Market growth for commercial insulation has largely been driven by continued growth in new construction, increased R-value requirements as well as nominal growth in reroofing. In particular, wall applications are projected to grow above industry average at 6.3% annually based on the increased continuous insulation requirements.
Total demand for commercial insulation in North America was valued at $3.7 billion based on the manufacturers’ factory gate level in 2015. Commercial insulation demand increased by 20% in area and 26% in value from 2013 through 2015 and is projected to grow 5.2% through 2018.
Foam products are most widely used as commercial insulation primarily due to the breadth of application areas with above deck roofing leading demand, followed by exterior wall applications. Polyiso board is the most widely used, with spray polyurethane foam (SPF) gaining momentum in above deck serving as both an insulation and membrane layer.
Wall Applications to Grow
The fastest growing applications for commercial insulation are forecast to be wall applications (wood framed and mass wall), along with exterior wall applications. This growth is largely driven by commercial construction trends and adoption of new energy codes. New commercial space is on the upswing particularly in the Southeast, Southwest and West which have the largest portion of new office and industrial construction space under development as of the end of 2015.
Commercial Insulation 2016 is Principia’s first exclusive coverage of the commercial insulation market and provides a detailed analysis on the current and future state of this segment of the insulation industry. Previous editions of the report dating back to 2008 included both residential and commercial insulation markets. The report draws upon interviews with over 350 insulation professionals and property owners and managers to provide a vital baseline analysis for forecasting and business planning for current and new industry participants. Using 2015 as its launch point, the report analyzes demand drivers and trends by material, application, construction type, market sector, region, distribution channel and supplier, providing forecasts through 2018. It also analyzes trends in current products, new product developments and technologies, and competitive materials, helping companies anticipate customer needs.
“Overall commercial insulation demand continues to be driven by commercial construction spending. Principia’s evaluation of the commercial insulation market assesses how this increase in spend has influenced the insulation market, suppliers, products and ultimately future implications. In addition to our detailed voice of customer section, the report includes a comprehensive view of current and projected market demand, along with supply-side analysis including supplier share and product flow through distribution channels”, states Ken Jacobson, Partner at Principia.
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