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THERMAL INSULATION - UK - AUGUST 2018

Published By :

Mintel

Published Date : Aug 2018

Category :

Industry Profile

No. of Pages : N/A

UK demand for thermal insulation has demonstrated an erratic development over recent years. This has been exacerbated by changes to government programmes promoting home energy efficiency measures, which has resulted in stop-start activity in the retro-fit building insulation market. The recovery in UK construction activity has, however, provided more stable growth opportunities for thermal insulation companies. The private housebuilding sector will continue to provide a positive impetus for thermal insulation demand, while the commercial construction sector is expected to be negatively affected by Brexit-related uncertainties, at least in the short term.
Table of contents
OVERVIEW
What you need to know
Covered in this Report
EXECUTIVE SUMMARY
The market
Decline in thermal insulation market exacerbated by funding cuts to energy efficiency schemes
Figure 1: The UK market for thermal insulation, by sector, 2013-17
Building thermal insulation market contracts by an estimated 8% in 2017
Figure 2: UK market for building thermal insulation, by type, 2017
Demand for industrial thermal insulation shows moderate growth
Sustainability, thinner materials and easier installation are key focus of product innovation
Market growth expected to remain restricted
Figure 3: Forecast UK market for thermal insulation, by sector, 2018-22
Companies and brands
Major manufacturers invest in UK plants
Installers are increasingly adopting multi-measure approach
What we think
ISSUES AND INSIGHTS
Long-term government framework for energy efficiency is needed to provide a clear direction and certainty for the insulation industry and supply chain
The facts
The implications
New incentives and funding mechanism required to boost able-to-pay market
The facts
The implications
THE MARKET WHAT YOU NEED TO KNOW
Cuts to government schemes supress growth in thermal insulation market
Frequent changes to government policies have resulted in a stop-start retro-fit market
Demand for industrial thermal insulation shows moderate growth
Market growth expected to remain restricted
MARKET SIZE
Overview
Reduced government funding for energy efficiency schemes exacerbates decline in UK thermal insulation market
Figure 4: The UK market for thermal insulation, 2013-17
Figure 5: UK market for thermal insulation, 2013-17
Building thermal insulation accounts for more than 70% of thermal insulation market
Figure 6: Segmentation of the UK market for thermal insulation, by sector, 2013-17
MARKET SEGMENTATION
Building thermal insulation
Frequent changes to home energy efficiency policies have resulted in a stop-start retro-fit market
UK building thermal insulation market contracts by an estimated 8% in 2017
Figure 7: UK market for building thermal insulation, 2013-17
Segmentation by type of building thermal insulation
Key building insulation measures struggle to achieve demand growth
Figure 8: UK market for building thermal insulation, by type of insulation, 2013-17
Figure 9: UK market for building thermal insulation, by type of insulation, 2013-17
Cavity wall insulation
69% of homes with cavity walls are insulated
Cavity wall insulation demand restrained due to cuts in home energy efficiency schemes
Figure 10: UK market for cavity wall insulation, 2013-17
Figure 11: UK market for cavity wall insulation, 2013-17
Loft insulation
A third of homes with lofts are still uninsulated
Majority of loft insulation is mineral and glass wool produced in blanket rolls
Reduced retro-fit demand is partly counteracted by increased new housebuilding activity
Figure 12: UK market for loft insulation, 2013-17
Figure 13: UK market for loft insulation, 2013-17
Draught proofing
Figure 14: UK market for draught proofing, 2013-17
Roof insulation
Roof insulation benefits from increased demand for loft conversions in domestic sector
Pitched roofing accounts for largest element of roof insulation
Roof insulation market demonstrates relatively consistent growth
Figure 15: UK market for roof insulation, 2013-17
External wall insulation
Just 9% of homes with solid walls are insulated
