Cleveland, Ohio — Demand for insulation materials in China is projected to grow 9.4 percent per annum through 2016 to Yuan 65.7 billion ($10.56 billion), driven by continued increases in construction and output in the manufacturing sector.
But new research by Cleveland, Ohio-based The Freedonia Group Inc. says that demand for fibreglass and mineral wool will post faster growth than demand for foamed plastics in the forecast period, benefiting from their better fire retardance.
Freedonia says.foamed plastics will continue to dominate the Chinese insulation market, accounting for more than four-fifths of demand (by value) in 2016. Foamed plastics' high insulating value, moisture resistance, and ease of installation will continue to support demand gains going forward.
Generally, "further growth will be spurred by changes in building codes to reduce energy consumption in building applications as well as efforts to reduce energy use in manufacturing processes," the report says,
These trends and supporting data appear in 'Insulation in China,' a new study from Freedonia's Beijing office.
Building markets will continue to account for more than two-fifths of China's total insulation demand, Freedonia says, with residential and nonresidential segments expanding at 10 percent per year through 2016.
New multifamily housing starts, "driven in large part by China's continuing urbanisation, and strong fixed investment activity in office, commercial, institutional, and other highly insulated structures such as power and petrochemical plants will boost market gains for insulation materials," the group adds.
Freedonia also points out that improvement and replacement of insulation in existing housing in order to raise energy efficiency, as well as to enhance comfort, will continue to promote market gains. Concerns about energy loss will lead to growth in all markets as the intensity of use of insulation increases.
Demand for insulation in the industrial and HVAC (heating, ventilation and air-conditioning) equipment market will rise 8.4 percent per year through 2016, trailing overall growth. Strong increases in investment in industrial and HVAC equipment as a result of continued industrialisation in China will boost demand.
Efforts to reduce energy consumption and costs in these applications — by both producers and the government — will also spur growth in this market. Demand in other markets will be driven by rapidly expanding output of insulation-containing appliances (refrigerators and freezers) and transport equipment.
Insulation demand in China 2006-2011
billion yuan Annual growth
Item 2006 2011 2016 2006-2011 2011- 2016
Insulation demand 17.5 41.9 65.7 19.1 9.4
Foamed plastic 13.9 34.3 53.6 19.8 9.3
Fibreglass 1.2 2.4 3.9 14.5 9.8
Mineral wool 1.0 2.4 4.0 19.1 10.8
Other products 1.4 2.8 4.2 15.0 8.8
The 209 page report is available for $5400 from The Freedonia Group, Inc., see www.freedoniagroup.com for more information.