The global insulation market depicts the presence of a highly fragmented and competitive vendor landscape, says Transparency Market Research on the basis of a recently published report. Such a high competitive intensity is mainly due to the presence of countless businesses in this market. During the forthcoming years, most businesses are anticipated to expand their regional presence, mainly in emerging and underdeveloped economies. The competitive intensity is projected to rapidly increase in the next few years owing to numerous new players making their foray in the global insulation market on a regular basis.
Most players are fiercely focusing on research and development to expand their product portfolio. Businesses are also incorporating strategies such as increasing production capacity and participating in valuable mergers, acquisitions, and collaborations. CertainTeed Corporation, Johns Manville, Atlas Roofing Corporation, Owens Corning, Huntsman International LLC, The Dow Chemical Company, Knauf Gips KG, Duro-Last Roofing, Inc., and ROCKWOOL International A/S, are key players operating in the global insulation market.
As per estimations by experts in market research, this market had gained revenue worth US$37.8 bn in 2013, which is further expected to increase up to US$64.9 bn. Such a phenomenal growth is anticipated to occur mainly due to a splendid CAGR of 8.0% existing as a part of key market dynamics. This growth is predicted to occur during a forecast period ranging from 2014 to 2020.
Dire Need for Saving Energy Boosts Insulation Market’s Growth
The global insulation market is mainly driven by a burgeoning construction industry –residential, industrial, non-residential, and others types too. This is primarily because of insulation products being highly used in the construction sector. Of all these types, insulation in residential construction is witnessing rampant use in recent times, consequently propelling the global insulation market to grow rapidly. Apart from the residential sector, even the industrial field is expected to depict an extensive use of insulation products, consequently boosting the global insulation market.
Another prime driving factor involves depletion of energy resources that makes it highly necessary for using insulation products to conserve whatever energy available. A growing trend regarding this factor is seen in factories and non-commercial spaces, wherein extensive use of insulation has been noted to occur, consequently driving the market.
Volatile Raw Material Prices to Hamper Insulation Market’s Expansion
However, high cost of developing quality insulation materials could make it difficult for small-scale businesses to flourish in the global insulation market, thus acting as a key restraining factor. The market is also highly restrained due to volatility in prices of raw materials, which mainly punch a hole in the pocket of middle-class consumers. Nevertheless, a significant rise in the automobile and electronic industry will continue to drive the global insulation market during the forthcoming years. This is further expected to dilute effects of the restraints up to a certain extent.