Global Slag Wool Market - Forecast (2022 - 2027)

Manideep Moluguri

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Global Slag Wool Market - Forecast (2022 - 2027)

Global slag wool market size is forecast to reach US$505.5 million by 2027, after growing at a CAGR of 3.4% during the forecast period 2022-2027.

Global slag wool market size is forecast to reach US$505.5 million by 2027

Global slag wool market size is forecast to reach US$505.5 million by 2027, after growing at a CAGR of 3.4% during the forecast period 2022-2027. The slag wool has superior beneficial properties including highly recyclable, superior fire-resistant properties, superior inner insulation and others. These properties result in surging adoption of slag wool over other insulating materials such as polystyrene, glass fiber, aerogel, and more. The global slag wool market is primarily driven by the growth of building and construction activities across the world. Moreover, the growing oil and gas industry is anticipated to drive the demand for slag wool. This, in turn, will accelerate the slag wool market growth in the projected forecast period of 2022-2027. However, in 2020, the Covid-19 pandemic negatively impacted the growth of the global wool market. In 2021, the government eased the lockdown measures. As a result, the construction, oil & gas, and other industries flourished, which benefited the slag wool market.

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Report Coverage

The report: "Global Slag Wool Market–Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Global Slag Wool Market.

By Product: Board, Loose, and Others

By Application: Structural Insulation (Wall, Roof, Boiler, Tower and Columns, and Others), Foundation Drainage Systems, Fire Stopping and Containment, Acoustical, Emissions Control, Pipe/Mechanical Systems, Fillers, Turbines, Pressure Vessels, and Others

By End-Use Industry: Building and Construction (Residential, Commercial, and Industrial), Paper and Pulp, Steel, Oil and Gas, Wind Energy, and Others

By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East (Saudi Arabia, UAE, Israel, and Rest of Middle East), and Africa (South Africa, Nigeria, and Rest of Africa))

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Key Takeaways

Asia-Pacific region dominated the global slag wool market, owing to the growing industrial construction activities in the region, for instance, in January 2022, the Ha Noi People's Committee recently issued Decision No. 65/QD-UBND, which approved the project establishment of 2-5 new industrial zones in the period 2021-2025.
The increasing construction activities related to green building is accelerating the demand for eco-friendly insulation solution. Since slag wool is an eco-friendly product, its demand is surging and is benefiting the market growth.
Moreover, the ongoing research and development associated with slag wool usage in production activities will create an opportunity for market growth in the projected forecast period.
Nonetheless, the availability of substitute products of slag wool such as glass wool, stone wool, and more are likely to hamper the market growth in the upcoming years.

Asia-Pacific Slag Wool Market Revenue, 2021-2027 (US$ Million)

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Global Slag Wool Market Segment Analysis – By Application

The structural insulation segment held the largest share in the global slag wool market in 2021 and is forecasted to grow at a CAGR of 3.7% during the forecast period 2022-27. Slag wool insulation resists settling, and batt products rebound back after normal compression, ensuring that the product's installed thermal performance is maintained for the life of the product. Thermal efficiency is a key factor in considering an insulation product. As a result, the insulation application of slag wool contributes to the structure's long-term viability by protecting it against moisture and fire damage. Furthermore, slag wool insulation has a higher density than most other insulation products, enabling it to reach higher R-values (insulation values) in a normal wall cavity. Thus, to protect the structure from fire, the application of structural insulation is surging, which is accelerating the growth of the market.

Global Slag Wool Market Segment Analysis – By End-Use Industry

The building and construction segment held the largest share in the global slag wool market in 2021 and is forecasted to grow at a CAGR of 4.1% during the forecast period 2022-27. In building and construction, slag wool is utilized to provide pipe insulation, structure insulation, and other types of insulation. The higher density and superior fire-resistant properties of slag wool make them ideal for building and construction. The key factors such as the increasing development of the urban sector, government initiatives, and more are propelling the growth of the building and construction industry. For instance, according to the German Federal Statistics Office, In 2020, Germany's residential and non-residential building and construction activities were 232,208 units, an increase of 4.3% over 2019. Moreover, in September 2020, the French government passed the “France Relance” plan of €100 billion (US$118.13 billion) to strengthen the construction and building industry. Hence, the growth of the building and construction industry is fueling the demand for slag wool, which, in turn, is aiding the market growth.

Global Slag Wool Market Segment Analysis – By Geography

The Asia-Pacific region is the dominating region as it holds the largest share in the global slag wool market in 2021 up to 41%. The key industries of the Asia-Pacific region are building and construction, oil & gas, and more. Factors such as the development of new industrial zones, construction projects, and more are expanding the growth of the building and construction industry in the Asia-Pacific region. For instance, the city of Hai Phong, Vietnam is building 15 new industrial parks with a total area of more than 6,400 hectares between 2021 and 2025. In addition, Hai Phong has approved seven housing projects for workers. The overall area is more than 20.7 hectares, with over 4,555 apartments, as of November 2021, two projects have been completed and five more are under construction. Moreover, according to Invest India, there is a total of 115 future construction projects which are under the planning phase in India, and the value of these projects is about US$11.63 million. These projects include the construction of hotels, office-buildings, shopping complex, and more. Therefore, the growth of the building and construction industry in Asia-pacific is anticipated to boost the demand for slag wool. As a result, the market will grow in the projected forecast period.

Global Slag Wool Market Drivers

Surging Green Building Initiatives

Slag wool is used in green building construction because about 70% of the material used during the manufacturing of slag wool is recyclable and it is highly insulated. Green buildings are more energy efficient as they produce lower greenhouse gas emissions as opposed to conventional buildings. These properties are driving demand in multiple regions, due to which government initiatives are been adopted across various regions to promote green buildings. For instance, in January 2021, the government of the United Kingdom set tight standards for the green construction revolution, requiring all homes and businesses in the country to meet stringent new energy efficiency regulations to minimize energy use and costs. Also, the Rajasthan Investment Promotion Scheme - 2019, (India) provides MSME enterprises with a subsidy in the form of reimbursement of 50% of the amount paid to suppliers for the plant, excluding civil work, for adopting Green Building Measures for buildings with a minimum floor space of 2,000 sq meters. Thus, such initiatives in the development of green buildings are fueling the growth of the global slag wool market.

Increasing Research and Development Related to Slag Wool

The slag wool manufacturers all across the world are adopting slag wool for their ongoing research and development related to their insulation production. For instance, in February 2021, Yidu Huiren Environmental Protection Tech Co LTD invented a light building board that is energy efficient and environmentally friendly. Slag wool is used to fill the rectangular groove. Moreover, in March 2020, Henan Yuexin Steel Structure Eng Co Ltd created a new energy-saving and environmentally friendly composite board. A lower-end iron plate supporting layer, a mineral wool connecting layer on the upper surface of the lower-end iron plate supporting layer, and a first connecting net on the top surface of the slag wool connecting layer are all part of the device.

Global Slag Wool Market Challenges

Availability of Substitute Products

The slag wool has superior insulation and heat resistance properties. However, the availability of the substitute products such as glass wool, stone wool, and more is hindering the growth of the market. The use of glass wool enables higher energy efficiency of the building structure, owing to this its adoption is increasing over slag wool. Moreover, in comparison with slag wool, stone wool has superior properties such as thermal protection, sound absorbency, and more. Moreover, the cost of slag wool is higher than stone and glass wool. Thus, the availability of various substitute products in the market is limiting the global slag wool market growth.

Global Slag Wool Industry Outlook

Technology launches, acquisitions, and increased R&D activities are key strategies adopted by players in the global slag wool market. Global slag wool top10 companies are: