Competitive landscape of the EU's insulation materials industry for energy-efficient buildings

In the context of meeting the EU energy savings targets and improving the energy efficiency of buildings, this report looks at the competitiveness of the European industry of thermal insulation materials needed for the renovation of Europe's building stock. Insulation materials could contribute significantly to improving the overall energy efficiency and sustainability of the buildings, especially by reducing the energy losses through the building envelope (walls, roofs, floors, etc.). Driven by governmental measures to reduce greenhouse gas emissions, improve cost efficiency and adopt regulations on energy efficient buildings, the global demand for thermal insulation materials in building applications is projected to increase at a CAGR of 4.5 % between 2016 and 2027. In the EU the demand for thermal insulation materials is estimated at 3.48 % (2015-2027). Wool minerals (glass and stone wool) and plastic foams (EPS, XPS, PUR) are the most required materials for building insulation. By analysing the competitive intensity of the global building insulation market and making a SWOT study of the major European companies operating in the insulation materials industrial sector, it is shown that the competitiveness of the European industry of thermal insulation materials in relation to other international competitors is moderate to strong. Six out of the top 10 manufacturers are European companies and some of them are world leaders in production of insulation materials (e.g. stone wool). Overall, the EU is a net exporter of insulation materials. With many other European companies acting at different steps of the value chain of insulation products, the current supply of insulation materials in the EU could be considered as sustainable. Following the adoption of the EU legislation on energy-efficient buildings and in order to meet the increasing insulation requirements needed in buildings, the European industry should strengthen its innovation capability and look further to the development of advanced insulation materials (e.g. super insulating materials (SIM), phase change materials, etc.) for both renovation of the EU building stock as well as construction of 'near-zero-energy buildings'.