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THERMAL INSULATION - UK - AUGUST 2019

Published By :

Mintel

Published Date : Aug 2019

Category :

Industry Profile

No. of Pages : N/A

Growth in demand for retro-fit building thermal insulation measures is expected to remain moderate over the next five years unless the government provides new incentives to boost take-up. The recently announced £5 million Green Home Finance Innovation Fund aimed at accelerating the financial sector’s offering of green mortgages is hoped to help stimulate the ‘able-to-pay’ market. The housebuilding sector is also anticipated to continue to provide a positive impetus for building thermal insulation demand.

Table of contents

OVERVIEW
What you need to know
Covered in this Report
EXECUTIVE SUMMARY
The market
Cuts in government energy efficiency schemes supress growth in thermal insulation market
Figure 1: The UK market for thermal insulation, by sector, 2014-18
Building thermal insulation sector returns to moderate growth in 2018
Figure 2: UK market for building thermal insulation, by type, 2018, (£ million)
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 modest
Figure 3: Forecast UK market for thermal insulation, by sector, 2019-23
Companies and brands
Major manufacturers invest in UK plants
The consumer
58% of homeowners would pay more for a high energy efficient home
Availability of ‘green mortgage’ products would encourage just over half of homeowners to improve the energy efficiency of their home
What we think
ISSUES AND INSIGHTS
Action on home energy efficiency is required at significantly greater scale for UK to reach net zero carbon emissions by 2050
The facts
The implications
Government announces new policies in July 2019 in a bid to help cut costs of home retro-fit measures and boost retro-fit installations
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Cuts in government energy efficiency schemes supress growth in thermal insulation market
UK building thermal insulation sector returns to moderate growth in 2018
Industrial thermal insulation market up by an estimated 1% in 2018
Market growth expected to remain modest
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, 2014-18
Figure 5: UK Market for thermal insulation, 2014-18
Building thermal insulation represents vast majority of market
Figure 6: Segmentation of the UK market for thermal insulation, by sector, 2014-18
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 sector returns to moderate growth in 2018
Figure 7: UK market for building thermal insulation, 2014-18
Segmentation by type of building thermal insulation
Key building insulation measures struggle to achieve growth
Figure 8: UK market for building thermal insulation, by type of insulation, 2014-18
Figure 9: UK market for building thermal insulation, by type of insulation, 2014-18
Cavity wall insulation
30% of homes with cavity walls still uninsulated
Cavity wall insulation demand suppressed due to cuts in government energy efficiency schemes
Figure 10: UK market for cavity wall insulation, 2014-18
Figure 11: UK market for cavity wall insulation, 2014-18
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, 2014-18
Figure 13: UK market for loft insulation, 2014-18
Draught proofing
Figure 14: UK market for draught proofing, 2014-18
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 affected by downturn in commercial property construction in 2018
Figure 15: UK market for roof insulation, 2014-18
External wall insulation
Just 9% of homes with solid walls are insulated
Government cuts solid wall insulation minimum target to 17,000 per year for ECO3 (December 2018-March 2022)
External wall insulation market impacted by government cuts to energy efficiency schemes
Figure 16: UK market for external wall insulation, 2014-18
Internal wall insulation
Materials used for internal wall insulation
Internal wall insulation market up by an estimated 9% in 2018
Figure 17: UK market for internal wall insulation, 2014-18
Pipe and cylinder lagging
Demand for pipe and cylinder lagging demonstrates relatively consistent growth
Figure 18: UK market for pipe & cylinder lagging, 2014-18
Floor insulation
Floor insulation market grew by an estimated 4% in 2018
Figure 19: UK market for floor insulation, 2014-18
Industrial thermal insulation market
Demand for industrial thermal insulation shows moderate growth
Figure 20: UK market for industrial thermal insulation, 2014-18
Industrial thermal insulation by material
