Government Energy Saving Codes Increase Usage of Thermal Insulation Materials in China

Research and Markets (http://www.researchandmarkets.com/reports/c80805) has announced the addition of “Chinese Thermal Insulation Materials Markets for the Building Industry” to their offering.

This Frost & Sullivan research service titled Chinese Thermal Insulation Materials Markets for the Building Industry provides the total market size, market penetration, and market segment revenue breakdown. In this research, Frost & Sullivan’s expert analysts thoroughly examine the following markets: polystyrenes, polyurethanes, silicates, glass wool, rock wool, cellulose.

Market Overview

Government Energy Saving Codes Increase Usage of Thermal Insulation Materials

The Chinese thermal insulation materials market for the building industry is witnessing robust growth, thanks largely to increasingly stringent government energy saving codes. In 2004, influential regulations constituted by the State Department detailed the steps and requirements for energy saving in buildings. These regulations aim to save 50 percent energy in all new buildings, 65 percent energy in new buildings in colder districts, and in the four municipalities, which are directly under the jurisdiction of the Central Government. What is more, China became the second largest oil consumer in 2007, further strengthening the Government’s resolve to regulate energy consumption.

However, increasing competition has had a significant impact on prices. In the last five years, the prices of thermal insulation materials for the building industry have reduced by 20 to 50 percent. “Furthermore, increasing energy and raw material costs are also adversely impacting profit margins,” notes the analyst of this research service. “For instance, while oil prices have nearly doubled between August 2003 and August 2007, there was a considerable drop in the prices of thermal insulation materials during the same period.”

Booming Building Construction Market Drives Revenues for Insulation Material Manufacturers

Increasing disposable incomes and the government’s emphasis on urbanization have together brought about a boom in the Chinese building construction market. The area covered by the new buildings was about 1.47 billion square meters in 2004, increasing to 1.59 billion square meters in 2005 and 1.70 billion square meters in 2006. According to the forecast by the Ministry of Construction of the People’s Republic of China (MCPRC), new housing and commercial buildings area can be anticipated to increase up to 2.00 billion square meters in the coming years, which is proportional to half of the total number of new buildings world wide. Although the Chinese Government has begun the macro-control for the overheated economy, there is no indication that new building constructions will slow down.

Overall, the major thermal insulation product used in the Chinese building industry is polystyrene. The revenue share of this segment was about 68.0 percent in 2007 and its share is anticipated to increase further during the forecast period. “The second largest segment in the Chinese thermal insulation materials market for the building industry is glass wool, with a share of 9.8 percent in 2007,” says the analyst. “However, considering its limited insulation performance, installation issues, and competition from substitutes, especially from plastic foams, the share of this segment is expected to decline during the forecast period.”

Market Sectors

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

-Polystyrenes

-Polyurethanes

-Silicates

-Glass wool

-Rock wool

-Cellulose

For more information, visit http://www.researchandmarkets.com/reports/c80805