Global HVAC insulation market value to reach $7bn by 2023
The multibillion-dollar sector will boom despite sustainability negligence by developers
Heating, ventilating, and air-conditioning (HVAC) systems are responsible for controlling the ambient environment. HVAC insulation is necessary for ducts and pipes to transfer energy with negligible amount of losses, and along the way, it also improves the energy efficiency, fire safety, and acoustic performance of a building.
The global HVAC insulation market is driven by the growth in the global construction industry and increasing demand for energy-efficient systems. However, the sector is also likely to face hindrances due to negligence and reluctance on the part of infrastructure developers to make buildings greener.
According to Market Research Future, the governments of developed and developing nations across all the world are seen to be promoting and developing their respective construction sectors. Major emerging nations in the Asia Pacific region are introducing numerous reforms and regulations to boost their infrastructure and real estate markets. Such growth is anticipated to augment HVAC insulation’s market prospects.
The Government of India recently announced some major policy initiatives, such as the approval of the Real Estate (Regulation and Development) Act 2016, which mandates the real estate developer to provide greater transparency in project marketing and implementation, with the utilisation of quality construction materials.
Moreover, as part of an amendment to the Benami Transactions Act, a 100% deduction in profits for affordable housing construction has been introduced, in addition to a change in arbitration norms for construction companies.
Similarly, in China, central policies on the housing schemes were relaxed some years ago, resulting in lowering the down payment ratio in 2016. Low-priced down payments have encouraged more homebuyers to borrow money from banks which, in turn, has propelled the construction industry. These factors ultimately increased demand for HVAC insulation across all major end-use sectors in China’s construction industry.
The global HVAC insulation market was valued at $4bn in 2016 and is estimated to reach $7bn by 2023, with a compound annual growth rate of 7.42% over the forecast period. The market in the Middle East and Africa region is on the up as well. Due to the need for infrastructure, demand for HVAC insulation products has increased as well.
However, the high cost of such technology and limited investment is expected to hinder market growth.
The main influences on demand for insulation materials are building codes and regulations. While these regulations act as a catalyst for growth, they also impose limitations by restricting the use of certain materials in specific applications. Energy costs are another significant driver of the consumption of insulation materials, and are widely accepted as the prime motivator driving growth in insulation, though other costs play a role as well, particularly in tightly managed projects or budgets.
This is also true of production costs, of which energy often constitutes a large proportion, especially in the glass and mineral wool market that uses considerable amounts of energy in furnaces and ovens.
Well-insulated residential construction is a cost- and energy-efficient choice, since it can significantly cut heating or cooling costs. Insulation is related to the interception of the passing of thermal energy between two objects from an area of higher heat assemblage to one of a lower heat concentration, thereby preserving heat in a specific layout. A building that is well-insulated saves inessential wastage and encourages the conservation of heat energy.
In institutional and commercial buildings, the sustainability of construction is a comprehensive and exceedingly important driving factor. Fundamental features affiliated with high-performance green buildings include the comfort of inhabitants, increased property values, high energy efficiency, and durability of materials. Some of these best practices include the use of more efficient insulation systems, seamless monolithic roofing systems, and air barriers.
In addition, closed-cell spray polyurethane foam has been known as a product that can offer enhanced environmental performance and life-cycle analysis, in addition to superior control of indoor environment and building enclosure for operators.