Impact of government schemes on solid wall insulation uptake
External wall insulation market has declined in recent years, except for a temporary spike in 2014
Figure 16: UK market for external wall insulation, 2013-17
Internal wall insulation
Materials used for internal wall insulation
Internal wall insulation market down by an estimated 27% in 2017
Figure 17: UK market for internal wall insulation, 2012-16
Pipe and cylinder lagging
Demand for pipe and cylinder lagging demonstrates relatively consistent growth between 2013 and 2017
Figure 18: UK market for pipe & cylinder lagging, 2013-17
Floor insulation
Floor insulation market grew by an estimated 2% in 2017
Figure 19: UK market for floor insulation, 2013-17
Industrial thermal insulation market
Demand for industrial thermal insulation shows moderate growth
Figure 20: UK market for industrial thermal insulation, 2013-17
Industrial thermal insulation by material
Figure 21: UK market for industrial thermal insulation, by material, 2017
Figure 22: UK market for industrial thermal insulation, by type, 2017
Industrial thermal insulation market by end user
Figure 23: UK market for industrial thermal insulation, by end use sector, 2017
MARKET FORECAST
Market growth expected to remain restricted
Figure 24: Forecast UK market for thermal insulation, 2018-22
Figure 25: Forecast UK market for thermal insulation, 2017-22
Figure 26: Forecast segmentation of the UK market for thermal insulation, by sector, 2018-22
Building thermal insulation forecast
Able-to-pay market needs to be stimulated
Solid wall, loft and cavity wall insulation to remain key measures under ECO scheme
Figure 27: Forecast for UK market for building thermal insulation, by type, 2018-22
Figure 28: Forecast for UK market for building thermal insulation, by type, 2018-22
SUPPLY SOURCES
UK production of thermal insulation materials is on the up
Figure 29: UK production of selected thermal insulation materials, 2013-17
Figure 30: Segmentation of the UK production of selected thermal insulation materials, by material, 2012-16
Figure 31: Segmentation of the UK production of selected thermal insulation materials, by material, 2017
Investment plans at UK insulation material manufacturing plants
Trends in imports
Figure 32: UK imports of selected thermal insulation materials, 2013-17
Figure 33: Segmentation of UK imports of selected thermal insulation materials, by material, 2013-17
Trends in exports
Figure 34: UK exports of selected thermal insulation materials, 2012-16
Figure 35: Segmentation of UK exports of thermal insulation materials, by material, 2013-17
Figure 36: UK trade surplus/deficit in thermal insulation materials, by material, 2013-17
STRUCTURE OF DISTRIBUTION NETWORK
Move towards one-stop, single sourcing of insulation solutions from distributors
MARKET TRENDS
Sustainability, thinner materials and easier installation are key areas of product innovation
Innovative robotic insulation solution enables more efficient and less disruptive floor insulation installation
Material price rises threaten supplier profits
Installers increasingly adopt multi-measure approach
REGULATORY AND LEGISLATIVE CHANGES
Building regulations
Government commitment to reduce carbon emissions
Clean Growth Strategy puts better insulated homes back on government agenda
Robust policy framework and solid plans are required to deliver the governments home energy efficiency ambitions
Energy supplier obligation initiatives to improve energy efficiency of domestic homes
Reduced government funding for new ECO schemes (ECO2t 2017-18 and ECO3 2018-22)
Innovation element to be introduced in new ECO scheme
Green Deal has minimum impact on building thermal insulation market
Green Deal relaunched in June 2017 under new private ownership
Minimum Energy Efficiency Standards for private rented sector
Enhanced Capital Allowance Scheme encourages investment in energy-saving equipment
Each Home Counts Review to improve quality and standards for retro-fit energy efficiency installations
MARKET DRIVERS
Housing stock characteristics
Figure 37: Number of UK households, 1991-17
Figure 38: Government predictions of the number of households in the UK, 2019-37
Figure 39: Housing stock distribution in England, by age, 2016
