Demand in China to grow 9% annually through 2011. Demand for insulation is forecast to increase 9.0 percent annually through 2011 to ¥28.4 billion. Gains will be fueled by strong building construction activity and increasing production of products that incorporate insulation materials, such as refrigerators and freezers. Moreover, continued initiatives to improve energy efficiency in manufacturing processes and in climate control will also boost market gains.
Nonresidential construction, transportation equipment, appliance markets to enjoy favorable growth prospects
Insulation is utilized in virtually all residential and nonresidential construction, as well as industrial; heating, ventilating and air conditioning (HVAC); appliances; transportation; and other applications. Favorable growth prospects will exist in nonresidential building construction, and the appliance and transportation equipment markets. Insulation materials used in nonresidential structures will benefit from strong fixed investment activities in office, commercial and institutional facilities. Demand for insulation in appliance and transportation equipment markets will be boosted by growing production of equipment, as well as by efforts to reduce energy consumption. Still, demand for insulation materials in residential building and the industrial and HVAC quipment markets will remain healthy as the economy continues to expand and living standards rise. Residential uses for insulation will be driven by strong new housing starts, especially multi-family apartments in urban areas. Industrial and HVAC equipment applications will be fueled by further increases in manufacturing activities and continued efforts to improve energy efficiency in manufacturing processes and climate control.
Foamed plastic to remain dominant type, lead gains
Foamed plastic is expected to remain the largest segment and post the fastest growth through 2011. Foamed plastic generally offers higher R-values per meter than fiberglass, mineral wool, perlite and vermiculite, creating good insulation material in various applications. Growth opportunities for foamed plastic will exist in construction, industrial and original equipment manufacturer (OEM) applications. Demand for fiberglass in value terms will also outpace projected increases for insulation overall, reflecting in part favorable growth in nonresidential building construction and industrial applications. Consumption of mineral wool and other insulation products will lag demand for insulation as a whole through 2011, but market conditions for these goods will remain healthy.
Central-East region to stay key geographic market
Due to regional differences in demography, economic activity and -- especially for thermal insulation -- climate, the size and growth of insulation demand vary considerably in China by region. The Central-East region is expected to remain the biggest insulation market and see the fastest growth through 2011. Demand for insulation materials there will be driven by strong construction expenditures and further increases in manufacturing activities. Growth in the Northwest will climb at the second fastest pace, benefiting from the government’s “Go West” strategy. Insulation consumption in the Central-North region is also expected to perform above the national average, due to economic development initiatives taking place in that region.
Study coverage
This new industry study, Insulation in China, is priced at $5100. It presents historical demand data for the years 1996, 2001 and 2006 and forecasts for 2011 and 2016 by material type, market and region. The study also considers market environment factors, evaluates company market share and profiles 30 industry competitors.
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