Thermal Insulation - UK - August 2016

EXECUTIVE SUMMARY
The market
Figure 1: The UK market for thermal insulation, by sector, 201115
New build sector to represent main driver for thermal insulation demand, while demand in the retro-fit sector is expected to remain suppressed
Figure 2: Forecast UK market for thermal insulation, 2016-20
Market factors
Figure 3: Construction output in Great Britain, 2011-15
Figure 4: Total number of Insulation measures installed under ECO and Green Deal , by region, January 2013 March 2016
The consumer
The industry
What we think
KEY INSIGHTS
How has the UK thermal insulation market performed over the past five years?
How has the industry responded to volatility in the retro-fit sector?
What is the outlook for the retro-fit sector? Is there still growth potential or are companies diversifying into other sectors?
INTRODUCTION
Definitions
Methodology
Abbreviations
Market positioning
UK ECONOMY
Overview
Figure 5: UK GDP quarterly development, 2003-16
Figure 6: UK GDP in economic downturns and recoveries since 1979
Inflation
Interest rates
House prices
Figure 7: UK House price changes, 2004-2016
Consumer spending
Manufacturing
Figure 8: UK manufacturing, 2013-16
Business investment
Figure 9: UK GFCF 2003-15
Imports
Exports
MARKET FACTORS
Key points
Market factors overview
Climate Change Act 2008
Building regulations
Figure 10: Summary of major energy efficiency programmes since 2000
Green Deal 2013-15
Green Deal Home Improvement Fund temporarily boosts take-up of solid wall insulation in 2015
Warm Front
Minimum Energy Efficiency Standards for Private Rented Sector
Enhanced Capital Allowance Scheme
Energy and Climate Change Committee call on government for renewed committee on tackling home energy efficiency
MARKET SIZE
Key points
Market size
Figure 11: UK market for thermal insulation, 2011-15
Figure 12: UK market for thermal insulation, 2011-15
Market segmentation
Overview
Figure 13: Segmentation of the UK market for thermal insulation, by sector, 2011-15
BUILDING THERMAL INSULATION
Key points
Market overview
Building regulations set out improved thermal performance standards for buildings
Zero carbon home plan scrapped by government in 2015
Government schemes promoting up-take of thermal insulation
Figure 14: Insulation installation under CERT, 2008-12
Figure 15: Key insulation measures under CERT, 2008-12
Frequent policy changes have damaging impact on retro-fit insulation sector
Figure 16: UK market for building thermal insulation, 2011-15
Market segmentation
Figure 17: UK market for building thermal insulation, by type of insulation, 2011-15
Figure 18: UK market for building thermal insulation, by type of insulation, 2011-15
Cavity wall insulation
Figure 19: UK market for cavity wall insulation, 2011-15
Figure 20: UK market for cavity wall insulation, 2011-15
Loft insulation
Figure 21: UK market for loft insulation, 2011-15
Figure 22: UK market for loft insulation, 2011-15
Draught proofing
Figure 23: UK market for draught proofing, 2011-15
Roof insulation
Figure 24: UK market for roof insulation, 2011-15
External wall insulation
Impact of government schemes on solid wall insulation uptake
Green Deal Home Improvement Fund provides much needed - albeit temporary - boost to solid wall insulation sector in 2014 and 2015
Trade association calls on government to deliver coherent energy efficiency strategy
Figure 25: UK market for external wall insulation, 2011-15
Internal wall insulation
Figure 26: UK market for internal wall insulation, 2011-15
Pipe & cylinder lagging
Figure 27: UK market for pipe & cylinder lagging, 2011-15
Floor insulation
Figure 28: UK market for floor insulation, 2011-15
INDUSTRIAL THERMAL INSULATION
Key points
Market overview
Figure 29: UK market for industrial thermal insulation, 2011-15
Figure 30: UK market for industrial thermal insulation, by material, 2015
Figure 31: UK market for industrial thermal insulation, by type, 2015
Figure 32: UK market for industrial thermal insulation, by end use sector, 2015
REGIONAL ANALYSIS
Key points
Figure 33: Insulation measures installed under Green Deal and ECO, by region, January 2013-March 2016
Figure 34: Total number of insulation measures installed under ECO and Green Deal , by region, January 2013- March 2016
Regional construction output
Figure 35: Regional private housing construction output, 2011-15
Figure 36: Regional public housing construction output, 2011-15
