Future Growth Potential Enhanced by Opportunities in Advanced Building Techniques
This study presents an assessment of the current status and future prospects of building insulation materials used in Europe. Market segments comprise mineral wool insulation, plastic foam insulation, and others (e.g., aerogel, wood fibre, and perlite). Mineral wool insulation is further divided into glass wool and stone wool insulation. Moreover, the market for plastic foam insulation has been divided into expanded polystyrene, extruded polystyrene, and polyurethane/polyisocyanurate insulation. By application type, the market has been divided into residential and non-residential. The research accounts for volume shipments and revenues generated from 2017 to 2027.
The building construction sector is one of the largest consumers of energy resources in Europe and produces nearly 35% of all greenhouse gas emissions. Hence, most European countries are deeply engaged in developing or renovating buildings with increased sustainability and energy efficiency. Moreover, numerous legislative initiatives are being introduced to boost the energy performance of buildings across the region. These directives promote policies that would help local authorities and home owners achieve high energy-efficient and decarbonized building stock by 2050.
Mineral wool and plastic foams are the two most commonly used insulation materials for buildings in Europe, offering excellent thermal properties and cost-effectiveness. Glass wool insulation accounted for the largest share, followed by expanded polystyrene in 2020; a similar trend is expected during the forecast period of 2021 to 2027. Glass wool is extremely cost-effective and used widely in the residential sector for its superb fire safety, good insulation properties, and compatibility with various structural products developed for thermal insulation. EPS, on the other hand, offers high thermal resistance, moisture protection, breathability, flexibility of use, and good recyclable content, making it widely preferred for external wall insulation. Although other materials including wood fiber, perlite, and aerogel offer outstanding insulation, their usage is currently limited due to high prices.
Western Europe is the most important market for building insulation materials in Europe and is expected to witness high consumption of mineral wool and plastic foam insulation products for residential and non-residential buildings, in both new buildings and those under renovation. Majority of the demand is coming from Germany, France, Poland, the United Kingdom, Italy, and Spain. Eastern Europe, on the other hand, is likely to benefit from new residential markets in Poland, the Czech Republic, and Austria, where private sector investments are expected to increase greatly in the coming years and have a positive impact on the building insulation materials market.
However, the construction industry in Europe is already at a mature stage and has been witnessing sluggish growth in the past few years. Moreover, the region started to show early signs of decline in construction activity from February 2020, caused by the COVID-19 pandemic. Thus, annual construction output across the region witnessed a decline of 10 to 15% in 2020, compared to 2019, which adversely affected demand for building insulation materials. While new construction will remain the most affected in Europe, renovation projects are expected to gain momentum in the short term, which will drive demand for subsequent building insulation materials.
