Thermal Insulation Market Remains the Island of Stability

The construction sector was hit hard by a downturn in 2023, but the thermal insulation market was not severely impacted by the steep decline (-2.6%) thanks to widespread European and governmental measures. Following a period of stagnation in 2024, the market is expected to rebound by the year 2025, according to a study by Interconnection Consulting.

Germany Is the Biggest Market

The EU aims to be climate-neutral by 2050, which supports by numerous subsidies with cooperation with national governments measures. This has created a protective cushion, that prevented the insulation market from collapsing significantly in 2023 and will help it rebound earlier. In 2023, the market fell more in value (-4.3%) than in quantity (-2.6%), as the prices partially stabilised after two years of heightened demand, inflation, higher prices of energy and inputs, which pulled the prices dramatically high.

Projections indicate that by 2027, the volume of insulation market is expected to reach 226.9 million cubic meters across the surveyed European countries, with a compound annual growth rate of 2.2% compared to 2023. Nonetheless, the analysis forecasts a rebound, with the market value projected to reach 21,296.8 million euros by 2027.

The largest thermal insulation market is Germany with a share of 18%, followed by Poland with a share of 14.6% in terms of quantity. Together with Great Britain and France from TOP4 countries, they hold almost 54% of European insulation market.

Mineral Wool as the Preferred Insulation Solution

Mineral wool retained its dominance in terms of sold quantity, commanding a market share of 39.9% in 2023, followed closely by polystyrene at 36.6%, and PUR/PIR at 13.8%. Notably, there’s a discernible shift away from polystyrene towards other product categories in several countries, attributed partly to concerns over its limited fire resistance despite its cost-effectiveness.

Bio-insulation products are witnessing a surge in demand across most European nations, buoyed by government support and growing ecological awareness among consumers. Although currently holding a smaller market share, bio-insulation products exhibit the highest growth potential.

The Renovation Segment Strengthens Its Market Position

Roughly half of the sales are allocated to walls, with roofs accounting for approximately one-third, and floors making up 12.9%. The primary purchasing segment is residential construction, constituting over 66% of the market. New construction is just ahead of the renovation segment with about 58.5% respectively 41.5%, where renovation is expected for growth in next years.

The most important companies in the European market are (alphabetically): Austrotherm, Baumit, DOW, Ecotherm, ISOVER, Kingspan, Knauf, Owens Corning, Paroc, Recticel, Rockwool, Ruukki, Saint-Gobain Weber, Sto, Sundolitt, Swisspor, Synthos, URSA.

The study examined: Germany, Austria, Switzerland, Spain, Italy, France, UK, Netherlands, Belgium, Sweden, Czech Republic, Slovakia, Poland, Romania, Türkiye