Featuring in-depth data and insights backed by primary research – now available in PDF, Excel and our interactive portal.

Residential insulation market demand in 2022 was negatively impacted by continued supply issues, labor shortages and the conditions of the housing market and economy. It’s expected these underlying factors will take a bigger toll on the category in 2023 before a rebound in 2024.

Key drivers that will support residential insulation demand through 2025 include:

  • Increased growth in single family new construction to help alleviate the U.S. housing shortage
  • Potential savings incurred from the Inflation Reduction Act that may spur greater repair and remodel (R&R) activity
  • State adoption of more recent International Energy Conservation Codes (IECC)
  • Greater demand for insulation that serves more than one function and can be installed quickly

Amid headwinds, residential insulation volume fell by 0.4% from 2021–2022

Building material price hikes, supply-chain issues and labor shortages top the list of complications for the residential insulation market in 2022, all of which are projected to continue and even exacerbate in 2023. In turn, many dealers are playing defense, either placing smaller orders and/or relying on vendor-managed inventory to help keep costs in check.

Future volume growth will fall below 2019–2022 levels

Annualized volume growth in this category was 3.4% over the previous three years. The expected resumption of single family construction starts in 2024 and 2025 will help to keep insulation growth slightly positive in the forecast period. Insulation volume is projected to rebound after 2023, delivering growth of 0.8% by volume annually through 2025.

Fiberglass remains the top material, and single family dwellings are the primary unit type

Fiberglass owns two-thirds of the residential insulation market, with new construction in single family households serving as the top spot for installation. A resurgence of single family new construction demand in the three sun belt regions will deliver growth by volume of 1.8% while demand in the Northeast and Midwest are projected to fall 1.7%, through 2025.

Download the table of contents and list of figures for the written portion of our residential insulation product line up. Principia also offers DemandBuilder® Commercial Insulation that includes demand and forecast data for the commercial insulation market. For a full demo of our interactive portal or to inquire about the cost to purchase data please email Sales@principiaconsulting.com