Global HVAC Market Expected to Reach $5.2 Billion by 2021

IRVING, Texas — A market report published by Irving-based Lucintel on Oct. 14 said that the HVAC insulation market is expected to reach an estimated $5.2 billion by 2021 and is expected to grow at a compound annual growth rate (CAGR) of 5.2 percent from 2016 to 2021.

Two major drivers of growth for this market come from a high demand of HVAC equipment and government regulations designed to increase energy efficiency while reducing the equipment’s carbon footprint.

According to a statement from Lucintel, fiberglass, plastic foam and stone wool are the major materials used as insulation for HVAC. Lucintel anticipates that the fiberglass material segment is likely to experience the highest growth during the forecast period due to its availability, environmentally conscious and better flame retardants properties. On the basis of its comprehensive research, Lucintel predicts the duct component segment is expected to show above average growth during the forecast period.

Within the HVAC insulation market, Lucintel expects residential to remain the largest market by value and volume. Growth in demand for HVAC systems and increasing awareness of energy efficiency are the major factors that have created a high demand and encouraged growth for this sector.

According to a statement from Lucintel, Asia Pacific is expected to remain the largest region due to continuous growth in residential and commercial building construction activities; this is applicable for China and India, where HVAC insulation demand has increased drastically. Asia Pacific is expected to grow over the forecast period because of increasing awareness related to energy efficiency to and a desire to reduce energy-related cost.

The emerging trends that have a direct impact on the dynamics of the industry include increasing demand for high-temperature insulation and the growing use of eco-friendly materials.

Paris-based Saint-Gobain, Ireland-based Kingspan Group, Toledo, Ohio-based Owens Corning, Shelbyville, Ind.-based Knauf Insulation, and Denver-based Johns Manville are among the major suppliers of HVAC insulation. Some of these companies are also pursuing mergers and acquisitions as strategic initiatives and have contributed to drastic growth rates in the HVAC industry.