US Demand for Insulation to Exceed $10 Billion in 2019

CLEVELAND, OH – October 7, 2015 – US demand for insulation is forecast to rise 6.6 percent annually through 2019 to $10.3 billion. Resurgent building construction activity will boost insulation demand, aided by the increased adoption of more stringent building codes such as the 2012 International Energy Conservation Code (IECC), which encourages more insulation use per structure. Efforts to make existing buildings more energy efficient will support improvement and repair demand for insulation. These and other trends are presented in Insulation, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

The residential market will post the most rapid gains through 2019 because of double-digit annual growth in housing starts. While the bulk of insulation demand will be due to the increased number of new dwellings, additional gains will arise from the installation of more insulation per new structure as more areas of the US begin to comply with the 2012 IECC. Spurred by a rebound in nonresidential building construction, particularly in the office and commercial segments, insulation demand in the nonresidential market is expected to recover from the declines registered between 2009 and 2014.

According to analyst Nick Cunningham, "Fiberglass and foamed plastic are by far the most prevalent types of insulation, together accounting for 93 percent of the market by value." Fiberglass will remain the insulation market leader by weight, with demand reaching 4.5 billion pounds in 2019, valued at $4.9 billion. New housing starts and overall building construction expenditures will drive gains. Fiberglass insulation remains a popular choice with construction professionals and DIYers because of its low cost, favorable insulative properties, and ease of installation.

Demand for foamed plastic insulation is forecast to grow to 2.4 billion pounds in 2019, valued at $4.7 billion. Foamed plastics have historically been used more extensively in the nonresidential market, as their high R-value makes them desirable to many builders and designers. However, code changes that call for houses to be better sealed to prevent air leaks -- a major focus of the 2012 IECC -- will also boost demand for foamed plastic insulation in the residential market despite its higher cost, as foamed plastic is well suited for sealing between walls and in hard-to-reach-areas.

Insulation (published 09/2015, 353 pages) is available for $5400 from The Freedonia Group, Inc. For further details or to arrange an interview with the analyst, please contact Corinne Gangloff by phone 440.684.9600 or e-mail pr@freedoniagroup.com. Information may also be obtained through www.freedoniagroup.com.

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