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US Building Thermal Insulation Market

ID: MRFR/PCM/16387-HCR
111 Pages
Snehal Singh
October 2025

US Building Thermal Insulation Market Research Report: By Material Type (Fiberglass, Foam Board, Mineral Wool, Cellulose, Reflective Insulation), By Application (Exterior Insulation, Interior Insulation, Roof Insulation, Floor Insulation, Cavity Wall Insulation), By End Use (Residential, Commercial, Industrial) and By Form (Batts and Rolls, Foam Boards, Spray Foam, Rigid Boards) - Forecast to 2035

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US Building Thermal Insulation Market Summary

As per MRFR analysis, the US building thermal-insulation market size was estimated at 5.64 USD Billion in 2024. The US building thermal-insulation market is projected to grow from 5.87 USD Billion in 2025 to 8.82 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 4.15% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The US building thermal-insulation market is experiencing a shift towards sustainability and innovation.

  • The market is witnessing a notable increase in the adoption of sustainable materials, reflecting a broader trend towards environmental responsibility.
  • Technological innovations in insulation materials are enhancing performance and efficiency, driving interest among consumers and builders alike.
  • Regulatory influences are shaping market dynamics, as stricter building codes and standards promote higher insulation requirements.
  • Key market drivers include energy efficiency initiatives and rising construction activities, which are propelling demand for advanced thermal-insulation solutions.

Market Size & Forecast

2024 Market Size 5.64 (USD Billion)
2035 Market Size 8.82 (USD Billion)

Major Players

Saint-Gobain (FR), Rockwool International (DK), Owens Corning (US), Kingspan Group (IE), BASF SE (DE), Johns Manville (US), Knauf Insulation (DE), Armacell International (DE), GAF Materials (US)

US Building Thermal Insulation Market Trends

The building thermal-insulation market is currently experiencing a notable transformation, driven by a growing emphasis on energy efficiency and sustainability. As energy costs continue to rise, stakeholders are increasingly prioritizing insulation solutions that not only enhance thermal performance but also contribute to reduced energy consumption. This shift is further supported by regulatory frameworks that advocate for improved building standards, thereby fostering a competitive landscape for innovative insulation materials. The market appears to be gravitating towards eco-friendly options, which may include recycled materials and bio-based products, reflecting a broader trend towards environmental responsibility. In addition, advancements in technology are likely to play a pivotal role in shaping the future of the building thermal-insulation market. Emerging materials, such as aerogels and phase change materials, are gaining traction due to their superior thermal properties. These innovations could potentially redefine insulation applications across various building types, from residential to commercial. Furthermore, the increasing awareness of indoor air quality and its correlation with insulation materials suggests a growing demand for solutions that not only insulate but also promote healthier living environments. Overall, the market is poised for growth, driven by a combination of regulatory support, technological advancements, and evolving consumer preferences.

Sustainable Materials Adoption

There is a discernible trend towards the adoption of sustainable materials within the building thermal-insulation market. Stakeholders are increasingly seeking insulation solutions that utilize recycled or bio-based components, aligning with broader environmental goals. This shift not only addresses energy efficiency but also mitigates the ecological footprint of construction activities.

Technological Innovations

Technological advancements are significantly influencing the building thermal-insulation market. New materials, such as aerogels and phase change materials, are emerging, offering enhanced thermal performance. These innovations may lead to more efficient insulation solutions, catering to diverse building requirements and improving overall energy management.

Regulatory Influence

Regulatory frameworks are playing a crucial role in shaping the building thermal-insulation market. Stricter building codes and energy efficiency standards are prompting stakeholders to invest in high-performance insulation solutions. This regulatory influence is likely to drive market growth, as compliance becomes essential for new construction and renovation projects.

