UK Thermal Insulation Market Report 2022
£ 1,495 (Excl.Tax)
Description
The UK Thermal Insulation Market Report examines the key market drivers in the thermal insulation market and how the introduction of tighter building regulations to reduce carbon emissions is impacting the thermal insulation market. This report covers the thermal insulation market size, market forecast, market segmentation and trends in the thermal insulation market.
Thermal Insulation Market Current Landscape
The recent buoyancy in thermal insulation market demand in the private housing RMI sector is now strongly challenged by the fuel cost inflation pressure. However, soaring energy costs also provide a positive motivation for thermal insulation demand, especially affordable measures such as loft insulation and draught proofing as homeowners look for ways to reduce their heating costs.
Thermal Insulation Market Size and Key Industry Trends
Tighter building regulations to reduce carbon emissions, introduced in June 2022, result in increased demand in the new build sector and thus the thermal insulation market. Retrofit activity will need to be scaled up significantly to progress towards carbon emission reduction targets and mitigate fuel poverty. This will require much firmer government policies, new incentives and a long-term, ambitious strategy.
- Thermal insulation market size: In 2021, the UK thermal insulation market demonstrated a good recovery, with an estimated 15% increase taking the value to £1,382 million.
- Demand for industrial thermal insulation is up by an estimated 4% in 2021.
Future Thermal Insulation Market Trends
The Future Homes Standard, to be introduced in 2025, is set to boost thermal insulation market demand in the new build sector. A focus on high-performance thermal building envelopes and taking a whole-house retrofit approach will become increasingly important as the UK progresses to meet climate targets.
The government must create long-term consumer demand for green energy home upgrades, through incentives such as the availability of attractive financing options alongside a programme of deep retrofit thermal insulation upgrades for all homes below EPC Band C.
To discover more about the UK Thermal Insulation Market Report 2022, read our UK Energy Industry Market Report 2022, or take a look at our Industrial Market Research Reports.
Quickly Understand
- How the thermal insulation market has emerged from the COVID-19 crisis.
- Key market drivers and trends in the thermal insulation market.
- How the thermal insulation market is expected to develop over the next five years.
- Explores the thermal insulation market size and share.
Covered in this Report
Products: Loft insulation, roof insulation, wall insulation, draught-proofing, floor insulation and pipe and cylinder lagging.
Expert Analysis from a Specialist in the B2B Sector
This report, written by Claudia Preedy, a leading analyst in the B2B sector, delivers in-depth commentary and analysis to highlight current trends in the UK digital subscription market and add expert context to the numbers.
The recent buoyancy in thermal insulation demand in the private housing RMI sector is now strongly challenged by the fuel cost inflation pressure. However, soaring energy costs also provide a positive impetus for thermal insulation demand, especially affordable measures such as loft insulation and draught proofing as homeowners look for ways to reduce their heating costs.”
Claudia Preedy
Senior B2B Analyst
Table of Contents
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Overview
- Key issues covered in this Report
- Market context
- Covered in this Report
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Executive Summary
- The five-year outlook for UK thermal insulation
- Figure 1: Thermal insulation outlook, 2022-26
- The market
- UK thermal insulation market demonstrates strong recovery in 2021
- Figure 2: UK market for thermal insulation, by sector, 2017-21
- UK building thermal insulation sector grows by an estimated 19% in 2021
- Figure 3: UK market for building thermal insulation, by type, 2021 (£ million)
- Demand for industrial thermal insulation up by an estimated 4% in 2021
- Market set for sustained growth but firmer policies required to boost retrofit activity
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- Figure 4: Forecast UK market for thermal insulation, by sector, 2022-26
- Companies and brands
- Frequent changes to government schemes have undermined confidence in industry
- UK manufacturers likely to hike prices further
- Sustainability plays central role in wider business strategies
- The five-year outlook for UK thermal insulation
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Issues and Insights
- Failure of Green Homes Grant scheme has undermined confidence within the industry
- Government policy intervention is required to scale up home energy efficiency improvements
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Market Size and Performance
- Overview
- Sustainability and ease of installation drive innovation
- UK thermal insulation market shows strong recovery in 2021
- Figure 5: UK market for thermal insulation, 2017-21
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- Figure 6: UK market for thermal insulation, 2017-21
- Building thermal insulation represents vast majority of market
- Figure 7: Segmentation of UK market for thermal insulation, by sector, 2017-21
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Market Segmentation
- Building thermal insulation
- Government policy cuts and failed stimulus schemes result in low retrofit activity
- Consumer interest and uptake of energy efficiency products
- Figure 8: Consumer take-up of energy efficiency products, June 2022 (% of respondents)
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- Figure 9: Consumer intentions to install energy efficiency products, June 2022 (% of respondents)
- UK building thermal insulation sector grows by an estimated 19% in 2021
- Figure 10: UK market for building thermal insulation, 2017-21
- Segmentation by type of building thermal insulation
- All types of building insulation measures demonstrate growth in 2021
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- Figure 11: UK market for building thermal insulation, by type of insulation, 2017-21
- Figure 12: UK market for building thermal insulation, by type of insulation, 2017-21
- Cavity wall insulation
- Figure 13: Cavity wall insulation average installation cost and average energy bill savings, by type of dwelling, 2022
- 30% of homes with cavity walls remain uninsulated
- Cavity wall insulation market returns to strong growth in 2021
- Figure 14: UK market for cavity wall insulation, 2017-21
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- Figure 15: UK market for cavity wall insulation, 2017-21
- Loft insulation
- Figure 16: Loft insulation average installation cost and average energy bill savings, by type of dwelling, 2022
- Nearly 8 million lofts still uninsulated
- Majority of loft insulation is mineral and glass wool produced in blanket rolls
- UK market for loft insulation rose by an estimated 28% in 2021
- Figure 17: UK market for loft insulation, 2017-21
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- Figure 18: UK market for loft insulation, 2017-21
- Draught proofing
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- Figure 19: UK market for draught proofing, 2017-21
- 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 returns to growth in 2021
- Figure 20: UK market for roof insulation, 2017-21
- External wall insulation
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- Figure 21: Average energy bill savings with solid wall insulation, by dwelling type, 2022 (£/year)
- Nine out of 10 homes with solid walls remain uninsulated
- Solid wall insulation measures delivered in ECO3 fall short of government target
- External wall insulation market shows strong growth in 2021, albeit from a low level
- Figure 22: UK market for external wall insulation, 2017-21
- Internal wall insulation
- Materials used for internal wall insulation
- Internal wall insulation market valued at an estimated £56 million in 2021
- Figure 23: UK market for internal wall insulation, 2017-21
- Pipe and cylinder lagging
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- Figure 24: UK market for pipe & cylinder lagging, 2017-21
- Floor insulation
- Floor insulation market grew by an estimated 8% in 2021
- Figure 25: UK market for floor insulation, 2017-21
- Industrial thermal insulation market
- Demand for industrial thermal insulation increased by an estimated 4% in 2021
- Figure 26: UK market for industrial thermal insulation, 2017-21
- Industrial thermal insulation by material
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- Figure 27: UK market for industrial thermal insulation, by material, 2020
- Industrial thermal insulation market by end user
