High Temperature Insulation Market worth $3.5 billion by 2016

Effective heat management and energy conservation in industrial processes is necessary due to increasing cost of power and the rapid depletion of conventional sources of energy. High temperature insulation products provides high compressive strength and low shrinkage at high temperatures and thus offer a cost-effective energy management solution for industrial processes.

The global HTI products market is as insulation products with an operating temperature exceeding 1000° C ,witnessing tremendous growth due to the increasing awareness about the energy saving, cost effectiveness and emission reduction offered by these products, and industrialization of emerging economies.

The high temperature insulation market (defined as insulation products with maximum operating temperature exceeding 1000° C) is estimated at $2.7 billion in 2011. Industrialization of emerging economies, the need for energy conservation and emission reduction, wide range of applications across petrochemical industry, and development of low bio persistent products are the major market drivers and opportunities and will influence the market size to grow by compounded annual growth rate (CAGR) of 5.4% during 2011 – 2016.

Prices of HTI product vary largely across geographies. In Asia, due to lower raw material and labor costs, prices are considerably less than that in North America and Europe. Prices of HTI product also change with increase in operating temperature. The change is predominant in North America and Europe where prices increase up to 10 - 12 times with increase in temperature.

 High Temperature Insulation Market, by geography, 2011 (% Share)

(Source: MarketsandMarkets Analysis)

The global HTI products market is estimated to grow from $2.7 billion in 2011 to $3.5 billion in 2016. While Europe led the global HTI market in 2011 with a 39% share, India, China, Russia and Middle East have registered dynamic growth rates.

The major applications of HTI products are petrochemicals, cement, glass, ceramics, refractory, aluminum, powder metallurgy, and iron and steel industry. Petrochemicals currently hold a 30% share of the overall HTI market, and are expected to continue being the largest application market through 2016. Glass forms the next largest application segment, holding a 14% share of the overall market currently. Most of the applications require insulation at maximum temperature ranging from 1000° C to 1300° C. HTI products falling within this temperature range account for 65% of total HTI market revenue. 

On the basis of properties, high temperature insulation market can be divided into ceramic fibers, calcium silicate, insulating firebricks (IFB) and others. Out of the different HTI material categories, ceramic fibers are the most widely used material, and hold nearly 60% of the market in 2011. The high temperature resistance, superior tensile strength and flexibility are reason driving the demand for this material. IFB find favored usage in the furnace applications and occupies the 20% of the market share in 2011. Newer materials like aerogel, bio-persistent insulation materials, etc. occupy a small share in the market, however, show the promise for the period from 2011-2016.