The HVAC insulation market is projected to grow at a CAGR of 5.82% during the forecast period to reach US$7.713 billion by 2027, from US$5.192 billion in 2020.
HVAC insulation includes heating, ventilation, and air conditioning systems. The purpose of HVAC insulation is to increase a building's safety measures, sound insulation, and power efficiency. The insulation in the HVAC system prevents the transfer of heat. The airflow in the ductwork must be maintained at the proper temperature level; hence duct insulation is critical in the HVAC system. HVAC insulation systems are used in the housing, commercial, and industrial sectors.
The global HVAC insulation market is expected to grow substantially, mainly due to its increasing adoption in the construction industry. The demand for HVAC insulation has also increased due to the innovations in automotive technology, leading to an increase in market size. The Asia Pacific region has been reported to have the largest market share, due to the rapid developments in the construction sector and is expected to continue leading the market in the forecasted period.
Innovations in HVAC systems
HVAC insulation systems have seen considerable developments in technology in the past, which have led to significant energy savings and better functioning equipment. Such innovations in technology help in increasing the demand for HVAC systems, and also increase the demand for the HVAC insulation market
Optimized Thermal Systems in Maryland is working on an innovative heat exchanger that will cut refrigerant leakage by 90% when compared to present ones. This technology allows the refrigerant to stay where it should, which helps in keeping houses cool and energy expenditures low, thanks to the fewer joints.
The University of Florida is working on a prototype that combines a water heater, dehumidifier, and air cooling unit to improve heat transfer efficiency. This method improves in-house dehumidification management, resulting in improved comfort and considerable energy savings.
In collaboration with Oak Ridge National Laboratory (ORNL), Dais Analytics in Florida is creating a revolutionary membrane-based roof-mounted air conditioning unit that uses water as a refrigerant. This technology is well-suited for hot, humid summer evenings, and might also save 30% - 50% on electricity when compared to current rooftop units.
The UK’s heating problem
One of the most significant problems that the United Kingdom faces is reducing carbon emissions from heat. According to the Climate Change Act 2008, the UK is committed to reducing greenhouse gases by at least 80% by 2050. Since the UK’s gas infrastructure does not have any suitable replacement, the gas infrastructure would need the development of clean and carbon-free alternatives, such as hydrogen or biogas. The United Kingdom has started to invest largely in low-carbon heating options to decrease the emissions from heating.
One such heating option is the low carbon heat pump. Low carbon heat pumps have been regarded as an efficient and effective option to combat the rising climate change problem. Heat pumps are a type of HVAC equipment that can provide both heating and cooling in an infrastructure. Heat pumps are energy-efficient and environmentally friendly and can provide heating and cooling without having to burn any fossil fuels. The UK government has announced its plan to install 600,000 heat pumps by the year 2028. This target has been regarded as a big step for the UK government and is expected to drive up the demand for the HVAC insulation market.
HVAC systems provide heating and cooling to houses, airports, hotels, industries, and a lot of places. However, the initial installation cost of an HVAC system is extremely high. HVAC systems require proper equipment and tools to operate.
Moreover, HVAC systems are prone to breakdowns and need constant maintenance. An HVAC system may fail if the outside temperature is too hot or cold and may sometimes require costly repairs. More than 50% of the air conditioning and heat pump systems installed today increase consumers' utility costs by up to 30%. According to the National Institute of Standards and Technology, the causes are inadequate installation and malfunctioning equipment. The Office for Energy Efficiency and Renewable energy also states that roughly 3 million heating and cooling units are replaced each year, and almost US$14 billion is spent on maintenance and repairs.
Furthermore, the HVAC industry is unregulated. Contractors do not require any licensing to install or repair an HVAC system. This makes the industry unreliable. These factors hamper the growth of the HVAC insulation system market and may cause a decline in demand due to these factors.
The COVID-19 pandemic resulted in a slowdown in the overall market sales. Most construction industries were shut down, owing to the strict lockdown regulations implemented by countries. The HVAC insulation market faced massive losses during this time. However, as countries have started to lift their lockdown regulations, the market has started to rise again. The HVAC insulation market has reported a significant increase in demand in 2020/21. With most industries going back to normal, the HVAC insulation market is expected to rise.
Key Market Segments
Frequently Asked Questions (FAQs)
Q1. What will be the HVAC insulation market size by 2027?
A1. The HVAC insulation market is projected to reach a total market size of US$7.713 billion in 2027.
Q2. What are the growth prospects for the HVAC insulation market?
A2. The global HVAC insulation market is projected to grow at a CAGR of 5.82% during the forecast period.
Q3. What is the size of the global HVAC insulation market?
A3. HVAC Insulation Market is evaluated at US$5.192 billion for the year 2020.
Q4. What factors are anticipated to drive the HVAC insulation market growth?
A4. The global HVAC insulation market is expected to grow substantially, mainly due to its increasing adoption in the construction industry.
Q5. Which region holds the largest market share in the HVAC insulation market?
A5. The Asia Pacific region has been reported to have the largest share in the HVAC insulation market, due to the rapid developments in the construction sector.
Rockwool International A/S
Armacell International S.A.
Johns Manville Corporation
Kingspan Group PLC
Arabian Fibreglass Insulation Co., Ltd.
L’Isolante K-Flex S.p.A.
Glassrock Insulation Co. S.A.E.
All our studies come with 2 months of analyst support.
We are in compliance with the global privacy laws.