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.
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.
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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.
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.
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.