Advanced insulation materials market to reach $1.9 bn in 2019

Outside of building applications are driving the market for advanced insulation materials such as aerogels, vacuum insulation panels (VIPs), and phase change materials (PCMs), according to Lux Research. Collectively these applications are expected to grow over 17 percent annually reaching $1.9 billion in 2019, up from $849 million in 2014.
 
“Aerogels are powered largely by industrial equipment, beyond the already-tapped oil and gas sector, while vacuum insulation panels see strong growth in refrigeration and thermal packaging. Meanwhile, phase change materials are led by logistics, where their unique ability in temperature control makes them suitable for both hot and cold cargo,” said Jerrold Wang, Lux Research Associate and lead author of the report titled, ‘Mapping advanced insulation materials to markets: Assessing aerogel, vacuum insulation panel, and phase change material opportunities beyond building applications’.

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Industrial equipment accounted for 83% of the $177 million market for aerogels in 2014, with Aspen Aerogels and Cabot the leading players. As per Lux Research report, industrial equipment will continue to dominate for the next five years, with smaller innovative players likely to carve out niches.

 
Refrigeration and thermal packaging to enjoy strong growth of VIPs. Refrigeration held the lion’s share of the market for VIPs, 71.5 percent of a $297 million market in 2014, with companies such as OCI, Suzhou Wei Ai Pu, LG Electronics and Panasonic enjoying distinct advantages. Both refrigeration and thermal packaging will show strong growth, while industrial insulation faces technical barriers for vacuum insulation panels.

Logistics held a 42 percent share of the $375 million market for phase change materials in 2014, with thermal energy storage, textiles, and electronics the other major applications. Logistics and electronics will grow faster than the other two segments – the former due to growth of the food and pharma industries and the latter owing to technical progress in electronic devices.