This thesis report isinvestigating effect of heat transfer using vacuum insulation over a pipe for industrials application to compare its result withfiberglass insulation for steelpipe. In this study, an experiment is conducted,at various steam temperature at Bahir Dar institute of technology, BahirDar, Ethiopia.The experimental testisperformed with 1m length and 80mm diameter of steel pipe with 27℃temperature and 1atm pressure working condition. The vacuum space creates by single stage vacuum pump of having an ultimate vacuum pressure of 0.05mbar.The performance of vacuum and fiberglass insulation has studied and discussed.The basic concept of thermodynamics and heat transferequationsare applied to explain the experiment result. The vacuum system has challenge tofabricate with the desired parameter due the lack of necessarily material and absence of required advanced technology here in Ethiopia. This reduce the expected performance of vacuum insulation.However,with this constrained, the performance of vacuum insulation higher than fiberglassinsulation. The cost of fiberglassand vacuum insulation material for 80mm diameter pipe are 2.7and 17.4 birrper unit length of pipe respectively. The heat lost cost of fiber is8.4×103birr per unit length, whereas the heat lost cost of vacuum insulation is 2.3×103 birr per unit length. The net heat cost between fiberglass and vacuum insulation is 7.9×104 birr per year per unit length of 80 mm diameter of pipe. In general, as show the report the performance of vacuum insulation is higher than fiberglass insulation in efficiency, cost and environmental aspect.