Insulation Services in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: May 2024
ANZSIC E3239bRevenue
$745.0m
Past 5-Year Growth
Profit
$XX.Xm
Employees
5,554
Businesses
3,835
Wages
$XXX.Xm
Insulation Services in Australia industry analysis
The Insulation Services industry generates the most revenue from installing work in new residential and non-residential buildings. Specialist contractors also install and refit insulation solutions for industrial, infrastructure and resource developments. The industry's performance is principally driven by construction trends in the downstream building and infrastructure markets, but stricter regulations governing building energy efficiency also influence long-term performance.
Trends and Insights
- Domestic insulation installers enjoyed the surge in single-unit house construction to a peak in 2021-22, supported by low interest rates and the Federal HomeBuilder subsidy. Work in this market has crashed following the recent hike in mortgage interest rates.
- Insulation services in new house construction have plummeted following the withdrawal of the Commonwealth HomeBuilder subsidy and the hike in mortgage interest rates. The tightening of building regulations under the National Construction Code 2022 will support insulation installation.
- New South Wales has a higher-than-expected share of insulation enterprises. The state has a high percentage of national building activity and the requirement for specialist contracting for industrial insulation applications in the steel, mining and marine sectors.
- The industry operates in intensely competitive conditions, which reflects the low skill base and the presence of small businesses contesting narrow geographic markets. Internal competition is principally based on the price for the volume installed and the proven track record.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 3.9 % over the past five years, to reach an estimated $745.0m in 2024.
Trends and Insights
Insulation contracting has risen and fallen with the trends in new housing construction
- The vast majority of industry contractors focus on installing domestic insulation products on new and renovated housing. These contractors enjoyed the surge in single-unit house construction through to a peak in 2021-22, pushed on by record-low interest rates and the Federal Government's HomeBuilder subsidy.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
A surge in apartment construction to underpin
- Accelerated growth in apartment and townhouse construction points to increased commercial insulation services through 2028-29, while domestic insulation activity will gradually recover in the single-unit housing market as population pressures build.
Biggest companies in the Insulation Services in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
KAEFER | 133.0 | |
ee-FiT Pty Limited | 20.0 | |
Access Insulation Pty Ltd | 12.0 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Fibreglass insulation services, Rock wool insulation services and Polyester insulation services. Fibreglass insulation services is the largest segment of the Insulation Services in Australia.
Trends and Insights
Weaker housing construction has dampened the installation of fibreglass
- The installation of fibreglass insulation products in housing and other buildings is the principal source of industry revenue but has contracted through 2023-24 in response to the current slump in new single-unit house construction.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Plastic Foam Product Manufacturing in Australia
- Glass Wool, Stone and Non-Metallic Mineral Product Manufacturing in Australia
- Hardware and Building Supplies Retailing in Australia
- Hardware Wholesaling in Australia
International industries
- Drywall & Insulation Installers in the US
- Insulation Contractors in the US
- Building Completion & Interior Design in China
Table of Contents
About this industry
Industry definition
Industry operators install, remove and reinstall insulation products for thermal and acoustic protection of buildings, industrial and transport infrastructure, pipes and industrial equipment.
What's included in this industry?
Installing thermal and acoustic insulation Thermal insulation applicationRemoving older insulation materials Preparing areas for insulation Installing insulation materials Measuring and cutting insulation batts and blankets Sealing insulation materialsCompanies
KAEFERee-FiT Pty LimitedAccess Insulation Pty LtdPurchase this report to view all 5 major companies in this industry.
Related Terms
ROCK-WOOL INSULATIONHOME INSULATION PROGRAM (HIP)CRYOGENIC LAGGINGSARKINGIndustry Code
ANZSIC 3239 - Insulation Services in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Domestic insulation installers enjoyed the surge in single-unit house construction to a peak in 2021-22, supported by low interest rates and the Federal HomeBuilder subsidy. ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Insulation services in new house construction have plummeted following the withdrawal of the Commonwealth HomeBuilder subsidy and the hike in mortgage interest rates. The tig...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
New South Wales has a higher-than-expected share of insulation enterprises. The state has a high percentage of national building activity and the requirement for specialist c...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The industry operates in intensely competitive conditions, which reflects the low skill base and the presence of small businesses contesting narrow geographic markets. Intern...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The prominent contractor, Kaefer Integrated Services, specialises in installation and remediation insulation work in the energy, infrastructure, mining and marine markets. Th...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of KAEFER's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of ee-FiT Pty Limited's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Access Insulation Pty Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for KAEFER, and factors influencing its performance in the industry
- Description and key data for ee-FiT Pty Limited, and factors influencing its performance in the industry
- Description and key data for Access Insulation Pty Ltd, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Insulation work in the house construction market has fallen following the hike in mortgage interest rates and the withdrawal of the Federal HomeBuilder subsidy. Work in the h...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
The slump in housing construction has squeezed profitability. Insulation contractors have cut profit margins to shore up cashflow as conditions intensify in the residential b...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Insulation Services industry in Australia in 2024?
The market size of the Insulation Services industry in Australia is $745.0m in 2024.
How many businesses are there in the Insulation Services in Australia industry in 2024?
There are 3,835 businesses in the Insulation Services industry in Australia, which has declined at a CAGR of 1.4 % between 2019 and 2024.
Has the Insulation Services industry in Australia grown or declined over the past 5 years?
The market size of the Insulation Services industry in Australia has been declining at a CAGR of 3.9 % between 2019 and 2024.
What is the forecast growth of the Insulation Services industry in Australia over the next 5 years?
Over the next five years, the Insulation Services industry in Australia is expected to grow.
What are the biggest companies in the Insulation Services market in Australia?
The biggest companies operating in the Insulation Services market in Australia are KAEFER, ee-FiT Pty Limited and Access Insulation Pty Ltd
What does the Insulation Services in Australia include?
Installing thermal and acoustic insulation and Thermal insulation application are part of the Insulation Services industry.
Which companies have the highest market share in the Insulation Services in Australia?
The company holding the most market share in Australia is KAEFER.
How competitive is the Insulation Services industry in Australia?
The level of competition is high and increasing in the Insulation Services industry in Australia.
