Fiberglass Insulation Market

Key data points: Market size in 2027 = $13.5 million and 2035 = $19.3 million, growth forecast = 4.6% annually for the next 8 years. Scroll below to get more insights. This market report covers trends, opportunities and forecasts in fiberglass insulation market to 2035 by type (batts & rolls, blowing wool, slabs, and others), application (thermal and acoustic), end use (residential, commercial, industrial, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World) Fiberglass Insulation Market The future of the global fiberglass insulation market looks promising with opportunities in the residential, commercial, and industrial markets. The global fiberglass insulation market is expected to reach an estimated $19.3 million by 2035 from $13.5 million in 2027 with a CAGR of 4.6% from 2027 to 2035. The major drivers for this market are the rising demand for eco friendly insulation materials, the growing demand for industrial insulation applications, and the increasing demand for energy efficient buildings. • Lucintel forecasts that, within the type category, batts & rolls is expected to witness the highest growth over the forecast period due to the easy installation and cost effective insulation use. • Within the end use category, residential is expected to witness the highest growth over the forecast period due to the rising housing construction and energy efficiency needs. • In terms of regions, APAC will remain the largest region over the forecast period due to the rapid urbanization and infrastructure development growth. Gain valuable insights for your business decisions with our comprehensive 150+ page report. Sample figures with some insights are shown below. Emerging Trends in Fiberglass Insulation Market This fiberglass insulation market is transitioning from low-cost, high-volume building construction to other market factors. During the 2025-2027 timeframe, for example, building construction codes will require higher energy efficiency of buildings and will stimulate retro-commissioning of insulation in buildings. At that time, energy codes will require building construction industry participants to purchase and install a higher performance building insulation. During this time, market conditions will continue to favor the use of fiberglass insulation materials. • Sustainability: In recent years, suppliers of fiberglass insulation have increased the post-consumer recycled content of their products and have improved the binders. As a result, several large building construction industry participants expect to realize a decrease in embodied carbon of the buildings they construct starting in 2025. • Energy Efficiency: There are several favorable business and building construction industry codes in effect that facilitate the need for a high-performance thermal building barrier. As a result, during the next several years, construction industry participants will have a market incentive to utilize high performance fiberglass insulation materials. • Automation: Plants are automating forming, cutting and packing operations, and performing quality inspections. Other investments, such as Knauf’s in increased insulation production, are aimed at increasing output and reducing labour. As automation transforms the insulation industry, companies will need to implement processes to control the consistency and timeliness of shipments. • Supply Chains: The location of insulation manufacturing will become less important as capacity is constructed nearer to larger, more concentrated building canters. The U.S. Census Bureau’s report of almost 1.4 million housing starts in February 2025 supports the trend of constructing capacity nearer building centres. These conditions will support regional supply and insulation demand through 2030. • Installation: Flexible insulation and face products reduce the time required for on-site cutting and increase construction velocity. The North American market will continue to dominate insulation demand in 2025. The biggest opportunities for growth will come from the office and retail insulation markets. Insulation products that reduce the time required for on-site handling will become increasingly more popular. Insulation will retain its position in the residential market. Increased emphasis on energy conservation will alter building codes, resulting in increased demand for insulation to meet code. Competitors will focus on a balance of price and automation to achieve ease of insulation installation. From a life cycle perspective, the best insulation products will displace the market’s average products. Recent Developments in the Fiberglass Insulation Market The years 2025 to 2027 are expected to be years of increased activity in the fiberglass insulation market. New rules around energy efficiency in buildings, funding for building renovations, and the construction of data centres are expected to change the market. Based on this expected growth, Lucintel believes there will be healthy market competition based on insulation materials with higher thermal protection and lower energy impact (recycled content). • Capacity Expansion: While the market competes based on insulation materials and performance, the market tends to favor whole building carbon performance and energy balance. Because of this, consumers are expected to favor insulation materials based on energy balance and whole building carbon performance. • Acquisition Activity: Because of expected market favorability for the aforementioned performances, Owens Corning and other market competitors are expected to further invest in production systems and distribution networks. The investments are expected to further focus the market and favor larger insulation system suppliers. • Regulatory Approvals: From 2024, the revised European Directive on the