North America Industrial Insulation Service Market Overview
Insulation is a layer or coating of resistant material, which functions as a barrier to the targeted energy. Industries use many types of insulation for the purpose of energy conservation and improve the efficiency of machines, systems, equipment and components. The industrial insulations accomplish the purpose of protection and energy loss from the body it is applied on to. The industrial insulation materials are mostly non-conducting materials, which acts as a barrier to the flow of heat, sound, moisture and others. Single or multiple layers of thermal insulator is applied to the fluid conduction pipes or on the boiler surface. Additionally, several types of industrial insulators are available in the global market, which can be in the form of flexible sheets and pre-formed shapes, flexible blankets, rigid boards, blocks, sheets and pre-formed shapes, foams, liquids (spray, paints), etc. Owing to these factors, the North America industrial insulation market is projected to grow at around CAGR of 5% over the forecast period.
Calcium silicate is largely used for industrial insulation, mostly for thermal insulation. It can be molded into rigid shapes and can be reinforced with other materials to get improved property of insulation. The calcium silicate based industrial insulations can perform effectively by sustaining through the temperature above 650°C. Other major materials used for industrial insulation include CMS fibers, stone wool, cellular glass, perlite and others. These materials are generally transformed into sheets and are applied to the desired surfaces. It has numerous advantages such as lightweight and high thermal stability. Mineral fibers and foam based insulators are frequently used as acoustic insulators owing to sound absorption properties.
Market Segmentation Synopsis
Material Insights
Calcium silicate is projected to witness a higher demand, owing to its preferences as a substitute to asbestos for high temperature insulation, as it acts as an excellent barrier to infrared radiation. Rising demand for the product for applications in high temperature piping and industrial grade equipment is expected to boost the market growth. Elastomeric foam is estimated to have a significant growth on account of its superior moisture barrier properties in comparison to other materials. Elastomeric foam products has remarkable dimensional stability. In addition, they provide excellent protection against condensation, thermal loss, and south transfer. Micro silica by virtue of its ability to provide thermal insulation for variety of industrial applications over a wide range of temperatures ranges is anticipated to have a moderate growth. Typical applications include vacuum panels, exhaust systems, and fire barrier systems.
Get more information on this report: Download Sample PDF
Product Insights
Pipe insulation is projected to witness notable demand on account of its superior performance and ability to stabilize the process temperatures. It offers protection against freeze damage and pipe breaks, and prevents the exposure to extreme temperatures.
Blanket insulation serves its purpose in high temperature applications, operating up to 538ºC. Typical applications include heat exchanger, storage tanks, stack installations, cooling towers, air conditioning ductwork, and large diameter piping, among others.
Mineral wool board is widely used for number of applications; owing to the low shrinkage it exhibits at high temperature, in order to prevent the formation of gaps at joints to prevent thermal leaks.
Spray foam is a sealant, designed to seal cracks, seams, and smaller gaps and to eliminate drafts, block insects, and repel moisture. These are also used to fill, insulate, and seal corner joints, exterior cracks, utility panels, pipes, and duct penetrations.
Application Insights
LPG/LNG transportation & storage segment holds the largest share which can be attributed to high risks associated in the transportation & storage of LPG & LNG products, leading to extensive product demand.
Power generation industry is anticipated to witness a heavy demand for these products, owing to its ability to minimize power losses. Growing concerns regarding the energy management among the power generation industry across the globe is expected to drive the market growth.
Petrochemical & refineries industry is expected to experience a robust growth attributed to the oil & gas industry is involved in the continuous high volume production of crude oil and natural gas.
The EIP industries are involved in the production of a wide range of products that require the insulation for thermal energy conservation. In addition, growth of the manufacturing sector coupled with the presence of stringent regulatory norms by the European Commission and other governing agencies is an impetus towards the market growth.
Market Drivers and Challenges
Growth Drivers
The industrial sector in the U.S. is predicted to witness significant expansion owing to the rising GDP. In addition, the product demand in the U.S. is influenced by number of factors, such as, global warming initiatives and related renewable programs, development of oil & gas prices, which is expected to impact the demand for industrial insulation.
Major manufacturers in the industry opt for independent distribution, in order to better serve their customers by providing customized products and to increase their profit margin. Manufacturers also establish strategic relationship with distributors and provide solutions to the end-users through direct or third-party distribution.
Restraints
High Expenditures on Raw Materials
The raw materials used for various industrial insulation products such as glass and stone wool are available in abundance. The price of insulation raw materials manufactured from petrochemicals is subject to change as the crude oil prices fluctuates. This results in an increase in the supplier bargaining power.
The industrial insulation market exhibits high entry barriers, owing to the presence of a large number of players. In addition, capital intensive nature of the market makes sure of the prerequisite of substantial amount of time, planning, and resources for market entry and sustenance. High production volumes grasped by the major players has resulted in economies of scale which may discourage new entrants.
Competitive Landscape
Some of the leading industry leaders in the North America Industrial Insulation Service Market include Atlas Roofing Corporation, Bayer, Certain Teed, Cellofoam North America, Inc., Dow Building Solutions, GAF Materials Corporation and Owens Corning Corporation.
Leading firms operating in the industrial insulation market emphasize on diversifying their product portfolio through advancement of cost-efficient resources. They are prioritizing R&D of low-cost materials that provide superior insulating properties.
Manufacturers acquire required raw materials from suppliers through direct or third party distribution agencies. These manufacturers move into long-term partnerships with raw material suppliers to avoid effect of volatility on raw material prices. Furthermore, distribution is carried out directly to incorporate varying degrees of product customization for consumers.
