Thermal insulation is a unique product. When installed in a building, it helps to reduce the accumulation of heat within its interior. This creates a lower dependence on air conditioning products, which allows for lower energy consumption. Around the world, many governments offer incentives, subsidies, and/or rebates to encourage the installation of this product.
In the United States, the market value of the thermal insulation industry is expected to top $6 billion for the first time in 2018. By 2025, Statista reports that the U.S. market may reach almost $9 billion in total size value.
There are several different types of thermal insulation that are used today. The 4 most common types, however, are glass wool, mineral wool, EPS, and XPS. In the United States, the glass wool segment of the industry was valued at $2.4 billion in 2018.
Important Thermal Insulation Industry Statistics
#1. In 2015, the global thermal insulation industry was valued at $24.4 billion. Under its current forecast pattern, it is expected to continue growing at an annualized average rate of 4.3%. (Grand View Research)
#2. The EPS segment of the thermal insulation industry in the United States was valued at $1.8 billion in 2018, while the XPS segment was valued at $600 million. (Statista)
#3. Insulation contractors in the United States earn about $9 billion in revenues each year with the installation of thermal products. The annual growth within the contracting segment from 2013 to 2018 has been 4.6% per year. (IBIS World)
#4. There are more than 22,000 businesses which are engaged in the work of insulation contracting in the United States today. These companies are responsible for over 67,000 direct employment opportunities. (IBIS World)
#5. The Southeast region of the United States is responsible for the most insulation contracting work, with about 23% of all establishments based in this location. Florida is responsible for 8% of the total insulation contracting industry in the U.S. today. (IBIS World)
#6. Insulation workers in the United States earn an average of $39,930 per year in salary. In 2017, that equated to a median pay of $19.20 per hour. (Bureau of Labor Statistics)
#7. Between 2016 to 2026, the U.S. government expects to see another 3,200 insulation contracting positions and installation jobs created. (Bureau of Labor Statistics)
#8. Insulation manufacturing in the United States is a business that is valued at $13.9 billion. Moe than 500,000 direct employment opportunities are directly or indirectly supported by these manufacturing activities. (American Chemistry Council)
#9. The combined economic activities which are supported by the insulation manufacturing industry contributes $1.2 billion to local and state governments each year. Another $2.4 billion is generated in tax revenues for the United States. (American Chemistry Council)
#10. More than $30 billion in payrolls are supported by the thermal insulation industry in the United States, supporting families in 42 states. (American Chemistry Council)
#11. The average home in the United States could save up to 15% on their heating and cooling costs by ensuring their thermal insulation meets or exceeds the current Energy Star program requirements. (U.S. Environmental Protection Agency)
#12. Thermal insulation, on its own, accounts for 40% of the total energy savings potential that is found in each building. (McKinsey)
#13. 10% of all energy consumed in the United States comes from heating and cooling activities for commercial buildings, healthcare facilities, retail, educational, and lodging. (American Chemistry Council)
#14. Mineral wool manufacturing provides the most employment opportunities in the United States. In 2017, it was responsible for a payroll of $1.1 billion and 16,900 jobs. This created an output worth $5.7 billion. (American Chemistry Council)
#15. Over 44,000 wholesalers are responsible for distributing insulation products to retailers, contractors, and installers in the United States. When drywall installation is combined with thermal insulation work, over 450,000 people are engaged in meaningful employment. (American Chemistry Council)
#16. More thermal insulation contractors are employed in California than anywhere else in the U.S., with over 63,000 jobs created. Texas comes in second (41,956), followed by Florida (26,838), New York (25,938), and Washington State (15,795). (American Chemistry Council)
#17. Texas is the U.S. leader in thermal insulation distribution and wholesale employment, responsible for over 4,000 jobs. Florida is second (3,238), followed by California (2,745), Pennsylvania (2,291), and New York (2,149). (American Chemistry Council)
#18. Ohio is the top manufacturing state for thermal insulation products in the U.S., providing 4,800 jobs in this segment. Texas comes in second with 3,363 jobs. They are followed by Georgia (3,162), California (2,344), and Indiana (2,054). (American Chemistry Council)
#19. The United States has 8 zonal ratings for insulation R-value. Zone 1 is the rarest rating, found only along the southern tip of Florida. Zone 8 is equally rare, found only in the northern communities of Alaska. Most of the U.S. fits into zones 3-6. (Office of Energy Efficiency and Renewable Energy)
Thermal Insulation Industry Trends and Analysis
When a home is not properly insulated, then it can lose up to 60% of its energy through the attic or walls. A higher R-value for the insulation will allow it to insulate better. In total, there are about 10 different types of insulation that can be used to protect a home from energy loss. The thermal insulation industry provides a majority of the most protective products that are currently manufactured.
There are two forecast segments to consider: new construction and remodeling/home updates. Many homeowners look for ways to save on their energy costs each year and thermal insulation is always a top choice. Combined with financial incentives, the improvement sector should continue seeing growth in the 5% to 7% range over the next 10-year period.
The new home sector is a different story. Although the value of a new home installation for the thermal insulation industry is higher, the overall growth of the segment is dependent upon local economies and new home sales figures. From 1963 to 2018, new home sales have averaged 650,000 units, but reached record lows in 2011 of just 270,000. Dropping below average would have a devastating effect on the industry.
If a house feels too cold, then it may need new installation. In Zones 3 and 4, R5 insulative wall sheathing is recommended beneath new siding on the exterior, along with thermal insulation in the interior. Because of these needs, this market will continue to remain strong.