Energy Performance of Buildings allowed member states to begin adopting national laws and implementing measures to achieve its targets. The directive sets minimum requirements for the energy performance of buildings, and states that by 2029 all buildings should be renovated to meet certain energy efficiency standards. The requirements set a trajectory for achieving greater energy efficiency in buildings that is expected to generate an increased demand for fiberglass insulation in the renovation of older buildings. As the costs for energy generated from traditional sources continues to increase, the payback period for the installation of energy efficiency improvements in buildings should decrease, thereby increasing the demand for insulation products. • Technology Launch: Owens Corning launched a new line of fiberglass insulation in 2025 that included their PINK Next Gen insulation with 65% post-consumer recycled content. As building codes increasingly incorporate requirements to reduce embodied carbon in buildings, the use of high-recycled content materials in building insulation may provide an advantage over other building insulation products. • Strategic Collaboration: In 2025, Google announced agreements to build 2 gigawatts of data centres, increasing the need for quickly constructable building envelopes. Building insulation manufacturers that can consistently meet the requirements for large, project-based buildings will gain competitive advantages. The insulation market is expected to experience similar conditions as other building materials and focus on the quality of volumes sold. Energy efficiency mandates and data centres are expected to increase the overall demand for commercial building construction. The use of building insulation products that reduce the embodied carbon in building construction may also help meet the building codes. Strategic Growth Opportunities in the Fiberglass Insulation Market 2024 to 2026 will be years of change for fiberglass insulation due to the adoption of new building codes and the electrification of the economy, the construction of data centres, and renovation spending. According to Lucintel, the market is evolving to favor insulation products that have a lower embodied impact and are easier to install. To be successful, manufacturers need to consider the building code, energy costs, and fire safety. • Data Centre Insulation: As the demand for data centre services increases, fiberglass insulation will be used to construct data centres to control and manage the facilities’ heat and noise. In addition, data centre operators will need to insulate equipment to protect data centres from fire. In 2030, data centres are expected to increase the U.S. electricity demand to 90% of the total generation capacity (2024 U.S. Department of Energy). - Premium fiberglass insulation will be used to construct data centres and help data centre operators manage the facilities’ heat and noise. • Energy Insulation: To improve building envelope performance, the energy insulation of older buildings can be increased; for example, through the installation of fiberglass insulation in walls. The energy insulation of buildings can also be improved through the renovation of building facades. The Energy Insulation of buildings is important because the European Commission has set a goal to improve the energy performance of 35 million buildings by 2030 (2024). • Low-Carbon Products: Builders have started evaluating building materials based on embodied carbon and EPDs. Due to this, Owens Corning has set a goal to reduce its operational Scope 1 and 2 GHG emissions by 30% from its 2018 levels by 2024/2025. Use of lower carbon binders and other high-performance materials will become the norm for high-end, sustainable construction. • Prefab Construction: For offsite construction, especially modular construction, lightweight and high-performance construction materials are required which can also facilitate easier and quicker onsite installation. Modular construction is expected to attain a market value of over USD $20 billion in the US by 2025. • Emerging Market Housing: The housing programs in several countries in South and Central America and South East Asia have created opportunities for construction materials which improve indoor thermal comfort. The recent budget of the Indian government allocates over USD $1.4 trillion for the country’s capital expenditure for the 2025-2026 financial year. Funds of this nature are expected to boost the Indian construction sector, including the residential sector. From the above, it can be concluded that for insulation manufacturers, the focus should be on selling high-performance insulation which improves construction productivity, and contract wins, rather than just selling the most volume. This is because procurement has become focused on lowering the up-front and life cycle costs of a building. For insulation manufacturers, local production of high-performance insulation can assist them in maintaining healthy profit margins. Fiberglass Insulation Market Drivers and Challenges Continuous innovations in building construction technologies, changes in energy costs, building code and regulations changes, and concerns for the protection of the environment will, to a large extent, shape the future of the fiberglass insulation market. It is expected that as the world pursues the mitigation of the negative effects of climate change and reduction in the level of carbon emission, the demand for fiberglass insulation will increase. This is because, other things being equal, fiberglass insulation has the propensity to reduce the consumption of energy used for space heating and cooling. For fiberglass insulation to further enhance its market, it must have improved resistance to moisture. The Renovation and