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Thermal Insulation - UK - September 2015

Thermal Insulation - UK - September 2015

“Thermal insulation installers are increasingly adopting a multi measure approach, ranging from insulation through to heating, plumbing and renewables. Companies are also branching out from the retrofit market to different new build and commercial sectors. This strategy is designed to counteract volatility in the retro-fit sector caused by the stop-start nature of government funding schemes”

– Claudia Preedy - B2B analyst

This report answers the following key questions:

What has been the Green Deal’s impact on the thermal insulation market? Will the market be affected by the government’s decision to axe the programme?
Which sector is most affected by the scrapping of the Green Deal Home Improvement Fund?
Could the lack of an ECO replacement post March 2017 lead to a funding gap in the short term?
How has the industry responded to volatility in the retro-fit sector?


EXECUTIVE SUMMARY
The market
Figure 1: The UK market for thermal insulation, by sector, 2010-14
Lack of clear, long-term government policies makes outlook for thermal insulation market highly uncertain
Figure 2: Forecast UK market for thermal insulation, 2015-19
Market factors
Figure 3: Construction output in Great Britain, 2010-14
Figure 4: Number of Green Deal plans in unique properties, May 2013 to May 2015
The consumer
The industry
What we think
KEY INSIGHTS
What has been the Green Deal’s impact on the thermal insulation market? Will the market be
affected by the government’s decision to axe the programme?
Which sector is most affected by the scrapping of the Green Deal Home Improvement Fund?
Could the lack of an ECO replacement post March 2017 lead to a funding gap in the short
term?
How has the industry responded to volatility in the retro-fit sector?
INTRODUCTION
Definitions
Methodology
Abbreviations
Market positioning
UK ECONOMY
Overview
Figure 5: UK GDP quarterly development, 2003-15
Figure 6: UK GDP in economic downturns and recoveries since 1979
Inflation
Interest rates
House prices
Consumer spending
Manufacturing
Business investment
Figure 7: UK GFCF 2003-15
MARKET FACTORS
Key points
Market factors overview
Climate Change Act 2008
Building regulations
Energy supplier obligation initiatives to improve energy efficiency of domestic homes (EEC, CERT, CESP
& ECO)
Figure 8: 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
Warm Front
Minimum Energy Efficiency Standards for Private Rented Sector
Enhanced Capital Allowance scheme
MARKET SIZE
Key points
Market size
Figure 9: UK market for thermal insulation, 2010-14
Figure 10: UK market for thermal insulation, 2010-14
Market segmentation
Overview
Figure 11: Segmentation of the UK market for thermal insulation, by sector, 2010-14
BUILDING THERMAL INSULATION
Key points
Market overview
Building regulations set out improved thermal performance standards for buildings
New Conservative government scraps zero carbon home plan
Government schemes promoting up-take of thermal insulation
Figure 12: Insulation installation under CERT, 2008-12
Figure 13: Key insulation measures under CERT, 2008-12
Figure 14: UK market for building thermal insulation, 2010-14
Cost of thermal insulation could rise due to EU court ruling on UK reduced tax rate for energy-saving
materials
Figure 15: UK market for building thermal insulation, by type of insulation, 2010-14
Figure 16: UK market for building thermal insulation, by type of insulation, 2010-14
Cavity wall insulation
Figure 17: UK market for cavity wall insulation, 2010-14
Figure 18: UK market for cavity wall insulation, 2010-14
Loft insulation
Figure 19: UK market for loft insulation, 2010-14
Figure 20: UK market for loft insulation, 2010-14
Draught proofing
Figure 21: UK market for draught proofing, 2010-14
Roof insulation
Figure 22: UK market for roof insulation, 2010-14
External wall insulation
CESP programme strongest driver for solid wall insulation uptake in recent years
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 23: UK market for external wall insulation, 2010-14
Internal wall insulation
Figure 24: UK market for internal wall insulation, 2010-14
