The global polyisocyanurate insulation market is valued at USD 15.6 billion in 2025 and is expected to reach USD 24.3 billion by 2035, growing steadily at a compound annual growth rate (CAGR) of 4.5%. This growth reflects increasing demand for high-performance insulation materials across residential, commercial, and industrial sectors.
Rising construction activities worldwide, particularly in emerging economies, are driving the adoption of solutions prized for their superior thermal resistance and inherent fire-retardant properties. Moreover, a heightened focus on energy-efficient building practices aligned with global sustainability goals further accelerates expansion.
Looking ahead, the industry is likely to witness accelerated growth driven by evolving building codes that emphasize sustainability and energy conservation. Increasing investments in smart and green buildings across emerging economies are expected to create new opportunities for industry players. Furthermore, ongoing research into enhancing the environmental profile of insulation materials is likely to result in eco-friendly and cost-effective polyisocyanurate products.
Innovations such as bio-based polyols and improved manufacturing processes are expected to enhance product performance and reduce environmental impact. As awareness around climate change and energy efficiency intensifies globally, the industry is likely to expand its footprint across various end-use sectors during the forecast period, including new construction, retrofitting, and industrial applications.
Government regulations in the industry focus primarily on improving energy efficiency and ensuring safety standards in building materials. These regulations mandate minimum thermal performance requirements for insulation products to reduce energy consumption in residential and commercial buildings. Strict fire safety codes govern the use of insulation materials, requiring manufacturers to comply with flammability and smoke emission standards to ensure occupant safety.
Environmental guidelines also encourage the use of sustainable and low-impact materials, promoting the industry's transition towards greener production processes. Compliance with these regulations is essential for participants to meet legal requirements and gain acceptance in various regional environments, ultimately fostering innovation and elevating product quality standards across the industry.
| Metric | Value |
|---|---|
| Industry Size (2025E) | USD 15.6 billion |
| Industry Value (2035F) | USD 24.3 billion |
| CAGR (2025 to 2035) | 4.5% |
The industry is segmented by product type into liquid, spray, and rigid foam/board; by application into acoustic, thermal, and hybrid; by end-user into building & construction, automotive, consumer goods, and others (industrial equipment, packaging, and electronics); and by region into North America, Latin America, East Asia, South Asia Pacific, Western Europe, Eastern Europe, and the Middle East and Africa (MEA).
The rigid foam/board segment is the fastest-growing product type in the market, valued at USD 8.2 billion in 2025 and projected to reach around USD 13.8 billion by 2035, registering a strong CAGR of 5.2%. This growth is driven by its widespread application in commercial and residential construction, where superior thermal insulation, fire resistance, and compliance with stringent building codes are critical. Advancements in manufacturing processes have enhanced product performance, enabling broader adoption across regions.
Other product types, including spray and liquid insulation, are also growing but at slower rates. The spray segment is commonly used for retrofit projects due to its ease of application; however, it faces challenges such as higher labor costs and specialized equipment requirements.
The liquid segment serves niche applications requiring tailored insulation solutions, with a comparatively smaller share. Despite steady growth in these segments, rigid foam and board remain the most scalable and lucrative product types, presenting the greatest opportunity for value creation and broader expansion during the forecast period.
| Product Type | CAGR (2025-2035) |
|---|---|
| Rigid Foam/Board | 5.2% |
The thermal segment is the fastest-growing application in the market, valued at USD 10.4 billion in 2025 and expected to reach USD 17.5 billion by 2035, registering a CAGR of 5.3%. This growth is largely driven by increasing regulatory focus on energy efficiency, stricter building codes, and rising demand for superior thermal performance in new construction and retrofit projects worldwide.
Thermal insulation plays a crucial role in reducing energy consumption, making it the primary driver of growth in the industry. Other segments, such as hybrid and acoustic applications, are also expanding, though at a more moderate pace. The hybrid segment benefits from multifunctional insulation solutions that combine thermal and acoustic properties, appealing to customers seeking versatile materials. Meanwhile, the acoustic segment is gaining traction due to growing awareness of noise pollution and the demand for soundproofing in urban and commercial environments.