Figure 37: Regional public non-residential construction output, 2011-15
Figure 38: Regional private industrial construction output, 2011-15
Figure 39: Regional private commercial construction output, 2011-15
Figure 40: Regional housing repair & maintenance output, 2011-15
Figure 41: Regional public non-residential repair & maintenance output, 2011-15
Figure 42: Regional private non-residential repair & maintenance output, 2011-15
Figure 43: Manufacturing businesses in the UK, by region, 2015
SEASONALITY OF SALES
Key points
Seasonality of construction output
Figure 44: Seasonality of public housing output, 2011-15
Figure 45: Seasonality of private housing output, 2011-15
Figure 46: Seasonality of public non-residential construction output, 2011-15
Figure 47: Seasonality of private industrial construction output, 201115
Figure 48: Seasonality of private commercial construction output, 201115
Figure 49: Seasonality of public housing repair & maintenance output, 2011-15
Figure 50: Seasonality of private housing repair & maintenance output, 2011-15
Figure 51: Seasonality of public non-residential repair & maintenance output, 2011-15
Figure 52: Seasonality of private non-residential repair & maintenance output, 201115
MARKET TRENDS
Key points
Building sector trends
Figure 53: Residential property transactions in the UK, 2011-15
Figure 54: House Type in Total New Housing Builds in UK, 2011-15 (% of Total)
CERT/CESP/ECO/Green Deal
Figure 55: Number of main insulation measures under supplier obligations, by obligation, 2002-2012 and forecast 2012-2022
CERT programme
Figure 56: Number of insulation measures under CERT, by year 2008-12
CESP programme
Figure 57: Number of insulation measures under CESP,  2009-2012
Figure 58: Insulation measures under CESP, 2009-2012
ECO programme
Figure 59: Number of ECO measures installed, by obligation and month, January 2013-May 2016
Figure 60: Number of insulation ECO measures installed, by obligation, January 2013 to May 2016
Figure 61: Key insulation ECO measures installed, by obligation, January 2013 to May 2016
The Green Deal
Figure 62: Number of Green Deal Plans in unique properties, May 2013 to May 2016
Figure 63: Number of green deal assessments undertaken and measures installed, by month, January 2013- May 2016
Figure 64: Number and Value of Green Deal Cashback Vouchers, by Month, February 2013 - September 2014
Figure 65: Number and Value of Green Deal Home Improvement Fund Vouchers, by Month, April 2014 - June 2016
DISTRIBUTION
Key points
SUPPLY SOURCES
Key points
Production
Overview
Figure 66: UK production of selected thermal insulation materials, 2011-15
Segmentation
Figure 67: Segmentation of the UK production of selected thermal insulation materials, by material, 2015
Figure 68: Segmentation of the UK production of selected thermal insulation materials, by material, 2011-15
Imports
Overview
Figure 69: UK imports of selected thermal insulation materials, 2011-16
Segmentation
Figure 70: Segmentation of UK imports of selected thermal insulation materials, by material, 2011-16
Exports
Overview
Figure 71: UK exports of selected thermal insulation materials, 2011-16
Segmentation
Figure 72: Segmentation of UK exports of thermal insulation materials, by material, 2011-15
Trade surplus/deficit
Figure 73: UK trade surplus/deficit in thermal insulation materials, by material, 2011-16
THE CONSUMERS – USAGE AND FUTURE INTENTIONS
Key points
Cavity wall and loft insulation remain most popular thermal insulation measures installed in the last two years
Figure 74: Type of thermal insulation measures installed in users’ homes over the last two year, May 2016
Two-thirds of homeowners are not looking to install thermal insulation measures over the next two years
Figure 75: Measures considered for installing thermal insulation in the next two years, May 2016
THE CONSUMER – INSTALLATION MOTIVATIONS
Key points
Wanting a warmer home is key driver for thermal insulation installation, ahead of cost savings on energy bills
Figure 76: Reasons for thermal insulation installation, May 2016
THE CONSUMER – ATTITUDES TOWARDS HOME ENERGY EFFICIENCY MEASURES
Key points
The majority of homeowners (65%) are well informed about the benefits of thermal insulation
Figure 77: Attitudes towards home energy efficiency measures and thermal insulation, May 2016
Majority of homeowners consider installing home energy efficiency measures other than insulation - new opportunities for thermal insulation industry?
