Top 10 Countries Leading Global Thermal Insulation Panels Production in 2025

Thermal insulation panels are critical components in modern construction, industrial, and automotive sectors to minimize heat transfer and improve energy efficiency. These panels, including vacuum insulation panels (VIPs), polyurethane (PUR) panels, and mineral wool-based panels, are becoming increasingly important as global demand for sustainable building materials grows. In 2025, the global thermal insulation market is projected to grow from $35.59 billion to $51.55 billion by 2032, driven by stringent energy efficiency regulations and rapid urbanization. This article examines the top 10 countries leading the production of thermal insulation panels in 2025, supported by data, trends, and innovations shaping the industry. Key terms such as thermal insulation panels, energy efficiency, and sustainable construction are central to understanding this dynamic market.

Global Market Overview

The thermal insulation panel industry is experiencing robust growth, fueled by the global push to conserve energy and reduce carbon emissions. According to industry reports, the building insulation market alone is expected to reach $38.33 billion in 2025, with a compound annual growth rate (CAGR) of 4.5% through 2032. Key drivers include government regulations such as the International Energy Conservation Code (IECC) in North America and green building codes in Europe, as well as innovations such as aerogels and phase change materials (PCMs). Top producing countries are using advanced manufacturing, strategic acquisitions, and sustainable materials to dominate the market.

Top 10 countries in thermal insulation panel production

1. About China

China leads the world in the production of thermal insulation panels, driven by its massive construction sector and industrial output. By 2025, China will account for approximately 35% of the global thermal insulation market, producing large quantities of polyurethane, expanded polystyrene (EPS) and vacuum insulation panels. Companies such as FUDATEC, with over a decade of experience in XPS and EPS panels, are supplying major infrastructure projects. Rapid urbanization, with a population growth rate of 0.91% per year, is driving demand for residential and commercial buildings. China’s focus on green building initiatives aligns with its 2060 net-zero emissions goal, boosting production capacity.

2. The United States

The U.S. is a key player with an estimated market share of 20% in 2025. Major manufacturers such as Owens Corning and Johns Manville produce fiberglass, mineral wool, and polyisocyanurate boards to serve the USD 7.60 billion U.S. building insulation market. Stringent regulations, such as LEED certification, are driving demand, particularly in retrofit and new construction. The U.S. benefits from 42 manufacturing facilities in 33 countries, ensuring a robust supply chain for insulation panels.

3. GERMANY

Germany dominates the European market, contributing significantly to the region’s 34.9% share of the global building insulation market in 2024. Companies such as BASF and Knauf Insulation produce high-performance panels, including aerogels and rigid foam panels. Germany’s target of 100 GW of solar capacity by 2030 indirectly supports demand for insulation panels for energy-efficient buildings. The country’s focus on sustainable construction and innovations such as the Weesow-Willmersdorf solar project are enhancing its production capabilities.

4. JAPAN

Japan’s advanced manufacturing sector produces high-quality insulation panels, particularly for residential applications. With a solar capacity of 89,077 MW in 2023, Japan is integrating insulation panels into energy-efficient buildings to support its 2050 net-zero goal. Companies such as Asahi Kasei are leaders in the production of polyurethane and polystyrene panels, driven by government subsidies and mandatory solar panel installations in Tokyo homes starting in 2025.

5. South Korea

South Korea’s thermal insulation panel production is growing at a CAGR of 6%, supported by its Renewable Portfolio Standard and a solar capacity of 24 GW by 2022. Manufacturers are focusing on lightweight, high-efficiency panels for industrial and residential applications. The country’s emphasis on green buildings and a target of 20% renewable energy by 2030 is driving production, particularly for PUR and mineral wool panels.

6. United Kingdom

The UK has a significant share of the European insulation market, with a solar capacity of 17GW by 2022. Companies such as Kingspan and ROCKWOOL produce stone wool and PIR panels, supported by stringent green building regulations. The UK’s focus on retrofitting existing structures and innovations such as floating solar projects are increasing demand for advanced insulation panels.

7. France

France is a rising star in insulation panel production, with a focus on innovative materials such as aerogels and VIPs. The country’s 2025 floating solar power project (74.3 MW) underscores its commitment to energy efficiency, driving demand for insulation panels. Major players such as Saint-Gobain are leaders in the production of mineral wool and foam panels, serving both the residential and commercial sectors.

8. INDIA

India’s rapid urbanization and infrastructure growth make it a key producer, with a projected CAGR of 5.6% in the thermal insulation market. Companies such as Supreme Industries produce EPS and XPS panels for residential and industrial applications. Government initiatives for energy-efficient buildings and a growing middle class are driving production growth.

9. Canada

Canada’s insulation panel production is driven by its cold climate and strict building codes. Manufacturers such as Owens Corning and ROCKWOOL focus on fiberglass and rock mineral wool panels, which account for 10% of the North American market. The country’s emphasis on energy conservation in the residential and industrial sectors supports steady production growth.

10. MEXICO

Mexico’s thermal insulation panel production is expanding, with 9.36 GW of solar capacity in 2022 and plans for 10 GW more by 2028. The country’s sunny climate is driving demand for insulation panels in energy-efficient buildings. Local manufacturers produce EPS and PUR panels, supported by government incentives such as tax benefits for sustainable construction.

Key trends and innovations

Several trends are shaping the global thermal insulation market:

• Sustainability: Bio-based materials such as hemp and cellulose are gaining traction, reducing environmental impact.
• Advanced Materials: Aerogels and VIPs offer superior thermal resistance, ideal for space-constrained applications.
• Regulatory Push: Stringent energy efficiency regulations in North America and Europe are driving demand for high-performance panels.
• Urbanization: Rapid urban growth in the Asia-Pacific region, particularly in China and India, is increasing manufacturing capacity.

Market Data and Analysis

Table 1: Top 10 Countries by Thermal Insulation Panel Production (2025)

Source: Compiled from industry reports, including Markets and Data (2025) and Grand View Research (2024).

Table 2: Projected Market Growth by Region (2025-2032)

Source: Future Market Insights (2025).