Although these segments are experiencing steady growth, they do not match the scale or momentum of the thermal insulation segment, which remains the most lucrative opportunity for manufacturers and investors during the forecast period.
| Application Segment | CAGR (2025-2035) |
|---|---|
| Thermal | 5.3% |
The building & construction segment is projected to be the fastest-growing end-user in the market, valued at USD 11.3 billion in 2025 and expected to reach USD 19.1 billion by 2035, registering a CAGR of 5.4%. Meanwhile, the automotive segment continues to expand steadily, supported by the acceleration of electric vehicle adoption and the emphasis on advanced thermal management technologies.
Demand within the consumer goods sector is also on the rise, driven by the increased use of insulation materials in household appliances to improve energy efficiency and performance. Other end-user industries, such as industrial equipment and packaging, are experiencing moderate growth as manufacturers seek to enhance product protection and temperature control across diverse applications.
These qualitative trends underscore the broad applicability of this advanced insulation material beyond its core construction role, highlighting its versatility in meeting energy conservation, sustainability, and performance demands across multiple sectors during the forecast period.
| End-User Segment | CAGR (2025-2035) |
|---|---|
| Building & Construction | 5.4% |
Rising Efforts to Reduce Carbon Footprint to Generate Demand. The market is primarily driven by the increasing demand for energy-efficient building solutions amid global efforts to reduce carbon footprints.
Governments and regulatory bodies across regions are enforcing stricter building codes and sustainability standards, making high-performance insulation materials like PIR essential for compliance.
Urbanization and industrial growth in emerging economies are fueling new construction and retrofit projects, further boosting demand. PIR insulation is favored for its excellent thermal resistance, fire retardancy, and moisture control, making it suitable for residential, commercial, and industrial applications.
Growing awareness among architects and builders about long-term energy savings and reduced utility costs strengthens the market. Additionally, expanding applications in HVAC systems, refrigerated storage, and cold chain logistics are broadening its usage, supporting steady market growth worldwide.
High Initial Cost May Deter Demand. Despite the product’s advantages, the market faces several restraints. The relatively high initial cost of PIR insulation compared to conventional materials such as fiberglass and mineral wool limits its adoption, especially in price-sensitive developing regions.
Production involves hazardous chemicals like isocyanates and polyols, raising environmental, health, and regulatory concerns that increase compliance costs and restrict manufacturing processes. Volatility in raw material prices, particularly petrochemical derivatives, adds to supply uncertainties and affects product affordability.
The requirement for skilled labor during installation may deter use in markets with limited expertise. Additionally, emerging alternative insulation materials offering competitive thermal performance at lower costs intensify market competition. Misconceptions about PIR’s fire safety in some markets further challenge broader acceptance.
Surging Product Innovations to Augment Uptake. The market offers promising opportunities driven by innovation and evolving construction trends. Development of eco-friendly PIR products using bio-based or recycled raw materials addresses environmental regulations and customer preferences, opening new sustainable market segments.
Technological advancements improving fire resistance, durability, and ease of installation enhance PIR’s appeal. The growing retrofit and renovation sector in mature economies presents opportunities for replacing outdated insulation with high-performance PIR solutions. Increasing focus on green building certifications like LEED and BREEAM globally promotes demand for efficient insulation.
Expanding applications into industrial insulation, cold chain logistics, and refrigeration provide additional growth avenues. Collaborations between PIR manufacturers and construction firms for integrated solutions also improve market penetration and customer loyalty.
Tightening Regulations May Deter Adoption. The market is exposed to several threats that could impede growth. Stringent regulations targeting chemicals used in PIR foam production may increase manufacturing costs or restrict formulations.
Competitive pressures from alternative insulation materials such as spray foam, expanded polystyrene, and natural fibers challenge PIR’s market share.
Economic downturns and reduced construction activities globally can lead to decreased demand. Supply chain disruptions, including raw material shortages and geopolitical tensions affecting petrochemical availability, pose risks to production stability and pricing.
Poor installation or misuse causing performance failures could damage PIR’s reputation and reduce customer confidence. Additionally, the shift toward circular economy principles requires significant R&D investments to develop fully recyclable PIR products, increasing operational complexity and cost.
