U.S. Spray Foam Insulation Market - Focused Insights 2025-2030

U.S. SPRAY FOAM INSULATION MARKET SHARE

The U.S. spray foam insulation market was valued at USD 750.02 million in 2024 and is projected to reach USD 1.01 billion by 2030, growing at a CAGR of 5.09%. This growth is driven by a growing focus on energy efficiency, stricter building codes, and rising demand for sustainable construction materials. Spray foam insulation is favored for its superior thermal resistance and air sealing capabilities, offering better performance than traditional materials like fiberglass and cellulose.

SPRAY FOAM INSULATION MARKET TRENDS & DRIVERS

Focus Toward Better Thermal Insulation

Advances in spray foam technology have enhanced its thermal insulation, making it one of the most efficient materials for reducing energy use in buildings. Its superior thermal resistance cuts heating and cooling costs, while also providing soundproofing and moisture resistance. Spray foam is increasingly popular in residential, commercial, and industrial applications due to its comfort, mold protection, and energy efficiency. As energy codes and environmental regulations tighten, demand for high-performance insulation like spray foam grows, driving further innovation and reinforcing its role in sustainable building practices.

Technological Advancements

Innovations in spray foam technology, like smart spray systems and automated proportioning equipment, are improving application efficiency by ensuring the correct mixture of foam, reducing waste, and lowering material costs. Wireless remote controls and advanced spray guns enable more precise, faster installations, minimizing errors and rework, which reduces labor costs. Portable, lightweight equipment has also made spray foam accessible for smaller-scale projects. These advancements are driving market growth by boosting efficiency, reducing waste, and making spray foam a preferred choice for modern construction and renovation projects.

Growth in the Construction Sector

The strong growth in the U.S. housing and commercial real estate sectors is driving demand for effective insulation, with spray foam insulation being a top choice for its energy efficiency. Since 1980, 29.3 billion sq. ft. of industrial space and 12.6 billion sq. ft. of office space have been added, along with nearly 2 billion sq. ft. of self-storage, which now makes up 91% of the inventory. Retail space also grew by 14.6 billion sq. ft., indicating continued development across all sectors. This growth fuels the need for spray foam insulation, which is ideal for both new builds and retrofits due to its ability to fill gaps and create a seamless barrier. As urbanization and the focus on energy-efficient smart cities grow, spray foam insulation is becoming increasingly essential in large residential and commercial buildings, further boosting market demand.

U.S. SPRAY FOAM INSULATION MARKET SEGMENT INSIGHTS

• By Product Type: The closed-cell segment dominated the U.S. spray foam insulation market share in 2024 due to its higher R-value (6–7 per inch), making it ideal for extreme weather conditions. Its adoption has been especially strong in colder regions like the Northeast and Midwest, where energy efficiency is prioritized to reduce heating costs. As energy regulations tighten, demand for high-performance insulation like closed-cell foam is expected to rise. Its rigid, dense composition also adds structural integrity, making it ideal for commercial and industrial uses, particularly in hurricane-prone areas like Florida. The increasing frequency of extreme weather events is further driving demand for closed-cell foam in disaster-resistant construction. Its durability also makes it suitable for commercial buildings, warehouses, and cold storage facilities, with growing use in temperature-controlled environments like food storage and pharmaceuticals. As industries expand and energy standards become stricter, closed-cell foam will continue to see significant investment and innovation.
• By Density: The medium and high-density segment is experiencing significant growth, with a CAGR of 5.48% during the forecast period. Offering superior thermal insulation with R-values between 5.5 and 7 per inch, these foams are ideal for extreme climates, particularly in the Northeast and Midwest, where temperature control during harsh winters is crucial. The increasing focus on energy-efficient construction is driving growth. High-density spray foam also provides structural reinforcement, making it suitable for exterior applications, commercial buildings, and roofing. As demand for durable, weather-resistant materials rises, especially in hurricane-prone areas like Florida and Texas, adoption of high-density spray foam is increasing. Its closed-cell structure acts as a moisture barrier, reducing mold growth risks and making it ideal for flood-prone regions. Growing awareness of mold-related health risks is further boosting demand for moisture-resistant insulation.
• By Application: The floors, walls, and ceilings application segment is expected to grow by USD 113 million during the forecast period. Spray foam insulation is widely used in this area for its excellent air-sealing properties, which reduce energy loss and improve HVAC efficiency. The growing focus on energy-efficient buildings, driven by stricter building codes and consumer demand for lower utility bills, is increasing the adoption of spray foam in this segment. Insulating walls and ceilings with spray foam enhances indoor comfort by minimizing drafts and temperature fluctuations, especially in regions with extreme seasonal changes like the Midwest and Northeast. Its ability to expand and fill small gaps makes it ideal for retrofitting older homes, fueling strong growth in the renovation market as homeowners upgrade insulation for better energy efficiency.
• By End-Users: In 2024, the residential segment held the largest share of the U.S. spray foam insulation market. Homeowners are adopting spray foam to reduce energy costs and improve home efficiency, driven by rising electricity prices and stricter energy codes. Many older homes in the U.S. have insufficient insulation, leading to high heating and cooling costs, which spray foam helps address in retrofit projects. Government incentives and tax credits for energy-efficient home improvements further boost its adoption. Spray foam reduces drafts, noise, and airborne pollutants, improving indoor air quality and aligning with the trend of homeowners prioritizing health and comfort. High-end residential projects increasingly use spray foam for its superior thermal performance and long lifespan, with builders and developers of luxury homes choosing it for airtight, energy-efficient construction.

COMPETITIVE LANDSCAPE

The U.S. spray foam insulation market report highlights data on 24 key vendors. The competitive landscape is shaped by major players like BASF, Dow, CertainTeed, Huntsman, Johns Manville, Covestro, and Carlisle Spray Foam Insulation, all of which focus on innovation and sustainability. BASF and Dow lead in material science, investing heavily in eco-friendly and high-performance polyurethane technologies for energy-efficient solutions. CertainTeed stands out with a wide range of building materials, leveraging the demand for green certifications. Huntsman competes with superior thermal performance and energy efficiency in polyurethane-based solutions. Johns Manville, supported by Berkshire Hathaway, offers energy-efficient insulation options for both residential and commercial sectors. Covestro, with expertise in polymers, positions itself as an innovator with low-GWP and sustainable products. These companies maintain a competitive edge through technological advancements, sustainability initiatives, and adherence to evolving energy regulations.

RECENT VENDOR ACTIVITIES

• In May 2022, BASF SE formed a partnership with King Long United Automotive (Suzhou) Co., Ltd. (Suzhou Kinglong) to supply spray polyurethane foam for bus insulation. This product, notable for its enhanced flame-retardant properties, also meets strict VOC regulations, demonstrating BASF’s focus on providing solutions that align with safety and environmental standards in the automotive industry.
• Founded in 1897, Dow is a global leader in materials science, offering innovative solutions across various industries. In 2023, Dow introduced ENDURANCE HFDD-4201 SC Compound for Cable Systems, significantly reducing cable manufacturing degassing times and lowering GHG emissions while maintaining high quality. This new compound enhances Dow's sustainability and energy-efficient manufacturing capabilities, positioning it as a key player in the insulation and energy sectors.