Energy Efficiency Concerns Drive Growth for Insulation in the U.S.

CLEVELAND, OH – August 6, 2014 – U.S. demand for insulation is projected to advance 7.6 percent annually to $10.3 billion in 2017. Growth will be given a big lift from a general increase in building construction spending from a low 2012 base. Gains will also be boosted by changes in building codes and construction practices that call for structures to use energy more efficiently. Such measures as the 2012 International Energy Conservation Code (IECC) and the most recent Leadership in Energy and Environmental Design set of codes -- LEEDv4 -- will spur construction professionals to add more insulation to reduce energy consumption. These and other trends are presented in Insulation, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Analyst Matt Zielenski forecasts the residential market "to see double-digit annual insulation demand advances through 2017", spurred by a strong rebound in housing starts. Mr. Zielenski stated, "Not only will more houses be erected, but builders will install more insulation per new structure to comply with the 2012 IECC." Residential insulation demand will also be supported by efforts to upgrade insulation in existing houses, as homeowners opt to reduce utility bills by adding insulation to attics and walls, and by sealing gaps to prevent air leaks.

Demand for insulation in the nonresidential market will see solid growth through 2017, spurred by rising nonresidential building construction, particularly in the office and commercial segments. Advances will be further boosted by increasing interest in green building practices, such as those put forth by the LEED rating system, that call for the use of more insulation with higher R-values. Not only does the increased insulation reduce utility bills, but many business owners find an environmentally friendly reputation to be important in attracting customers.

Fiberglass insulation accounted for just under one-half of insulation demand by value in 2012. Fiberglass insulation will remain the market leader through 2017, with demand reaching $5 billion. Demand for foamed plastic insulation, which accounted for the second largest share of the market in 2012, is forecast to grow almost seven percent annually to $4.6 billion in 2017. Though traditionally used more extensively in the nonresidential market, the residential market will offer solid growth prospects going forward.

Insulation (published 11/2013, 356 pages) is available for $5300 from The Freedonia Group, Inc. For further details or to arrange an interview with the analyst, please use the contact information and link provided below.

About Freedonia: The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. Our industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product and market forecasts, industry trends, threats and opportunities, competitive strategies, market share determinations and company profiles. For more information on Freedonia and their World Housing report, please use the link provided below.