The United States polyisocyanurate insulation market is projected to grow from USD 4.5 billion in 2025 to USD 7.0 billion by 2035, registering a CAGR of 4.8%. This growth is driven by stringent federal and state building codes that prioritize energy efficiency and fire safety, which mandate the use of high-performance insulation materials in both residential and commercial construction.
Government incentives for sustainable construction and green certifications encourage the widespread adoption of these practices. The construction industry's recovery following economic challenges, along with the increasing trend toward retrofitting existing buildings, helps sustain demand. Innovation in insulation formulations has enhanced thermal resistance and environmental compliance, differentiating products within the industry. Despite challenges such as raw material price volatility and regulatory compliance costs, the overall regulatory focus on carbon emissions reduction offsets these concerns.
The United States benefits from a mature supply chain and advanced research and development infrastructure, positioning it as a critical hub for long-term growth. Participants focusing on sustainability and innovation find significant opportunities in this established and evolving environment.
| Country | CAGR (2025-2035) |
|---|---|
| United States | 4.8% |
Germany’s polyisocyanurate insulation market is projected to grow from USD 1.8 billion in 2025 to USD 2.8 billion by 2035, registering a CAGR of 4.9%. This growth is driven by the country's strict energy efficiency regulations and the EU Green Deal's ambitious environmental targets. Building codes mandate the use of advanced insulation materials in both new constructions and renovations, stimulating expansion.
Germany's mature construction industry and leadership in sustainable building practices support the rising demand for high-performance insulation solutions. Increasing renovation and retrofitting activities, driven by stricter regulatory requirements, contribute significantly to overall growth. Government subsidies and incentives help offset costs, encouraging adoption across residential and commercial sectors.
While challenges such as cost sensitivities and evolving compliance landscapes persist, the country's technological advancements in insulation, combined with its strong industrial base, ensure continued appeal. Germany remains a key European hub for manufacturers focused on sustainability, regulatory alignment, and premium product performance.
| Country | CAGR (2025-2035) |
|---|---|
| Germany | 4.9% |
The United Kingdom’s polyisocyanurate insulation market is projected to grow from USD 1.2 billion in 2025 to USD 1.9 billion by 2035, registering a CAGR of 4.6%. The country's commitment to achieving net-zero carbon emissions by 2050 drives increased demand for energy-efficient insulation materials.
UK Building Regulations Part L enforces strict thermal performance standards for new and existing buildings, stimulating growth. Government funding programs for social housing upgrades and commercial building improvements provide additional momentum. A mature construction sector combined with rising consumer awareness about sustainability accelerates adoption.
Despite challenges related to Brexit-driven supply chain disruptions and rising raw material costs, innovation in low-global-warming-potential polyisocyanurate products supports continued expansion. Increasing retrofit activity and green building projects sustain demand, positioning the UK as a key player with steady growth potential in the insulation industry.
| Country | CAGR (2025-2035) |
|---|---|
| UK | 4.6% |
Demand for polyisocyanurate insulation in France is projected to grow from USD 0.9 billion in 2025 to USD 1.4 billion by 2035, registering a CAGR of 4.4%. The implementation of RE2020, the country's updated building energy regulation, imposes stricter thermal performance standards, driving the adoption of advanced insulation materials.
Government incentives and eco-label certifications encourage energy-efficient renovations and sustainable construction practices. Residential retrofits and commercial building projects contribute significantly to overall expansion. Investments in industrial infrastructure provide additional demand streams.
Challenges such as rising raw material costs and regulatory complexities exist, but France’s political commitment to carbon reduction and increasing environmental awareness support steady growth. Manufacturers focusing on sustainable, compliant products find France an important and promising destination within Europe.
| Country | CAGR (2025-2035) |
|---|---|
| France | 4.4% |
Demand for polyisocyanurate insulation in Japan is projected to grow from USD 1.1 billion in 2025 to USD 1.6 billion by 2035, registering a CAGR of 4.1%. The country's stringent energy conservation regulations, prompted by natural disasters and energy security concerns, drive demand for effective thermal insulation. Strict building codes and advanced construction technologies are promoting the use of polyisocyanurate in residential and commercial buildings.
