World Insulation to 2016


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World Insulation to 2016

  1. 1. World Insulation to 2016Report Details:Published:November 2012No. of Pages: 376Price: Single User License – US$6300This study analyzes the global insulation industry. It presents historical demand data for the years2001, 2006 and 2011, and forecasts for 2016 and 2021 by material (e.g., foamed plastics,fiberglass, mineral wool), market (construction and industrial, HVAC, and OEM), world regionalmarket and for major national markets. The study also considers market environment factors,details industry structure, evaluates company market share and profiles industry players.Demand to rise more than 5% annually through 2016Global insulation consumption is forecast to rise more than five percent annually to approximately29 billion square meters of R-1 value in 2016, a substantial acceleration from the 2006-2011 rate.In developing countries, insulation demand is expected to expand at a healthy pace due to risingbuilding construction and industrial activity as well as growing per capita incomes that will lead tothe adoption of modern building techniques and materials, including insulation. In most developedcountries, insulation sales are expected to rebound after falling in 2008 and 2009 due to housingmarket collapses in several countries. In addition, governments will adopt new regulationsconcerning building insulation in an effort to reduce energy consumption, further boosting demand.Building construction to be primary driver of demandSolid residential building construction expenditure gains will be the primary driver of demand. InNorth America alone, insulation sales for residential applications will rise approximately ninepercent annually between 2011 and 2016, primarily due to a recovery of the housing market in theUS. In Western Europe, a rebound in several countries’ housing markets will cause insulationdemand to post moderate gains through 2016, as opposed to the decline of the 2006-2011 period.In many West European countries, government efforts to encourage insulation use in order tolower energy consumption will also contribute to demand. In developing countries in theAsia/Pacific region, Africa/Mideast region, and Central and South America, rural-to-urbanmigration will stimulate building activity in urban areas, and therefore insulation demand. In somecountries, the adoption of minimum insulation requirements will also contribute to demand.Demand for insulation in the industrial, HVAC, and OEM markets will be driven by expandingmanufacturing activity, appliance output, and HVAC system installations.Asia/Pacific region to be fastest growing marketThe fastest growth in insulation demand through 2016 is forecast in the Asia/ Pacific region, due toadvances in building construction activity as well as manufacturing and industrial output. Morethan 65 percent of new demand generated between 2011 and 2016 will be attributed to this
  2. 2. region. Several Asia/ Pacific countries are expected to post solid growth, including China, India,Indonesia, and Thailand.Foamed plastic insulation to lead value gainsIn value terms, worldwide insulation consumption is projected to advance roughly seven percentper annum through 2016, approaching $60 billion. The fastest growth is expected in the foamedplastic insulation segment, as these products will be used more frequently in constructionapplications because of their high insulation values, allowing them to capture market share fromfiberglass and mineral wool insulation. Foamed plastic insulation is also used extensively inrefrigerator and freezer manufacture, further boosting demand. Demand for fiberglass insulationwill benefit from the rebounding residential construction market in North America, as the material iswidely used in the US and Canada. Other insulation materials, such as cellulose, will also seestrong gains, as environmentally friendly options continue to gain popularity.Company ProfilesProfile global industry players including Johns Manville, Knauf Gips, Owens Corning, Rockwool,and Saint-GobainAdditional InformationThis comprehensive study analyzes the world market for thermal and acoustic insulation. Productsinclude foamed plastic insulation (e.g., polyurethanes, polystyrenes, phenolics, polyimides, vinyl,and polyethylene), fiberglass insulation, mineral wool insulation (e.g., rock and slag wool), andothers (e.g., cellulose, perlite, vermiculite). Foil and reflective insulation products are not coveredby this study. Insulation markets include construction; industrial processes; heating, ventilation,and air conditioning (HVAC); and original equipment manufacturing (OEM).Historical data for 2001, 2006, and 2011 and forecasts for 2016 and 2021 are provided. The term“demand” refers to apparent consumption and is defined as production (also referred to as“output,” “shipments,” or “supply”) from a country’s indigenous manufacturing facilities plus importsminus exports. “Demand” is used interchangeably with terms such as “market,” “sales,” and“consumption.” Data are presented in millions of square meters of R-1 value and millions of USdollars.Note that the metric measures of