Table of Contents
Overview
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- What you need to know
- Covered in this Report
Executive Summary
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- The market
- Decline in thermal insulation market exacerbated by funding cuts to energy efficiency schemes
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- Figure 1: The UK market for thermal insulation, by sector, 2013-17
- Building thermal insulation market contracts by an estimated 8% in 2017
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- 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
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- 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
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- 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
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- 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
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- Overview
- Reduced government funding for energy efficiency schemes exacerbates decline in UK thermal insulation market
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- 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
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- Figure 6: Segmentation of the UK market for thermal insulation, by sector, 2013-17
Market Segmentation
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- 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
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- 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
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- Figure 8: UK market for building thermal insulation, by type of insulation, 2013-17
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- 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
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- Figure 10: UK market for cavity wall insulation, 2013-17
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- 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
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- Figure 12: UK market for loft insulation, 2013-17
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- Figure 13: UK market for loft insulation, 2013-17
- Draught proofing
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- 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
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- 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
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- 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
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- 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
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- Figure 18: UK market for pipe & cylinder lagging, 2013-17
- Floor insulation
- Floor insulation market grew by an estimated 2% in 2017
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- Figure 19: UK market for floor insulation, 2013-17
- Industrial thermal insulation market
- Demand for industrial thermal insulation shows moderate growth
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- Figure 20: UK market for industrial thermal insulation, 2013-17
- Industrial thermal insulation by material
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- 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
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- Figure 23: UK market for industrial thermal insulation, by end use sector, 2017
Market Forecast
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- Market growth expected to remain restricted
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- Figure 24: Forecast UK market for thermal insulation, 2018-22
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- 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
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- Figure 27: Forecast for UK market for building thermal insulation, by type, 2018-22
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- Figure 28: Forecast for UK market for building thermal insulation, by type, 2018-22
Supply Sources
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- UK production of thermal insulation materials is on the up
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- Figure 29: UK production of selected thermal insulation materials, 2013-17
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- 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
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- Figure 32: UK imports of selected thermal insulation materials, 2013-17
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- Figure 33: Segmentation of UK imports of selected thermal insulation materials, by material, 2013-17
- Trends in exports
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- Figure 34: UK exports of selected thermal insulation materials, 2012-16
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- 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
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- Move towards one-stop, single sourcing of insulation solutions from distributors
Market Trends
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- 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
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- 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 government’s 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
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- Housing stock characteristics
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- Figure 37: Number of UK households, 1991-17
- Figure 38: Government predictions of the number of households in the UK, 2019-37
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- Figure 39: Housing stock distribution in England, by age, 2016
- Figure 40: Housing stock analysis for England, by type, 2016
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- 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
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- 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
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- Figure 44: Remaining potential to insulate the housing stock in GB, December 2017
- Construction activity
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- Figure 45: Construction output in Great Britain, by type, 2013-17
- Growth in construction output expected to slow
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- Figure 46: Forecast construction output in Great Britain, 2018-22
- Figure 47: Forecast construction output in Great Britain, 2018-22
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- 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
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- 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
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- 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
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- 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
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- Industry development
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- 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
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- Figure 55: Analysis of the employment structure of the other non-metallic mineral products manufacturing industry, 2016 and 2017
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- Figure 56: Analysis of the employment structure of the glass fibres manufacturing industry, 2016 and 2017
- Structure by turnover
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- 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
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- Encon Insulation
- Recent activity
- Financial performance
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- Figure 59: Financial analysis of Encon Insulation, 2012-16
- Company outlook
- Jablite
- Recent activity
- Company strategy
- Financial performance
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- Figure 60: Financial analysis of Jablite, 2012-16
- Kingspan Insulation
- Recent activity
- Financial performance
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- Figure 61: Financial analysis of Kingspan Insulation, 2012-16
- Company strategy
- Innovation highlights in 2017
- Knauf Insulation
- Recent activity
- Financial performance
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- Figure 62: Financial analysis of Knauf Insulation, 2012-16
- Rockwool
- Company strategy
- Financial performance
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- Figure 63: Financial analysis of Rockwool, 2012-16
- SIG
- Company strategy
- Financial performance
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- Figure 64: Financial analysis of SIG, 2013-17
- Superglass Holdings
- Acquisition by Inflection, part of Russian TechnoNICOL Group
- Company performance
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- Figure 65: Financial analysis of Superglass Holdings, 2013-17
- Company strategy
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Methodology
Further Sources and Contacts
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- 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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