Renovation of aging infrastructure alongside new developments supports steady growth. Challenges include a shrinking workforce and relatively high raw material costs, which may impact the speed of expansion. However, Japan's emphasis on sustainability and innovation in insulation materials ensures ongoing demand.
The mature landscape, characterized by steady yet moderate growth, continues to invest in enhancing building efficiency and reducing its carbon footprint. Participants focused on innovation and compliance find promising opportunities in this environment.
| Country | CAGR (2025-2035) |
|---|---|
| Japan | 4.1% |
The market has a moderately consolidated competitive landscape. GAF Materials Corporation leads, benefiting from its broad product portfolio, strong distribution network, and integrated supply chain. Firestone Building Products leverages Holcim Group’s global footprint and investment in product innovation.
Soprema Group’s growth is supported by its focus on sustainable insulation solutions and extensive European presence. Atlas Roofing Corporation’s growth is driven by its reputation in roofing and insulation products across North America. IKO Industries Ltd. capitalizes on its regional manufacturing and customer service strengths.
Leading players pursue growth through product innovation, capacity expansion, mergers and acquisitions, and geographic diversification. Investments in R&D focus on enhancing the thermal performance, fire retardancy, and environmental sustainability of polyisocyanurate products. M&A activities help expand technological capabilities and overall reach. Sustainability initiatives are prioritized to meet the increasing demands of both regulatory and consumer requirements for eco-friendly insulation.
Smaller-scale players compete by specializing in niche applications and regional areas, offering tailored products and flexible customer service. Their agility and localized production enable them to offer competitive pricing and specialized solutions, thereby adding diversity to the industry. The balance between the scale of large players and the specialization of smaller firms fuels innovation and overall growth.
Recent Polyisocyanurate InsulationIndustry News
| Attribute | Details |
|---|---|
| Current Total Market Size (2025) | USD 15.6 billion |
| Projected Market Size (2035) | USD 24.3 billion |
| CAGR (2025 to 2035) | 4.5% |
| Base Year for Estimation | 2024 |
| Historical Period | 2020-2024 |
| Projections Period | 2025-2035 |
| Report Parameter | Revenue in USD billion/volume in units |
| By Product Type | Liquid, Spray, and Rigid Foam/Board |
| By Application | Acoustic, Thermal, and Hybrid |
| By End-user | Building & Construction, Automotive, Consumer Goods, and Others (Industrial Equipment, Packaging, and Electronics) |
| Regions Covered | North America, Latin America, East Asia, South Asia Pacific, Western Europe, Eastern Europe, Middle East and Africa (MEA) |
| Countries Covered | United States, Germany, China, India, Canada, United Kingdom, France, Italy, Japan, South Korea |
| Key Players | GAF Materials Corporation, Firestone Building Products (Holcim Group), Soprema Group, Atlas Roofing Corporation, IKO Industries Ltd., Knauf Insulation, BASF SE, Dow Inc., Armacell International S.A., JSP Corporation |
| Additional Attributes | Dollar sales by value, market share analysis by region, and country-wise analysis |
The industry is expected to grow from USD 15.6 billion in 2025 to USD 24.3 billion by 2035 at a 4.5% CAGR.
Liquid, spray, and rigid foam/board are the primary product types covered.
Building and construction, automotive, consumer goods, and others (including industrial equipment, packaging, and electronics) are the main end-users.
North America, Latin America, East Asia, South Asia Pacific, Western Europe, Eastern Europe, and the Middle East and Africa (MEA) are all covered.
Key players include GAF Materials Corporation, Firestone Building Products (Holcim Group), Soprema Group, Atlas Roofing Corporation, IKO Industries Ltd., Knauf Insulation, BASF SE, Dow Inc., Armacell International S.A., and JSP Corporation.
Explore General & Advanced Materials Insights
Polyisocyanurate Insulation Market
Thank you!
You will receive an email from our Business Development Manager. Please be sure to check your SPAM/JUNK folder too.