thermal value used in this study cannot be converted to Englishunits (those used in the US insulation study) simply by converting square meters to square feet.The metric version of thermal value defines heat transfer in metric units (watts) and is based on amaterial sample one meter thick; the English version of thermal value defines heat transfer inBritish thermal units and is based on a material sample one inch thick. Taking into account all ofthe differences in measurement, approximately 16.4 squaremeters of R-1 value (metric system) is equal to 1,000 square feet of R-1 value (English system).For individual countries, historical demand data were determined in the local currency and thenconverted to US dollars using the average annual exchange rate of that country’s currency to theUS dollar as determined by the International Monetary Fund. Consequently, countries whosecurrencies appreciably changed in value relative to the US dollar from one presentation year to thenext will have historical growth trends for insulation product demand that differ significantly fromthose measured in local currency terms. Forecasts for 2016 and 2021 assume no change in theexchange rate from 2011, and as a result reflect expected future growth in both local currency and
  3. 3. US dollar terms.In addition to providing a market outlook, the study identifies and profiles the major industryparticipants and discusses the key strategic competitive variables. The report is framed within theworld insulation industry’s economic and market environments, and therefore environmentalvariables affecting demand are emphasized. World insulation market share data by companypresented in the “Industry Structure” section are estimated based on consultation with multiplesources.Data on global insulation demand are derived from differing sources and developed from statisticalrelationships. Variations are commonplace in this type of international reporting and,consequently, data presented in this study are historically consistent but may differ from othersources. Variances may occur because of definitional differences, inventory accumulations, andgoodsin- transit. Tabular details may not always add to totals due to rounding. Ratios are roundedto the nearest significant digit. All dollar values cited for the industry are at the basicmanufacturers’ level.Macroeconomic and demographic indicators presented in this study were obtained from TheFreedonia Group Consensus Forecasts dated June 2012. Gross Domestic Product (GDP)historical data are derived from the national income and products accounts from the Organisationfor Economic Co- Operation and Development (OECD) for its member countries, from theEuropean Bank for Reconstruction and Development (EBRD) for its member countries, and fromthe International Monetary Fund for its member countries that are not part of the OECD or EBRD.Sources of GDP estimates for other countries are based on information from the World Bank anda variety of sources including the countries’ statistical bureaus. GDP forecasts are developed froma consensus of public agencies and private firms.All estimates of gross domestic product and components of GDP are done in terms of constantpurchasing power parity in a benchmark year (2010) that is one year before the base year (2011)used in this study. Purchasing power parity GDP estimates for the benchmark year are obtainedfrom the OECD; Eurostat; the World Bank; the International Monetary Fund; the US CentralIntelligence Agency; and selected other sources. These purchasing power parity GDP estimatesfor the benchmark year are based on gross domestic product data expressed in the individualcountries’ local currency, which are then converted to US dollars by valuing each country’s outputat US prices in the benchmark year. This approach values the same physical output at aconsistent price for all countries, thereby reducing the distorting influence of different price levelsin the different countries.The alternative approach of using exchange rates to convert local currency GDP to US dollarswould tend to overvalue the output of countries with high average price levels and undervalue theoutput of countries with low average price levels, because exchange rate conversions onlypartially reflect the relative prices for goods and services that are domestically consumed andinvested. Furthermore, factors other than relative prices, such as demand and supply in currencymarkets, interest rates, and capital flows, affect exchange rates.Once the GDP values for a country are estimated for the benchmark year, we then calculateinflation-adjusted GDP for all other years for that country based on historical and forecast growthrates of GDP expressed in inflationadjusted units of that country’s local currency. This approach
