Through 2018, global demand for insulation is projected to advance 5.0 percent annually to 24.9 billion square meters of R-1 value, a significant increase from the rate of the 2008-2013 period. Strong growth in residential building construction activity will be the primary driver of demand worldwide. In developing countries, rising building construction and industrial activity will lead to increased demand for insulation. In many high-income countries, insulation demand will rebound from downturns during the 2008-2013 period that were caused in part by sharp declines in housing construction. Government efforts, particularly in Western Europe, to reduce energy consumption will lead to the adoption of new building codes that require increased insulation usage. In the industrial, HVAC, and OEM markets for insulation, demand will be driven by expanding manufacturing activity, appliance output, and HVAC system installations.
The Asia/Pacific region is forecast to post the fastest growth in insulation demand through 2018, aided by advances in building construction activity as well as manufacturing and industrial output. More than 58 percent of new global insulation demand generated between 2013 and 2018 will be attributable to this region. Among the Asia/Pacific countries expected to post solid growth are China, India, and Indonesia.