Figure 40: Housing stock analysis for England, by type, 2016
Figure 41: Housing stock distribution in Scotland by age, 2016
Figure 42: Housing stock analysis for Scotland, by type, 2016
Growing private rented sector offers opportunities for thermal insulation installers
Figure 43: UK home ownership trends, 2006-16
Government plans to improve energy performance standards of UK homes
Current insulation levels in housing stock, and remaining potential
Figure 44: Remaining potential to insulate the housing stock in GB, December 2017
Construction activity
Figure 45: Construction output in Great Britain, by type, 2013-17
Growth in construction output expected to slow
Figure 46: Forecast construction output in Great Britain, 2018-22
Figure 47: Forecast construction output in Great Britain, 2018-22
Figure 48: Forecast construction output in Great Britain, 2018-22
Government energy efficiency schemes drive retro-fit building thermal insulation measures
7% of households had a measure installed under ECO scheme
Figure 49: Number of key insulation ECO measures installed, by measure type, Q1 2013-Q4 2017
Figure 50: Number of insulation ECO measures installed, by obligation, January 2013 to March 2017
Figure 51: Key insulation ECO measures installed, by obligation, January 2013 to March 2017
Figure 52: Number of insulation ECO Help-To-Heat measures installed, by obligation, April 2017 to March 2018
Drivers in heating and ventilation sector
Drivers for process plant investment
COMPANIES AND BRANDS WHAT YOU NEED TO KNOW
Manufacturers investment in UK production facilities suggests optimism in market growth potential
Major firms starting to adopt digitalisation innovation
Sustainability plays increasingly important role in thermal insulation industry
INDUSTRY STRUCTURE
Industry development
Figure 53: Analysis of the changes in the other non-metallic mineral products manufacturing industry, 2013-17
Figure 54: Analysis of the changes in the glass fibres manufacturing industry, 2013-17
Structure by employment
Figure 55: Analysis of the employment structure of the other non-metallic mineral products manufacturing industry, 2016 and 2017
Figure 56: Analysis of the employment structure of the glass fibres manufacturing industry, 2016 and 2017
Structure by turnover
Figure 57: Analysis of the financial structure of the other non-metallic mineral products manufacturing industry, 2016 and 2017
Figure 58: Analysis of the financial structure of the glass fibres manufacturing industry, 2016 and 2017
COMPANY PROFILES
Encon Insulation
Recent activity
Financial performance
Figure 59: Financial analysis of Encon Insulation, 2012-16
Company outlook
Jablite
Recent activity
Company strategy
Financial performance
Figure 60: Financial analysis of Jablite, 2012-16
Kingspan Insulation
Recent activity
Financial performance
Figure 61: Financial analysis of Kingspan Insulation, 2012-16
Company strategy
Innovation highlights in 2017
Knauf Insulation
Recent activity
Financial performance
Figure 62: Financial analysis of Knauf Insulation, 2012-16
Rockwool
Company strategy
Financial performance
Figure 63: Financial analysis of Rockwool, 2012-16
SIG
Company strategy
Financial performance
Figure 64: Financial analysis of SIG, 2013-17
Superglass Holdings
Acquisition by Inflection, part of Russian TechnoNICOL Group
Company performance
Figure 65: Financial analysis of Superglass Holdings, 2013-17
Company strategy
APPENDIX DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Methodology
FURTHER SOURCES AND CONTACTS
Trade associations
Association for the Conservation of Energy
British Urethane Foam Contractors Association (BUFCA)
Energy Industries Council
Energy Saving Trust
Insulation Manufacturers Association (IMA)
National Insulation Association
Thermal Insulation Contractors Association
Thermal Insulation Manufacturers & Suppliers Association
Trade magazines
Building Control
Insulate Magazine
Roofing, Cladding & Insulation
Trade events
National Homebuilding & Renovating Show
edie live 2018
Northern Homebuilding & Renovating Show
Scottish Homebuilding & Renovation Show
Southern Homebuilding & Renovating Show
South-West Homebuilding & Renovating Show

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