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- Figure 28: UK market for industrial thermal insulation, by end use sector, 2021
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Market Forecast
- The five-year outlook for UK thermal insulation
- Figure 29: Thermal insulation outlook, 2022-26
- Market set for sustained growth but firmer policies are required to boost retrofit activity
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- Figure 30: Forecast UK market for thermal insulation, 2022-26
- Figure 31: Forecast UK market for thermal insulation, 2022-26
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- Figure 32: Forecast segmentation of UK market for thermal insulation, by sector, 2022-26
- Building thermal insulation forecast
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- Figure 33: Forecast for UK market for building thermal insulation, by type, 2022-26
- Figure 34: Forecast for UK market for building thermal insulation, by type, 2022-26
- Market drivers and assumptions
- Figure 35: Key drivers affecting Mintel’s market forecast, 2015-26
- Learnings from the last recession
- Figure 36: Industry performance following the last recession, 2008-15 (£ million)
- Forecast methodology
- The five-year outlook for UK thermal insulation
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Supply Sources
- UK production of thermal insulation materials
- Figure 37: UK production of selected thermal insulation materials, 2016-20
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- Figure 38: Segmentation of the UK production of selected thermal insulation materials, by material, 2016-20
- Figure 39: Segmentation of the UK production of selected thermal insulation materials, by material, 2020
- Recent investments at UK insulation material manufacturing plants
- Trends in imports
- Figure 40: UK imports of selected thermal insulation materials, 2017-21
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- Figure 41: Segmentation of UK imports of selected thermal insulation materials, by material, 2017-21
- Trends in exports
- Figure 42: UK exports of selected thermal insulation materials, 2017-21
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- Figure 43: Segmentation of UK exports of thermal insulation materials, by material, 2017-21
- Figure 44: UK trade surplus/deficit in thermal insulation materials, by material, 2017-21
- UK production of thermal insulation materials
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Structure of Distribution Network
- Overview
- Majority of building insulation sales pass through insulation distributors
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Market Trends
- Sustainability drive
- Sustainability plays central role in wider business strategies
- Innovative, tech-based solutions enable more efficient and less disruptive insulation installation
- Q-Bot robotic underfloor insulation
- Energiesprong aims to create an affordable, scalable and industrialised market for net-zero housing retrofit in the UK
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Regulatory and Legislative Environment
- Building regulations
- Future Homes Standard aims to make new homes “zero carbon ready” by 2025
- Ban on combustible material on high-rise homes
- Government commitment to reach Net Zero by 2050
- Carbon budgets and Net Zero Strategy
- Firmer policies required if government is to meet its home energy efficiency targets
- Energy supplier obligation (ECO) initiatives to improve energy efficiency of domestic homes
- ECO3 entirely focused on fuel-poor and low-income homes
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- Figure 45: Modelled uptake of energy efficiency measures in ECO3 compared to actual uptake, 2018-22
- ECO4 (2002-26) should upgrade around 450,000 homes
- Proposed ECO Plus scheme
- Minimum Energy Efficiency Standards for private rented sector
- Other government initiatives aimed to improve the energy efficiency of UK housing stock
- CCC highlights “shocking gap in policy for better-insulated homes”
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Market Drivers
- Housing stock characteristics
- Figure 46: Number of UK households, 1991-2021
- Figure 47: Government predictions of the number of households in the UK, 2025-39
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- Figure 48: Housing stock distribution in England, by age, 2020
- Figure 49: Housing stock distribution in England, by age and tenure, 2020
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- Figure 50: Housing stock analysis for England, by type, 2020
- Figure 51: Housing stock distribution in Scotland, by age, 2019
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- Figure 52: Housing stock analysis for Scotland, by type, 2019
- Private rented properties among the least energy-efficient in the domestic housing stock
- Figure 53: UK home ownership trends, 2008-18
- Improvements in energy efficiency ratings of English homes
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- Figure 54: Energy efficiency rating bands of English dwellings, by tenure, 2020 (% of dwellings)
- Current insulation levels in housing stock and remaining potential
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- Figure 55: Remaining potential to insulate the housing stock in GB, December 2021
- Government home energy efficiency schemes
- 8% of households had a measure installed under ECO scheme