Retrofitting of existing buildings will also provide additional Market Opportunities for fiberglass Insulation. The factors responsible for driving this market include: • Increasing Need for Energy Efficiency: Improving the energy efficiency of buildings is a growing concern of building owners. The use of fiberglass insulation in building construction helps building owners achieve energy efficiency by reducing energy consumption for space heating and cooling. The IEA projects that in 2025, buildings will account for 30% of the world’s total energy consumption. Therefore, improving the energy efficiency of buildings will remain a key focus area and support fibre glass insulation market over the next 5 years. • Growing Construction and Improvement: More housing and commercial/industrial construction and renovation allows for growth in the market for insulation. Of the insulation types, fiberglass has the most options to conform to different methods of construction and is therefore the most widely used. The Census Bureau reported that in 2024, there were 1.36 million housing units started, which also indicates strong market potential for insulation. Demand for fiberglass insulation will be met in the next 3 to 5 years due to the aforementioned construction, as well as the need for housing and other building construction and renovation to alleviate issues from outdated construction. • Improved Energy Performance of Buildings: As the focus is on decreasing energy use and emissions, so too are building codes and standards. This results in more stringent requirements for the energy performance of buildings and the insulation used in construction and renovation. The requirements of the 2024 revised Energy Performance of Buildings Directive of the EU require a reduction in building energy use and the use of energy performance inspection and compliance. The next 3 to 5 years will see further implementation of the Directive; compliance will lead to greater demand for fiberglass insulation, and other insulation products which have consistent and stable thermal performance and first-rate fire performance. • Recycled Content and Sustainability: The construction industry's focus on sustainability is driving the use of recycled materials and raising demands for improvements in resource productivity and reductions in embodied carbon. Fiber glass insulation can be manufactured using recycled materials, and, due to its long-term durability, helps reduce energy consumption and the need for Repetitive Building Service Life Cycles. Energy Star's framework for residential construction, in which insulation is recognized as an energy efficiency measure, will remain in effect beyond March 2025. The next three to five years will promote the use of building products with low carbon emissions and improved end-of-life options, and products with recycled content and environmental declarations. • Other Recent Advances: Improved fibre-forming processes, formulations and systems, and improved product packaging and delivery systems have reduced the waste generated by fibre glass insulation. Improvements have also been made to the levels of density and face materials integrated into fibre glass insulation. Additionally, innovations have been made to create fibre glass insulation that is blown in and to improve fire resistance of the insulation. The 30% federal residential energy tax credit extended in 2025 will further promote the improvement and enhancement of the residential construction. Improved durability and other innovations will further promote the use of fibre glass insulation. The challenges facing this market include: • Raw Material and Energy Price Volatility: Floating on thin margins, fiberglass producers can be negatively affected by price fluctuations of energy and raw materials. In April 2025, the World Bank identified continued price volatility of energy and other raw materials as a major risk for the global manufacturing industry. Short term unpredictability of raw material prices may prompt end-users to increase pressure on suppliers to improve the weight/performance ratio of their products, and heighten price-based competition in the industry. On the other hand, raw material price increases may lead to longer term supply contracts, delays in new project starts, or increases in overall project costs. • Installation Concerns, Health and Workforce Challenges: Fiberglass has been adopted in a wide range of thermal insulation applications due to its low cost and availability. However, insufficient or improper installation of fiberglass may result in severe health and safety issues for workers and the general public. High levels of airborne fibres from fiberglass are known to cause skin irritation and other health issues. The absence of adequate installation guidelines increases the likelihood of excess waste and rework. From 2023 to 2033, the U.S. Bureau of Labor Statistics expects the construction labour workforce to increase by approximately 6%. The Fiberglass industry should address some of the above-mentioned challenges for the construction industry by providing improved and safer products and training. • Competition and Environmental Assessment: Fiberglass insulation faces competition from various insulation types, including mineral wool, cellulose, spray and rigid foams, and bio-based insulation. Competitors may have benefits in one or more of the following: thickness, moisture, and/or sound control; and/or speed of installation. The use of binders in fiberglass insulation is under environmental scrutiny. Also, the manufacturing process and the end of life of fiberglass insulation may increase the cost to meet building code requirements. Beginning 2025, the EC construction product regulations will require fiberglass insulation manufacturers to improve their