Commercial Insulation Demand Drivers
Featuring in-depth data and insights backed by primary research – now available in PDF, Excel and our interactive portal.
United States commercial insulation demand decreased from 2.8 billion pounds valued at $5.6 billion in 2022 to 2.5 billion pounds valued at $4.6 billion in 2023, a decrease of 12.6% by volume and 17.8% in value.
The U.S. commercial insulation market survived supply challenges of 2021 and 2022. While it has been a challenging couple of years with supply and demand extremes, 2023 allowed contractors to catch up on backlogged projects.
Factors influencing commercial insulation demand include:
Pricing began to flatten or decline in 2023 as raw materials became increasingly available and demand softened. This will continue into 2024 as inflation moderates driving demand activity.
Lower interest rates are anticipated. With the Fed finally halting rate hikes and an election year upon us, lower interest rates are anticipated which will boost insulation demand.
Sustainability is becoming more important to property owners and is further promoted by tax incentives and expensive energy bills. Improved code adoption and innovation for more sustainable insulation is imminent.
The Inflation Reduction Act passed by the government will boost insulation demand by providing incentives to make buildings more energy efficient.
West and Northeast Lead Regional Demand
West and Northeast demand are projected to grow above the market average annually to 2026. Growth by volume is driven primarily by strong new hospitality demand in these regions. Northeast is also positively impacted by industrial construction activity.
Polyiso Demand To Grow Fastest in Repair & Remodeling
Polyiso demand by volume is projected to grow fastest at 3% annually in repair and remodeling (R&R) applications to 2026. Polyiso closely follows commercial roofing demand for R&R applications and is expected to grow at double the market average.
Learn more about DemandBuilder® Commercial Insulation today. For a full demo of our interactive portal or to inquire about the cost to purchase data please email sales@principiaconsulting.com.