US demand for insulation is forecast to increase by 7.6% annually in the period up to 2017, when it will reach USD 10.3 bn, according to a recently published report, “Insulation”, from market researcher Freedonia (Cleveland, Ohio / USA; www.freedonia.com). The study says that growth will be boosted from a general increase in building construction spending from a low 2012 base and a strong rebound in housing starts. Gains will also result from changes in building codes and construction practices that call for structures to use energy more efficiently and spur construction professionals to add more insulation to reduce energy consumption.

Foamed plastic insulation accounted for the second largest share of the market in 2012 and demand is forecast to grow almost 7% annually, reaching to USD 4.6 bn in 2017. Glass fibre had the largest share, at just under half of insulation demand by value in 2012, and is forecast to remain market leader up to 2017, with demand reaching USD 5 bn.

Freedonia analyst Matt Zielenski said: “Not only will more houses be erected, but builders will install more insulation per new structure to comply with the 2012 International Energy Conservation Code.” Residential insulation demand will also be supported by efforts to upgrade insulation in existing houses, as homeowners opt to reduce utility bills by adding insulation to attics and walls, and by sealing gaps to prevent air leaks.

Demand for insulation in the non-residential market will see solid growth up to 2017, with increasing building construction, particularly in the office and commercial segments. Advances will be further boosted by increasing interest in green building practices, such as those included in the US Leadership in Energy and Environmental Design (LEED) rating system, that call for the use of more efficient insulation.