The Global High-Temperature Insulation Materials Market is projected to register a CAGR of *more than 4% during the forecast period (2021-2026).
COVID-19 has affected both the supply and demand of the high-temperature insulation materials market. Most countries were under complete lockdown for a specified time, with many factories running on very limited staffing or was even closed temporarily. The levels of activities were very low, and many project schedules changed or were postponed. Due to all these interruptions, the end users also started postponing non-essential purchases and disengages from the consuming processes, by lowering their demands for insulating materials. Furthermore, many insulating material manufacturing companies and raw material manufacturers extended the closure of all their operations at their manufacturing locations till receipt of further directions from the government authorities. Production at some of the manufacturing companies' plants resumed later, which was an encouraging sign.
- Over the long term, rising demand for energy efficiency and growing infrastructure and industrialization in the Asia-Pacific region are expected to drive the market growth.
- Harmful effects as a result of exposure to certain high-temperature insulation materials is likely to hinder the growth of the market.
- Asia-Pacific region is expected to dominate the market and is also likely to witness highest CAGR during the forecast period.
Key Market Trends
Rising Demand in Insulaton Application
- Insulations are produced in a variety of forms suitable for specific functions and applications. There are many properties of insulating materials which are important to consider for the selection of insulation materials.
- The primary purpose of insulation is to prevent/minimize thermal energy losses for the conservation of energy. However, insulation helps in several ways; such that it provides more accurate control of process temperatures and protection of the product, it prevents condensation on cold surfaces and the resulting corrosion, it minimizes the formation of condensate in steam pipeline and related problems, and it provides fire protection and absorbs vibration.
- The high temperature application range is 600°F through 1500°F and is commonly used in turbines, breechings, stacks, exhausts, incinerators, boilers etc. 2300°F is the maximum temperature for which insulation is applied and over 2300°F applications such as melting furnaces refractory is generally used.
- High temperature insulation is mostly used for industrial furnace, oven, and pipes. These are used in a wide range of industries and applications in thermal-processing plants. Additionally, pipes and equipment shall also be insulated according to the need of the application.
- These materials are mostly used in industries such as petrochemicals, iron and steel, cement manufacturing, offshore, power generation, aluminum and construction among others.
- Insulation materials are used to retard the flow of heat energy by reducing heat loss or gain from pipe work, equipment, tanks and vessels. High temperature insulation materials are available in many shapes and forms from rolls, slabs and pipe sections. Insulation offers any mechanical systems to operate within environmental criteria and also reduce emissions of pollutants to the atmosphere.
- Therefore, owing to the above mentioned factors, the demand for high temperature insulation materials are expected to increase for insulation application in coming years.grow across the world during the forecast period.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific region is expected to dominate the market; majorly because of China. The country's manufacturing sector is one of the major contributors to the country's economy.
- In China, the construction industry grew at a strong pace in 2019, even though the growth slowed down during the year, as compared to 2018. The construction sector has supported the economic growth in the country. Although this growth has been far less when compared to the average growth of the construction sector over the past ten years.
- Further, the total investment in property rose steadily rising in China in 2019-20. Real estate investment, which is mainly focused on the residential sector and includes the construction of commercial and office spaces, is acting as the key driver for the growth of the construction sector in China. Thus, this scenario, in turn, is likely to propel the demand in the market studied.
- Additionally, China has the world's largest electronics production base. Electronic products, such as smartphones, TVs, wires, cables, portable computing devices, gaming systems, and other personal electronic devices, recorded the highest growth in the electronics segment. The country serves not only the domestic demand for electronics, but also exports electronic output to other countries. In China, with the increase in the disposable income of the middle-class population and the rising demand for electronic products from countries importing electronic products from China, the production of electronics is projected to grow. With the growing electronics and construction industry, the demand for high-temperature insulation is expected to increase.
- China is the largest petrochemical-producing country globally. The investment in the olefins and aromatics chains in China is also driving the growth of the petrochemicals industry, and thereby the market studied.
- Due to all such factors, the market for high-temperature insulation materials in the region is expected to have a steady growth during the forecast period.
The high-temperature insulation materials market is fragmented in nature. Some of the major players in the market include Morgan Advanced Materials, Luyang Energy-saving Materials Co. Ltd, Rath-Group, Knauf Insulation, and Nutec, among others.
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