Weatherization Services Market

Weatherization Services Market: Growing Awareness of Climate Change and Increasing Need to Reduce Energy Waste Fuelling Revenue Growth: Global Industry Analysis 2013 - 2017 and Opportunity Assessment 2018 - 2028

Introduction

The report covers comprehensive information about market trends, value (US$ Mn) projections, market dynamics, competition and recent developments in the Global Weatherization Services Market for the study period 2018 to 2028.

Weatherization services are cost-effective and energy-effective measures and include energy audit and building assessment, building envelopes, installation of heating and cooling systems and improving indoor air quality. The global weatherization services market is expected to reach over US$ 43 Bn by the end of forecast period while registering a CAGR of 3.8 % for the period between 2018 and 2028. The Weatherization Services Market includes insulation services for both new constructions as well as retrofitting (repair/maintenance) applications.

The scope of weatherization services market includes insulation installation services for materials, such as fiberglass, cellulose, injection foam and spray foam insulation and installation techniques, such as blow-in, sprayed, injected, loose-fill and blanket installations.  

Technological advancements, stringent regulations, development of green building technologies and regulations mandating the use of insulation materials to reduce building energy consumption are some of the factors expected to lay robust foundation for the growth of the global weatherization services market. The Weatherization services market across the globe is expected to grow and become 1.5X during the forecast period.

Residential Buildings to Be the Primary Growth Driver for the Global Weatherization Services Market

Recovery in the construction industry across the globe is being accelerated by the steady growth in population, which is resulting in growing demand for construction aggregates and materials, for both residential and non-residential buildings. This, in turn, will propel the growth of the weatherization services market across the globe. The U.S. Department of Energy (DOE) recognizes the enormous potential for improving energy efficiency, safety and comfort of the existing American homes.

According to DOE, heating & cooling (Space conditioning) accounts for about 50%-60% of the total energy consumption in an average American home. Hence, rising adoption of insulation in residential or home buildings is one of the major factors fueling the demand for insulation installations, consequently also contributing to the weatherization services market’s growth.

Growing Awareness and Importance of Energy Savings to Assist the Growth of the Global Weatherization Services Market

Energy resources are limited, every unit saved is equivalent to every unit produced and this is where the role of efficient weatherization services comes into play. An array of initiatives are being taken up by various states and federal governments across the globe to reduce CO2 emissions. More importantly, growing public awareness about climate change has proliferated the need for renewable energy systems and reducing energy waste.

This factor is positively impacting the Global weatherization services market. Further, to curb carbon dioxide emissions, the use of lightweight insulation materials with promising mechanical properties, such as stiffness, rigidity, elevated temperature durability and chemical resistance, is expected to increase. Thus, in order to gain competitive edge, key players are likely to invest significantly to develop high-performance insulation products in the weatherization services market.

Weatherization Services for Retrofitting Segment to Gain Traction by the End of the Forecast Period

Buildings consume about 40% of the total energy demand, of which about 50% – 60% is consumed by heating and cooling systems. Proper weatherization services can reduce the energy consumption by almost 30%. Residential construction across most of the developed regions, such as the U.S., the U.K., Germany, France, Spain, and other European Union countries, has aged. Most of the construction in these regions dates back to 1980s.

These infrastructures have inappropriate insulation and thus, will provide significant potential for the market participants in the weatherization services market. Moreover, it is estimated that renovation of buildings can reduce building energy consumption by 35% of the total. Further, the European Union targets to annually renovate 2% of its residential buildings and 3% of its central government buildings and thus, the aim of ‘near-zero-energy buildings’ is set to pave way for the weatherization services market’s growth in the years to come.

North America to Remain High Value High Growth Region in the Global Weatherization Services Market

In response to the growing demand for combating environmental challenges, environmental policymakers are enforcing stringent regulations and building codes. Increasing stringent building codes & energy regulations are expected to have a positive impact on the long-term growth of the North America weatherization services market. Moreover, the global economy is witnessing steady growth. However, rising energy insecurity will present challenges, which in turn, is expected to significantly contribute towards the growth of the weatherization services market.

North America region is expected to register 1.3X growth in the weatherization services market and will be followed by Western Europe and China weatherization services markets, in terms of value. Regions including South East Asia& Pacific (SEAP) and Middle East & Africa are expected to gain traction in the weatherization services market during the latter half of the forecast period owing to increasing adoption of building codes and stringent regulations coupled with growing awareness and need for energy saving. All the other regions are expected to exhibit moderate growth during the same period.

Western Europe dominated the global weatherization services market during 2017. However, over the course of the forecast period, the Western Europe weatherization services market is estimated to lose its dominance to North America weatherization services market.  Collectively, Western Europe and North America are projected to account for about 56% share in the global weatherization services market.

Key Developments in the Global Weatherization Services Market

Strategic positioning in local as well as national markets and introducing business lines is the key to success for weatherization services providers. By establishing strong position in regional markets, prominent market participants can decrease the price pressure created by regional players, which in turn, would help them to increase their profitability and also growth opportunities. The weatherization services market participants are emphasizing on increasing market share and enhancing their regional presence by adopting the strategy of mergers and acquisitions. For instance:

  • In May 2018, TopBuild Corp completed the acquisition of United Subcontractors Inc. with an investment of US$ 475 Mn, enhancing its product offerings and service capabilities across the weatherization services market
  • In October 2017, Insulated building products, Inc. acquired A+ Insulation, LLC, a insulation installation service provider of spray foam and fiberglass insulations

Furthermore, key players in the global weatherization services market can create significant opportunities through investments in product innovation and technological advancements. Service providers are also focused on improving operations to decrease operational costs and thus, increase profit margins.

Some of the prominent players covered in this market study on the Global weatherization services market include TopBuild Corp, Insulated building products, Inc., Builders FirstSource, Inc., Takashima & Co., Ltd., Dyson Energy Services Ltd., HomeWorks Energy, Inc., USA Insulation, Banker Insulation and Anderson Insulation.

Key Questions Answered in the Report

  • How has the weatherization services market evolved in the past four years?
  • What shape is the weatherization services market expected to take in terms of value during the study period?
  • What are some of the prevailing market dynamics in the weatherization services market?
  • What are some of the competition developments and trends affecting the weatherization services market?
  • What are some of the underlying macro-economic and industry factors impacting the growth of the weatherization services market?
  • What are the important key challenges, opportunities and improvement factors for weatherization services market players?
  • What are the important market positioning and key strategies of key service providers as per the weatherization services market taxonomy?
  • How the competition is structured at present and how has it evolved in the weatherization services market over the past few years?

Weatherization Services Market: Segmentation

Application

  • Attic Insulation
    • Cellulose
    • Fiberglass
    • Spray Foam
    • Foam Board
  • Sidewall Insulation
    • Cellulose
    • Boards/Panels
    • Fiberglass
    • Spray Foam
  • Floor Insulation
    • Thermoset Resin Board
    • Fiberglass
    • Spray Foam
    • HVAC
    • Fiberglass
    • Spray Foam
  • Doors & Windows Frame
  • Others

End User

  • Residential
  • Commercial & Institutional

Construction Type

  • Retrofit
  • New Construction

Region

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • South East Asia & pacific
  • China
  • Middle East and Africa
  • Japan & Korea

 

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