Table of Contents
Overview
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- What you need to know
- Key issues covered in this Report
- Covered in this Report
- COVID-19: Market context
- Economic and other assumptions
Executive Summary
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- Impact of COVID-19 on the UK thermal insulation market
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- Figure 1: Expected impact of COVID-19 on UK thermal insulation, short, medium and long term, 3 August 2020
- The market
- Cuts in government energy efficiency schemes hinder market growth
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- Figure 2: The UK market for thermal insulation, by sector, 2015-19
- UK building thermal insulation sector contracts by an estimated 4% in 2019
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- Figure 3: UK market for building thermal insulation, by type, 2019, (£ million)
- Demand for industrial thermal insulation falls in 2019 amid prolonged economic uncertainties
- Market set for strong growth in 2021 on the back of the government’s green recovery package
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- Figure 4: Forecast UK market for thermal insulation, by sector, 2020-24
- Companies and brands
- Major firms adopt digital innovations
- What we think
COVID-19 and Thermal Insulation
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- Impact on the market
- Government’s £3 billion green investment package set to revive retro-fit sector
- Thermal insulation demand in new housebuilding sector set to recover relatively quickly
- Impact of COVID-19 on commercial construction is set to be more significant and long term
- Impact on companies and brands
- The halt-to-business due to COVID-19 hits companies’ finances
- COVID-19: Market context
Issues and Insights
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- Government’s £3 billion energy efficiency package needs to be part of a more comprehensive, long-term plan to avoid return to boom and bust in the energy efficiency industry
- “Whole house” approach to retro-fitting required to bring all homes up to EPC Band C by 2035 and progress towards the 2050 net zero target
The Market – What You Need to Know
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- Cuts in government energy efficiency schemes hinder market growth
- UK building thermal insulation sector contracts by an estimated 4% in 2019
- Reduced demand for industrial thermal insulation in 2019
- Market set for strong growth in 2021 on the back of the government’s green recovery package
Market Size
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- Overview
- UK thermal insulation market declines by an estimated 3% in 2019
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- Figure 5: The UK market for thermal insulation, 2015-19
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- Figure 6: UK market for thermal insulation, 2015-19
- Building thermal insulation represents vast majority of market
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- Figure 7: Segmentation of the UK market for thermal insulation, by sector, 2015-19
Market Segmentation
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- Building thermal insulation
- Funding cuts to home energy efficiency schemes have detrimental effect on thermal insulation demand
- UK building thermal insulation sector contracts by an estimated 4% in 2019
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- Figure 8: UK market for building thermal insulation, 2015-19
- Segmentation by type of building thermal insulation
- Key building insulation measures struggle to achieve growth
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- Figure 9: UK market for building thermal insulation, by type of insulation, 2015-19
- Figure 10: UK market for building thermal insulation, by type of insulation, 2015-19
- Cavity wall insulation
- 30% of homes with cavity walls remain uninsulated
- Cavity wall insulation demand suppressed due to cuts in government energy efficiency schemes
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- Figure 11: UK market for cavity wall insulation, 2015-19
- Figure 12: UK market for cavity wall insulation, 2015-19
- Loft insulation
- Eight million lofts still uninsulated
- Majority of loft insulation is mineral and glass wool produced in blanket rolls
- UK market for loft insulation shows moderate growth in 2019
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- Figure 13: UK market for loft insulation, 2015-19
- Figure 14: UK market for loft insulation, 2015-19
- Draught proofing
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- Figure 15: UK market for draught proofing, 2015-19
- 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 up by an estimated 4% in 2019
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- Figure 16: UK market for roof insulation, 2015-19
- External wall insulation
- Nine out 10 of homes with solid walls remain uninsulated
- Government cuts solid wall insulation minimum target for ECO3 (December 2018-March 2022)
- External wall insulation market declines by 68% in the five-year period to 2019
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- Figure 17: UK market for external wall insulation, 2015-19
- Internal wall insulation
- Materials used for internal wall insulation
- ECO3 scheme boosts demand for internal wall insulation in 2019
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- Figure 18: UK market for internal wall insulation, 2015-19
- Pipe and cylinder lagging
- Demand for pipe and cylinder lagging demonstrates relatively consistent growth
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- Figure 19: UK market for pipe & cylinder lagging, 2015-19
- Floor insulation
- Floor insulation market grew by an estimated 13% in 2019
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- Figure 20: UK market for floor insulation, 2014-18
- Industrial thermal insulation market
- Demand for industrial thermal insulation falls in 2019 amid prolonged economic uncertainties
