The global pipe insulation market topped out at more than $8.5billion in 2018, with a CAGR of 3.6% projected over the next five years.
Here in the Middle East, a growing oil and gas industry is driving market expansion, while the need for developers to think more critically about how they regulate the flow of gas and liquids is pushing innovation in the sector.
Whether it be protecting pipes from corrosion, avoiding leakage, or managing thermal elements of a supply line, a broad range of products utilising foamed plastic, elastomeric foam, fibre glass, and mineral wool among other insulators is boosting the market.
A report by Market Research Future states: “Stringent regulatory standards in developed economies are also supporting the global pipe insulation market.
“Increasing awareness about the increased durability of pipelines upon the usage of pipe insulation is further boosting the product market.
“Furthermore, rapid industrialisation in Asia-Pacific is also expected to provide growth impetus to the product market during the forecast period.”
However, the price of raw materials plays a significant role in the success of the pipe insulation market, and any fluctuation in the cost of crude oil can create a hindrance to growth.
That said, the Middle East and Africa is a region that should realise consistent growth.
The report continued: “The Middle East and Africa is expected to exhibit significant demand for pipe insulation during the forecast period. End-use industries such as oil and gas, and food and beverages are providing a stable revenue source to the pipe insulation market.”
Similarly, the global HVAC insulation market is forecast to swell to $7bn by 2023 with a CAGR of 7.42%.
“Infrastructure investment is anticipated to grow in major developed and developing regions. This investment is subjected to the improvement of commodity prices and thus expected to boost the mining industry as well.
“The growing demand for energy efficient data centres in the technology sector is further expected to enhance the HVAC insulation market. The growing need for energy efficient construction and maintaining high sustainability of construction is driving the global HVAC insulation market across the globe."
However, in this instance the Middle East in particular is a region in which it is difficult to make concrete predictions for the market.
While data demonstrates that the market is indeed growing, surplus costs to a construction industry that lacks liquidity has been identified as a major barrier to growth.
“Developing infrastructure, the undeveloped market in this region, and continuously increasing demand for the product has driven the growth of the market,” added the report.
“However, the high cost of such technology and limited investment is expected to hinder market growth.”
Saint Gobain SA (France), PPG Industries (US), Owen Corning Corporation (US), Rockwool International (Denmark), Armacell International SA (Luxembourg), L’Isolante K-Flex (Italy), GlassRock (Egypt), Knauf Insulation (US), Fletcher Insulation (Australia), Kingspan Group (Ireland), and Kuwait Insulating Material Manufacturing Co (Kuwait) were all listed as key players of the global HVAC insulation market in the report.