Pipe and cylinder lagging
Figure 25: UK market for pipe & cylinder lagging, 2010-14
Floor insulation
Figure 26: UK market for floor insulation, 2010-14
INDUSTRIAL THERMAL INSULATION
Key points
Market overview
Figure 27: UK market for industrial thermal insulation, 2010-14
Figure 28: UK market for industrial thermal insulation, by material, 2014
Figure 29: UK market for industrial thermal insulation, by material, 2014
Figure 30: UK market for industrial thermal insulation, by type, 2013
Figure 31: UK market for industrial thermal insulation, by end use sector, 2014
REGIONAL ANALYSIS
Key points
Figure 32: Insulation measures installed under Green Deal and ECO, by region, January 2013-March
2015
Figure 33: Total number of insulation measures installed under ECO and Green Deal , by region, January
2013-March 2015
Regional construction output
Figure 34: Regional private housing construction output, 2010-14
Figure 35: Regional private commercial construction output, 2010-14
Figure 36: Regional private industrial construction output, 2010-14
Figure 37: Regional housing repair & maintenance output, 2010-14
Figure 38: Regional public non-residential repair & maintenance output, 2010-14
Figure 39: Regional private non-residential repair & maintenance output, 2010-14
Figure 40: Manufacturing businesses in the UK, by region, 2014
SEASONALITY OF SALES
Key points
Seasonality of construction output
Figure 41: Seasonality of private housing output, 2010-14
Figure 42: Seasonality of private commercial construction output, 2010-14
Figure 43: Seasonality of private industrial construction output, 2010-14
Figure 44: Seasonality of private housing repair & maintenance output, 2010-14
Figure 45: Seasonality of public non-residential repair & maintenance output, 2010-14
Figure 46: Seasonality of private non-residential repair & maintenance output, 2010-14
MARKET TRENDS
Key points
Building sector trends
Figure 47: Residential property transactions in the UK, 2010-14
Figure 48: House type in total new housing builds in UK, 2010-14 (% of total)
CERT/CESP/ECO/Green Deal
Figure 49: Number of main insulation measures under supplier obligations, by obligation, 2002-2012 and
forecast 2012-2022
CERT programme
Figure 50: Number of insulation measures under CERT, by year 2008-12
CESP programme
Figure 51: Number of insulation measures under CESP, 2009-12
Figure 52: Insulation measures under CESP, 2009-12
ECO programme
Figure 53: Number of ECO measures installed, by obligation and month, January 2013-April 2015
Figure 54: Number of insulation ECO measures installed, by obligation, January 2013 to April 2015
Figure 55: Key insulation ECO measures installed, by obligation, January 2013 to April 2015
The Green Deal
Figure 56: Number of Green Deal plans in unique properties, May 2013 to May 2015
Figure 57: Number of green deal assessments undertaken and measures installed, by month, January
2013-May 2015
Figure 58: Number and value of Green Deal cashback vouchers, by month, February 2013-September
2014
Figure 59: Number and value of Green Deal Home Improvement Fund vouchers, by month, April 2014-
May 2014
DISTRIBUTION
Key points
SUPPLY SOURCES
Key points
Production
Overview
Figure 60: UK production of selected thermal insulation materials, 2010-14
Segmentation
Figure 61: Segmentation of the UK production of selected thermal insulation materials, by material, 2014
Figure 62: Segmentation of the UK production of selected thermal insulation materials, by material, 2010-
14
Imports
Overview
Figure 63: UK imports of selected thermal insulation materials, 2010-14
Segmentation
Figure 64: Segmentation of UK imports of selected thermal insulation materials, by material, 2010-14
Exports
Overview
Figure 65: UK exports of selected thermal insulation materials, 2010-14
Segmentation
Figure 66: Segmentation of UK exports of thermal insulation materials, by material, 2010-14
Trade surplus/deficit
Figure 67: UK trade surplus/deficit in thermal insulation materials, by material, 2010-14
THE CONSUMER – USAGE AND FUTURE INTENTIONS
Key points
Cavity wall insulation most popular thermal insulation measure in the last five years
Figure 68: Type of thermal insulation measures installed in users’ homes over the last five year, June