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- Figure 21: UK market for industrial thermal insulation, 2015-19
- Industrial thermal insulation by material
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- Figure 22: UK market for industrial thermal insulation, by material, 2019
- Figure 23: UK market for industrial thermal insulation, by type, 2019
- Industrial thermal insulation market by end user
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- Figure 24: UK market for industrial thermal insulation, by end use sector, 2019
Market Forecast
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- The impact of COVID-19
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- Figure 25: Expected impact of COVID-19 on UK thermal insulation, short, medium and long term, 3 August 2020
- Government’s new £3 billion green investment package set to revive retro-fit sector
- Market set for strong growth in 2021 on the back of the government’s green recovery package
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- Figure 26: Forecast UK market for thermal insulation, 2020-24
- Figure 27: Forecast UK market for thermal insulation, 2020-24
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- Figure 28: Forecast segmentation of the UK market for thermal insulation, by sector, 2020-24
- Building thermal insulation forecast
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- Figure 29: Forecast for UK market for building thermal insulation, by type, 2020-24
- Figure 30: Forecast for UK market for building thermal insulation, by type, 2020-24
Supply Sources
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- UK production of thermal insulation materials is on the up
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- Figure 31: UK production of selected thermal insulation materials, 2015-19
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- Figure 32: Segmentation of the UK production of selected thermal insulation materials, by material, 2015-19
- Figure 33: Segmentation of the UK production of selected thermal insulation materials, by material, 2019
- Recent investments at UK insulation material manufacturing plants
- Trends in imports
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- Figure 34: UK imports of selected thermal insulation materials, 2015-19
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- Figure 35: Segmentation of UK imports of selected thermal insulation materials, by material, 2015-19
- Trends in exports
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- Figure 36: UK exports of selected thermal insulation materials, 2015-19
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- Figure 37: Segmentation of UK exports of thermal insulation materials, by material, 2015-19
- Figure 38: UK trade surplus/deficit in thermal insulation materials, by material, 2015-19
Structure of Distribution Network
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- Overview
- Majority of building insulation sales pass through insulation distributors
Market Trends
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- More eco-friendly and sustainable building thermal insulation materials are being developed
- New super insulating materials launched, but focus remains on conventional materials
- Innovative, tech-based solutions enable more efficient and less disruptive insulation installation
- Kingspan’s Kooltherm® K-range claims to comprise the thinnest commonly used insulation products for any specific U-value
- Jablite offers All-in-One Thermal Floor system
- Robotic insulation solution Q-bot enables more efficient and less disruptive underfloor insulation installation
- WHISCERS™ provides faster, better, cost-effective and low-mess internal wall insulation for hard-to-treat properties
- Knauf Insulation develops technology that uses machine-learning systems to enhance performance of Energy Performance Certificates
- “Whole house” approach to retro-fitting required to help UK housing stock advance towards net zero target
- NIA calls on the government to use “whole-house” and street-by-street approach to home energy efficiency upgrades
Regulatory and Legislative Environment
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- Building regulations
- Future Homes Standard proposes a 31% reduction in emissions from new homes from 2025
- 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
- CCC urges government to embark on major green investment drive to deliver resilient recovery from COVID-19
- Energy supplier obligation initiatives to improve energy efficiency of domestic homes
- ECO scheme now entirely focused on fuel-poor and low-income homes
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- Figure 39: Modelled uptake of energy efficiency measures in ECO3, October 2018-March 2022
- Each Home Counts Review aims to improve quality and standards for retro-fit energy efficiency installations
- From January 2020, all ECO3 measures must be delivered by TrustMark-registered businesses
- Minimum Energy Efficiency Standards for private rented sector
- Enhanced Capital Allowance Scheme ends in April 2020
Market Drivers
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- Housing stock characteristics
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- Figure 40: Number of UK households, 1991-19
- Figure 41: Government predictions of the number of households in the UK, 2020-35
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- Figure 42: Housing stock distribution in England, by age, 2018
- Figure 43: Housing stock distribution in England, by age and tenure, 2018
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- Figure 44: Housing stock analysis for England, by type, 2018
- Figure 45: Housing stock distribution in Scotland by age, 2018
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- Figure 46: Housing stock analysis for Scotland, by type, 2018
- Private rented sector offers opportunities for thermal insulation installers
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- Figure 47: UK home ownership trends, 2008-18
