OEM Insulation Market

OEM Insulation Market Size-(2023-2028)

The OEM Insulation Market will reach an estimated valuation of $ 21.84 billion by 2028 while registering this growth at a rate of 6.80% for the forecast period 2023-2028

The global insulation market OEM insulation will grow at a substantial rate in the near future with its increasing number of applications in various industries.

OEM stands for Original Equipment Manufacturer, which indicates a company that produces a part of a subsystem of a product used by another organization. Thermal insulation or simply insulation allows the product to minimize heat gain or loss by creating a barrier between surfaces at different temperatures. 

The global OEM insulation market is expected to experience lucrative growth in developing countries. Increased public and private investment in various industrial sectors to deliver high-quality industrial results have impacted OEM insulation. The main driving force behind this market is the updating of manufacturing techniques. The growing concern for the environment to save energy and the growing demand for industrial insulation will help the OEM insulation market expand its applications. Another major trend that has been observed in the global OEM insulation market is the growing popularity of foam plastic insulation. Hence, the increasing use of plastic foam insulation in the construction and construction business is expected to contribute to the global OEM insulation market's overall development.

OEM Insulation Market Drivers:

The increasing demand for the reduction of energy consumption in industrial activities is the major factor affecting the growth of the OEM insulation market. One of the main drivers of market growth is increasing demand from its end-use sectors. Telecommunications, semiconductors, manufacturing, energy and utilities, and offshore oil and gas are among the most important end-application industries. These industries constantly require large amounts of insulation for activities related to fire, heat or acoustics. Hence, its growth is directly complemented by the growth of the global OEM insulation market. The growing demand for insulation services in a wide range of applications, such as residential and commercial construction, automobiles, and consumer appliances, is the key driver for the growth of the global OEM insulation materials market. Moreover, people's growing awareness of the health and prevalence of makeshift infrastructure will drive the growth of the global OEM insulation market during this forecast timeframe. The market is experiencing moderate growth due to increasing applications, technological advancements, and growing demand for OEM insulation in the Asia Pacific, Middle East, and Africa.

OEM Insulation Market Restraints:

Lack of awareness of the benefits of energy-efficient construction coupled with lower growth in the construction industry will hamper the growth potential of the OEM insulation market during the forecast period mentioned above. The fluctuation in the price of raw materials can also be a factor that restricts the growth of the market.

Opportunities in the OEM Insulation Market:

The availability of aerosol as a substitute for glass wool will create plenty of opportunities that will lead to the growth of the OEM insulation market during the forecast period.

Challenges in the OEM Insulation Market:

The adoption of recycling and disposable techniques will become the biggest challenge to market growth.

OEM INSULATION MARKET REPORT COVERAGE:

OEM Insulation Market Segmentation:

OEM Insulation Market - By Type:

• Foamed plastics

• Mineral wool

The foamed plastics segment is leading with the highest shares of the market. Foamed plastics are one of the primary insulation materials used for OEM insulation and are experiencing rapid growth in the Asia Pacific. The superior mechanical properties of foamed plastics make them suitable for use in a variety of applications. The industrial segment will continue to represent the greatest demand for OEM insulation. As lawmakers seek to improve energy efficiency laws, such as the Energy Performance of Buildings Regulation of December 2008 and EU directives, there is a significant trend to use more OEM insulation. As a result, OEM insulations are becoming more and more important.

Glass wool was the second-largest commodity sector expected to grow at a CAGR of 6.1% during the forecast period. Glass wool is made of sand and has thermal and sound insulation properties such as low weight and high tensile strength. Removable covers are a by-product of glass wool and are an excellent cover for turbines, pumps, and heat exchangers, generating high demand.

Hence, the increasing use of plastic foam insulation in the construction and construction business is expected to contribute to the overall development of the global OEM insulation market.

 OEM Insulation Market - By End-use:

• Industrial

• Consumer

• Transportation

In 2020, the industrial plant and equipment segment held the largest market share, and the transportation and equipment segment is expected to register the highest CAGR in 2022 - 2027. One of the main drivers of market growth is its increasing demand from its end-use sectors. Telecommunications, semiconductors, manufacturing, energy and utilities, and offshore oil and gas are among the most important end-application industries. These industries constantly require large amounts of insulation for activities related to fire, heat or acoustics. Hence, its growth is directly complemented by the growth of the global OEM insulation market.

OEM Insulation Market - By Region:

• North America 

• Europe

• Asia Pacific 

• Latin America 

• Middle East & Africa 

Asia-Pacific accounted for the largest market share of 43.4% in 2020 and is expected to grow at a CAGR of 7.6% during the forecast period. The reason for this is the increase in oil production in the economies of China and India and concerns about significant energy waste as well as the demand for materials for restoration and renovation.

Europe was the second-largest region with a notable market share in 2020 and is expected to grow at a substantial CAGR during the forecast period. In addition, the region was one of the first to adopt emerging materials due to rapid industrialization and the presence of large manufacturers of insulation products, which led to significant product sales.

North America is heavily influenced by demand for oil and gas, manufacturing, metals and mining, energy, and other industries, where the operating temperature is high. In addition, companies in this region focus on reducing losses to improve their performance through the practice of periodic maintenance inspections.

Central and South America's GDP posted a low CAGR due to political and economic turmoil in Brazil, which is a major user of industrial insulation products. The demand for insulation materials in the Middle East and Africa is anticipated to be driven by growth.

Impact of Covid-19 on the OEM Insulation Market

The COVID-19 outbreak has severely affected the OEM insulation market. Industries are closing all over the world, and the government has announced the shutdown. Companies postpone their agreements and meetings, causing their downfall and leading to bankruptcy. The manufacturing sector has been hit hardest by the current pandemic situation, as manufacturers of non-essential products shut down their manufacturing facilities to comply with government regulations on shutdowns.

 Recent Developments 

• In June 2019, Owens Corning, a leading brand in the global OEM insulation market, announced that the company plans to unveil new technologies that will help develop advanced buildings that will be more reliable, sustainable, and energy-efficient.

• In 2018, Owens Corning acquired the Paroc Group, a leading manufacturer of mineral wool insulation for thermal, fire, and acoustical applications in residential and commercial construction in Europe. This acquisition is expected to improve Owens Corning's product portfolio and customer base in the European market.

• In May 2019, Saint Gobain SA declared that the company had successfully obtained Pritex, a promising player in thermal and acoustic solutions. This move is anticipated to upgrade the company's current product portfolio.

• In 2020, Imerys Group, a French company offering mineral-based specialties, obtained the thermal insulation business of Hyderabad Industries Ltd. in India and Southeast Asia.

OEM Insulation Market Key Players:

The key players in the OEM insulation market are

1. Johns Manville

2. Knauf Insulation

3. Saint-Gobain

4. ROCKWOOL International A/S

5. Owens Corning

6. 3M

7. Aspen Aerogels, Inc

8. Armacell India Pvt Ltd

9. Autex Industries Limited

10. Anco Products., Big Sky Insulations

11. Triumph Group

12. Morgan Advanced Materials

13. Atlas Roofing Corporation

14. Demilec (USA) Inc

15. Scott Industries

16. LLC, Artik OEM