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- Figure 56: Number of key insulation ECO measures installed, by measure type, Q1 2016-Q1 2022
- Figure 57: Number of key insulation ECO measures installed, by measure type, 2017-21
- Share of insulation measures falls in ECO3 due to shift towards heating measures
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- Figure 58: Number of insulation ECO measures installed, by obligation, 2013-22
- Figure 59: Key insulation ECO measures installed, by measure type, 2013-22
- Decarbonising current housing stock presents major challenge
- Drivers in heating and ventilation sector
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- Figure 60: Market forecast for data centres, 2021-26
- Drivers for process plant investment
- Housing stock characteristics
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UK Construction Activity
- Major COVID-19 disruption
- Figure 61: Market size for construction, 2016-21
- New construction
- Figure 62: Market size for new construction, 2016-21 (£ million)
- RMI
- Figure 63: Market size for RMI construction, 2016-21 (£ million)
- Diverse sectors with different influences
- Figure 64: Segmentation of new construction activity, 2021 (£ million)
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- Figure 65: Segmentation of RMI construction activity, 2021 (£ million)
- Housing construction
- The context
- Figure 66: Housing completions in England, by sector, 1978-2021
- Construction activity disrupted
- Figure 67: The new housebuilding market, 2016-21
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- Figure 68: Segmentation of the new housebuilding market, 2016-21
- Market prospects
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- Figure 69: Forecast for new housebuilding market, 2021-26
- Private commercial construction
- A market susceptible to recessions
- Figure 70: Long-term development of commercial construction, 1970-2021
- Construction activity and prospects
- Figure 71: The new commercial construction market, 2016-21
- Figure 72: Segmentation of commercial construction market, 2016-21 (£ million)
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- Figure 73: Forecast for commercial construction market, 2022-26
- Private industrial construction
- The context
- Figure 74: Long-term development of industrial construction, 1970-2021
- Construction activity and prospects
- Figure 75: The new industrial construction market, 2016-21
- Figure 76: Segmentation of industrial construction, 2016-21
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- Figure 77: Forecast for industrial construction market, 2021-26
- Major COVID-19 disruption
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Industry Structure
- Industry development
- Figure 78: Analysis of changes in the other non-metallic mineral products manufacturing industry, 2017-21
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- Figure 79: Analysis of changes in the glass fibres manufacturing industry, 2017-21
- Contracting industry
- Structure by employment
- Figure 80: Analysis of the employment structure of the other non-metallic mineral products manufacturing industry, 2020 and 2021
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- Figure 81: Analysis of the employment structure of the glass fibres manufacturing industry, 2020 and 2021
- Structure by turnover
- Figure 82: Analysis of the financial structure of the other non-metallic mineral products manufacturing industry, 2020 and 2021
- Figure 83: Analysis of the financial structure of the glass fibres manufacturing industry, 2020 and 2021
- Industry development
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Company Profiles
- Encon Insulation
- Financial performance
- Figure 84: Financial analysis of Encon Insulation, 2017-21
- Company outlook
- Jablite
- Acquisition by BEWI and restructuring
- Financial performance
- Kingspan Insulation
- IKON, Kingspan’s global innovation centre
- Response to issues arising from the UK’s Grenfell Tower Inquiry
- Financial performance
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- Figure 85: Financial analysis of Kingspan Insulation, 2016-20
- Company strategy
- Knauf Insulation
- Investment in UK manufacturing facilities
- Glass Mineral Wool product range accredited as DECLARE ‘Red List Free’
- Financial performance and outlook
- Figure 86: Financial analysis of Knauf Insulation, 2016-20
- Rockwool
- Company strategy
- Financial performance and outlook
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- Figure 87: Financial analysis of Rockwool, 2016-20
- SIG
- Recent disposals
- Acquisitional activity
- Return to Growth strategy
- Financial performance
- Figure 88: Financial analysis of SIG, 2017-21
- Superglass Holdings
- £37 million plant upgrade doubles capacity to 60,000 tonnes of glass wool insulation
- Company strategy
- Financial performance
- Figure 89: Financial analysis of Superglass Holdings, 2016-20
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Appendix – Data Sources, Abbreviations and Supporting Information
- Abbreviations
- Methodology
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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
- Roofing, Cladding & Insulation
- Trade events
- National Homebuilding & Renovating Show
- Northern Homebuilding & Renovating Show
- Scottish Homebuilding & Renovation Show
- Southern Homebuilding & Renovating Show
- South-West Homebuilding & Renovating Show
About the report
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