The market for insulation materials in the DACH region (Germany, Austria, Switzerland) picked up again last year after a pandemic-related decline in 2020 and, in terms of volume, almost reached the pre-crisis level with 46.8 million cubic metres. This year, sales will increase by a further 5%, as a new study by Interconnection Consulting shows.

Overall, the turnover volume in the DACH region rose by 16.7% last year, also caused by price increases. Driven by EU regulations and government incentives, the market for insulation materials will continue to flourish in the coming years. After all, 40% of total energy consumption and 35% of total greenhouse gas emissions are caused by buildings. Switzerland in particular will see strong growth in the coming years. The Interconnection forecast assumes that the growth rate in Switzerland will be 5.5% per year until 2025. The growth forecast is somewhat lower in Austria (3.9%) and Germany (3.6%). Overall, Germany is by far the largest market with a share of about 80% or a market volume of 2.7 billion euros (Austria 11%, Switzerland 9%).

Mineral Wool in Strong Demand

Mineral wool dominates the market in the DACH region even more than in the rest of Europe with a share of 55.6%. Polystyrene follows at a respectable distance with 27.2%. PUR/PIR (polyurethane/polyiso rigid foam) shows the highest growth rates, but with a volume share of 8.7% it is still a niche product.

Renovation Instead of New Construction

Just under half of the sales are used for walls (43.5%), followed by ceilings with about one third of the sales and floors with 12%. The most important sales segment is residential construction with a share of almost three quarters (73.3%). While new construction predominates in Europe as a whole, the renovation sector is just ahead in the DACH region with 51.6% in 2021. Important companies in the European market are (alphabetically): Austrotherm, Baumit, Knauf, Weber.

The insulation market in Europe was not as badly affected by the Corona crisis as other sectors, and was already able to exceed pre-crisis levels in 2021. A further increase of 5.5% in volume is expected for 2022, according to a study by Interconnection Consulting.

The insulation market remains dynamic due to the actions of the EU and European governments, which are trying to reduce greenhouse gas emissions through regulations and legislation. “After all, 40% of total energy use and 35% of greenhouse gases are consumed by buildings,” says Giacomo Tomada, author of the study. Spain and Italy are the fastest growing markets in Europe, with sales growth of 7.3 and 7.2% respectively. These above-average growth figures are partly due to the sharp downturn experienced by the two southern European economies in 2020. However, when it comes to the overall market, these two countries only play a subordinate role. Italy’s share of turnover is 3.7% and Spain’s 3.3%. The largest markets are Germany with a share of 17.9% and the UK with 14.1%. The largest markets in terms of volume are Germany with sales of 37.7 million cubic metres followed by Poland 31.1 and UK 22.0 million cubic metres.

Mineral Wool Dominates in Europe

Mineral wool is the most important insulation material with a share of about 42% in volume followed by polystyrene with 33.7% in volume. Mineral wool is also the top-selling insulation material in Europe with a share of almost 40%. PUR/PIR (polyurethane/polyiso rigid foam) comes in second with 27.9%. The PIR insulating materials are a further development of the PUR insulating materials that have been used since the 1960s. PUR/PIR is also the product segment with the greatest growth potential in the coming years.

Residential Construction Rules the Insulation Industry

About half of sales are used for walls, followed by ceilings with about one third of sales and floors with 13%. The most important purchasing segment is residential construction with a share of more than two thirds (68.8%). New construction is just ahead of the renovation segment with about 55:45. The most important companies in the European market are (alphabetically): Armacell, Austrotherm, Baumit, Ceresit, ISOVER, Kingspan, Knauf, Paroc, Rockwool, Ruuki, Sto, Weber, Xella.

The study examined: Germany, Austria, Switzerland, Spain, Italy, France, UK, Netherlands, Belgium, Sweden, Czech Republic, Slovakia, Poland, Romania, in addition, the study analysed the countries: Turkey, China, Saudi Arabia and Russia.