- Nigeria's consumption levels to double that of South Africa's by 2017
CAPE TOWN, South Africa, Sept. 18, 2013 /PRNewswire/ -- The South African and Nigerian thermal insulation materials markets will present attractive growth opportunities over the next 4-5 years. New National Building Regulations in South Africa, and an anticipated increase in construction activity in Nigeria, are poised to fuel the uptake of thermal insulation materials.
New analysis from Frost & Sullivan (http://www.chemicals.frost.com), Analysis of the South African and Nigerian Thermal Insulation Materials Market, estimates the South African market to expand from $93.1 million in 2012 to $117.1 million in 2017, and the market in Nigeria to grow from $111.3 million to $224.2 million over the same time period.
"Nigeria's construction industry has experienced exceptional growth rates over the past decade, with such trends projected to continue in future," noted Frost & Sullivan's Chemicals Materials & Food Research Analyst Margot Kuhn. "An increase in commercial construction activities, in particular, will drive the demand for thermal insulation materials."
In South Africa, the main targets of SANS 204 and SANS 10400-XA legislations are to improve the energy efficiency of buildings. These legislations require all new planned buildings to comply with minimum standards for energy efficiency, which will have a positive impact on the use of insulation materials.
Spiralling electricity costs in both countries further highlight the growth potential of thermal insulation materials.
"Commercial, as well as residential, buildings are progressively embracing electricity-saving practices such as roof, wall and floor insulation," explained Kuhn. "This is because insulation is identified as one of the most efficient ways of reducing electricity consumption in buildings."
However, high price sensitivity and low brand awareness pose a challenge to market prospects. Stricter regulation and escalating electricity costs are, promisingly, set to reduce the degree of price sensitivity in both Nigeria and South Africa. Improving end-user awareness requires manufacturers to undertake information dissemination initiatives.
"As energy costs rise, and consumers become more aware of the environment, marketing will play an important role in the growth strategies of manufacturers," added Kuhn. "The focus will be on educating end users about the benefits of insulation and developing a top of mind brand."
Sustainable manufacturing will also gain importance and R&D efforts should be aimed at improving the efficiency of products.
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Analysis of the South African and Nigerian Thermal Insulation Materials Market
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