A quarter of homeowners plan to undertake major home improvement work over the next two years
39% of homeowners don’t mind paying a bit extra on their energy bill if it means the government can use subsidies/grants to help people make their homes more energy efficient
INDUSTRY STRUCTURE
Key points
Industry development
Figure 78: Analysis of the changes in the other non-metallic mineral products manufacturing industry, 2011-15
Figure 79: Analysis of the changes in the glass fibres manufacturing industry, 2011-15
Structure by employment
Figure 80: Analysis of the employment structure of the other non-metallic mineral products manufacturing industry, 2014 and 2015
Figure 81: Analysis of the employment structure of the glass fibres manufacturing industry, 2014 and 2015
Structure by turnover
Figure 82: Analysis of the financial structure of the other non-metallic mineral products manufacturing industry, 2014 and 2015
Figure 83: Analysis of the financial structure of the glass fibres manufacturing industry, 2014 and 2015
COMPANY PROFILES
CAPE
Recent acquisitions
Company strategy and outlook
Figure 84: Financial Analysis of Cape, 2011-15
CELOTEX
Company outlook:
Figure 85: Financial analysis of Celotex, 2010-14
ENCON INSULATION
Company outlook:
Figure 86: Financial analysis of Encon Insulation, 2011-15
KINGSPAN INSULATION
Company performance
Figure 87: Financial analysis of Kingspan Insulation, 2010-14
KNAUF INSULATION
Figure 88: Financial analysis of Knauf Insulation, 2010-14
ROCKWOOD
Figure 89: Financial analysis of Rockwool, 2010-14
SIG
Company strategy:
Company performance:
Figure 90: Financial analysis of SIG, 2011-15
SPRINGVALE EPS
Figure 91: Financial analysis of Springvale EPS, 2011-15
SUPERGLASS INSULATION
Company strategy:
Superglass to be acquired by Inflection, part of Russian TechnoNICOL Group
Figure 92: Financial analysis of Superglass Insulation, 2011-15
JABLITE
Figure 93: Financial analysis of Jablite, 2010-14
ISOVER SAINT-GOBAIN
DEMAND STRUCTURE
Key points
Building
Figure 94: Construction output in Great Britain, by Type, 201115
Heating and ventilation
Process plant
FORECAST
Key points
Market size
Construction forecast
Figure 95: Forecast construction output in Great Britain, 2016-20
Figure 96: Forecast construction output in Great Britain, 2016-20
Figure 97: Forecast construction output in Great Britain, 2016-20
Housing construction forecast
Figure 98: Forecast private housing output in Great Britain, 201620
Figure 99: Forecast public housing output in Great Britain, 2016-20
Thermal insulation market forecast
Figure 100: Forecast UK market for thermal insulation, 2016-20
Figure 101: Forecast UK market for thermal insulation, 2016-20
Market Segmentation
Figure 102: Forecast segmentation of the UK market for thermal insulation, by sector, 2016-20
Outlook for thermal insulation sector remains uncertain due to cut backs to energy efficiency schemes and lack of clear long-term government policy
Demand for retro-fit installations set to further fall under new supplier obligation to replace ECO in 2018
New build expected to show stronger growth than retro-fit...
...But growth potential for retro-fit installations still exists
Committee on Climate Change calls for clear, consistent and credible policies to drive building energy efficiency
Figure 103: Forecast for UK market for building thermal insulation, by type, 2016-20
Figure 104: Forecast for UK market for building thermal insulation, by type, 2016-20
Industry
FURTHER SOURCES & CONTACTS
Trade associations