New Study on Thermal Insulation Materials Market in South Africa

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Reviewed

Oct 14 2010

Research and Markets has announced the addition of Frost & Sullivan's new report "South African Thermal Insulation Materials Market" to their offering.

This study covers the state of the of the South African thermal insulation materials market, examining drivers and restraints for growth, supply chain structure and demand trends. Following from these, market growth for product segments are forecasted. In addition, an analysis of new and alternative materials used in the thermal insulation materials market is included, along with overviews of the key market participants in the industry. The base year is 2008 with forecasts running through 2015. The market is divided into four product segments including polyurethane, polystyrene, mineral wool and reflective foils markets.

Research Overview

This Frost & Sullivan research service titled South African Thermal Insulation Materials Market provides a total overview of the thermal insulation materials market in commercial building including market sizes, growth forecasts and key market dynamics. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: polyurethane, polystyrene, mineral wool and other materials including phenolic foams, reflective foils and natural insulation.

Market Overview

Rising Green Awareness Takes the Heat off the South African Thermal Insulation Materials Market

Targeted regulations to increase energy efficiency and growing environment consciousness among governments, enterprises and consumers have stoked the growth rates of the thermal insulation materials market, globally. This trend is expected to ripple into the South African market, where the currently tardy adoption of thermal insulation will get a thrust with demand pouring in from both new and renovated buildings. The government has proactively drafted and implemented regulations to decrease energy consumption and minimise environmental impact, especially in buildings, as they account for approximately 40 per cent of energy usage. The thermal insulation materials market is expected to thrive in such a scenario, considering its substantial role in reducing the energy consumption in buildings. Following the electricity crisis that hit South Africa in 2008, the country's electricity supplier embarked on projects to boost the country's generating capacity to meet the fast-growing demand for energy, says the analyst of this research. Nevertheless, the utilities hiked the electricity tariff by more than 20 per cent in 2010, intensifying the need for commercial buildings to increase their investment in energy-saving measures such as the use of insulation materials.

As the market is driven more by environment consciousness than enforced legislation, it does not have the advantage of government backing enjoyed by the insulation markets in North America and Europe. However, the South African Government is working on revising building regulations to include detailed instructions on the use of insulation. These expected changes are already doing their bit to improve levels of insulation in new buildings. Moreover, the higher spending on infrastructure such as stadiums, airports and railways as well as the speeding up of construction activities to meet the 2010 FIFA deadline have created a strong market for thermal insulation materials. A fallout of this competition among construction companies is that the end users have become highly price sensitive. While this hinders the market expansion ambitions of both insulation manufacturers as well as raw materials manufacturers, the escalating energy costs and load shedding have given them fresh reasons to design energy-efficient and insulated buildings to keep operational costs low.

Apart from cost and energy savings, companies are hoping to promote their corporate citizenship by adopting green practices. They are looking to obtain voluntary ratings of the energy efficiency of their buildings and are supporting non-profit associations to drive green initiatives and lobby for improved regulations. To carry forward this momentum, manufacturers of thermal insulation materials have been participating in conferences and exhibitions. They aim to improve their visibility by spreading awareness about green buildings. The establishment of associations driving awareness about green buildings has gone a long way in encouraging the use of the thermal insulation materials in new commercial buildings, notes the analyst. Consequently, companies are increasingly investing in green buildings and thermal insulation materials.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research: