Rockwool Market Expected to Reach $2.2 Billion by 2030—Allied Market Research

According to a new report published by Allied Market Research, titled, "Rockwool Market by Technology, and Application: EMA Opportunity Analysis and Industry Forecast, 2021–2030," The EMA rockwool market was valued at $1.4 billion in 2020, and is projected to reach $2.2 billion by 2030, growing at a CAGR of 4.7% from 2021 to 2030. Rockwool is a mixture of basalt, anorthosite, and cemented briquettes that are heated up in excess of 15,000 degree Celsius at which the rock mixture becomes molten which is then spun into fibres. Then, a binder and mineral oil are added to the mixture that stabilises the spun rock wool fibres and also make them water repellent. It is used as a insulation for soundproofing and thermal shock resistance purposes in various end-use sectors such as building & construction, transportation, horticulture, industrial, piping, appliances, and others.

Increase in investments in building infrastructure in countries such as the U.S., China, Japan, Mexico, and India, have led the building & construction sector to witness a significant growth where rockwool is widely used for building insulation applications. In addition, sustainable economic growth coupled with increasing demand for consumer goods has led the automotive & transportation sector to witness a significant increase in demand where rockwool is widely used it is used to wrap around the package for thermal insulation purposes. These factors are predicted to contribute toward the EMA market growth.

However, lack of awareness regarding the benefits associated with the rockwool is expected to hamper the growth of this market during the forecast period.

 On the contrary, the increasing awareness for energy saving activities has surged the popularity of rockwool in various end-use sectors owing to its potential to reduce energy costs by lowering heating and cooling costs; thereby reducing CO2 emissions. This factor is anticipated to increase the sales of rockwool among various end-use sectors; thus creating lucrative opportunities for the market.

The rockwool market is segmented on the basis of product type, end-use industry, and region. By product type, the market is segregated into rolled, panels, and others. The rolled type rockwool segment is projected to grow at the highest CAGR of 5.0% during the forecast period. This is attributed to the fact that rolled rockwool is widely used as loft insulation, metal wall insulation, metal roof insulation, intermediate floor insulation, and floors for reducing excess noise and echo in flats & houses, poultry farms, and heating, ventilation and air-conditioning (HVAC) ducting. 

 By end-use industry, the market is divided into building and construction, transportation, industrial and appliances, and others. The building & construction segment dominated the EMA market in terms of revenue in 2020, with 51.3% of the total share. This is attributed to the fact that governments of developing economies such as U.S., France, Italy, China, India, and others, have increased spending on the development of townships, housing, built up infrastructure and construction development projects where rockwool is used as insulation in walls, ceilings, floors, and other areas that reduces the risk of bacterial growth inside the surface for concrete coating applications.

Region-wise, the rockwool market is analyzed across Europe, Maghreb, and Africa. The Europe rockwool market size is projected to grow at the highest CAGR during the forecast period, and accounted for a major rockwool market share in 2020, owing to rise in building & construction sector in countries such as France, Itlay, and Spain that have enhanced demand for rockwool in the European region.

France's building & construction sector is increasing rapidly, which in turn has enhanced the performance of the rockwool market in the region. According to a report published by European Commission, the number of enterprises in construction sector in France increased by 4.4% from 698,034 in 2010 to 728,420 in 2020 owing to increase in real estate activities, followed by the architectural and engineering activities. Furthermore, countries such as Italy and Spain are witnessing a rapid increase in building & construction sector where rockwool is employed as as loft insulation, metal wall insulation, metal roof insulation, intermediate floor insulation, and floors in flats & houses, malls, cold storages, auditoriums, theatres, offices, and other spaces.

Key players operating in the EMA rockwool market include Comptoir Hammami, DTH Prefab, Isover Saint-Gobain France S.A., Knauf Insulation, Lawsons (Whetstone) Ltd., Paroc Group, Polish Stone Wool Group, Rockfibre (PTY) Ltd, Rockwool A/S, and URSA.

COVID-19 analysis

The novel coronavirus is an incomparable EMA pandemic that has spread to over 180 countries and caused huge losses of lives and the economy around the globe. The EMA rockwool market has been negatively impacted due to the wake of COVID-19 pandemic, owing to its dependence on building & construction, transportation, industrial, marine, horticulture, and other sectors.

Several companies have either shut down or shrank their operations due to the risk of infections among the workforce where refractory materials are used for thermal insulation purposes. This has temporarily hampered the growth of EMA rockwool market amid the COVID-19 period. This has temporarily hampered the demand for rockwool market amid the COVID-19 period.

In addition, the falling income of customers and international travel restrictions has led to contraction of the demand of EMA rockwool among the transportation sectors. Moreover, more than 100 countries have locked their international borders for transportation and non-essential trade activities, which in turn have reduced the consumption of rockwool among several end-use sectors. In addition, the EMA rockwool market has witnessed a downfall in demand among the construction sectors, owing to temporary halt on various building and construction projects amid the COVID-19 period.

In 2020, rockwool prices were high in Europe region. The price rise was due to continued regional demand trends and tight product availability. Firm downstream demand for rockwool and stronger upstream costs are expected to sustain the price gain.

However, increasing awareness about using energy efficient products among citizens of both developed and developing economies may surge the popularity of rockwool owing to its cost effective and energy efficient insulation properties. Furthermore, the building & construction and transportation activities are projected to get back on track and start functioning with full capacity post the COVID-19 period, which in turn may enhance the performance of the EMA rockwool market.

Key findings of the study

• By product type, the panels segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 4.6% from 2021 to 2030.
• By end-use industry, the building and construction segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 4.9% from 2021 to 2030.
• Europe garnered the highest share of 99.7% in 2020, in terms of revenue, growing at a CAGR of 4.7%