The high-performance insulation materials market is expected to register a CAGR of 7.61% during the forecast period (2022-2027).
Key Highlights The growing usage in the oil and gas industry and rising awareness regarding greenhouse emissions and energy savings are likely to drive the growth of the high-performance insulation materials market.
On the flip side, high set-up and maintenance costs and relatively low service life, and high flammability with insulated materials and foam products that contain CFC are expected to hinder the growth of the market.
Increasing investments in infrastructural activities in Asia-Pacific is expected to unveil new opportunities for the market studied.
Key Market Trends
Increasing Demand from the Oil and Gas Industry
The hot oil and gas composition flows up at the wellhead, and is transported through XMT’s, manifolds, various critical instruments, spools, and flow lines before the riser brings the oil to the surface.
High-performance insulation materials are witnessing a huge demand from the oil and gas sector, primarily owing to the increasing demand for subsea pipeline applications.
Additionally, these materials offer properties, such as fire and water resistance, superlative thermal resistance, enhanced acoustic insulation, lightweight, and reduced thickness, that are required in the oil and gas sector.
According to the Ministry of Economy, Trade, and Industry (METI), in 2021, approximately 490 thousand kiloliters of crude oil were produced in Japan, down from about 512 thousand kiloliters in the previous year.
According to StatCan, the production of crude oil and equivalent products in the United States rose 10.8% in October 2021 to 24.4 million cubic meters, the highest crude production level since December 2019.
The aforementioned factors are likely to consequently result in an increase in the usage of high-performance insulation materials, during the forecast period.
Asia-Pacific Region to Dominate the Market
Asia-Pacific is expected to dominate the market for high-performance insulation materials during the forecast period.
The growth in the oil and gas and the construction sector in the region have significantly boosted the demand for such insulation panels.
The oil and gas industry in the Asia-Pacific region is growing, due to the increasing demand for energy and petrochemicals. Countries, such as India, Malaysia, Indonesia, China, South Korea, and Japan, are experiencing an increase in offshore drilling activities.
Crude oil output of China has registered 33.47 million tons in the first two months of 2022 which is about 4.6% up from the same period of the previous year. According to the National Bureau of Statistics China, the daily output of crude oil is nearly 576,000 tons.
According to OICA, the production of vehicles in 2021 accounted for 78,46,955 units a fall of 3% in comparison to 80,67,557 units produced in 2020. However, the demand for electric vehicles in Japan is projected to grow over the forecast period.
In the aerospace sector, according to the India Brand Equity Foundation (IBEF), the country’s aviation industry is expected to witness INR 35,000 crore (USD 4.99 billion) investment in the next four years.
The aforementioned factors are likely to increase the demand for high-performance insulation materials during the forecast period.
The global High-Performance Insulation Materials Market is highly fragmented, with the top 10 players capturing a noticeable share in the market studied. Some of the major players in the market include (not in any particular order) Owens Corning, Knauf Gips KG, Rockwool, Johns Manville, and Unifrax, among others.
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