London -- By value, the market for thermal insulation products in Europe was estimated at € 9,600 million in 2012, according to the ninth edition of the Market for Thermal Insulation in Europe, produced by IAL Consultants.
IAL says the total market for thermal insulation products in Europe reached around 192,653,100 m in 2012 (equivalent to 5,637,000 tonnes).Around 39.4 percent of the total volume in 12012 was polyurethane or polyisocyanurate foam.
By 2017, the demand for thermal insulation products is poised to reach some 213,546,700 m (or 6,270,100 tonnes) provided a 2.2 percent year-on-year growth is sustained. This would correspond to a market value of € 10,570 million at current prices.
Europe's recent economic turmoil brought much of the insulation business and the construction sectors to halt. However, concerns over improved efficiency in buildings saw the adoption of a new framework of EU Directives attempting to tighten thermal performance requirements of buildings. This significantly fuelled the retrofit construction sector and led to double-digit growth for thermal insulation materials in the most developed countries of Western Europe.
In 2012, Western Europe's thermal insulation market stabilised with lower growth rates. Although the trend towards energy efficiency improvement persists, and this is increasing insulation thicknesses requirements; materials with enhanced fire properties are further attracting the end-consumer. Energy efficiency considerations and Passivhaus standards, which particularly promote the use of PU/PIR materials, are now being weighed against fire properties.
However, in the next five years, Western Europe, growth rates in the thermal insulation market are not expected to grow faster than 1.4 percent compound annual growth rates (CAGR) by
The insulation market varies greatly from country to country. The construction sector in economies like Spain and Portugal are still suffering from the consequences of the Eurozone crisis.
Norway however has been enjoying a period of remarkable expansion since 2010 thanks to the residential sector and further discussions are underway to boost energy conservation.
Germany is by far the largest market for thermal insulation materials in Europe with annual demand of about 27,554,100 m (or 733,000 tonnes).
Many of the trends affecting the markets of Western Europe are trickling throughout to Eastern European countries, albeit slowly. Poland, Russia and Turkey have been leading the way.
Other countries are still relying very much on the less expensive expanded polystyrene insulation systems. Demand for insulation materials in Eastern Europe could grow by 3.1percent CAGR per annum by volume to 2017. The economies in Eastern Europe are currently more vibrant than those in Western Europe.
Turkey is expected to achieve the highest growth rates (4.1 percent /year by volume) in the Eastern European region as a result of its rapidly growing population, positive GDP projections, a booming construction sector, and more stringent regulations.
IAL says the new study builds on earlier editions and follows much of the same layout. Market figures for 2012 are provided by type and by end-use sector by both volume (tonnes and cubic metres) and value in millions of Euro . Additonally, 5-year forecasts (CAGR) are provided up to 2017.
The analysis covers 27 countries and all major European thermal insulation markets split into 14 individual country volumes covering all of the most commonly used insulation materials. An additional 4 material volumes focus on a specific insulation type individually: mineral fibre, EPS, XPS & PU/PI. It also presents data for the regions of Western and Eastern Europe, and then for the same 27 countries.
Pricing starts at €1,000 for single volumes. The whole report is priced at €7,000.
