industrial equipment. Owing to the rapid industrialization in developing countries, such as Indonesia, Thailand, India, Malaysia, the Philippines, and China, the consumption of insulating products will surge in the coming years. This will accelerate the insulation market at a CAGR of 8.6% during 2018–2025. The market stood at $52.3 billion in 2017, and it has the potential to reach $101.3 billion by 2025.

The various types of insulating materials available include glass wool, mineral wool, expanded polystyrene (EPS), extruded polystyrene (XPS), and others. Among these, the EPS category accounted for the highest demand in the past, and it is expected to keep on this path in the years to come. This is because EPS has several acoustic and thermal insulation applications due to its low weight, durability, fire retardancy, high tensile strength, energy-saving properties, and recyclability.

Industrial, heating, ventilation, and air conditioning (HVAC), & original equipment manufacturers (OEM); residential construction; and non-residential construction are the categories when the market is segmented on the basis of application. Among these, the residential category held the largest share in the insulation market during 2014–2017 (historical period) due to the wide usage of insulating materials during construction. During the forecast period, the industrial, HVAC, & OEM category will grow the fastest owing to the rising usage of such materials in the marine and industrial sectors of Brazil, China, and India.

In fact, a key opportunity for the players in the insulation market is the increasing infrastructure development activities in Mexico, Russia, India, South Africa, Brazil, China, and numerous other emerging economies. This, complemented by the rising concerns regarding GHG emissions from the power sector and surging government focus on energy-efficient buildings, is expected to drive the consumption of insulating materials in these nations. With the booming population and increasing disposable income making these countries increasingly urbanized, the market for insulation will keep growing.

Therefore, with the rising concerns regarding GHG emissions, the energy conservation initiatives being implemented to check the same will drive insulation efforts.