WORLD INSULATION

World demand to rise 5% annually through 2018
Through 2018, global demand for insulation is projected to advance five percent annually to nearly 25 billion square meters of R-1 value, a significant increase from the rate of the 2008-2013 period. In developing countries, rising building construction and industrial activity will lead to increased demand for insulation. In many high-income countries, insulation demand is expected to rebound from declines during the 2008-2013 period that were caused in part by sharp declines in housing construction. Also, government efforts to reduce energy consumption will lead to the adoption of new building codes that require increased insulation usage.

Residential construction to be demand driver
Strong growth in residential building construction activity will be the primary driver of demand worldwide. In North America alone, demand for insulation in residential construction applications will grow over five percent per year through 2018, primarily due to a partial recovery in housing construction in the US. In Western Europe, government efforts to encourage insulation use in order to lower energy consumption will boost insulation demand in many West European countries. Rural-to-urban migration in many developing countries in the Asia/Pacific, Africa/Mideast, and Central and South America regions will stimulate building activity in urban areas, and therefore insulation demand. Additionally, rising per capita incomes will encourage the use of modern building techniques and materials, such as insulation. Some countries in these areas are expected to adopt minimum insulation requirements for buildings, further contributing to demand gains.

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