Table of Contents
Executive Summary
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- The market
- Cuts in government energy efficiency schemes supress growth in thermal insulation market
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- Figure 1: The UK market for thermal insulation, by sector, 2014-18
- Building thermal insulation sector returns to moderate growth in 2018
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- 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
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- 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
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- 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
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- 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
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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, 2014-18
- Figure 5: UK Market for thermal insulation, 2014-18
- Building thermal insulation represents vast majority of market
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- Figure 6: Segmentation of the UK market for thermal insulation, by sector, 2014-18
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 sector returns to moderate growth in 2018
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- 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
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- 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
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- Figure 10: UK market for cavity wall insulation, 2014-18
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- 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
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- Figure 12: UK market for loft insulation, 2014-18
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- Figure 13: UK market for loft insulation, 2014-18
- Draught proofing
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- 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
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- 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
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- 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
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- Figure 17: UK market for internal wall insulation, 2014-18
- Pipe and cylinder lagging
- Demand for pipe and cylinder lagging demonstrates relatively consistent growth
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- Figure 18: UK market for pipe & cylinder lagging, 2014-18
- Floor insulation
- Floor insulation market grew by an estimated 4% in 2018
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- Figure 19: UK market for floor insulation, 2014-18
- Industrial thermal insulation market
- Demand for industrial thermal insulation shows moderate growth
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- Figure 20: UK market for industrial thermal insulation, 2014-18
- Industrial thermal insulation by material
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- 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
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- Figure 23: UK market for industrial thermal insulation, by end use sector, 2018
Market Forecast
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- Market growth expected to remain modest
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- Figure 24: Forecast UK market for thermal insulation, 2019-23
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- 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
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- Figure 27: Forecast for UK market for building thermal insulation, by type, 2019-23
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- Figure 28: Forecast for UK market for building thermal insulation, by type, 2019-23
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, 2014-18
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- 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
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- Figure 32: UK imports of selected thermal insulation materials, 2014-18
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- Figure 33: Segmentation of UK imports of selected thermal insulation materials, by material, 2014-18
- Trends in exports
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- Figure 34: UK exports of selected thermal insulation materials, 2014-18
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- 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
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- Move towards one-stop, single sourcing of insulation solutions from distributors
Market Trends
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- 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
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- 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
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- 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
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- Housing stock characteristics
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- Figure 38: Number of UK households, 1991-17
- Figure 39: Government predictions of the number of households in the UK, 2019-37
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- Figure 40: Housing stock distribution in England, by age, 2017
- Figure 41: Housing stock analysis for England, by type, 2017
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- 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
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- Figure 44: UK home ownership trends, 2007-17
- Energy efficiency level of English homes has stalled since 2015
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- 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
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- Figure 46: Remaining potential to insulate the housing stock in GB, December 2018
- Construction activity
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- Figure 47: Segmentation of the construction market, 2018 (% of total)
- Major differences in growth between sectors
- Construction output set for modest growth in 2019
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- Figure 48: Forecast construction market, 2019-23
- Continued divergence of sector performance
- Strong new housing prospects
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- Figure 49: Forecast new housing market, 2019-23
- Short-term difficulties in private non-residential
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- Figure 50: Forecast private non-residential new construction, 2019-23
- Public non-residential construction continues to reflect restrictions
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- Figure 51: Forecast public sector non-residential new construction, 2019-23
- Varied influences on R&M activity
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- 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
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- 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
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- 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
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- 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
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- Industry development
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- Figure 57: Analysis of the changes in the other non-metallic mineral products manufacturing industry, 2014-18
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- Figure 58: Analysis of the changes in the glass fibres manufacturing industry, 2014-18
- Structure by employment
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- Figure 59: Analysis of the employment structure of the other non-metallic mineral products manufacturing industry, 2017 and 2018
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- Figure 60: Analysis of the employment structure of the glass fibres manufacturing industry, 2017 and 2018
- Structure by turnover
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- 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
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- Encon Insulation
- Recent activity
- Financial performance
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- Figure 63: Financial analysis of Encon Insulation, 2014-18
- Company outlook
- Jablite
- Recent activity
- Company strategy
- Financial performance
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- Figure 64: Financial analysis of Jablite, 2013-17
- Kingspan Insulation
- Recent activity
- Financial performance
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- Figure 65: Financial analysis of Kingspan Insulation, 2013-17
- Company strategy
- Innovation highlights in 2018
- Knauf Insulation
- Recent activity
- Financial performance
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- Figure 66: Financial analysis of Knauf Insulation, 2013-17
- Rockwool
- Company strategy
- Financial performance
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- Figure 67: Financial analysis of Rockwool, 2013-17
- SIG
- Company strategy
- Financial performance
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- 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
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- Figure 69: Financial analysis of Superglass Holdings, 2014-18
The Consumer – What You Need to Know
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- 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
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- Loft insulation represents most popular thermal insulation measure installed in the last three years
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- 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
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- Homeowners add energy efficiency measures primarily to reduce energy bills
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- Figure 71: Reasons for having energy efficiency measures(s) added to home in the last 3 years, May 2019, (0%)
Future Intentions
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- Majority of homeowners do not expect to install home energy efficiency measures over the next two years
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- Figure 72: Energy efficiency measures considered to add/replace in home in the next 2 years, may 2019
Attitudes towards Energy Efficiency Measures
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- 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
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- Figure 73: Attitudes towards energy efficiency measures, May 2019
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 2020
- Northern Homebuilding & Renovating Show
- Scottish Homebuilding & Renovation Show
- Southern Homebuilding & Renovating Show
- South-West Homebuilding & Renovating Show
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