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 systems seek to give everyone inside a building comfort and adequate indoor environmental quality in addition to heating or cooling space and providing domestic water. The HVAC insulation systems comprise heating, ventilation, and air conditioning systems. These internal systems typically include a thermostat, heat exchanger, furnace, compressor, evaporator coil, and fan motor. Further, a plumbing system is used to convey fluids and it uses boilers, valves, plumbing fixtures, tanks, and other devices. Moreover, different types of pipes and ductwork also play a crucial role in the smooth functioning of HVAC systems. These systems are considered the lungs and veins of a building because, depending on the weather outside, fresh outdoor air is pulled inside, heated, or cooled, and then distributed in the inhabited spaces before being discharged into the ambient air or recycled within the system.
The key factors propelling the market of HVAC insulation are the numerous benefits of HVAC insulation systems, high disposable income, technological advancement, and innovation in HVAC systems.
The rising climate change is becoming an unprecedented issue with the increasing world population and limited natural resources. Due to this, energy efficiency and carbon neutrality are now requirements for modern sustainable buildings. Henceforth, it is expected that an efficient HVAC system helps in solving these environmental issues. Further, the efficient HVAC insulation system helps reduce energy loss by ensuring that the medium air or liquid stays at the right temperature in the right place. For instance, the Residential Program Guide of the Office of Energy Efficiency and Renewable energy reports that replacing heating and cooling equipment with high energy efficiency equipment can reduce the use of energy by 50% for electric heating and cooling systems. Further, a 10% gas saving can also be observed in the heating system. Moreover, ENERGY STAR-certified heating and cooling equipment installed in the property can yield a total of 10-30% energy bill savings annually. These environmental benefits of installing HVAC insulation coupled with benefits such as increased thermal comfort ensured fire safety, and prevention of condensation damage is expected to propel the market for HVAC insulation. Additionally, the rising disposable income is yet another factor driving the HVAC insulation market during the forecast period.
Furthermore, technological advancements and innovations are escalating the HVAC insulation market’s growth during the forecast period. Automation and smart technology make HVAC more efficient in both their use of energy and cost, which is supporting the market growth. Further, the Smart thermostats available to add to the traditional HVAC system allows the users to adjust their setting even when they user is far away from their apartment. These smart thermostats can also provide monthly energy reports on energy use to the end user.
Furthermore, the recent launches of these newly introduced technologies are further propelling the HVAC insulation market.
For instance, in July 2022, Universal Electronics Inc., a global leader in wireless universal control solutions for home and smart home devices announces the launch of a new TBH300 smart thermostat with CommScope’s RUCKUS IoT Suite in support of the hospitality green energy initiative. Once installed, it offers remote management features so that the user can keep an eye on and manage the energy systems even when the user is not there. Furthermore, a sustainable energy feature on the new UEI TBH300 thermostat sets it apart and enables hoteliers or property managers to save money and energy on occupied units and rooms. The RUCKUS IoT suite for hospitality, which offers temperature controls and simplified installations, is used to manage the thermostat. Such automation and technological advancement coupled with enthusiastic new launches in the market are supporting the HVAC insulation market growth during the forecast period.
The glass wool segment is expected to grow rapidly during the forecast period.
On the basis of type, the HVAC insulation market is segmented into plastic foams, mineral wool, glass wool, rock wool, and others. The glass wool segment is expecting a notable growth rate during the forecast period due to its design flexibility, and lower production cost. Furthermore, the enhances recyclable and non-flammable characteristics are expected to enhance the share of the glass wool segment in the HVAC insulation market. A glass wool duct panel dampens unwanted noise and promoted consistent temperatures which help in less energy waste. Apart from this, a glass wool duct panel helps in excellent mechanical performance and excellent thermal and acoustic properties which supports the growth of this segment in the HVAC insulation market.
According to analysts, the Asia-Pacific region is reported to have the largest share of the HVAC insulation market during the anticipated period.
Based on Geography, the HVAC insulation market is divided into North America, South America, Europe, and the Asia Pacific. Analysts anticipate that the Asia-Pacific region will have the largest market share owing to the rapid developments in the construction sectors and it is expected to continue leading the market during the anticipated period. Countries like China and India offer to welcome FDI and trade policies to foreign businesses. The region will employ HVAC insulation more frequently as a result of the growing population and product manufacturing facilities, which will fuel industry expansion during the projection period. Major Chinese building initiatives like the expansion of the Beijing International Airport and Lingang New City will also have an impact on the growth of the business. Additionally, India is also pushing its smart cities initiatives through increased investment and government support. For instance, With the goal of promoting sustainable and inclusive cities that meet essential infrastructural needs like guaranteed electricity, strong IT connectivity and digitalization, efficient urban mobility, and a sustainable environment, among others, the Indian government launched its Smart Cities Mission. According to the Indian Brand Equity Foundation, which was founded by the Department of Commerce, Ministry of Commerce and Industry, Government of India, the total amount of funding allotted for the Smart Cities Mission was US$27.60 billion as of March 2021. Thus, it is expected that the growing construction activities and smart technological developments will fuel the HVAC insulation market growth during the forecast period.