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Promising China Insulation Material Industry, CNY 175 Billion Expected by 2022
Updated: 2017-09-21 10:17 Source: PUWORLD share:

In recent years, the insulation material industry in China is poised to welcome further development, driven by the positives including supportive policies and technological improvement. The domestic market in an excess of CNY 175 billion is expected by the year 2022, along with the compound annual growth rate of 12%, highly promising.

Present Market

The development history of China’s insulation material industry is viewed in persistent consistence with the development in technologies used. At the end of last century, most insulation material was perlite and mineral wool which were later replaced by extruded sheet and polyurethane something organic in the first ten years of the 21st century. For now, perlite-based inorganic insulation material that is featured by fireproofing has come into use, with the traditional ones phased out. The market tends to be dominated by multi-functional composites for the future.

In the past years, China’s insulation material industry has witnessed rapid development. The market grew from about RMB 25,07 billion in 2010 to RMB 80.46 billion in 2016, with the compound annual growth rate of 21.45%.

In terms of demand, output of insulation material in China in 2016 was around 6.32 million tons and apparent consumption about 5.973 million tons, both a great deal larger than the figures in 2015.

The import and export business altogether in 2016 was recorded at $4,200 million, 7.65% down compared to the previous year. The import part was $7587.35, increasing by 15.18% year-on-year and the export was declining by 11.52% to $3,440 million, which resulted in a $2,680 trade surplus.

Development Mode

The development of China’s insulation material industry is periodic, seasonal and regional.

The industry often develops in line with its downstream sectors. The current energy efficiency policies are observed to make great growth potential for it. Demand into the downstream applications should be subject to the specific policies, market development and economic performance.

Most insulation material is water based and inherits the physical restriction from water. Production of such material would be impacted to some extent in the sub-zero weather. Therefore, the production season of insulation material lays in the months from April to November, depending on the regions.

Chinese insulation material producers are mainly spread across East China, North China and South China, with 43%, 33.1% and 15.5% market share respectively.

Market Outlook

Five favorable factors in insulation material development: accelerated urbanization, stronger demand for energy efficiency and environmental protection in construction, encouraging policies, improving orderliness and technological advances.

However, obstacles to the industrial development also exist, such as high pricing, low concentration due to small barriers to entry and lack of talents in the state-of-the-art technology.

Additionally, lower percentage of insulation material would be organic thanks to the better performance of inorganic material and optimization of the application system.

All in all, China’s insulation industry holds a bright future and is expected to scale up to RMB 175.9 billion by 2022. 


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