The market is driven by the rising demand for insulation materials in the energy and power sector using renewable energy sources worldwide. Insulation materials are used in the solar collectors to prevent loss of accumulated heat and improve absorption efficiency. According to the International Renewable Energy Agency Organization in 2018, the global solar photovoltaic energy capacity was around 480GW and is projected to reach around 2840GW by 2030. Solar PV installation is increasing from around 114 billion per year in 2018 and is projected to reach 192 billion per year by 2050. Thus such huge investment in renewable energy and growing electricity demand all over the world will boost the insulation material market during the forecast period. According to the United Nations Industrial Development Organization (UNIDO), the global insulation market is growing with a compound annual growth rate (CAGR) of 8% from 2015 to 2020. It is expected to be around USD 65.0 billion in 2020.
The COVID-19 has a major impact on various industries, especially in the engineering and construction sector. The engineering and construction (E&C) projects are delayed or canceled due to global lockdown over the covid-19 pandemic. The supply chains are under threat as employee and subcontractor labor health is a major concern in the current situation. Several companies that have had to furlough workers might find the future availability and skills of those workers uncertain. As most construction and contracting companies operate without substantial capital reserves, the lockdowns' impact could force some to restructure debt, seek new capital sources, or risk insolvency. The COVID-19 could worsen before it gets better and impacts the insulation materials badly over the next few years. According to a survey, about 81% of CFOs consider cost reductions in response to the crisis, and 60% say they are planning to defer or cancel investments, particularly in areas such as facilities and CAPEX, operations, and workforce. COVID-19 has had profound economic consequences, and some of the vendors and subcontractors may not survive. Others may not be able to fulfill contracts right now. Overseas suppliers may be especially prone to delays. For many E&C companies, it is an extraordinary challenge to obtain visibility into and manages their supply chains' behaviors at the site level. The various restrictions put in place by the Governments to control the effects of the virus may trigger a shortage of raw material and workforce, disrupting the supply chain, further creating challenges to the market's growth.
There is rising adoption of eco-friendly building codes to minimize power consumption by up to 50% with the aid of novel construction materials in developing countries, which is expected to create numerous opportunities for insulation materials over the forecast period. Several developing countries are investing in initiatives to keep up with new energy standards cut down pollution in thermal energy processes. These trends will positively impact the insulation materials creating more opportunities for manufacturers. Also, the use of advanced software like BIM (Building Information Modeling) and more prevalent use of drones, simulations, Augmented Reality, 3D printing, and others could increase construction efficiency, which improves the minimizing of waste. On the one hand, this could lower the demand for construction CAMs (because of lower waste generation). Still, on the other hand, this could open new opportunities for chemicals companies. For instance, because of the increasing use of 3D printing in constructing residential dwellings, 3D printing–compatible chemicals and materials are expected to be in high demand and experience higher growth. Its projected 3D printing market could grow from $40 million in 2016 to $40 billion by 2027. A few chemical companies have recently acquired companies in the 3D printing space and kickstarted joint development efforts with some 3D printing startups due to these growth predictions.
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