  4. 4. ensures that the GDP series for any given country is an accurate index of changes ininflationadjusted GDP for that country. However, it also implicitly assumes that the price structuresacross countries do not change from those of the benchmark year. Therefore, caution should beused in comparing the relative GDP of countries in years other than the benchmark year. If theratio of prices across two countries in a given year differs from the ratio of prices across thosecountries in the benchmark year, then the change in the relative sizes of those two economies asmeasured will not accurately reflect changes in output.The benchmark year is chosen to be one year prior to the base year for the study for reasons ofdata availability. One benefit of that choice is that the ratio of prices across countries in the baseyear is usually similar to that in the benchmark year. Therefore, the ratio of real GDP between twocountries in the base year of 2011 is generally a reasonably accurate representation of the relativesizes of their economies.A wide variety of primary and secondary sources were used in the compilation of this report.These include national government statistical agencies, trade associations, industry experts,financial sources, online databases, other Freedonia studies, and insulation company sources.The Organisation for Economic Co-Operation and Development, World Bank, InternationalMonetary Fund, European Union, and various national government statistical publications wereamong the public sector sources utilized.Get your copy of this report @ points covered in Table of Contents of this report includeTABLE OF CONTENTSINTRODUCTION xiI. EXECUTIVE SUMMARY 1II. MARKET ENVIRONMENT 4General 4World Economic Overview 5Recent Historical Trends 5World Economic Outlook 7World Demographic Overview 11Population 12Urbanization Patterns 13Households 15World Fixed Investment Overview 17World Construction Outlook 19Residential Buildings 21Nonresidential Buildings 23World Refrigerator & Freezer Shipments 25Material Variations in Thermal Resistance & R-Values 27Regulatory, Health, & Environmental Considerations 31
  5. 5. Environmental Considerations 31Health Considerations 33Energy Considerations 35Recycling 38Green Labeling 41III. WORLD OVERVIEW 44General 44World Insulation Outlook 45World Regional Demand by Insulating Capacity (R-1 Value) 46Insulation Demand & Fixed Investment 49World Regional Insulation Demand by Value 51World Insulation Production by Region 56World Insulation Trade Flows 58IV. MATERIALS & MARKETS 60General 60Insulation Demand by Material 62Foamed Plastics 65Value Trends 67Weight & Market Trends 70Fiberglass 73Value Trends 75Weight & Market Trends 77Mineral Wool 80Value Trends 81Weight & Market Trends 83Other Insulation Materials 86Value Trends 88Weight & Market Trends 89Insulation Demand by Market 92Construction 94Industrial, HVAC, & OEM 95V. NORTH AMERICA 97General 97Insulation Supply & Demand 99United States 101Canada 106Mexico 111VI. WESTERN EUROPE 116General 116Insulation Supply & Demand 118Germany 121France 126
  6. 6. Italy 131United Kingdom 136Spain 141Netherlands 145Other Western Europe 150VII. ASIA/PACIFIC 159General 159Insulation Supply & Demand 161China 164Japan 170India 174South Korea 179Australia 183Indonesia 188Taiwan 192Thailand 197Other Asia Pacific 202VIII. OTHER REGIONS 209Central & South America 209General 209Insulation Supply & Demand 211Brazil 214Other Central & South America 218Eastern Europe 224General 224Insulation Supply & Demand 226Russia 229Poland 234Other Eastern Europe 239Africa/Mideast 246General 246Insulation Supply & Demand 248Turkey 250Other Africa/Mideast 254IX. INDUSTRY STRUCTURE 262General 262Industry Composition 263Market Leaders 266Other Key Producers 270Product Development & Manufacturing 270Marketing 273Distribution 275
  7. 7. Mergers & Acquisitions 276Cooperative Agreements 279Company Profiles 285Aislantes Minerales SA de CV 286Armacell International Holding GmbH 288Atlas Roofing, see Hood CompaniesBASF SE 291Bayer AG 297BBMG Corporation 299Beijing Aerated Concrete, see BBMGBeijing New Building Materials plc 300Beijing Star Building Materials, see BBMGBerkshire Hathaway Incorporated 302Bradford Insulation Industries, see CSRBridgestone Corporation 307Byucksan Corporation 309CertainTeed, see Saint-GobainCRH plc 310CSR Limited 312Dow Chemical Company 314Finetec Corporation 319Firestone Building Products, see BridgestoneFletcher Building Limited 320Hood Companies 322Huntsman Corporation 324Italmobiliare SpA 326Johns Manville, see Berkshire HathawayKCC Corporation 328Kingspan Group plc 329Knauf Gips KG 332NICHIAS Corporation 336Ningbo Firewheel Thermal Insulation &Sealing Company Limited 338Nitto Boseki Company Limited 339Norisol A/S 340Owens Corning 342Paroc Group Oy AB 347PENOPLEX St. Petersburg Limited 349Recticel SA 350Rockfibras do Brasil Industria e Comercio Limitada 351Rockwool International A/S 353Roxul, see Rockwool International A/S