US Building Thermal Insulation Market Drivers

Energy Efficiency Initiatives

The growing emphasis on energy efficiency in the building thermal-insulation market is driven by both consumer demand and regulatory frameworks. In the US, energy-efficient buildings are increasingly prioritized, with the Department of Energy promoting initiatives that encourage the use of high-performance insulation materials. This trend is reflected in the market, where the demand for insulation products that meet or exceed energy codes is rising. As of 2025, the market is projected to grow at a CAGR of approximately 6.5%, indicating a robust shift towards energy-efficient solutions. The building thermal-insulation market is thus positioned to benefit from these initiatives, as builders and homeowners seek to reduce energy consumption and lower utility costs.

Rising Construction Activities

The resurgence of construction activities in the US is a pivotal driver for the building thermal-insulation market. With the construction sector experiencing a notable uptick, the demand for insulation materials is expected to rise correspondingly. According to recent data, the construction industry is projected to grow by 5% annually, leading to increased investments in residential and commercial buildings. This growth is likely to stimulate the demand for effective thermal insulation solutions, as builders aim to enhance energy efficiency and comply with building codes. Consequently, the building thermal-insulation market is poised to capitalize on this trend, as more projects incorporate advanced insulation technologies to meet performance standards.

Government Incentives and Rebates

Government incentives and rebates play a crucial role in promoting the adoption of insulation solutions within the building thermal-insulation market. Various federal and state programs offer financial incentives for homeowners and builders who invest in energy-efficient insulation products. These initiatives are designed to encourage the use of materials that reduce energy consumption and greenhouse gas emissions. As of 2025, it is estimated that such programs could lead to a 15% increase in insulation installations across residential and commercial sectors. Consequently, the building thermal-insulation market stands to benefit from these financial incentives, as they lower the upfront costs associated with high-performance insulation solutions.

Consumer Awareness and Preferences

Consumer awareness regarding energy conservation and environmental sustainability is significantly influencing the building thermal-insulation market. As homeowners become more informed about the benefits of insulation, including reduced energy bills and improved comfort, the demand for high-quality insulation products is likely to increase. Surveys indicate that over 70% of consumers prioritize energy-efficient features when selecting building materials. This shift in consumer preferences is prompting manufacturers to innovate and offer products that align with these values. The building thermal-insulation market is thus adapting to meet the evolving expectations of consumers, which may lead to increased market penetration of eco-friendly insulation solutions.

Technological Advancements in Insulation Materials

Technological advancements are reshaping the landscape of the building thermal-insulation market. Innovations in material science have led to the development of advanced insulation products that offer superior thermal performance and durability. For instance, the introduction of aerogel and vacuum insulation panels has revolutionized the market by providing exceptional insulation properties in thinner profiles. These advancements not only enhance energy efficiency but also contribute to space-saving designs in modern construction. As technology continues to evolve, the building thermal-insulation market is likely to witness increased adoption of these cutting-edge materials, further driving growth and improving overall building performance.

Market Segment Insights

By Material Type: Fiberglass (Largest) vs. Foam Board (Fastest-Growing)

In the US building thermal-insulation market, the material type segment is characterized by a diverse range of insulation materials. Fiberglass leads the market due to its affordability and efficiency, holding a significant share among thermal insulation materials. Foam Board, while currently smaller in market share, is gaining traction rapidly owing to its superior thermal properties and ease of installation, positioning itself as a future leader in this segment. The growth trends in this segment are influenced by increasing construction activities and stricter energy conservation regulations. Fiberglass remains popular in residential applications, but Foam Board is emerging due to its effectiveness in reducing energy consumption, especially in commercial buildings. Other materials like Mineral Wool, Cellulose, and Reflective Insulation are also part of the evolving landscape, each catering to specific market demands and sustainability goals.