products to meet the requirements of the EC Circular Economy and Green deals. Favorable conditions, including advanced building construction/remodeling/upgrading programs, energy efficiency goals, and related laws and regulations, are projected to increase the use of fiberglass insulation. Development and incorporation of new technologies may allow the manufacture of higher-value fiberglass insulation. Also, a more efficient design to improve the ease of use may be developed. However, alternating prices of raw materials and the use of more expensive insulation materials will constrain the profit potential of fiberglass insulation manufacturers. In general, expected steady, rather than significant, market growth is anticipated. List of Fiberglass Insulation Market Companies Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies fiberglass insulation market companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the fiberglass insulation market companies profiled in this report include- • Owens Corning • Saint-Gobain • China Jushi • Knauf Insulation • Johns Manville • Fletcher Building • CSR Limited Fiberglass Insulation Market by Segment The study includes a forecast for the global fiberglass insulation market by type, application, end use, and region. Fiberglass Insulation Market by Type [Value ($M) from 2019 to 2035]: • Batts & Rolls • Blowing Wool • Slabs • Others Fiberglass Insulation Market by Application [Value ($M) from 2019 to 2035]: • Thermal • Acoustic Fiberglass Insulation Market by End Use [Value ($M) from 2019 to 2035]: • Residential • Commercial • Industrial • Others Fiberglass Insulation Market by Region [Value ($M) from 2019 to 2035]: • North America • Europe • Asia Pacific • The Rest of the World Country Wise Outlook for the Fiberglass Insulation Market The global fibre glass insulation market is arriving as a result of multiple factors such as introduction of stringent building code, goals set by various countries for decarbonization and investment in new projects. According to Lucintel’s study, in the next 5 years, the market will be relying on policy and project activities. • United States: The DoE awarded 1 billion USD in January 2025 for improving energy efficiency of public and commercial buildings. This will create a market for fibre glass insulation in building retrofits and encourage insulation manufacturers to produce low carbon products. • China: The Ministry of Housing and Urban-Rural Development has fully implemented building energy codes for all buildings. In addition, various state run programs have been formulated to renovate energy wistful buildings. In March 2025, the state allocated 100 billion yuan for improving energy efficiency of urban buildings. All this will create a market for energy efficient building construction and renovation. • Germany: Envelope upgrades remain supported by Germany’s Building Energy Act and federal funding streams. The KfW climate-friendly new-builds program offers up to €150,000 per housing unit, lasting until January 2025. Demand for fiberglass insulation is expected to continue. • India: The insulation market is expected to grow due to increased energy efficiency in the building sector and continuing growth in India’s industry. In February 2023, the Indian government allocated ₹11.21 trillion for capital expenditure for 2023-24. Increased capital expenditure should support the construction of public and commercial buildings. • Japan: Japan also extended subsidies for energy-efficient housing and enacted legislation to improve energy efficiency of new housing for 2025. Fulfilment of these regulations should also increase the use of insulation in new housing. Features of the Global Fiberglass Insulation Market Market Size Estimates: fiberglass insulation market size estimation in terms of value ($M). Trend and Forecast Analysis: Market trends (2019 to 2026) and forecast (2027 to 2035) by various segments and regions. Segmentation Analysis: fiberglass insulation market size by type, application, end use, and region in terms of value ($M). Regional Analysis: fiberglass insulation market breakdown by North America, Europe, Asia Pacific, and Rest of the World. Growth Opportunities: Analysis of growth opportunities in different type, application, end use, and regions for the fiberglass insulation market. Strategic Analysis: This includes M&A, new product development, and competitive landscape of the fiberglass insulation market. Analysis of competitive intensity of the industry based on Porter’s Five Forces model. If you are looking to expand your business in this or adjacent markets, then contact us. We have done hundreds of strategic consulting projects in market entry, opportunity screening, due diligence, supply chain analysis, M & A, and more. This report answers following 11 key questions: Q.1. What are some of the most promising, high-growth opportunities for the fiberglass insulation market by type (batts & rolls, blowing wool, slabs, and others), application (thermal and acoustic), end use (residential, commercial, industrial, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)? Q.2. Which segments will grow at a faster pace and why? Q.3. Which region will grow at a faster pace and why? Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market? Q.5. What are the business risks and competitive threats in this market? Q.6. What are the emerging trends in this market and the reasons behind them? Q.7. What are some of the changing demands of customers in the market? Q.8. What are the new developments in the market? Which companies are leading these developments? Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth? Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution? Q.11. What M&A activity has occurred in the last 7 years and what has its impact been on the industry?