Global and European Thermal Insulation Material Market Outlook 2025 to 2035
Thermal Insulation Material Market
Thermal Insulation Material Market Size
The thermal insulation material market is projected to grow from USD 78.9 billion in 2025 to USD 136.1 billion by 2035, at a CAGR of 5.6%.
NEWARK, DE, UNITED STATES, November 13, 2025 /EINPresswire.com/ -- Future Market Insights (FMI) projects that the global thermal insulation material market will rise from USD 78.9 billion in 2025 to USD 136.1 billion by 2035, marking a total increase of USD 57.1 billion and expanding at a compound annual growth rate (CAGR) of 5.6%. FMI’s new data-driven analysis highlights surging investments in building retrofits, net-zero construction, industrial process optimization, and energy-efficient infrastructure as key accelerators of market expansion across the world’s major economies.
Building Efficiency and Industrial Innovation Drive 72.4% Decadal Growth
Between 2025 and 2035, the thermal insulation material market is forecast to grow by 72.4%, fueled by rising global emphasis on building energy codes, industrial energy management, and carbon-neutral construction.
The market will experience its first major growth phase between 2025 and 2030, when demand increases from USD 78.9 billion to USD 101.0 billion, accounting for nearly 39% of the decade’s total expansion. This surge is attributed to widespread implementation of deep energy retrofit programs, urban redevelopment, and fire-safe building envelope designs.
In the second phase, 2030 to 2035, the market is expected to gain another USD 35.0 billion, driven by adoption of ecofriendly and bio-based materials, integration of phase-change materials for thermal storage, and widespread use of ultra-thin, high-performance systems in compact urban structures.
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Market Composition and Key Demand Catalysts
FMI identifies building and construction as the dominant end-use sector, representing 58% of total demand in 2025, followed by industrial applications and HVAC/refrigeration systems. Within construction, residential retrofit (16%), commercial (20%), and new residential builds (18%) remain leading categories.
Plastic foam insulation, covering EPS, XPS, PUR, and PIR, holds the largest material share at 36%, supported by lightweight installation, high thermal resistance, and versatility across residential, commercial, and cold-chain applications.
Mineral wool and fiberglass continue to grow due to fire safety and acoustic performance advantages, particularly in high-rise and institutional buildings.
FMI emphasizes that energy conservation mandates, growing climate commitments, and electrification of industrial processes are converging to make insulation materials a cornerstone of the global decarbonization strategy.
Regional Growth Analysis
APAC: Driving Global Expansion
APAC remains the most dynamic region, led by India (6.2% CAGR), China (6.0%), South Korea (5.2%), and Japan (4.6%).
- India leads global expansion due to its massive residential and commercial construction pipeline, urbanization, and Energy Conservation Building Code (ECBC) enforcement.
- China maintains high consumption volumes, supported by green construction mandates and energy-efficient industrial facilities.
- South Korea benefits from high-rise residential growth and zero-energy building programs, while Japan focuses on disaster-resilient and energy-optimized industrial facilities.
Collectively, the APAC market benefits from rapid urban development, local production capabilities, and government-backed energy efficiency initiatives, positioning it as the largest regional opportunity pool.
Europe: Retrofit Leadership and Fire-Safe Transformation
Europe contributes approximately 27% of global market revenue in 2025, driven by deep retrofit programs, stringent energy standards, and non-combustible material mandates.
- Germany (4.8% CAGR) leads with strong investment in building stock renovation and passive house certifications.
- The UK (4.4%) focuses on Part L energy codes and post-Grenfell fire safety reforms, prioritizing mineral wool adoption.
- France, Italy, and Spain exhibit robust growth supported by energy renovation incentives and expanding cold storage infrastructure.
European manufacturers are pioneering bio-based insulation, low-embodied-carbon materials, and fire-resistant systems, reinforcing the region’s position as a global innovation hub for sustainable building materials.
United States: Retrofit Boom and Energy Code Evolution
The U.S. market will expand at a 5.0% CAGR, driven by comprehensive building retrofit programs, utility incentives, and state-level energy code adoption.
Retrofit and re-roofing markets, combined with strong activity in cold storage, logistics, and re-insulated wall assemblies, continue to strengthen demand.
The focus on continuous insulation systems, thermal bridging elimination, and fire safety under evolving IECC regulations positions the U.S. as a key innovation and retrofit market globally.
Saudi Arabia: Emerging Hub for Sustainable Construction
The Kingdom of Saudi Arabia and the wider GCC region are witnessing rapid adoption of thermal insulation materials under Vision 2030’s sustainable construction goals.
Growth is led by residential megaprojects, industrial energy efficiency programs, and cold-chain infrastructure linked to food and pharmaceutical logistics.
Saudi Arabia’s expanding domestic insulation production capabilities and bio-based innovation initiatives position it as a regional exporter of high-performance insulation materials by 2035.
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Technology, Regulation, and Sustainability as Structural Catalysts
Modern insulation materials are evolving through nanotechnology, renewable feedstocks, and advanced manufacturing processes, achieving better thermal performance, fire resistance, and recyclability.
Governments globally are tightening embodied carbon regulations, mandating life-cycle transparency, and offering green financing incentives for low-carbon construction.
From ultra-thin aerogels to bio-based foams and mineral wool, the market’s innovation ecosystem reflects a synchronized effort to align thermal performance with climate responsibility.
Market Challenges and Long-Term Outlook
While the market outlook remains optimistic, FMI highlights potential constraints, including:
- Volatility in petrochemical feedstock costs
- Regulatory restrictions on combustible materials
- Installer skill shortages affecting retrofit rates
Nevertheless, advancements in fire-resistant formulations, recyclable systems, and prefabricated insulation modules are mitigating these barriers, enabling the industry to move toward a circular, low-carbon future.
By 2035, FMI anticipates that thermal insulation will be viewed as essential energy infrastructure, with governments and industries treating it as a strategic tool for climate mitigation and energy security.
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About Future Market Insights (FMI)
Future Market Insights, Inc. (FMI) is an ESOMAR-certified, ISO 9001:2015 market research and consulting organization, trusted by Fortune 500 clients and global enterprises. With operations in the U.S., UK, India, and Dubai, FMI provides data-backed insights and strategic intelligence across 30+ industries and 1200 markets worldwide.
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