Fiberglass (Dominant) vs. Foam Board (Emerging)

Fiberglass remains the dominant player in the US building thermal-insulation market, prized for its cost-effectiveness and thermal insulation qualities. It is widely used in both residential and commercial settings due to its versatility and performance. On the other hand, Foam Board is an emerging alternative that boasts excellent insulation capabilities in a thinner profile, making it ideal for applications where space is at a premium. As sustainability becomes a priority in construction, Foam Board is increasingly chosen for its lower environmental impact and superior efficiency in energy saving. While Fiberglass is well-established, the upward trend of Foam Board signals a shift in market preference towards more advanced materials, indicating a dynamic evolution in insulation choices.

By Application: Exterior Insulation (Largest) vs. Roof Insulation (Fastest-Growing)

In the US building thermal-insulation market, the application segment is led by exterior insulation, which captures a significant market share due to its effectiveness in reducing energy loss and stabilizing indoor temperatures. Other segment values such as interior insulation, floor insulation, cavity wall insulation, and roof insulation also play important roles, but they contribute less to the total market share compared to exterior insulation. Roof insulation, however, is gaining traction due to increasing emphasis on energy efficiency and sustainable building practices. Growth trends in the US building thermal-insulation market are driven by several factors, including advancements in insulation technologies and a shift toward eco-friendly materials. The rising demand for energy-efficient buildings and stringent building codes are propelling the growth of all segments within the application category. Among these, roof insulation is emerging as the fastest-growing segment, as more builders focus on integrating insulated roofs to enhance overall building performance and reduce energy costs.

Exterior Insulation (Dominant) vs. Roof Insulation (Emerging)

Exterior insulation stands out as the dominant segment in the US building thermal-insulation market due to its wide-ranging applications in various types of structures. It effectively reduces energy costs and provides enhanced comfort through superior thermal performance. However, roof insulation is gaining ground as an emerging segment, catering to the increasing need for sustainable building solutions. Its growth is fueled by innovations in materials and technologies that offer higher R-values and better moisture resistance, making it a preferred choice for energy-conscious builders. Both segments are critical in shaping the market landscape, with exterior insulation maintaining a strong position while roof insulation rapidly evolves.

By End Use: Residential (Largest) vs. Commercial (Fastest-Growing)

The US building thermal-insulation market is predominantly driven by the residential segment, which accounts for a significant share due to the increasing demand for energy-efficient solutions in homes. The commercial segment, while smaller in comparison, is rapidly expanding as businesses seek sustainable construction practices and energy savings. Growth in the residential sector is fueled by rising awareness of energy consumption and stringent building codes promoting thermal efficiency. In contrast, the commercial segment's fastest growth can be attributed to urbanization and the rise of green building initiatives, with many businesses prioritizing energy efficiency for cost savings and regulatory compliance.

Residential (Dominant) vs. Commercial (Emerging)

The residential segment is characterized by its comprehensive adoption of various insulation materials and technologies aimed at enhancing energy efficiency and comfort in homes. This segment benefits from strong consumer awareness regarding energy costs and sustainability, leading to consistent demand. The commercial segment, meanwhile, is emerging with innovations tailored for larger buildings, emphasizing unyielding performance in energy management. It is adapting to market needs, including regulations that favor energy-efficient upgrades. Both segments demonstrate potential for growth, with the residential market stabilizing as the dominant force while commercial applications rapidly evolve to capitalize on modern construction trends.

By Form: Spray Foam (Largest) vs. Batts and Rolls (Fastest-Growing)

In the US building thermal-insulation market, the segment values exhibit a diverse distribution in market share. Spray Foam holds the largest market share due to its excellent thermal performance and versatility in application. Batts and Rolls, while currently holding a smaller share, are rapidly gaining ground and attracting interest from eco-conscious builders and homeowners seeking sustainable insulation options. This evolving demand highlights the significant shifts happening within the market. In terms of growth trends, Batts and Rolls are emerging as the fastest-growing option as energy efficiency regulations become more stringent. Meanwhile, spray foam continues to dominate the market due to its superior insulation properties and ease of installation, driving its adoption in both residential and commercial projects. The ongoing emphasis on energy conservation is further propelling the popularity of all forms of insulation, indicating a positive outlook for the entire segment.