  8. 8. Saint-Gobain 357Siam Cement Public Company Limited 364Sirap Insulation, see ItalmobiliareSto AG 366Styron LLC 368swisspor Management AG 369TechnoNICOL Corporation 371Thermafiber Incorporated 373Uralita SA 375Ursa Insulation, see UralitaSECTION I -- EXECUTIVE SUMMARYSummary Table 3SECTION II -- MARKET ENVIRONMENT1 World Gross Domestic Product by Region 112 World Population by Region 133 World Urban Population by Region 154 World Households by Region 175 World Fixed Capital Investment by Region 196 World Construction Expenditures by Region 217 World Residential Construction Expenditures by Region 238 World Nonresidential Construction Expenditures by Region 249 World Refrigerator & Freezer Shipments by Region 2610 Insulation R-Values by Material 30SECTION III --WORLD OVERVIEW1 World Insulation Demand by Insulating Capacity 482 World Insulation Demand by Value 543 World Insulation Production by Region 574 World Insulation Net Exports 59SECTION IV -- MATERIALS & MARKETS1 World Insulation Demand by Material 642 World Foamed Plastic Insulation Demand Value by Region 693 World Foamed Plastic Insulation Demand in Metric Tonsby Region & Market 714 World Fiberglass Insulation Demand Value by Region 775 World Fiberglass Insulation Demand in Metric Tonsby Region & Market 796 World Mineral Wool Insulation Demand Value by Region 837 World Mineral Wool Insulation Demand in Metric Tonsby Region & Market 858 World Other Insulation Demand Value by Region 899 World Other Insulation Materials Demand in Metric Tonsby Region & Market 91
  9. 9. 10 World Insulation Demand by Market 93SECTION V -- NORTH AMERICA1 North America: Market Environment for Insulation 982 North America: Insulation Supply & Demand 1013 United States: Market Environment for Insulation 1034 United States: Insulation Supply & Demand 1065 Canada: Market Environment for Insulation 1086 Canada: Insulation Supply & Demand 1107 Mexico: Market Environment for Insulation 1128 Mexico: Insulation Supply & Demand 115SECTION VI -- WESTERN EUROPE1 Western Europe: Market Environment for Insulation 1182 Western Europe: Insulation Supply & Demand 1213 Germany: Market Environment for Insulation 1234 Germany: Insulation Supply & Demand 1265 France: Market Environment for Insulation 1286 France: Insulation Supply & Demand 1317 Italy: Market Environment for Insulation 1338 Italy: Insulation Supply & Demand 1369 United Kingdom: Market Environment for Insulation 13810 United Kingdom: Insulation Supply & Demand 14011 Spain: Market Environment for Insulation 14212 Spain: Insulation Supply & Demand 14513 Netherlands: Market Environment for Insulation 14714 Netherlands: Insulation Supply & Demand 14915 Other Western Europe: Market Environment for Insulation 15116 Other Western Europe: Insulation Supply & Demand 15417 Other Western Europe: Insulation Demand by Country 155SECTION VII -- ASIA/PACIFIC1 Asia/Pacific: Market Environment for Insulation 1612 Asia/Pacific: Insulation Supply & Demand 1643 China: Market Environment for Insulation 1664 China: Insulation Supply & Demand 1695 Japan: Market Environment for Insulation 1716 Japan: Insulation Supply & Demand 1747 India: Market Environment for Insulation 1768 India: Insulation Supply & Demand 1789 South Korea: Market Environment for Insulation 18010 South Korea: Insulation Supply & Demand 18311 Australia: Market Environment for Insulation 18512 Australia: Insulation Supply & Demand 18713 Indonesia: Market Environment for Insulation 189
  10. 10. 14 Indonesia: Insulation Supply & Demand 19215 Taiwan: Market Environment for Insulation 19416 Taiwan: Insulation Supply & Demand 19717 Thailand: Market Environment for Insulation 19918 Thailand: Insulation Supply & Demand 20119 Other Asia/Pacific: Market Environment for Insulation 20320 Other Asia/Pacific: Insulation Supply & Demand 20621 Other Asia/Pacific: Insulation Demand by Country 207SECTION VIII -- OTHER REGIONS1 Central & South America: Market Environment for Insulation 2112 Central & South America: Insulation Supply & Demand 2133 Brazil: Market Environment for Insulation 2154 Brazil: Insulation Supply & Demand 2185 Other Central & South America: Market Environmentfor Insulation 2206 Other Central & South America: Insulation Supply& Demand 2227 Other Central & South America: Insulation Demandby Country 2238 Eastern Europe: Market Environment for Insulation 2269 Eastern Europe: Insulation Supply & Demand 22910 Russia: Market Environment for Insulation 23111 Russia: Insulation Supply & Demand 23412 Poland: Market Environment for Insulation 23613 Poland: Insulation Supply & Demand 23814 Other Eastern Europe: Market Environment for Insulation 24015 Other Eastern Europe: Insulation Supply & Demand 24316 Other Eastern Europe: Insulation Demand by Country 24417 Africa/Mideast: Market Environment for Insulation 24718 Africa/Mideast: Insulation Supply & Demand 25019 Turkey: Market Environment for Insulation 25220 Turkey: Insulation Supply & Demand 25421 Other Africa/Mideast: Market Environment for Insulation 25622 Other Africa/Mideast: Insulation Supply & Demand 25923 Other Africa/Mideast: Insulation Demand by Country 260SECTION IX -- INDUSTRY STRUCTURE1 World Insulation Sales by Company, 2011 2652 Selected Acquisitions & Divestitures 2783 Selected Cooperative Agreements 280LIST OF CHARTSSECTION III --WORLD OVERVIEW1 Insulation Demand Per Capita/Fixed Investment Per Capita
  11. 11. Relationship, 2011 502 World Insulation Demand by Region, 2011 55SECTION IV -- MATERIALS & MARKETS1 World Insulation Demand by Material, 2011 652 World Foamed Plastic Insulation Demand by Region, 2011 723 World Fiberglass Insulation Demand by Region, 2011 804 World Mineral Wool Insulation Demand by Region, 2011 865 World Other Insulation Materials Demand by Region, 2011 92SECTION IX -- INDUSTRY STRUCTURE1 World Insulation Market Share, 2011 267Contact: for more information.