Market Overview

The market size of residential thermal insulation materials in Japan in FY2022 (based on the shipment of manufacturers) by volume is estimated at 345,336 tons, down by 0.9% from the preceding fiscal year, and at 181,800 million yen, up by 4.5% on a same basis. Despite the marginal decline by volume, a rise of unit price due to increased sales of high-performance thermal insulation materials and price revisions against the backdrop of soaring material prices and logistics cost have led to the market growth by value.

Noteworthy Topics

Thermal Insulation Material Makers Reinforce “Environmental Initiatives”

In the housing material industry’s attempt to consider the environmental impact of their products’ journey through the supply chain, thermal insulation makers are putting efforts that capitalize on their strength, such as development of products using natural materials, establishment of recycling systems, use of scrap materials, and launch of eco-friendly product brands. In 2023, there were many initiatives aiming at visualizing CO2 emissions and be accredited by third-party environmental certification body.

Going forward, the whole lifecycle of thermal insulation materials must be considered, i.e., from production to disposal after buildings using thermal insulation materials are demolished. It is important that makers promote eco-conscious attempts that reduce CO2 emissions, including development of materials, construction methods, production processes, and recycling system.

Future Outlook

The market size of residential thermal insulation materials in FY2023 is expected to grow to 346,000 tons by volume (up by 0.2% from the preceding fiscal year) and 187,800 million yen by value (up by 3.3% from the preceding fiscal year).

Standardization of Grade 4 insulation performance houses and ZEH (Net Zero Energy Homes) have been promoted mainly by large housing makers. As meeting the new energy-saving standards will be mandatory for all new houses from FY2025, and accreditation criteria for long-life quality housing and low-carbon buildings have been tightened, high performance thermal insulation material is crucial for all housing suppliers, including national house builders and local construction companies. On an assumption that this trend continues for upcoming years, increasing demand for high performance thermal insulation materials, we believe that the market of residential thermal insulation material will expand.

Research Outline