Spray Foam (Dominant) vs. Batts and Rolls (Emerging)

Spray Foam is recognized as the dominant form of insulation in the US building thermal-insulation market, celebrated for its superior air sealing capabilities and high R-value per inch. This segment appeals particularly to new constructions and renovations where efficiency is paramount. On the other hand, Batts and Rolls are positioned as an emerging favorite for both builders and homeowners, largely driven by their affordability and ease of installation. While Spray Foam is selected for its high performance, Batts and Rolls offer a competitive, sustainable alternative that meets the growing demand for eco-friendly building materials. Each segment plays a crucial role in meeting diverse insulation needs in various building projects.

Get more detailed insights about US Building Thermal Insulation Market

Key Players and Competitive Insights

The building thermal-insulation market is currently characterized by a dynamic competitive landscape, driven by increasing energy efficiency regulations and a growing emphasis on sustainable construction practices. Major players such as Owens Corning (US), Rockwool International (DK), and BASF SE (DE) are strategically positioning themselves through innovation and regional expansion. Owens Corning (US) focuses on enhancing its product portfolio with advanced insulation solutions, while Rockwool International (DK) emphasizes sustainability in its manufacturing processes. BASF SE (DE) is leveraging its extensive research capabilities to develop high-performance insulation materials, collectively shaping a competitive environment that prioritizes technological advancement and environmental responsibility.

Key business tactics within this market include localizing manufacturing and optimizing supply chains to enhance responsiveness to regional demands. The competitive structure appears moderately fragmented, with several key players exerting influence over market dynamics. This fragmentation allows for niche players to thrive, while larger companies leverage economies of scale to maintain competitive pricing and innovation.

In October 2025, Owens Corning (US) announced the launch of a new line of eco-friendly insulation products designed to meet stringent energy efficiency standards. This strategic move not only aligns with current sustainability trends but also positions the company to capture a growing segment of environmentally conscious consumers. The introduction of these products is likely to enhance Owens Corning's market share and reinforce its commitment to sustainable building practices.

In September 2025, Rockwool International (DK) expanded its manufacturing capabilities in the US by opening a new facility dedicated to producing high-performance insulation materials. This expansion is significant as it not only increases production capacity but also reduces lead times, thereby improving supply chain efficiency. Such strategic investments indicate Rockwool's intent to solidify its presence in the North American market and respond effectively to rising demand for insulation solutions.

In August 2025, BASF SE (DE) entered into a strategic partnership with a leading construction firm to develop innovative insulation solutions tailored for commercial buildings. This collaboration is indicative of a broader trend towards strategic alliances that enhance product development and market reach. By aligning with industry leaders, BASF is likely to accelerate its innovation pipeline and gain access to new customer segments.

As of November 2025, current competitive trends in the building thermal-insulation market are increasingly defined by digitalization, sustainability, and the integration of AI technologies. Strategic alliances are becoming more prevalent, allowing companies to pool resources and expertise to drive innovation. The competitive differentiation is expected to evolve from traditional price-based competition towards a focus on technological advancements, product innovation, and supply chain reliability, reflecting a broader shift in market dynamics.

Key Companies in the US Building Thermal Insulation Market market include

Industry Developments

The US Building Thermal Insulation Market has experienced significant developments recently, particularly with ongoing advancements in energy efficiency standards mandated by government regulations. In September 2023, Dow Chemical announced its focus on sustainable insulation solutions, capitalizing on the demand from the residential construction sector. Companies like Owens Corning and CertainTeed are expected to lead with innovative product developments that meet the heightened energy efficiency requirements. Additionally, in July 2023, Knauf Insulation launched a new line of eco-friendly insulation materials, reinforcing its commitment to environmental sustainability.

The market is also seeing a shift towards using recycled materials in insulation products, with companies like Rockwool International making strides to enhance their product offerings. Furthermore, in August 2023, BASF acquired a regional insulation provider, strengthening its market position and expanding its portfolio of thermal insulation solutions. The continued emphasis on building energy performance has led to overall growth in the market valuation of major players, such as 3M and Johns Manville, enhancing competition and pushing innovation. Over the last two to three years, the focus on energy-efficient buildings has consistently shaped the US Building Thermal Insulation Market dynamics.

Future Outlook

US Building Thermal Insulation Market Future Outlook

The building thermal-insulation market is projected to grow at 4.15% CAGR from 2024 to 2035, driven by energy efficiency regulations, rising construction activities, and technological advancements.

New opportunities lie in:

  • Development of eco-friendly insulation materials for sustainable building projects.
  • Integration of smart insulation technologies for energy management systems.
  • Expansion into retrofitting services for existing buildings to enhance energy efficiency.

By 2035, the market is expected to achieve robust growth, driven by innovation and sustainability.

Market Segmentation

US Building Thermal Insulation Market Form Outlook

  • Batts and Rolls
  • Foam Boards
  • Spray Foam
  • Rigid Boards

US Building Thermal Insulation Market End Use Outlook

  • Residential
  • Commercial
  • Industrial

US Building Thermal Insulation Market Application Outlook

  • Exterior Insulation
  • Interior Insulation
  • Roof Insulation
  • Floor Insulation
  • Cavity Wall Insulation

US Building Thermal Insulation Market Material Type Outlook

  • Fiberglass
  • Foam Board
  • Mineral Wool
  • Cellulose
  • Reflective Insulation

Report Scope

MARKET SIZE 2024 5.64(USD Billion)
MARKET SIZE 2025 5.87(USD Billion)
MARKET SIZE 2035 8.82(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR) 4.15% (2024 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Billion
Key Companies Profiled Saint-Gobain (FR), Rockwool International (DK), Owens Corning (US), Kingspan Group (IE), BASF SE (DE), Johns Manville (US), Knauf Insulation (DE), Armacell International (DE), GAF Materials (US)
Segments Covered Material Type, Application, End Use, Form
Key Market Opportunities Integration of advanced materials enhances energy efficiency in the building thermal-insulation market.
Key Market Dynamics Rising demand for energy-efficient solutions drives innovation and competition in the building thermal-insulation market.
Countries Covered US

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FAQs

What is the expected market size of the US Building Thermal Insulation Market in 2024?

The US Building Thermal Insulation Market is expected to be valued at 4.75 billion USD in 2024.

What is the projected market value for the US Building Thermal Insulation Market by 2035?

By 2035, the market is anticipated to reach a valuation of 6.5 billion USD.

What is the expected CAGR for the US Building Thermal Insulation Market between 2025 and 2035?

The expected Compound Annual Growth Rate (CAGR) for the market from 2025 to 2035 is 2.892%.

Which material type is expected to dominate the US Building Thermal Insulation Market in 2024?

The Fiberglass segment is expected to dominate the market with a valuation of 1.4 billion USD in 2024.

What will the value of the Foam Board segment be in 2035?

The Foam Board segment is projected to be valued at 1.6 billion USD by 2035.

Who are the key players in the US Building Thermal Insulation Market?

Key players include Dow Chemical, Owens Corning, Knauf Insulation, and Rockwool International, among others.

What is the expected market size for the Mineral Wool segment in 2024?

The Mineral Wool segment is expected to reach a market size of 1.0 billion USD in 2024.

What challenges may affect the growth of the US Building Thermal Insulation Market?

Challenges may include fluctuating raw material prices and increasing regulatory standards affecting material use.

What is the projected market value for the Cellulose segment in 2035?

The Cellulose segment is expected to be valued at 1.0 billion USD in 2035.

How does reflective insulation compare in market size from 2024 to 2035?

Reflective insulation is projected to increase from 0.5 billion USD in 2024 to 0.75 billion USD by 2035.

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