- Energy efficiency of English homes has increased over last decade, but rate of improvement has slowed since 2014
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- Figure 48: Energy efficiency rating bands of English dwellings, by tenure, 2018, (% of dwellings)
- Government policies to boost energy efficiency of UK homes
- Government launches new innovation funds to cut cost of home retro-fit measures and boost take-up
- £3 billion green investment package announced as part of economic recovery plan
- Current insulation levels in housing stock, and remaining potential
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- Figure 49: Remaining potential to insulate the housing stock in GB, December 2019
- Construction activity
- Doubling of growth in 2019
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- Figure 50: The construction market, 2015-19
- Figure 51: Comparison of new construction and R&M output, 2015-19
- Sector specific development
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- Figure 52: Segmentation of new construction activity, 2019 (£ billion)
- Figure 53: Segmentation of R&M activity, 2019 (£ billion)
- COVID-19 to strongly reduce activity in 2020
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- Figure 54: Forecast construction market compared with expectations prior to COVID-19, 2020-2024
- Housing – government targets are challenging
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- Figure 55: Forecast new housing construction market compared with expectations prior to COVID-19, 2020-2024
- Short term impact of COVID-19 on R&M
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- Figure 56: Forecast R&M construction market compared with expectations prior to COVID-19, 2020-2024
- Government energy efficiency schemes drive retro-fit building thermal insulation measures
- 8% of households had a measure installed under ECO scheme
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- Figure 57: Number of key insulation ECO measures installed, by measure type, Q1 2014-Q4 2019
- Figure 58: Number of key insulation ECO measures installed, by measure type, 2014-19
- In ECO3, share of insulation measures falls due to rise in heating measures
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- Figure 59: Number of insulation ECO measures installed, by obligation, January 2013 to April 2020
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- Figure 60: Key insulation ECO measures installed, by measure type, January 2013 to April 2020
- Drivers in heating and ventilation sector
- Drivers for process plant investment
Companies and Brands – What You Need to Know
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- The halt-to-business due to COVID-19 hits companies’ finances
- Kingspan Group opens global innovation centre
- Major firms adopt digital innovations
- Sustainability plays increasingly important role in insulation solutions and wider business strategies
- Manufacturers’ investment in UK production facilities suggests optimism in UK market
Industry Structure
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- Industry development
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- Figure 61: Analysis of changes in the other non-metallic mineral products manufacturing industry, 2015-19
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- Figure 62: Analysis of changes in the glass fibres manufacturing industry, 2015-19
- Structure by employment
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- Figure 63: Analysis of the employment structure of the other non-metallic mineral products manufacturing industry, 2018 and 2019
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- Figure 64: Analysis of the employment structure of the glass fibres manufacturing industry, 2018 and 2019
- Structure by turnover
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- Figure 65: Analysis of the financial structure of the other non-metallic mineral products manufacturing industry, 2018 and 2019
- Figure 66: Analysis of the financial structure of the glass fibres manufacturing industry, 2018 and 2019
Company Profiles
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- Encon Insulation
- Recent activity
- Financial performance
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- Figure 67: Financial analysis of Encon Insulation, 2015-19
- Company outlook
- Jablite
- Product innovation
- Company strategy
- Financial performance
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- Figure 68: Financial analysis of Jablite, 2014-18
- Kingspan Insulation
- Recent activity
- Kingspan Group opens global innovation centre
- Financial performance
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- Figure 69: Financial analysis of Kingspan Insulation, 2014-18
- Company strategy
- Knauf Insulation
- Recent activity
- Financial performance
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- Figure 70: Financial analysis of Knauf Insulation, 2014-18
- Rockwool
- Company strategy
- Financial performance
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- Figure 71: Financial analysis of Rockwool, 2014-18
- SIG
- SIG sells divisions to focus on insulation and interiors product distribution and merchanting roofing and exteriors product
- Sale of SIG’s Building Solutions business to Kingspan abandoned
- SIG proposes capital raise of £165 million to strengthen capital structure, provide liquidity and deliver the group's new strategy
- Initial impact of COVID-19
- SIG launches new customer-centric strategy
- Financial performance
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- Figure 72: Financial analysis of SIG, 2015-19
- Superglass Holdings
- Major upgrade of UK manufacturing facility completed
- Financial performance
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- Figure 73: Financial analysis of Superglass Holdings, 2014-18
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Methodology
Further Sources and Contacts
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- Trade associations
- Trade magazines
- Trade events
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