Figure 21: UK market for industrial thermal insulation, by material, 2018
Figure 22: UK market for industrial thermal insulation, by type, 2018
Industrial thermal insulation market by end user
Figure 23: UK market for industrial thermal insulation, by end use sector, 2018
MARKET FORECAST
Market growth expected to remain modest
Figure 24: Forecast UK market for thermal insulation, 2019-23
Figure 25: Forecast UK market for thermal insulation, 2018-23
Figure 26: Forecast segmentation of the UK market for thermal insulation, by sector, 2019-23
Building thermal insulation forecast
Government announces policies to help cut costs of home retro-fit measures and boost ‘able-to-pay’ market
Cavity wall and loft insulation to remain key measures under ECO3 scheme
Figure 27: Forecast for UK market for building thermal insulation, by type, 2019-23
Figure 28: Forecast for UK market for building thermal insulation, by type, 2019-23
SUPPLY SOURCES
UK production of thermal insulation materials is on the up
Figure 29: UK production of selected thermal insulation materials, 2014-18
Figure 30: Segmentation of the UK production of selected thermal insulation materials, by material, 2014-18
Figure 31: Segmentation of the UK production of selected thermal insulation materials, by material, 2018
Investment plans at UK insulation material manufacturing plants
Trends in imports
Figure 32: UK imports of selected thermal insulation materials, 2014-18
Figure 33: Segmentation of UK imports of selected thermal insulation materials, by material, 2014-18
Trends in exports
Figure 34: UK exports of selected thermal insulation materials, 2014-18
Figure 35: Segmentation of UK exports of thermal insulation materials, by material, 2014-18
Figure 36: UK trade surplus/deficit in thermal insulation materials, by material, 2014-18
STRUCTURE OF DISTRIBUTION NETWORK
Move towards one-stop, single sourcing of insulation solutions from distributors
MARKET TRENDS
New super insulating materials are being developed, but focus still remains on conventional materials
Sustainability plays increasingly important part in product innovation
Innovative, tech-based solutions enable more efficient and less disruptive insulation installation
Adoption of Dutch-style retro-fitting model could accelerate the development of a net zero buildings in UK
REGULATORY AND LEGISLATIVE CHANGES
Building regulations
Government bans combustible material on high-rise homes
Government commitment to reduce carbon emissions
2017 Clean Growth Strategy puts better insulated homes back on government agenda
But policy progress urgently needed to meet the government’s home energy efficiency ambitions
Energy supplier obligation initiatives to improve energy efficiency of domestic homes
ECO scheme now entirely focused on fuel-poor and low-income homes
Figure 37: Projected uptake of energy efficiency measures in ECO3, October 2018-March 2022
Minimum Energy Efficiency Standards for private rented sector
Enhanced Capital Allowance Scheme encourages investment in energy-saving equipment
Each Home Counts Review aims to improve quality and standards for retro-fit energy efficiency installations
MARKET DRIVERS
Housing stock characteristics
Figure 38: Number of UK households, 1991-17
Figure 39: Government predictions of the number of households in the UK, 2019-37
Figure 40: Housing stock distribution in England, by age, 2017
Figure 41: Housing stock analysis for England, by type, 2017
Figure 42: Housing stock distribution in Scotland by age, 2017
Figure 43: Housing stock analysis for Scotland, by type, 2017
Private rented sector offers opportunities for thermal insulation installers
Figure 44: UK home ownership trends, 2007-17
Energy efficiency level of English homes has stalled since 2015
Figure 45: Energy efficiency rating bands of English dwellings, by tenure, 2017, (% of dwellings)
Government plans to improve energy efficiency of UK homes
Government announces policies in a bid to help cut costs of home retro-fit measures and boost take-up
Current insulation levels in housing stock, and remaining potential
Figure 46: Remaining potential to insulate the housing stock in GB, December 2018
Construction activity
Figure 47: Segmentation of the construction market, 2018 (% of total)
Major differences in growth between sectors
Construction output set for modest growth in 2019
Figure 48: Forecast construction market, 2019-23
Continued divergence of sector performance
Strong new housing prospects
Figure 49: Forecast new housing market, 2019-23
