DALLAS (March 26, 12:20 p.m. ET) — U.S. demand for insulation will rise 7.8 percent annually to $8.9 billion in 2016, according to new research from reportsnreports. Growth will be stimulated by a rebound in building expenditure from a depressed 2011 base.
Further growth will be fueled by changes in building codes and continuing consumer interest in reducing energy consumption and utility bills. Homeowners and building owners will add or upgrade insulation to achieve these goals.
The residential market will post the most rapid gains through 2016, advancing at a double-digit pace as housing starts rebound, the report adds. Moreover, builders will construct homes with larger amounts of insulation to make them more desirable to potential buyers.
Residential insulation demand will also be supported by the attic reinsulation and the improvement and repair markets. The large stock of older homes in the United States — many of which are underinsulated — will offer growth prospects as homeowners add insulation to attics, walls and basements to lower utility bills.
Insulation demand in the nonresidential market will also grow, particularly in the office and commercial segment. Continuing interest in environmentally friendly construction practices will boost insulation use, as building codes and “green” building standards will call for the use of more insulation to reduce energy consumption, the report says.
Fiberglass insulation accounted for the largest share of insulation demand in 2011 with about half of the U.S. market. Fiberglass will remain the market leader in 2016, with demand rising 8.1 percent annually to $4.4 billion, the study says.
Demand for foamed plastic insulation, including polyurethane foam, which accounted for the second largest share of the market in 2011, is expected to rise 7.3 percent per year to $3.9 billion in 2016. Advances will be driven by the rebound in building construction spending.
“Further growth will come from building code changes that call for structures to be better sealed against air leaks,” says the report. Foamed plastics are well suited for sealing hard-to-reach areas, such as crawl spaces and between walls.
Demand for radiant barrier and reflective insulation is forecast to rise 8.7 percent per year through 2016, with growth concentrated in the South and West.