2015
Availability of free or subsidised thermal insulation measures drive take-up of insulation
measures in recent years
Figure 69: Schemes/subsidies used when installing thermal insulation measures, June 2015
Majority of people not looking to install thermal insulation measures over the next two years
Figure 70: Measures considered for installing thermal insulation, June 2015
THE CONSUMER – INSTALLATION MOTIVATIONS AND BARRIERS
Key points
Perceived high cost of energy bills drives demand for retro-fit thermal insulation measures
Figure 71: Reasons for thermal insulation, June 2015
Figure 72: Reason for installation, by insulation measure installed in the last five years, June 2015
38% of homeowners did not add thermal insulation in the last five years as their home
already had insulation installed
Figure 73: Reasons for not having thermal insulation, June 2015
INDUSTRY STRUCTURE
Key points
Industry development
Figure 74: Analysis of the changes in the other non-metallic mineral products manufacturing industry,
2010-14
Figure 75: Analysis of the changes in the glass fibres manufacturing industry, 2010-14
Structure by employment
Figure 76: Analysis of the employment structure of the other non-metallic mineral products manufacturing
industry, 2013 and 2014
Figure 77: Analysis of the employment structure of the glass fibres manufacturing industry, 2013 and 2014 . 110
Structure by turnover
Figure 78: Analysis of the financial structure of the other non-metallic mineral products manufacturing
industry, 2013 and 2014
Figure 79: Analysis of the financial structure of the glass fibres manufacturing industry, 2013 and 2014
COMPANY PROFILES
CAPE
Recent company activity
Company strategy
Figure 80: Financial analysis of Cape, 2010-14
CELOTEX
Recent company activity
Company outlook
Figure 81: Financial analysis of Celotex, 2009-13
ENCON INSULATION
Figure 82: Financial analysis of Encon Insulation, 2010-14
KINGSPAN INSULATION
Figure 83: Financial analysis of Kingspan Insulation, 2009-13
KNAUF INSULATION
Figure 84: Financial analysis of Knauf Insulation, 2009-13
ROCKWOOL
Figure 85: Financial analysis of Rockwool, 2009-13
SIG
Company strategy
Figure 86: Financial analysis of SIG, 2010-14
SPRINGVALE EPS
Figure 87: Financial analysis of Springvale EPS, 2010-14
SUPERGLASS INSULATION
Company strategy
Figure 88: Financial analysis of Superglass Insulation, 2010-14
JABLITE
Figure 89: Financial analysis of Jablite, 2009-13
ISOVER SAINT-GOBAIN
DEMAND STRUCTURE
Key points
Building
Figure 90: Construction output in Great Britain, by type, 2010-14
Heating and ventilation
Process plant
Figure 91: Process plant investment, 2009-13
FORECAST
Key points
Market size
Construction forecast
Figure 92: Forecast construction output in Great Britain, 2015-19
Figure 93: Forecast construction output in Great Britain, 2015-19
Figure 94: Forecast construction output in Great Britain, 2015-19
Housing construction forecast
Figure 95: Forecast private housing output in Great Britain, 2015-19
Figure 96: Forecast public housing output in Great Britain, 2015-19
Thermal insulation market forecast
Figure 97: Forecast UK market for thermal insulation, 2015-19
Figure 98: Forecast UK market for thermal insulation, 2014-18
Market segmentation
Figure 99: Forecast segmentation of the UK market for thermal insulation, by sector, 2015-19
Lack of clear long-term government policy provides highly uncertain outlook for building thermal insulation
sector
Growth potential for retro-fit installations still exists
Committee on Climate Change also identifies need for new polices to drive residential energy efficiency
Solid wall sector strongest hit by ECO cuts and axing of the Green Deal Home Improvement Fund
Figure 100: Forecast for UK market for building thermal insulation, by type, 2014-18
Figure 101: Forecast for UK market for building thermal insulation, by type, 2015-19
Industry
FURTHER SOURCES AND CONTACTS
Trade associations
Trade magazines
Trade exhibitions
UK B2B
Trade research
Informal
Formal
Desk research
Consumer research
Sampling and weighting
Definitions
Qualitative Research
Further Analysis
Statistical forecasting

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