Short-term difficulties in private non-residential
Figure 50: Forecast private non-residential new construction, 2019-23
Public non-residential construction continues to reflect restrictions
Figure 51: Forecast public sector non-residential new construction, 2019-23
Varied influences on R&M activity
Figure 52: Forecast R&M activity, by sector, 2019-23
Government energy efficiency schemes drive retro-fit building thermal insulation measures
7% of households had a measure installed under ECO scheme
Figure 53: Number of key insulation ECO measures installed, by measure type, Q1 2013-Q4 2018
Figure 54: Number of key insulation ECO measures installed, by measure type, 2013-18
Figure 55: Number of insulation ECO measures installed, by obligation, January 2013 to February 2019
Figure 56: Key insulation ECO measures installed, by measure type, January 2013 to February 2019
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
Kingspan launches new service-led business Kingspan Facades
Major firms are adopting digitalisation innovation
Increased focus on sustainability
INDUSTRY STRUCTURE
Industry development
Figure 57: Analysis of the changes in the other non-metallic mineral products manufacturing industry, 2014-18
Figure 58: Analysis of the changes in the glass fibres manufacturing industry, 2014-18
Structure by employment
Figure 59: Analysis of the employment structure of the other non-metallic mineral products manufacturing industry, 2017 and 2018
Figure 60: Analysis of the employment structure of the glass fibres manufacturing industry, 2017 and 2018
Structure by turnover
Figure 61: Analysis of the financial structure of the other non-metallic mineral products manufacturing industry, 2017 and 2018
Figure 62: Analysis of the financial structure of the glass fibres manufacturing industry, 2017 and 2018
COMPANY PROFILES
Encon Insulation
Recent activity
Financial performance
Figure 63: Financial analysis of Encon Insulation, 2014-18
Company outlook
Jablite
Recent activity
Company strategy
Financial performance
Figure 64: Financial analysis of Jablite, 2013-17
Kingspan Insulation
Recent activity
Financial performance
Figure 65: Financial analysis of Kingspan Insulation, 2013-17
Company strategy
Innovation highlights in 2018
Knauf Insulation
Recent activity
Financial performance
Figure 66: Financial analysis of Knauf Insulation, 2013-17
Rockwool
Company strategy
Financial performance
Figure 67: Financial analysis of Rockwool, 2013-17
SIG
Company strategy
Financial performance
Figure 68: Financial analysis of SIG, 2014-18
Superglass Holdings
Acquisition by Inflection, part of Russian TechnoNICOL Group
Upgrade of UK manufacturing facility to double production capacity
Financial performance
Figure 69: Financial analysis of Superglass Holdings, 2014-18
THE CONSUMER – WHAT YOU NEED TO KNOW
Loft insulation represents most popular thermal insulation measure installed in the last three years
Homeowners add energy efficiency measures primarily to reduce energy bills
58% of homeowners would pay more for a high energy efficient home
Availability of ‘green mortgage’ products would encourage just over half of homeowners to improve the energy efficiency of their home
USAGE
Loft insulation represents most popular thermal insulation measure installed in the last three years
Figure 70: Types of energy efficiency measures added to home in the last 3 years, May 2019, (%)
Older people more likely to have installed loft insulation
INSTALLATION MOTIVATIONS
Homeowners add energy efficiency measures primarily to reduce energy bills
Figure 71: Reasons for having energy efficiency measures(s) added to home in the last 3 years, May 2019, (0%)
FUTURE INTENTIONS
Majority of homeowners do not expect to install home energy efficiency measures over the next two years
Figure 72: Energy efficiency measures considered to add/replace in home in the next 2 years, may 2019
ATTITUDES TOWARDS ENERGY EFFICIENCY MEASURES
58% of homeowners would pay more for a high energy efficient home
Availability of ‘green mortgage’ products would encourage just over half of homeowners to improve the energy efficiency of their home
Figure 73: Attitudes towards energy efficiency measures, May 2019
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 2020
Northern Homebuilding & Renovating Show
Scottish Homebuilding & Renovation Show
Southern Homebuilding & Renovating Show
South-West Homebuilding & Renovating Show

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