Ceramic Fiber Continues to Dominate High-Temperature Insulation Market
The global high-temperature insulation market is expected to reach $5.14 billion by 2020, according to a recent study entitled “High Temperature Insulation Market Analysis By Product (Ceramic Fiber, Insulating Firebrick, Calcium Silicate), By Application (Petrochemicals, Ceramics, Glass, Cement, Iron & Steel, Refractory, Powder metallurgy, Aluminum) And Segment Forecasts To 2020” from Grand View Research, Inc. The growing need to conserve energy across various industries is expected to be one of the driving factors for the market. In addition, stringent regulations imposed on cement, oil and gas, and metal producers to reduce greenhouse gases emissions has also helped in developing the market for high-temperature insulation.
However, health risks associated with the carcinogenic content in some high-temperature insulation materials have been a key issue for industry participants. In order to reduce reliance on synthetic insulation materials, the industry has shifted its focus toward developing bio-based alternatives for high-temperature materials.
Petrochemicals emerged as the leading application market for high-temperature insulation products and accounted for over 30% of the market revenue in 2012. Growing demand for various primary and secondary petrochemicals, coupled with the need to conserve energy, has propelled the growth of high-temperature insulation materials in the petrochemical industry. Global demand for high-temperature insulation materials in the petrochemical industry is expected to grow at a compound annual growth rate (CAGR) of 8.6% from 2013 to 2020. The use of these materials in powder metallurgy has also been gaining attention from major manufacturers. In addition, novel application of high-temperature insulation products in the aerospace, solar equipment and fire protection industries is also expected to boost their demand over the forecast period.
Ceramic fibers emerged as the leading product segment and accounted for approximately 60% of total market revenue in 2012. The shift in focus toward replacing asbestos in furnace linings and kilns is expected to fuel the demand for ceramic fibers over the forecast period. Ceramic fibers were followed by insulating firebrick and calcium silicate among some other high-temperature insulation products.
Europe emerged as the leading market for high-temperature insulation and accounted for 38% of the total market revenue in 2012. Stringent regulations to reduce greenhouse gas emissions in Europe are expected to be a key driving factor for the regional market. European demand for high-temperature insulation products is mainly dependent on imports from Asia. Europe was followed by North America and Asia-Pacific in terms of market demand.
The North American and European markets for high-temperature insulation products have reached their saturation and are expected to grow at a relatively sluggish rate. On the other hand, Asia-Pacific and Latin America have immense growth opportunities in the near future, owing to the growth of industrialization in China, India, and Brazil. The Asia-Pacific market for high-temperature insulation is expected to grow at an estimated CAGR of 9.2% from 2013 to 2020.
In terms of production, Asia-Pacific emerged as a clear leader and accounted for 48% of the total production in 2012. Relaxed regulations, coupled with low manufacturing costs, are expected to boost production of high-temperature insulation materials in the region. Asia-Pacific exports most of its produced high-temperature insulation materials to European and North American countries.
The global market for high-temperature insulation is dominated mainly by two companies, Thermal Ceramics (part of Morgan Advanced Materials) and Unifrax, which together accounted for over one-third of the total market in 2012. Some of the other companies operating in the global high-temperature insulation market include Zircar, Pyrotek, Isolite, Skamol, Promat and Saffil.
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